Using your example again... if each module is operating at 250 watts, meaning each optimizer is operating at 250 watts, and as this would be the ideal condition of max power for each optimizer, 10.625 amps would be the max current delivered to the inverter (if any module produced less wattage due to shading, this would bring the optimizer output current to below 10.625 amps). Would I size the fuse at the inverter, and the source conductors going to it, at 10.625 amps x 1.25 (for continuous current)? so the fuse for this string would be 15 amps, with the wiring sized at #12 AWG. Is this correct?
Also, in a string of optimizers, are they always trying to deliver a constant total voltage? So in this example again, they always try to achieve 400 volts total? or can the total voltage vary?
SolarEdge has white papers on how to design for the NEC, with their systems in mind, as well as how to relate terms you are familiar with for conventional strings to the equivalent term you'd use with their systems. There is also a white paper that explains why string fusing is not needed for up to 3 strings on the same power stage, which is the case for most SolarEdge systems. The physics behind the need for string fusing on conventional isn't applicable to SolarEdge strings. I expect an update on this will come sometime soon to address what is required for 4 strings, a feature of newer models. At one point, SolarEdge had fusing built-in to their inverters where they anticipated 3 strings, but that has since been removed. The algorithm for fuse sizing is 1.25*Imax, if it is required.
This is a rough guide.
Isc straight = no applicable equivalent.
1.25*Isc gets replaced with Imax.
1.56*Isc gets replaced with 1.25*Imax.
Imp gets replaced with Pstc/Vnom.
Vmp gets replaced with Vnom.
Voc gets replaced with Vmax.
The string voltage of 1 Volt per optimizer is called the shutdown standby voltage. This is what "open circuit voltage" would be, if you measure an open circuit. But it is misleading to call it that, when you usually expect "open circuit voltage" to be a maximum voltage.
Imax = maximum optimizer output current (from optimizer datasheet)
Vnom = inverter's target for string voltage (from inverter datasheet)
Vmax = inverter's maximum input voltage (from inverter datasheet)
Pstc = nameplate power at STC of the string
Second question:
The inverters generally aim for the optimizer strings to to have a voltage of Vnom, which is 400V in this example. This isn't exact, and it depends on the happenstance of how the optimizers each respond to the algorithm. The feedback loop aims to get the voltage as close to the 400V target as it can. In the event that the maximum input current of the inverter would otherwise be exceeded, the inverter raises the target input voltage to compensate. At maximum, the input voltage will be Vmax, which is a rare event.
As an example, given a maximum input current of the inverter of 40A, a Vnom of 400V, and an array power of 17 kW (assuming it is all usable) among all 3 strings, the expected inverter input current is 40A and the expected input voltage is 425V.