Solar Power Terms Glossary

Welcome to our comprehensive glossary of solar power terms, tailored specifically for solar power companies and professionals in the industry. This resource is designed to provide clear and concise definitions of key concepts and terminology that are essential for navigating the rapidly evolving solar energy sector. Whether you're an installer, developer, investor, or part of a solar-related business, this glossary will serve as a valuable reference to enhance your understanding and support your efforts in promoting sustainable and renewable energy solutions.

20-Year Battery Monitoring and Warranty
A service provided by Solar Insure that offers 20 years of monitoring and warranty coverage for solar battery systems, including replacement if battery capacity significantly decreases after a certain period.

30-Year Monitoring and Warranty
A comprehensive product from Solar Insure that provides 30 years of monitoring and warranty protection for solar installations, covering both equipment and workmanship.

Alternative Energy
Energy sourced from non-traditional, renewable resources that have minimal environmental impact, such as solar, wind, geothermal, and hydroelectric power.

Array (Solar Array)
A collection of interconnected solar panels working together to generate electricity from sunlight.

Azimuth (Roof Orientation)
The compass direction that a roof surface faces, which is crucial for determining the optimal placement of solar panels to maximize sunlight exposure.

Balance of System (BOS)
All components of a solar photovoltaic system excluding the solar panels, including inverters, wiring, mounting structures, and monitoring equipment.

Battery Storage (Solar Batteries)
Devices that store excess electricity generated by solar panels for later use, ensuring power availability during periods without sunlight or during outages.

Bill Credit
Credits applied to a customer's utility bill for excess electricity their solar system generates and feeds back into the grid, reducing overall energy costs.

Building-Integrated Photovoltaic (BIPV)
Solar panels that are integrated directly into building materials, such as roof shingles or facades, serving both as structural elements and energy generators.

Certificate to Product Warranty Registration Form
A document provided after solar system installation that initiates the monitoring and warranty coverage, marking the official start of protection services.

Community Solar
A solar power project where multiple participants share the benefits of a single solar array, allowing individuals or businesses to receive credits on their electricity bills without installing panels on their property.

Contractor’s Liability Insurance
Insurance coverage that protects contractors against claims of property damage or injury during the installation of solar systems.

Depreciation-Based Incentives
Financial incentives that allow solar system owners, particularly businesses, to deduct the depreciated value of their solar assets from taxable income.

Demand Charges
Fees imposed by utilities based on the highest rate of electricity usage during a billing cycle, commonly affecting commercial customers.

Developer
An entity responsible for planning, constructing, and sometimes owning solar projects, including large-scale installations and community solar initiatives.

Electrical/Electric/Utility Grid
The interconnected network that delivers electricity from producers to consumers, facilitating the distribution of power across regions.

Energy Audit
An assessment of a property's energy consumption aimed at identifying opportunities to improve efficiency and reduce energy costs.

Feed-in Tariff (FiT)
A policy mechanism that provides payments to energy producers for the electricity they generate and supply to the grid, encouraging investment in renewable energy.

Federal Investment Tax Credit (ITC)
A federal incentive that allows solar system owners to deduct a percentage of their installation costs from their federal taxes, significantly reducing upfront expenses.

Filing a Claim
The process of requesting service or compensation under a warranty or insurance policy due to equipment failure, damage, or defects in a solar system.

Gigawatt (GW)
A unit of power equal to one billion watts, used to measure the capacity of large-scale power generation systems.

Grid Connection/Grid-Connected System
The linkage of a solar photovoltaic system to the public electricity grid, allowing for the exchange of electricity between the system and the utility.

Grid Parity
The point at which the cost of producing power from renewable sources equals or is less than the cost of purchasing power from the traditional utility grid.

Ground-Mounted Solar
Solar installations where panels are mounted on the ground rather than on rooftops, often used for large-scale or utility projects.

Homeowner’s Insurance Policy
Insurance that protects homeowners from losses due to property damage, which may include coverage for solar panels installed on the home.

Inverter
A device that converts the direct current (DC) electricity produced by solar panels into alternating current (AC) electricity used by homes and businesses.

Interconnection Agreement
A contract between a solar system owner and a utility company outlining the terms and conditions for connecting the solar system to the electrical grid.

Installer (Solar Installer/Solar Panel Contractors)
Professionals or companies that specialize in installing solar photovoltaic systems on residential or commercial properties.

Investor
An individual or organization that provides capital for solar projects in exchange for financial returns, playing a key role in funding solar developments.

Kilowatt (kW)
A unit of power equal to one thousand watts, commonly used to express the output capacity of solar panels or systems.

Kilowatt-Hour (kWh)
A unit of energy representing one kilowatt of power used over one hour, used to measure electricity consumption and production.

Levelized Cost of Energy (LCOE)
An economic assessment of the average total cost to build and operate a solar system divided by the total energy output over its lifetime, allowing comparison across different energy sources.

Low-and-Moderate Income (LMI) Communities
Communities with median household incomes below a certain threshold, often targeted for special solar programs to increase access to renewable energy.

Megawatt (MW)
A unit of power equal to one million watts, used to measure the capacity of larger solar installations and power plants.

Microinverter
A small inverter installed at each solar panel, allowing for individual optimization and conversion of DC electricity to AC electricity at the panel level.

Module-Level Power Electronics (MLPE)
Devices such as microinverters or power optimizers installed on individual solar panels to enhance performance and provide detailed monitoring.

Monitoring System (Solar Monitoring)
Technology that tracks and displays the performance and energy production of a solar system, often accessible via web portals or mobile apps.

Mounting Hardware (Racking System)
Structural components used to securely attach solar panels to roofs or the ground, ensuring proper alignment and stability.

Net Metering
A billing arrangement where solar energy producers receive credits for excess electricity they feed back into the grid, offsetting the cost of power drawn from the utility.

Off-Grid System
A solar photovoltaic system that operates independently of the public electricity grid, typically using battery storage to provide power at all times.

O&M (Operation and Maintenance)
Ongoing activities required to ensure a solar system operates efficiently, including routine inspections, cleaning, and necessary repairs.

Payback Period
The time it takes for the financial benefits and savings from a solar investment to equal the initial installation cost.

Peak Sun Hours
The average number of hours per day when solar irradiance reaches a standard value of 1,000 watts per square meter, used to estimate solar energy production potential.

Performance-Based Incentive (PBI)
A financial incentive that provides payments based on the actual energy produced by a solar system over time, encouraging optimal performance.

Performance Ratio (PR)
A metric that measures the efficiency of a solar system by comparing its actual energy output to the theoretical maximum output under ideal conditions.

Permission to Operate (PTO)
Official authorization from a utility company allowing a solar system to be turned on and begin generating electricity after passing all inspections.

Photovoltaic (PV)
Technology that converts sunlight directly into electricity using semiconductor materials in solar cells.

Photovoltaic Cell (PV Cell/Solar Cell)
The basic unit of a solar panel that converts light into electricity through the photovoltaic effect.

Power Optimizer
A device attached to individual solar panels that maximizes energy output by adjusting electrical characteristics to match optimal conditions.

Power Output/Rating
The amount of electricity a solar panel or system can produce under standard testing conditions, typically measured in watts.

Power Purchase Agreement (PPA)
A financing arrangement where a solar provider installs and owns a solar system on a customer's property and sells the generated electricity to the customer at an agreed-upon rate.

Price per Watt ($/W)
A metric used to evaluate the cost of solar installations, calculated by dividing the total system cost by its power capacity in watts.

Production Ratio
The ratio of the actual energy produced by a solar system over a year to its expected output, accounting for real-world conditions.

Property-Assessed Clean Energy (PACE)
A financing program that allows property owners to fund solar and energy efficiency projects through an assessment added to their property tax bill.

Provider
An entity that offers solar services, including system installation, maintenance, financing, and sometimes energy supply agreements.

Renewable Energy
Energy generated from natural resources that are continuously replenished, such as sunlight, wind, and geothermal heat.

Renewable Energy Certificate (REC)
A market-based instrument representing the property rights to the environmental benefits of generating one megawatt-hour of renewable energy.

RMA Process
Return Merchandise Authorization process required to return defective solar equipment under warranty for repair or replacement.

Roof Orientation (Azimuth)
The compass direction that a roof faces, which affects the amount of sunlight available for solar panels and influences system design.

Roof Penetrations
Points where mounting hardware attaches solar panels to a roof, requiring proper sealing to prevent water leaks and maintain roof integrity.

Semiconductor
A material, such as silicon, used in solar cells that can conduct electricity under certain conditions, essential for converting sunlight into electrical energy.

Single-Line Diagram (SLD)
A simplified electrical schematic that illustrates how components of a solar system are connected, used for planning and permitting.

Site Assessment
An evaluation of a property's suitability for solar installation, considering factors like sunlight exposure, shading, roof condition, and structural support.

Soiling
The accumulation of dirt, dust, or debris on solar panels that can reduce their efficiency by blocking sunlight.

Solar Array
A grouping of multiple solar panels connected together to increase the overall power output of a solar system.

Solar Batteries (Battery Storage)
Energy storage systems that allow solar-generated electricity to be stored for use when solar panels are not producing power.

Solar Canopy
An elevated structure that supports solar panels above ground level, providing shade and generating electricity, often used over parking lots or walkways.

Solar Carport
A type of solar canopy specifically designed to cover parking spaces, combining vehicle shelter with solar energy generation.

Solar Dealer
A company that sells solar equipment and may offer additional services such as installation, maintenance, and financing.

Solar Design
The process of creating a solar system layout that maximizes energy production and meets specific site requirements and client goals.

Solar Efficiency (Solar Panel Efficiency)
A measure of how effectively a solar panel converts sunlight into usable electricity, expressed as a percentage.

Solar Energy
Energy harnessed from the sun's radiation, which can be converted into electricity or used directly for heating.

Solar Financing
Financial solutions that enable customers to afford solar installations, including loans, leases, PPAs, and incentive programs.

Solar Incentives
Financial benefits offered by governments, utilities, or organizations to encourage the adoption of solar energy, such as tax credits and rebates.

Solar Insolation
The amount of solar radiation energy received on a specific surface area during a set time period, important for estimating potential solar energy production.

Solar Insure Approved Vendor List
A list of manufacturers and products that are covered under Solar Insure's warranty and monitoring programs.

Solar Insure Certified Installers
Installers who have met Solar Insure's standards and are authorized to offer their warranty and monitoring products.

Solar Insure Elite Certified Installers
Top-performing installers recognized by Solar Insure for excellence in service and authorized to provide their protection plans.

Solar Insure Partners
Organizations that collaborate with Solar Insure to support solar installers and customers, enhancing service offerings and resources.

Solar Installer
A professional or company specializing in the installation of solar photovoltaic systems for residential or commercial customers.

Solar Lease
A financing arrangement where a customer leases a solar system from a provider, paying a fixed monthly fee without owning the equipment.

Solar Lease Escalator
A clause in a solar lease or PPA contract that increases the payment rate by a predetermined percentage each year.

Solar Loan
A financing option that allows customers to borrow money to purchase a solar system, repaying the loan over time while owning the equipment.

Solar Manufacturer Default Coverage
Insurance protection that covers losses if a solar manufacturer ceases operations and cannot fulfill warranty obligations.

Solar Module (Solar Panel)
An assembly of interconnected solar cells packaged together, designed to capture sunlight and convert it into electricity.

Solar Panel Cleaning
The maintenance practice of removing accumulated debris from solar panels to ensure optimal energy production.

Solar Panel Contractors
Professionals who manage and execute the installation of solar panels, including planning, permitting, and overseeing installation crews.

Solar Panel Efficiency
The proportion of sunlight that a solar panel can convert into electrical energy, indicating the panel's performance level.

Solar Permitting
The process of obtaining necessary permits and approvals from local authorities before installing a solar photovoltaic system.

Solar Plus Storage
A solar energy system that includes battery storage, allowing excess energy to be stored for later use and providing backup power.

Solar Power
Electricity generated by converting sunlight using photovoltaic cells or concentrated solar power systems.

Solar Power Plant
A large-scale solar installation designed to generate electricity for distribution through the electrical grid, serving multiple customers.

Solar Renewable Energy Certificate (SREC)
A tradable certificate representing one megawatt-hour of solar electricity generated, which can be sold to utilities to meet renewable energy mandates.

Solar Shading
Obstructions such as trees or buildings that block sunlight from reaching solar panels, potentially reducing system efficiency.

Solar Shingles (or Tiles)
Roofing materials that incorporate photovoltaic cells, serving dual purposes of roof protection and electricity generation.

Solar Storage
Systems that store solar energy, typically using batteries, to provide power when solar production is low or during peak demand times.

Solar Thermal
Technology that captures sunlight to produce heat, which can be used for heating spaces, water, or generating electricity.

Solar-Plus-Storage
An integrated system combining solar power generation with energy storage capabilities to enhance energy independence and reliability.

String Inverter
An inverter connected to a series (string) of solar panels, converting their combined DC output into AC electricity for use.

Subscriber
An individual or business that participates in a community solar program, receiving benefits such as bill credits from shared solar energy production.

Sun Path
The trajectory of the sun across the sky, which influences the design and placement of solar panels to maximize exposure.

Tax Credit
An incentive that allows taxpayers to reduce the amount of tax owed, often provided to encourage investments in solar energy systems.

Temperature Coefficient
A specification that indicates how a solar panel's performance changes with temperature, affecting efficiency in different climates.

Thin-Film Solar
A type of solar cell made by depositing thin layers of photovoltaic material onto a substrate, resulting in flexible and lightweight panels.

Third-Party Owner (TPO)
A company that owns solar equipment installed on a customer's property under a lease or PPA, responsible for maintenance and performance.

Tilt Angle
The angle at which solar panels are installed relative to the ground, optimized to capture the maximum amount of sunlight.

Time-of-Use (TOU) Rates
Electricity pricing that varies based on the time of day, encouraging consumers to shift energy usage to off-peak periods for cost savings.

Tiered Rates
A utility billing structure where the cost per unit of electricity increases as more energy is consumed, promoting energy conservation.

Tracker
A mounting system that moves solar panels to follow the sun's path throughout the day, increasing energy production by maintaining optimal orientation.

Virtual Net Metering (VNM)
A billing arrangement that allows energy credits from a shared solar system to be distributed among multiple customers, commonly used in community solar projects.

Warranty
A guarantee provided by manufacturers or installers covering the repair or replacement of solar equipment due to defects or performance issues.

Watt (W)
A unit of power measuring the rate of energy conversion or transfer, used to quantify the output capacity of solar panels.

Zero Net Energy
A building or home that produces as much energy as it consumes over a specified period, typically achieved through energy efficiency and renewable energy generation.