Today, a consensus has been reached across Chinese society, from policymakers to market practitioners, to continuously increase the penetration rate of renewable energy, including distributed power stations such as photovoltaic, wind, and biomass power generation. Only by leveraging the advantages of distributed generation, fully developing and utilizing various available, dispersed energy sources, and improving energy efficiency can we truly achieve the goals of environmental protection, energy conservation, and emission reduction.Traditional power distribution systems are designed solely to distribute electricity to end users, primarily using vertically connected schemes. Their characteristics include centralized generation and decentralized consumption, with limited interconnectivity between different grid control areas. In the future, the penetration rate of distributed energy resources in China will increase significantly, a key factor driving the gradual shift in grid control models from centralized to distributed, multi-layered control. With increasing liberalization of the electricity market and the continued development of photovoltaic technology, building large-scale power plants presents enormous economic challenges, making the construction of small-scale distributed photovoltaic power plants far more cost-effective.The quality assurance and security of distributed photovoltaic (PV) energy in power supply are highly attractive to countries heavily reliant on fossil fuels and with aging power transmission infrastructure. As distributed technologies mature, power plants ranging from 1kW to 10MW are connected to low-voltage grids to provide electricity to customers. Distributed energy needs to be integrated into the grid rather than simply connected to it.The benefits of incorporating distributed photovoltaic power plants into grid planning are as follows:Short-term benefits: Reduced transmission losses during power transmission and distribution, improved grid service quality and continuity during peak electricity demand, and reduced greenhouse gas emissions.Medium- to long-term benefits: It delays investment in future grid expansion and reduces the need for massive additional power generation equipment to meet peak electricity demand. Distributed photovoltaic power stations are generally required to be deployed at points of electricity consumption, such as urban areas. Furthermore, photovoltaic modules can serve as a tool for public education on photovoltaics, raising public awareness of environmental protection and encouraging the acceptance and use of clean energy.Distributed energy resources are typically integrated into medium- or low-voltage distribution systems, exerting a wide and profound impact on these systems. From a technical perspective, for distributed photovoltaic (PV) power plants integrated into the grid, inverters are crucial for controlling the mutual influence between the two. To better integrate distributed PV power plants with the local power grid and better coordinate the mutual influence between them—such as controlling energy quality and ensuring system and grid security—the core solution lies in the PV inverter.This article analyzes the issue from two aspects: first, the impact of distributed photovoltaic (PV) power plants on the distribution network and the current technical obstacles; second, the impact of the distribution network on distributed PV power plants. The key to resolving the technical problems arising from this mutual influence lies in the inverter. Through exploring the interactive effects, this article outlines the future direction of inverter technology innovation and development.