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A red light could mean a range of things: a temporary glitch, a false alarm (also called a nuisance trip), a utility grid hiccup, or even a software update in progress. Sometimes, though, it can point to more technical issues like a ground fault, or even an inverter. . Seeing a red light on your solar inverter can be a little alarming—but it's not always a sign of something serious. In many cases, it's just your system's way of letting you know it noticed something out of the ordinary. This could relate to input voltage variations, 3. The audible sound of the cooling fans running is another cue. This light usually indicates that the inverter has detected some sort of fault or error that needs urgent attention.