They inject power into your local single phase circuit, with surplus escaping into the grid. Where it gets no farther than to the next consumer. There are kits with few kWh buffer battery which can aim for zero feed in if you're not feeling altruistic.
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The solar inverter shuts down in milliseconds if it detects that mains power is gone. The reason for it is the one you cited.
This behaviour can be changed with a different firmware.