Solar Terms and Defintions

Cost Adder: Ensuring Quality in Solar Installations

The term “Cost Adder” refers to additional expenses required to ensure the completion of a secure and high-quality solar installation. These costs are typically calculated as a per-watt rate or a fixed dollar amount. They encompass a range of factors that contribute to the excellence, reliability, and safety of solar installation.

Alternating Current (AC): Powering Homes and Businesses

Alternating Current (AC) is a widely used form of electric current that oscillates its direction at regular intervals as it travels through conductors. AC is the primary source of power for residences and commercial establishments, providing the necessary energy to sustain their operations.

American Recovery and Reinvestment Act of 2009 (Recovery Act): Boosting Renewable Energy Investment

Passed in 2009, the American Recovery and Reinvestment Act played a pivotal role in amplifying investments in renewable energy initiatives. This federal stimulus package facilitated the expansion of renewable energy projects and introduced the uncapped 30 percent Solar Investment Tax Credit (ITC) as an authorized incentive.

Array: Synonymous with Photovoltaic System

The term “Array” is synonymous with “Photovoltaic System.” It denotes an assemblage of interconnected solar panels functioning collectively to capture sunlight and transform it into usable electricity. The arrangement is meticulously designed to optimize energy generation and efficiency.

Authority Having Jurisdiction: Enforcing Codes and Standards

The Authority Having Jurisdiction (AHJ) encompasses entities, offices, or individuals responsible for enforcing code and standard requirements. Additionally, they play a crucial role in granting approval for equipment, materials, installations, or procedures. The AHJ operates in accordance with established codes, ensuring public safety. This authority can manifest at federal, state, local, or regional levels, with building officials, electrical inspectors, and similar roles holding statutory authority.

Avoided Cost of Power: Calculating Solar Savings

The Avoided Cost of Power encapsulates the financial advantage that solar adopters gain by producing their electricity. This calculation involves determining the disparity between the cost of electricity from the utility and the expense of solar-generated electricity throughout the solar photovoltaic (PV) system’s operational lifespan.

Bill of Materials (BOM): Comprehensive Construction Inventory

A Bill of Materials (BOM) presents an exhaustive list of raw materials, components, and detailed instructions essential for the construction, manufacturing, or repair of a specific product or service. In the context of solar installations, the BOM enumerates every element required to assemble a solar energy system, facilitating precise planning and execution.

Building Permit: Official Construction Approval

A Building Permit is an official endorsement granted by local government entities, permitting contractors to proceed with construction or renovation projects. Its primary function is to ensure that the project adheres to local guidelines concerning land use, zoning, and construction standards, thereby guaranteeing safety and compliance.

Computer-Aided Design (CAD): Detailed Solar System Blueprints

Computer-Aided Design (CAD) drawings provide meticulously crafted design documents using computer technology. These documents offer detailed representations of solar energy systems and are pivotal for the permitting process. CAD drawings encompass the system’s specifications and layout, crucial for a successful installation.

Central Inverter: Core of Solar Energy Conversion

A Central Inverter, also known as an inverter, is a central device that converts direct current (DC) electricity from solar panels into alternating current (AC) electricity. This AC electricity is used in homes, businesses, or supplied to the electric grid. The central inverter’s role is pivotal in integrating solar power into existing electrical systems.

Change Order: Modifying Solar Contracts

A Change Order is a formal document used to communicate amendments to the original terms of a solar contract. It outlines changes in project scope, pricing adjustments, and any other relevant modifications. Both the contractor and the customer’s signatures often validate these changes, ensuring transparency and accountability in evolving project phases.

Conductor: Facilitating Electric Current Flow

Conductors are materials that facilitate the flow of electric current in one or multiple directions. Copper wires, commonly used in transmission and distribution lines, exemplify conductors’ ability to enable electricity transmission within electrical systems.

Cost per Acquisition: Evaluating Customer Acquisition Investment

Cost per Acquisition quantifies the total expenses incurred by an entity to acquire a new customer. This metric encompasses all costs, spanning advertising efforts to the finalized sale, offering insights into the efficiency of customer acquisition strategies.

Delivery Charges: Covering Electricity Transport Expenses

Delivery Charges, imposed by utility companies, cover the costs of transporting electricity to consumers. These charges encompass distribution, transmission, grid maintenance, and other operational costs crucial for efficiently delivering electricity within the grid.

Demand Charges: Reflecting Peak Electricity Usage

Demand Charges represent a billing structure increasingly adopted by utility companies. Calculated based on the maximum electricity usage during a billing cycle, these charges emphasize peak consumption moments. This pricing model encourages customers to manage and reduce energy consumption during high-demand periods.

Derate: Controlled Inverter Power Reduction

Derating entails a controlled reduction of inverter power. This process involves downsizing the main breaker in the main service panel, accommodating the increased load introduced by a solar energy system. This strategic adjustment ensures the electrical system’s safety and functionality following solar installation.

Direct Current (DC): Solar Panel-Generated Electricity

Direct Current (DC) characterizes the type of electric current produced by solar panels. It flows uniformly in one direction through conductors, generally at low voltage and high current. Solar panels generate DC electricity through the photovoltaic process.

Distribution: Concluding Electrical Grid Stage

Distribution marks the final phase of the electrical grid, comprising utility poles, power lines, and transformers. These components collectively distribute low-voltage electricity to residences and businesses connected to the grid, facilitating energy consumption.

Distributed Energy Resource (DER): Elevating Energy System Performance

Distributed Energy Resources encompass various technologies supplying electricity to the electric grid at the distribution level. These technologies encompass power generation, energy management, and storage systems, collectively enhancing the energy system’s efficiency.

Economy of Scale: Driving Down Costs Through Increased Production

Economy of Scale represents the cost advantages achieved when heightened demand and production levels lead to a reduction in the cost per unit output of a product or service. As production scales up, operational efficiencies and optimized resource utilization contribute to lowered expenses, resulting in improved cost-effectiveness.

Electric Bill: Equivalent to Utility Bill

The term “Electric Bill” is synonymous with “Utility Bill.” It refers to the comprehensive invoice issued periodically by utility companies, encompassing charges for services such as electricity, water, waste disposal, and more. This bill outlines the fees associated with consumption and is used for billing and monitoring purposes.

Electric Bill Savings: Corresponding to Utility Bill Savings

Electric Bill Savings mirror Utility Bill Savings, indicating the monetary amount that customers conserve by transitioning to solar energy. These savings are computed by comparing the costs of electricity from the utility company to the expenses of solar-generated electricity over the solar PV system’s operational lifespan.

Electric Grid: Integrated Power Distribution Network

The Electric Grid is a unified network composed of power generation facilities, transmission networks, and distribution networks. This intricate system collectively facilitates the delivery of electricity to customers across an extensive area. Power generation, transmission, and distribution are interwoven within the electric grid, ensuring reliable and widespread energy supply.

Electric Meter: Quantifying Energy Consumption

An Electric Meter is a device used to quantify the quantity of electricity produced or consumed by residential and commercial properties. Utility companies utilize these meters for monitoring usage and billing purposes, aiding in the accurate assessment of energy-related expenses.

Electricity Charges: Covering Power Generation Costs

Electricity Charges encompass fees imposed by utility companies, intended to cover the expenses associated with power generation at generation facilities. These charges encompass the costs of producing electricity, which is then distributed to customers for consumption via the electric grid.

Energy Policy Act of 1992: Shaping Renewable Energy Incentives

The Energy Policy Act of 1992 marked the final federal energy legislation of the twentieth century. This legislative milestone played a pivotal role in establishing incentives for renewable energy adoption and solidifying the permanence of the 10 percent commercial investment tax credit.

Energy Policy Act of 2005 (EPAct): Pioneering 21st-Century Energy Legislation

The Energy Policy Act of 2005 stands as the first energy legislation of the twenty-first century. This pivotal legislation expanded the scope of federal renewable energy incentives and reinstated the investment tax credit for residential solar energy systems, further incentivizing the adoption of solar power.

Energy Tax Act of 1978: Propelling Residential Solar Investment

The Energy Tax Act of 1978, a federal legislation, ushered in the investment tax credit for residential solar investments. Under this act, a 30 percent tax credit was extended to cover the first $2,000, and a 20 percent credit was applied to the subsequent $8,000. Additionally, a 10 percent investment tax credit was made available for various types of solar equipment.

Equipment Warranties: Safeguarding Solar Equipment

Equipment Warranties constitute a category of warranty offerings provided by solar power equipment manufacturers. These warranties provide comprehensive coverage against functional defects, environmental issues, and premature wear and tear related to solar equipment. They assure customers of the quality and reliability of their solar investments.

Feed-In-Tariff (FIT): Encouraging Renewable Energy Generation

Feed-In-Tariff (FIT) represents a form of incentive where renewable energy producers are offered long-term contracts. This system compensates generation facility owners with payments exceeding market prices for the electricity they supply to the electric grid. FITs play a crucial role in promoting the expansion of renewable energy capacity.

Generation: Initiating the Electric Grid

Generation signifies the initial phase of the electric grid, where electricity is generated by power generation facilities. These facilities, often large-scale and centralized fossil fuel power plants, produce high-voltage electricity that is then transmitted to transmission power lines for distribution.

Greenhouse Gas Emissions: Emission Impact of Fossil Fuels

Greenhouse Gas Emissions denote gases with the ability to absorb heat energy radiating from the Earth’s surface. Carbon dioxide and methane are the most prevalent greenhouse gases, emitted during the combustion of fossil fuels in conventional power generation facilities, contributing to global environmental concerns.

Grid-Connected PV System: Tied to the Utility Grid

A Grid-Connected PV System denotes a solar photovoltaic system seamlessly interconnected to the utility grid. This arrangement enables the system to function as a distributed generation facility, channeling excess electricity to the electric grid, thereby enhancing the overall energy supply.

Hard Costs: Tangible Expenses in Solar Installations

Hard Costs encompass tangible expenses linked to photovoltaic solar installations. These costs are quantifiable and predictable and encompass elements such as the expense of solar modules, inverters, racking systems, and other essential equipment.

Historical Usage: Long-Term Energy Consumption Analysis

Historical Usage pertains to the amount of electricity consumed by utility customers over an extended period, often spanning twelve months. Solar companies employ historical usage data to accurately size and tailor solar solutions to meet customers’ energy needs effectively.


Homeowner Association (HOA): Property Regulation and Membership

A Homeowner Association (HOA) is an organization established within a subdivision, planned community, or condominium building. The primary role of an HOA is to formulate and enforce rules and regulations governing the properties and their residents. Individuals who acquire property within the jurisdiction of an HOA are automatically enrolled as members and are required to pay dues referred to as HOA fees. These fees contribute to the management, upkeep, and maintenance of shared amenities and communal spaces.

Interconnection: Linking Distributed Generation to the Grid

Interconnection denotes the technical process by which a utility company permits a distributed generation facility, such as solar panels, to connect with the electric grid. This procedure is generally initiated by a solar company acting on behalf of the customer. The successful interconnection allows the generated electricity to flow into the grid, augmenting the overall energy supply.

Inverter: Converting DC to AC

An Inverter is a device responsible for converting direct current (DC) electricity generated by solar modules into alternating current (AC) electricity. AC electricity is suitable for utilization within homes, businesses, or distribution through the electric grid.

Interconnection Agreement (IA): Regulating Grid Connection

An Interconnection Agreement (IA) is a document that outlines the conditions under which a distributed generation system, such as solar photovoltaics, can be connected to the electric grid. Most utility companies necessitate this agreement for the approval of residential solar system installations.

Installation Agreement (IA): Specifying Solar System Terms

An Installation Agreement (IA) is employed to elucidate the terms and conditions governing a solar installation. Parties involved in the installation process can negotiate the details before formalizing the IA as a legally binding document. In specific states, a letter of agreement can carry legal weight if it bears the signatures of all involved parties.

Investment Tax Credit (ITC): Federal Tax Incentive

The Investment Tax Credit (ITC) is a federal tax incentive offered to eligible solar power investments. This credit provides a reduction in income tax liability, incentivizing individuals and businesses to invest in solar energy systems.

Islanding Effect: Grid Disconnection Misconception

The Islanding Effect arises when a grid-connected distributed generation facility continues producing electricity even when the broader electric grid is offline. This scenario can pose a danger to utility workers who might not realize that the circuit is still energized.

Kilowatt-Hour (kWh): Standard Energy Measurement

A Kilowatt-Hour (kWh) serves as a fundamental unit of electrical power, equivalent to the consumption of 1,000 watts over the span of one hour. This measurement is commonly used to gauge energy usage and quantify the amount of electricity consumed.

Lien Notice: Property Financial Obligation

A Lien Notice is an official notification documented in public records against a property. This notice asserts that a financial obligation remains outstanding and unfulfilled concerning the property. Consequently, a creditor possesses a legal claim to the property, and the lien generally remains in effect until the underlying financial obligation is satisfied.

Lifecycle Emissions: Environmental Impact of Photovoltaic Systems

Lifecycle Emissions refers to the estimated greenhouse gas emissions that arise from the manufacturing, ownership, and operation of a photovoltaic (PV) system throughout its useful lifespan. This calculation takes into account the emissions associated with various stages, including production, installation, maintenance, and eventual decommissioning of the PV system.

Lifecycle Impacts: Environmental Consequences of Photovoltaic Systems

Lifecycle Impacts encompass the projected environmental effects arising from the manufacturing, ownership, and operation of a photovoltaic (PV) system over its operational life. This assessment considers a range of environmental factors impacted by the PV system’s life cycle, including energy consumption, resource utilization, emissions, and waste generation.

Line Side Tap (LST): Simplified Interconnection

A Line Side Tap (LST), also known as a supply-side tap, is an alternative interconnection option used to sidestep the need for a Main Panel Upgrade (MPU). It provides a straightforward means of connecting a photovoltaic (PV) system that exceeds the 120% rule to the existing main service disconnect. The tap is made to the busbars or conductors on the line or utility side of the main service disconnect.

Load: Energy-Consuming Entity

A Load refers to an entity, device, or system that consumes energy, resulting in a demand on the energy-producing system. Loads can encompass various electrical appliances, lighting fixtures, electronics, and other devices that utilize electricity.

Main Panel Upgrade (MPU): Enhancing Electrical Capacity

A Main Panel Upgrade (MPU) involves enhancing the capacity of an existing home electrical service by replacing the current electrical breaker box with a larger one equipped with new circuit breakers. This upgrade is often necessary to accommodate the installation of a solar system, as the increased energy production requires a more substantial electrical capacity.

Main Service Panel (MSP): Home’s Electrical Hub

The Main Service Panel (MSP) serves as the central hub for all electricity within a home. It receives incoming power from the utility company and subsequently distributes it to various circuits supplying lights, outlets, appliances, and other devices throughout the house. For residential solar installations, connection to the MSP may necessitate an upgrade to facilitate the solar system’s integration.

Megawatt (MW): Power Capacity Metric

A Megawatt (MW) is a unit of electrical power equivalent to 1,000 kilowatts or 1 million watts. It is a standard measurement used to quantify the generating capacity of electric power plants.

Meter Spot: Proper Electric Service Panel Placement

The “meter spot” refers to the verified and appropriate location for a new electric service panel. Safety regulations or building codes may dictate that the new panel be situated in a specific position to ensure compliance and safety.

Micro-Inverter: Module-Level Power Conversion

A Micro-Inverter is a device that performs the conversion of direct current (DC) electricity generated by an individual solar module into alternating current (AC) electricity. Multiple micro-inverters can be employed alongside solar modules to generate AC electricity suitable for consumption within homes, businesses, or supply to the electric grid.

Mission Statement: Organizational Purpose and Values

A Mission Statement is a concise declaration that outlines an organization’s core values, ethics, culture, and fundamental objectives. It serves to define the overarching purpose and guiding principles of the organization.

Net Investment: Total Initial Solar Investment

Net Investment refers to the complete amount of money a customer initially invests in a solar energy system, after subtracting the savings and tax credits derived from that investment.

Net Meter: Measuring Grid-Connected Solar

A Net Meter is a secondary electric meter implemented by the utility company for grid-connected solar photovoltaic (PV) installations. It quantifies the amount of power the customer feeds back into the grid, serving as the basis for net metering billing calculations.

Net Metering: Balancing Solar Generation

Net Metering is a utility billing mechanism permitting residential and commercial customers with solar installations to deliver surplus electricity back to the grid. Consequently, they are only charged for their “net” energy consumption, which accounts for the difference between electricity generated and consumed.

Net Metering Bank: Storing Excess Energy

A Net Metering Bank represents a reserve of surplus electricity that a net-metered customer accumulates during daylight hours when their solar system generates more energy than their household consumes. This banked energy can be drawn upon during the nighttime or when energy demand surpasses the solar system’s output.

Offset: Reduction in Electric Bill

Offset refers to the segment of a customer’s electric bill that is diminished due to the energy production from their solar system. Solar power replaces a portion of the electricity that would otherwise have been purchased from the utility company.

One-Call Close: Efficient Sales Outcome

In sales, a One-Call Close signifies a favorable outcome where a customer and sales professional finalize a transaction during the initial sales meeting. This result streamlines the sales cycle and heightens the probability of successfully concluding the deal.

One-Line Diagram: Simplified System Representation

A One-Line Diagram also referred to as a single-line diagram, is a simplified graphical representation encompassing all pertinent electrical components and necessary equipment crucial for the interconnection of a power system. This diagram offers a concise overview of the system’s structure and connectivity.

Payback Period: Investment Recovery Time

The Payback Period signifies the duration needed for an investor to reach the break-even point or recuperate the expenses of their net investment. It indicates the time frame required to offset the initial costs through energy savings or other financial benefits.

Permission to Operate (PTO): Operational Authorization

Permission to Operate (PTO) entails either (a) the consent granted by the utility company to interconnect and operate a Solar Energy System, enabling it to generate and transmit energy to the grid; or (b) validation or evidence that the Solar Energy System, securing the relevant Loan, is finished and producing electricity. This confirmation is subject to the satisfaction of the Program Administrator.

Photon: Light Particle

A Photon is an elemental unit of light energy, behaving as a discrete particle. Photons are fundamental to the science of light and the electromagnetic spectrum.

Photovoltaic Cell (PV Cell): Light-to-Electricity Converter

A Photovoltaic Cell, also called a PV Cell, constitutes an individual component of a solar electric module responsible for the direct transformation of light energy into electrical energy via the photovoltaic effect.

Photovoltaic Effect (PV Effect): Light-Generated Charge

The Photovoltaic Effect arises when light particles (photons) displace electrons within particular materials, generating an electrical charge. This charge can be conveyed by a semiconductor, leading to the production of electricity.

Photovoltaic Module (PV Module): Solar Panel

A Photovoltaic Module, often referred to as a PV Module, is synonymous with a Solar Panel. It is a collection of interconnected photovoltaic cells, designed to capture sunlight and convert it into electrical energy.

Photovoltaic System (PV System): Solar Power System

A Photovoltaic System, or PV System, constitutes a comprehensive and interconnected electrical framework composed of multiple solar modules, inverters, racking, and essential equipment. Its purpose is to convert sunlight into usable electricity.

Power Plants: Electricity Generation Centers

Power Plants are substantial centralized facilities dedicated to the production of electricity. They generally employ various energy sources, including fossil fuels, nuclear power, hydropower, and renewable energy, to generate electrical energy on a larger scale.

Power Purchase Agreement (PPA): Electricity Contract

A Power Purchase Agreement (PPA) is a contractual arrangement prevalent in the energy sector. Under a PPA, an electricity consumer agrees to procure cost-effective and consistent electricity from a third-party generator or operator of a power generation facility.

Positive Externalities: Unintended Positive Effects

Positive Externalities denote the advantageous consequences resulting from a purchase or investment that were not explicitly intended or agreed upon. They are often unanticipated benefits arising from a particular action.

Price Adders: Additional Cost Components

Price Adders, synonymous with Adders, pertain to supplementary costs essential for the realization of a secure and high-quality solar installation. These costs are typically quantified on a per-watt basis or a fixed monetary amount.

Production-Based Incentive (PBI): Generating-Dependent Reward

A Production-Based Incentive (PBI) is a financial benefit granted to the proprietor of a solar power facility based on the quantity of electricity produced by the system. This incentive is directly linked to the actual generation of electricity.

Production Estimates: Anticipated Generation

Production Estimates are the approximations of electricity that solar companies predict a solar PV system will generate. These calculations account for system specifications, weather conditions, shading, and other variables influencing production levels.

Production Guarantee: Performance Assurance

A Production Guarantee involves an agreement between a customer and a solar company. The solar company commits to compensating the customer for any underperformance or equipment repairs covered by the warranty. This ensures a specific and guaranteed level of electricity production.

Production Warranty: Performance Assurance Warranty

A Production Warranty, classified under solar panel manufacturers’ warranties, ensures a predetermined standard of performance and durability for solar panels and equipment over a span of ten to twenty-five years. This type of warranty assures customers of consistent production levels.

Project Manager: Project Oversight

A Project Manager is an individual tasked with planning, organizing, and facilitating communication between solar customers and the solar company throughout the installation process. They are responsible for overseeing the project from contract signing to completion.

Proposal Tool: Efficient Sales Software

A Proposal Tool refers to specialized software employed by solar professionals to craft designs, proposals, and contracts for solar PV systems. This software streamlines the sales process and enhances efficiency within organizations.

Public Utilities Regulatory Policy Act (PURPA): Energy Policy Enabler

The Public Utilities Regulatory Policy Act (PURPA) is a federal policy passed in 1978 with the objective of promoting energy efficiency and renewable energy advancement. It facilitated the integration of net metering and distributed generation resources within the solar power sector.

PVWatts: Solar Production Estimation Tool

PVWatts is a widely used standard tool in the solar industry. Developed by the National Renewable Energy Laboratory (NREL), it is utilized to compute production estimates for grid-connected solar PV systems.

Qualified Lead: Potential Customer Meeting Criteria

A Qualified Lead pertains to a prospective customer who has expressed interest in adopting solar energy and fulfills the minimum prerequisites for considering solar installation. These prerequisites may involve their home’s suitability, financial status, and electricity consumption.

Rate of Return: Investment Recoupment Rate

The Rate of Return signifies the speed at which a customer manages to recover their investment in solar energy. It measures the efficiency of the investment by demonstrating how swiftly the initial costs are compensated for through savings and incentives.

Referral Program: Incentivized Customer Recommendations

A Referral Program is an organized initiative by a solar company that compensates participants for effectively referring potential customers to the organization. Individuals who introduce new customers to the company are rewarded under this program.

Residential Solar: Home-Based Solar Systems

Residential Solar refers to the class of solar energy systems installed on residential properties. These systems convert sunlight into electricity to fulfill the energy demands of the home.

Retail Rate: Comprehensive Kilowatt-Hour Price

The Retail Rate signifies the complete cost per kilowatt-hour charged by utility companies. It includes all expenses related to service provision, electricity generation, and distribution.

Rooftop Solar: Solar on Building Rooftops

Rooftop Solar refers to solar energy systems set up on the roofs of residential and commercial buildings. These systems generate electricity on-site, contributing to the building’s energy needs.

The Sales Cycle: Sales Process Sequence

The Sales Cycle encompasses a sequence of events that transpire from the initial interaction between a salesperson and a potential customer until the point at which a sale is successfully executed. This process entails multiple stages, including customer engagement, information exchange, proposal presentation, negotiation, and finalizing the sale.

Sales Lead: Interested Potential Customer

A Sales Lead refers to a potential customer who demonstrates interest in a particular product or service. This individual has indicated a desire to learn more about the offering and potentially make a purchase.

Sales Pipeline: Potential Customer Progression

A Sales Pipeline comprises a collection of sales leads and potential customers. It’s often employed to predict the number of customers a salesperson might successfully close within a specified timeframe or to gauge the likelihood of meeting sales targets.

Semiconductor: Partial Conductor of Electricity

A Semiconductor is a material with a moderate capacity for conducting electric current. It plays a critical role in the photovoltaic conversion process, enabling the generation of electricity from sunlight.

Silica Oxide (SiO2): Primary Semiconductor Material

Silica Oxide, commonly found in sand, is a semi-metallic chemical element. It serves as the primary semiconductor material in solar photovoltaic devices.

Silicon Wafers: Basis for Solar Cell Manufacturing

Silicon Wafers are thin slices of crystalline silicon, utilized in the production of solar cells. They form the foundation of manufacturing processes in solar technology.

Soft Close: Subtle Sales Approach

A Soft Close is a sales technique that gently guides the customer toward purchasing a product or service without resorting to high-pressure tactics.

Soft Costs: Non-Hardware Expenses

Soft Costs encompass non-hardware expenses related to photovoltaic (PV) systems. Examples include financing, permitting, installation, interconnection, and inspection. These costs are often more challenging to predict.

Solar-as-a-Service: Third-Party Ownership

Solar-as-a-Service refers to third-party ownership models, where a company installs and owns a solar energy system on a customer’s property. The customer pays for the energy produced by the system without bearing the upfront costs.

Solar Access: Unobstructed Sunlight Reception

Solar Access denotes a property’s ability to receive unobstructed sunlight. It ensures that buildings, foliage, or other obstructions on neighboring properties don’t hinder sunlight exposure.

Solar Array: Photovoltaic System

A Solar Array is synonymous with a Photovoltaic System. It’s a connected arrangement of solar panels working collectively to convert sunlight into electricity.

Solar Consultation: Information Exchange Meeting

A Solar Consultation involves a meeting between a solar sales professional and a potential customer. The purpose is to discuss transaction details and associated costs related to adopting solar energy.

Solar Electric Systems: Electricity-Generating Solar Technology

Solar Electric Systems encompass solar technologies that convert sunlight into electricity. They’re employed to supply power to homes and businesses.

Solar Electric Module: Photovoltaic Panel

A Solar Electric Module is another term for a Photovoltaic Panel. It’s an essential component in solar energy systems that converts sunlight into electricity.

Solar Energy Systems: Sunlight-to-Energy Conversion

Solar Energy Systems encompass technologies that transform sunlight into usable energy forms, such as heat, electricity, and mechanical energy.

Solar Investment Tax Credit (ITC): Tax Incentive

The Solar Investment Tax Credit (ITC) is a federal tax incentive that provides credit to qualified solar investments. It aids in reducing the tax liability of individuals or entities adopting solar energy.

Solar Thermal Systems: Capturing Heat Energy

Solar Thermal Systems belong to a solar technology category that captures heat energy from the sun. This energy is utilized in various residential and commercial applications.

Solar Module: Photovoltaic Panel

A Solar Module is synonymous with a Photovoltaic Panel. It’s a collection of photovoltaic solar cells arranged within a framework to generate direct current electricity from sunlight.

Solar Panel: Sunlight-to-Electricity Conversion

A Solar Panel is an assembly of photovoltaic solar cells enclosed in a framework. It converts sunlight into direct current electricity, commonly referred to as solar electricity.

Solar Cell: Energy-Generating Component

A Solar Cell, also known as a Photovoltaic Cell, is a single unit within a solar panel that transforms light energy into electrical energy through the photovoltaic effect.

Solar Loan: Financing for Solar Installations

A Solar Loan is a financing option wherein a homeowner borrows money to fund a solar installation. The borrower pays back the loan amount with interest through monthly installments over a designated period.

Solar Lease: Third-Party Ownership Financing

A Solar Lease represents a financing approach involving third-party ownership. The homeowner enjoys the benefits of a solar system without purchasing or owning the equipment. Instead, they make regular monthly payments over a specific timeframe.

Solar Home Party: Referral Generation Event

A Solar Home Party is a marketing event orchestrated by a solar sales professional. It takes place at the home of an existing solar customer and aims to generate referrals for residential solar sales.

Solar Proposal: Comprehensive Sales Document

A Solar Proposal is a compilation of documents crafted by a solar sales professional. It outlines crucial aspects of a customer’s solar installation, including design details, production estimates, pricing, and other pertinent information necessary for decision-making.

Solar Service Company: Third-Party Ownership Management

A Solar Service Company retains third-party ownership of a solar electric system installed on a customer’s property. In exchange for regular payments, the customer receives the benefits of the system without direct ownership.

String Inverter: Photovoltaic System Component

A String Inverter serves as an Inverter within a photovoltaic system. It converts the direct current electricity generated by multiple solar panels connected in a series (string) into alternating current electricity for use or grid supply.

Third-Party Ownership (TPO): Access to Solar Benefits

Third-Party Ownership (TPO) refers to a financing mechanism where a homeowner enters into an agreement with a third-party entity that owns and operates a solar photovoltaic (PV) system installed on their property. This arrangement enables the homeowner to access stable and cost-effective electricity generated by the solar system.

Tier 2 Systems: Florida Insurance Requirements

Tier 2 Systems pertain to Florida’s insurance regulations for solar installations. The state mandates that homeowners maintain a minimum homeowner’s insurance policy of at least $1 million. This requirement is applicable statewide, with only a few exceptions in smaller utility areas like JEA. The homeowner’s insurance declaration page is typically required during the sale of solar systems.

Tiered Rates: Graduated Electricity Costs

Tiered Rates denote a utility rate structure where the cost of electricity rises as consumption increases, usually after surpassing a certain usage threshold. This structure is designed to charge a higher rate for additional electricity usage beyond a predefined limit.

Time-of-Use (TOU): Time-Sensitive Pricing

Time-of-Use (TOU) pricing is a tariff strategy utilized by utility companies. It involves varying rates based on different time blocks. For instance, residential customers may face higher rates during peak hours on summer weekday afternoons, while lower rates apply during off-peak hours. These rates are predetermined by the utility and vary between regions.

Transmission: High-Voltage Power Delivery

Transmission refers to the stage of the electric grid characterized by high-voltage power lines responsible for transmitting electricity from centralized power plants to distribution networks, which then supply homes and businesses with electricity.

Turnkey Installation: Comprehensive Solar System Setup

A Turnkey Installation involves a solar company completing an entire solar PV system on behalf of the customer. This encompasses various stages, including design, installation, and commissioning, resulting in a fully operational system.

Tariffs: Electric Charge Framework

Tariffs encompass a collection of electric charges that form the basis for calculating retail rates utilized by utility companies for billing customers.

Uniform Commercial Code (UCC): Creditor’s Legal Notice

The Uniform Commercial Code (UCC) is a legal notice filed by creditors to declare their rights to potentially claim the personal properties of debtors who default on business loans.

Usage: Electricity Consumption Monitoring

Usage denotes the amount of electricity consumed by a household or business, monitored over a specific time period. This information is used for billing purposes.

Utility Bill: Detailed Monthly Invoice

A Utility Bill is a comprehensive invoice issued monthly by utility companies. It covers various services like electric, natural gas, water, and waste, reflecting the costs associated with these services.

Utility Bill Savings: Financial Benefits of Going Solar

Utility Bill Savings represent the monetary amount that a customer can save by transitioning to solar energy. It’s calculated by finding the difference between a customer’s utility bill before and after installing solar panels.

Utility-Scale Solar: Large-Scale Solar Projects

Utility-Scale Solar refers to a sector within the solar industry that comprises large-scale solar projects designed to generate significant amounts of electricity. These projects supply wholesale electricity directly to the electric grid, contributing to the overall energy supply.

Utility Service Fee: Grid Connection Charge

A Utility Service Fee is a charge imposed by utility companies on solar customers who remain connected to the grid. This fee covers the cost of grid maintenance and other services that grid-connected customers continue to benefit from, even as they generate their own solar power and potentially supply excess electricity to the grid through net metering.

Workmanship Warranty: Installation Quality Assurance

A Workmanship Warranty falls under the category of warranties that solar companies offer to customers. It provides coverage against any errors or defects that may arise during the installation process. This warranty typically spans five to ten years after the installation of the solar system.

Wholesale Rate: Bulk Electricity Price

Wholesale Rate pertains to the cost at which electricity is sold by power producers on the wholesale market. This includes the electricity generated by power plants and supplied to utility companies for distribution across the grid.

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