There are two types of inverters true sign wave and modified sign wave for the grid tie inverter only the true sign wave can be used and the result is heat is also produced the size is to get rid of the heat.
Heat is a massive problem with inverters as it's not just one semiconductor device but a whole array of field effect transistors (FET's) and it is very easy for one to fail and cause a domino effect with all the others following hence the tendency is to over do the heat sinks to give the auto shut down chance to operate if there is a fault rather then get a whole unit burn out.
The voltage from the panels vary but it is a lot less than the voltage at which the power is used so it could be up to 10 times the current on the DC side to the output AC side so a 3kW panel could be producing 130A not the 13A that a 3kW appliance uses.
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