AC (Alternating Current)
The type of electricity used in homes. Solar panels produce DC, which inverters convert to AC.
Azimuth
The compass direction your roof faces. In the northern hemisphere, 180° (South) is ideal for solar.
Buyback Rate
The price a utility pays you for excess solar energy sent to the grid. Often lower than the retail rate.
Clipping
When solar panels produce more power than the inverter can handle, the excess is "clipped" or lost. This is normal during peak sun hours.
DC (Direct Current)
The raw electricity produced by solar panels and stored in batteries.
Degradation
The slow loss of panel efficiency over time. Standard panels degrade about 0.5% per year.
Inverter
The brain of the system. Converts DC to AC. Types include String, Microinverters, and Hybrid.
ITC (Investment Tax Credit)
A federal incentive allowing you to deduct 30% of the cost of installing a solar system from your federal taxes.
Irradiance
The power of solar radiation per unit area (Watts per square meter). Higher irradiance means more energy.
kWh (Kilowatt-hour)
A unit of energy. Running a 1,000-watt appliance for one hour uses 1 kWh. This is how you are billed.
Microinverter
Small inverters attached to each individual panel. They optimize performance if part of the roof is shaded.
MPPT (Max Power Point Tracking)
Technology in inverters that constantly adjusts electrical load to get the maximum power from panels.
Net Metering
A billing mechanism where you get full credit (1-for-1) for energy you export to the grid.
Payback Period
The time it takes for electricity savings to equal the initial cost of the system. (Formula: Net Cost / Annual Savings)
PPA (Power Purchase Agreement)
A financial arrangement where a third party owns the solar system on your roof, and you buy the power from them.
Prosumer
Someone who both consumes and produces electricity.
PTO (Permission to Operate)
Official approval from your utility company allowing you to turn your system on.
Shading
Obstruction of sunlight. Even small shading on one panel can impact a whole string without optimizers.
SREC (Solar Renewable Energy Credit)
Tradable certificates representing the environmental benefit of generating 1 MWh of solar.
String Inverter
A central inverter that connects a series of panels. Cost-effective but susceptible to single-point failure/shading.
System Size (kW)
The maximum power output of your array. (Formula: Daily kWh Needs / Peak Sun Hours / Efficiency Factor).
Time-of-Use (TOU)
Utility rates that change based on time of day. Solar + Battery is best for avoiding expensive peak rates.
True-Up Bill
An annual statement from the utility reconciling all your credits and charges for the year.
Utility-Scale
Massive solar farms generating power for the grid, distinct from residential (rooftop) solar.
No terms found.
Navigating