Energy Glossary
Search and explore definitions of common solar, battery, and renewable energy terms.
kWh (Kilowatt-hour)
UnitsA unit of energy equal to 1,000 watts used for one hour. This is how utilities measure your electricity usage.
Why It Matters
Every line on your electric bill is priced per kWh. Understanding this unit lets you compare costs, judge solar system sizes, and track savings.
Example
Running a 100-watt light bulb for 10 hours uses 1 kWh. The national average price is about 16¢ per kWh.
Related Terms
Watt (W) · Load Profile
Net Metering
PolicyA billing mechanism that credits solar energy system owners for the electricity they add to the grid. The excess power generated during the day offsets power consumed at night.
Why It Matters
Net metering is the single biggest factor in solar economics. In states with full retail-rate net metering, your solar system can effectively spin your meter backwards, dramatically shortening payback.
Example
If your panels produce 40 kWh on a sunny day but you only use 25 kWh at home, the remaining 15 kWh are credited to your account at the retail rate.
Related Terms
Virtual Net Metering · Feed-in Tariff · Grid-Tied System
Solar Panel
EquipmentA photovoltaic (PV) module that converts sunlight into electricity. Multiple panels are combined to form a solar array.
Why It Matters
Panels are the core of any solar system. Their efficiency, warranty length, and degradation rate directly affect how much energy you produce over 25+ years.
Example
A typical residential panel is rated at 400W and measures about 6.5 ft × 3.5 ft. A 8 kW system would use roughly 20 panels.
Related Terms
Module Efficiency · Degradation Rate · Inverter
Inverter
EquipmentA device that converts direct current (DC) electricity from solar panels into alternating current (AC) electricity used by your home.
Why It Matters
The inverter is the "brain" of your system. Its efficiency (typically 96-99%) determines how much of the DC power from panels actually becomes usable AC power.
Example
A 7.6 kW string inverter converts the combined DC output of your entire array. If one panel is shaded, it can reduce the output of the entire string.
Related Terms
Microinverter · String Inverter · DC (Direct Current) · AC (Alternating Current)
Battery Storage
EquipmentA system that stores excess solar energy for use when the sun isn't shining, providing backup power during outages.
Why It Matters
Batteries let you use your own solar power at night, avoid peak TOU rates, and keep critical loads running during blackouts. They're increasingly cost-effective as prices drop.
Example
A 13.5 kWh Tesla Powerwall can keep essentials (fridge, lights, WiFi, phone chargers) running for roughly 8-12 hours during an outage.
Related Terms
Off-Grid System · Time-of-Use (TOU) Rate · Load Profile
Time-of-Use (TOU) Rate
RatesAn electricity pricing structure where rates vary by time of day. Peak hours (usually 4-9 PM) have higher rates.
Why It Matters
TOU rates reward you for shifting energy use to cheaper off-peak hours. Pairing TOU with solar+battery means you can avoid the most expensive electricity entirely.
Example
In California, PG&E peak rates can exceed 50¢/kWh (4-9 PM) while off-peak dips below 30¢/kWh. Shifting a dryer load to off-peak saves ~20¢ per kWh.
Related Terms
Demand Charge · Load Profile · Battery Storage
Federal Tax Credit (ITC)
IncentivesInvestment Tax Credit allowing homeowners to deduct a percentage of solar installation costs from federal taxes. Currently 30% through 2032.
Why It Matters
The ITC is the largest single incentive for going solar. On a $25,000 system it saves $7,500 in taxes, making it the difference between a 10-year and 7-year payback for many homeowners.
Example
You install a $28,000 solar+battery system in 2024. You claim a $8,400 credit on your federal tax return, reducing what you owe dollar-for-dollar.
Related Terms
SREC (Solar Renewable Energy Certificate) · Payback Period · ROI (Return on Investment)
SREC (Solar Renewable Energy Certificate)
IncentivesA tradable certificate representing the environmental benefits of generating 1 MWh of solar electricity. Can be sold for additional income in some states.
Related Terms
Federal Tax Credit (ITC) · Net Metering
Grid-Tied System
SystemsA solar energy system connected to the utility grid, allowing you to draw power when needed and export excess generation.
Related Terms
Off-Grid System · Net Metering · Interconnection
Off-Grid System
SystemsA solar system with battery storage that operates independently from the utility grid, requiring full self-sufficiency.
Related Terms
Grid-Tied System · Battery Storage
Capacity Factor
PerformanceThe ratio of actual energy produced by a system to its maximum potential output. Solar typically has a 15-25% capacity factor.
Related Terms
Peak Sun Hours · Module Efficiency
Degradation Rate
PerformanceThe annual decrease in solar panel efficiency. Modern panels typically degrade 0.3-0.5% per year.
Why It Matters
Over 25 years, degradation determines total lifetime production. A panel with 0.25% degradation produces about 6% more energy over its life than one at 0.5%.
Example
A 400W panel with 0.5% annual degradation will produce about 350W in year 25 — still generating 87.5% of its original output.
Related Terms
Module Efficiency · Solar Panel
Interconnection
ProcessThe process of connecting your solar system to the utility grid, requiring utility approval and inspection.
Related Terms
Grid-Tied System · Utility Interconnection Agreement
PPA (Power Purchase Agreement)
FinancingA financing arrangement where a third party owns the solar system and you pay for the electricity it generates.
Why It Matters
PPAs let you go solar with zero upfront cost. You pay a per-kWh rate that's typically lower than your utility rate, but you don't own the system or get the tax credit.
Example
A company installs panels on your roof for free. You agree to buy the power at 12¢/kWh for 20 years, versus 16¢/kWh from your utility.
Related Terms
Solar Lease · Federal Tax Credit (ITC)
Solar Lease
FinancingA financing option where you pay a fixed monthly fee to rent a solar system, while a third party owns and maintains it.
Related Terms
PPA (Power Purchase Agreement) · Federal Tax Credit (ITC)
Microinverter
EquipmentA small inverter attached to each solar panel, allowing independent operation and optimization of each panel.
Related Terms
String Inverter · Inverter
String Inverter
EquipmentA central inverter that connects to multiple solar panels in series (strings). Less expensive than microinverters but less flexible.
Related Terms
Microinverter · Inverter
Levelized Cost of Energy (LCOE)
EconomicsThe total cost of generating electricity from a system divided by its lifetime energy production. Used to compare energy sources.
Why It Matters
LCOE is the gold standard for comparing the true cost of different energy sources. Residential solar LCOE has dropped below grid electricity in most US states.
Example
A $20,000 system producing 300,000 kWh over its lifetime has an LCOE of about 6.7¢/kWh — cheaper than the national average of 16¢/kWh.
Related Terms
Payback Period · ROI (Return on Investment)
Peak Sun Hours
PerformanceThe equivalent number of hours per day when solar irradiance averages 1,000 watts per square meter. Varies by location.
Why It Matters
Peak sun hours directly determine how much energy your system produces. Phoenix gets ~6.5 PSH while Seattle gets ~3.5, making system sizing location-dependent.
Example
A 6 kW system in a location with 5 peak sun hours produces roughly 30 kWh per day (6 kW × 5 hours).
Related Terms
Capacity Factor · Solar Azimuth · Tilt Angle
Solar Azimuth
InstallationThe compass direction of the sun. In the Northern Hemisphere, south-facing panels (180° azimuth) typically produce the most energy.
Related Terms
Tilt Angle · Peak Sun Hours
Tilt Angle
InstallationThe angle of solar panels relative to horizontal. Optimal tilt often equals your latitude for year-round production.
Related Terms
Solar Azimuth · Peak Sun Hours
Shading Analysis
InstallationAn assessment of how trees, buildings, or other objects cast shadows on your roof throughout the year, affecting solar production.
Related Terms
Peak Sun Hours · Microinverter
Load Profile
PlanningA pattern of your electricity usage throughout the day and year. Important for sizing solar and battery systems.
Why It Matters
Your load profile determines optimal system sizing. A home that uses most power in the evening benefits more from batteries, while one that runs AC all day benefits from larger panels.
Example
A family that works from home has a flat 1.5 kW load all day, while a commuter home peaks at 4 kW from 6-10 PM. These need different solar+battery designs.
Related Terms
Time-of-Use (TOU) Rate · Battery Storage · kWh (Kilowatt-hour)
Carbon Intensity
EnvironmentThe amount of CO2 emissions per unit of electricity generated. Varies by grid mix (coal, gas, renewables).
Related Terms
Community Solar
Demand Charge
RatesA utility charge based on your peak power usage (measured in kW) during a billing period, common for commercial customers.
Related Terms
Time-of-Use (TOU) Rate) · Load Profile
Feed-in Tariff
PolicyA policy mechanism that guarantees a fixed payment rate for renewable energy fed into the grid, typically for a set period.
Related Terms
Net Metering · Grid-Tied System
Community Solar
ProgramsA shared solar installation where multiple customers receive credits on their utility bills for their share of production.
Related Terms
Virtual Net Metering · Net Metering
Virtual Net Metering
PolicyA program allowing customers to receive bill credits from a remote solar facility they don't own, common in community solar.
Related Terms
Net Metering · Community Solar
Utility Interconnection Agreement
ProcessA contract between you and your utility that governs how your solar system connects to and interacts with the grid.
Related Terms
Interconnection · Grid-Tied System
Module Efficiency
PerformanceThe percentage of sunlight that a solar panel converts into electricity. Modern panels range from 15-22% efficient.
Related Terms
Solar Panel · Degradation Rate
Watt (W)
UnitsA unit of power equal to one joule per second. Solar panels are rated in watts (W) or kilowatts (kW = 1,000W).
Related Terms
kWh (Kilowatt-hour)
DC (Direct Current)
TechnicalElectricity that flows in one direction. Solar panels produce DC power, which must be converted to AC for home use.
Related Terms
AC (Alternating Current) · Inverter
AC (Alternating Current)
TechnicalElectricity that periodically reverses direction. Standard household electricity in the US is 120/240V AC.
Related Terms
DC (Direct Current) · Inverter
Payback Period
EconomicsThe time it takes for your cumulative savings to equal your initial investment in solar. Typically 6-10 years in the US.
Why It Matters
Payback period is the most intuitive metric for evaluating solar. After payback, every kWh of solar production is essentially free electricity for the remaining 15-20 years of panel life.
Example
A $20,000 system (after ITC) that saves $2,500/year has an 8-year payback. Over a 25-year panel life, total savings exceed $42,000.
Related Terms
ROI (Return on Investment) · Federal Tax Credit (ITC) · Levelized Cost of Energy (LCOE)
ROI (Return on Investment)
EconomicsThe financial gain from solar expressed as a percentage of the initial cost. Most residential solar has 10-20% ROI.
Related Terms
Payback Period · Levelized Cost of Energy (LCOE)
REC (Renewable Energy Certificate)
IncentivesA tradeable certificate representing the environmental attributes of 1 MWh of renewable electricity generated. Utilities buy RECs to meet clean energy mandates.
Why It Matters
RECs create an additional revenue stream for solar owners and are the mechanism states use to track and enforce renewable energy goals.
Example
In states with an SREC market, a 10 kW system producing 12 MWh/year earns 12 RECs. If RECs trade at $30 each, that's an extra $360/year.
Related Terms
SREC (Solar Renewable Energy Certificate) · RPS (Renewable Portfolio Standard)
RPS (Renewable Portfolio Standard)
PolicyA state regulation requiring utilities to source a minimum percentage of electricity from renewable resources by a target date. Also called a Renewable Energy Standard (RES).
Why It Matters
States with aggressive RPS targets tend to have better solar incentives and higher SREC values because utilities need to buy more renewable energy to comply.
Example
California's RPS requires 60% renewable electricity by 2030 and 100% clean energy by 2045, driving strong solar adoption.
Related Terms
REC (Renewable Energy Certificate) · SREC (Solar Renewable Energy Certificate)
PBI (Performance-Based Incentive)
IncentivesA solar incentive paid per kWh of actual electricity produced over a set period, rather than as an upfront rebate based on system size.
Why It Matters
PBIs reward actual production, incentivizing proper installation and maintenance. They provide ongoing revenue rather than a one-time payment.
Example
A utility PBI of $0.05/kWh on a system producing 10,000 kWh/year pays $500 annually for the program duration.
Related Terms
Feed-in Tariff · Net Metering
MACRS (Modified Accelerated Cost Recovery System)
IncentivesA federal tax depreciation schedule that allows businesses to recover solar investment costs over 5 years, significantly improving commercial solar ROI.
Why It Matters
MACRS plus bonus depreciation can recover 85%+ of a commercial system cost through tax benefits in the first year, making solar highly attractive for businesses.
Example
A business installs a $100,000 solar system. With the 30% ITC and 5-year MACRS depreciation on the remaining basis, total tax benefits can exceed $55,000.
Related Terms
Federal Tax Credit (ITC) · Depreciation
PACE (Property Assessed Clean Energy)
FinancingA financing mechanism where solar and energy efficiency improvements are funded through a voluntary assessment on the property tax bill, repaid over 10-25 years.
Why It Matters
PACE requires no upfront cost and the obligation transfers with the property upon sale, removing the "what if I move?" barrier to solar adoption.
Example
A homeowner finances a $25,000 solar installation via PACE at 6.5% over 20 years, adding about $185/month to their property tax payment.
Related Terms
Solar Loan · Solar Lease
LIHEAP (Low Income Home Energy Assistance Program)
ProgramsA federally funded program that helps low-income households pay energy bills and weatherize homes. Administered by states with varying benefit levels.
Why It Matters
LIHEAP is one of the largest energy assistance programs, helping millions of families manage energy costs. It can be combined with solar programs targeting low-income households.
Related Terms
WAP (Weatherization Assistance Program) · IRA (Inflation Reduction Act)
WAP (Weatherization Assistance Program)
ProgramsA federal program that provides free energy efficiency improvements to low-income homes, including insulation, air sealing, and heating system upgrades.
Why It Matters
Weatherizing a home before installing solar reduces the system size needed, lowering costs. WAP improvements can cut energy bills 20-30%.
Related Terms
LIHEAP (Low Income Home Energy Assistance Program) · Load Profile
IRA (Inflation Reduction Act)
PolicyLandmark 2022 federal legislation that extended and expanded clean energy tax credits, including the 30% solar ITC through 2032, and added new incentives for batteries, heat pumps, and EVs.
Why It Matters
The IRA is the largest climate investment in US history ($369B). It provides long-term policy certainty for solar with a 10-year credit timeline and introduced new bonus credits for domestic content and low-income projects.
Example
Under the IRA, a homeowner installing solar in 2024 gets a 30% tax credit with no cap. A $30,000 system yields a $9,000 federal tax credit.
Related Terms
Federal Tax Credit (ITC) · MACRS (Modified Accelerated Cost Recovery System)
NEM 3.0 (Net Billing)
PolicyCalifornia's successor to traditional net metering, which compensates solar exports at a lower "avoided cost" rate rather than the full retail rate. Took effect April 2023.
Why It Matters
NEM 3.0 reduced export credit values by ~75%, making battery storage essential for new California solar installations to maximize self-consumption and shift exports to peak hours.
Example
Under NEM 2.0, a kWh exported earned ~$0.30. Under NEM 3.0, the same kWh earns ~$0.05–$0.08. Adding a battery to store and use that energy at peak times can recover most of the value.
Related Terms
Net Metering · Avoided Cost · Battery Storage
Avoided Cost
RatesThe cost a utility would have incurred to generate or purchase electricity that was instead provided by a distributed resource like rooftop solar.
Why It Matters
Avoided cost is increasingly used as the basis for solar export compensation, replacing retail-rate net metering. Understanding it helps predict future incentive changes.
Related Terms
Net Metering · NEM 3.0 (Net Billing) · Feed-in Tariff
Buyback Rate
RatesThe rate at which a utility purchases excess solar electricity from a customer. May equal the retail rate (full net metering) or a lower wholesale/avoided cost rate.
Why It Matters
The buyback rate directly determines how much value you get from excess solar production. Higher rates improve payback; lower rates push toward batteries and self-consumption.
Example
With a $0.15/kWh retail rate and a $0.04/kWh buyback rate, a homeowner loses $0.11 for every kWh exported instead of self-consumed.
Related Terms
Net Metering · Avoided Cost · Feed-in Tariff
Green Bank
FinancingA public or quasi-public financing institution dedicated to accelerating clean energy deployment by offering low-cost loans, credit enhancements, and other financial products.
Why It Matters
Green banks make solar accessible to homeowners who may not qualify for traditional financing, often offering below-market rates and flexible terms.
Example
The Connecticut Green Bank offers low-interest solar loans and has helped deploy over 400 MW of clean energy in the state.
Related Terms
PACE (Property Assessed Clean Energy) · Solar Loan
Property Tax Exemption
IncentivesA state or local incentive that excludes the added home value from a solar installation from property tax assessments, so your taxes don't increase despite higher home value.
Why It Matters
Solar adds an average of 4.1% to home value. Without an exemption, a $400,000 home adding $16,400 in value could see $200+/year in extra property taxes.
Related Terms
Federal Tax Credit (ITC) · Sales Tax Exemption
Sales Tax Exemption
IncentivesA state incentive that waives sales tax on the purchase of solar equipment, reducing the upfront cost of installation.
Why It Matters
In states with 6-10% sales tax, an exemption on a $30,000 system saves $1,800–$3,000 immediately.
Related Terms
Property Tax Exemption · Federal Tax Credit (ITC)
State Rebate
IncentivesA direct cash rebate offered by a state, utility, or municipality for installing solar, typically based on system size ($/W) or a flat amount.
Why It Matters
Rebates directly reduce your out-of-pocket cost and are applied before calculating the federal tax credit, stacking with the ITC for maximum savings.
Example
A state offering a $0.50/W rebate on a 10 kW system provides $5,000 back, reducing the net cost before the 30% ITC is applied.
Related Terms
Federal Tax Credit (ITC) · PBI (Performance-Based Incentive)
Power Optimizer
EquipmentA DC-to-DC converter installed behind each solar panel that maximizes the output of individual panels before sending power to a central string inverter.
Why It Matters
Power optimizers provide panel-level optimization (like microinverters) while keeping the cost closer to string inverter systems. They mitigate shading and mismatch losses.
Example
SolarEdge systems use power optimizers paired with a central inverter. If one panel is shaded, only that panel's output drops—not the whole string.
Related Terms
Microinverter · String Inverter · Module-Level Power Electronics (MLPE)
Bifacial Solar Panel
EquipmentA solar panel that generates electricity from both sides, capturing reflected light (albedo) on the rear face for 5-30% additional production depending on installation.
Why It Matters
Bifacial panels extract more energy per square foot, making them ideal for ground mounts, carports, or rooftops with reflective surfaces. They're becoming standard in utility-scale projects.
Related Terms
Solar Panel · Module Efficiency
Module-Level Power Electronics (MLPE)
EquipmentA category of devices (microinverters and power optimizers) that manage power conversion or optimization at the individual panel level rather than at a central inverter.
Why It Matters
MLPE is now required by NEC 2017+ rapid shutdown rules on most residential installations. It also enables panel-level monitoring and improved performance in partial shade.
Related Terms
Microinverter · Power Optimizer · Rapid Shutdown
Combiner Box
EquipmentAn electrical enclosure that combines the output of multiple solar panel strings into a single feed before it enters the inverter.
Related Terms
String Inverter · DC (Direct Current)
Rapid Shutdown
EquipmentAn NEC (National Electrical Code) safety requirement that solar systems must be able to reduce rooftop DC voltage to safe levels within 30 seconds of initiating shutdown, protecting firefighters and first responders.
Why It Matters
Rapid shutdown compliance is legally required for most new solar installations. It drives the adoption of MLPE devices and affects system design and equipment choices.
Related Terms
Module-Level Power Electronics (MLPE) · Microinverter · Power Optimizer
Smart Electrical Panel
EquipmentAn intelligent breaker panel that provides circuit-level monitoring and control, enabling load management, backup prioritization, and integration with solar and battery systems.
Why It Matters
Smart panels like Span or Lumin eliminate the need for a separate critical loads subpanel when adding batteries, simplifying installation and enabling app-based energy management.
Example
With a Span panel, you can prioritize which circuits get battery backup during an outage and monitor each circuit's energy use in real time.
Related Terms
Battery Storage · Energy Management System (EMS)
EV Charger (EVSE)
EquipmentElectric Vehicle Supply Equipment — a device that safely delivers electricity to charge an EV battery. Level 2 (240V) chargers are most common for home use, adding 25-30 miles of range per hour.
Why It Matters
Pairing an EV charger with solar can offset 100% of driving fuel costs. A typical EV uses 3,000-4,000 kWh/year, often requiring a larger solar system to accommodate.
Example
Adding a 240V Level 2 charger costs $500-$2,000 installed. Charging a Tesla Model 3 via solar costs about $0.03/mile vs $0.12/mile for gasoline.
Related Terms
Load Profile · Time-of-Use (TOU) Rate
Heat Pump
EquipmentAn efficient HVAC system that transfers heat rather than generating it, providing both heating and cooling. Air-source heat pumps are most common; ground-source (geothermal) are most efficient.
Why It Matters
Heat pumps use 2-4x less energy than resistive heating. Electrifying heating with a heat pump + solar can eliminate both electric and gas bills. The IRA provides up to $8,000 in heat pump rebates.
Example
Replacing a gas furnace with a heat pump and adding solar panels can reduce total home energy costs by 50-70%.
Related Terms
Load Profile · IRA (Inflation Reduction Act)
Solar Tracker
EquipmentA mounting system that tilts solar panels to follow the sun's path across the sky, increasing energy production by 20-35% compared to fixed-tilt systems.
Why It Matters
While too expensive for most residential rooftops, single-axis trackers are standard for utility-scale solar farms and can make sense for large residential ground-mount systems.
Related Terms
Solar Azimuth · Tilt Angle · Capacity Factor
Charge Controller
EquipmentA device that regulates the voltage and current from solar panels to a battery bank, preventing overcharging and deep discharge. Common types are PWM and MPPT.
Why It Matters
Essential for off-grid systems, charge controllers protect batteries and optimize charging. MPPT controllers are 20-30% more efficient than PWM in real-world conditions.
Related Terms
Battery Storage · Off-Grid System · DC (Direct Current)
Tiered Rate
RatesAn electricity pricing structure where the per-kWh rate increases as you use more power within a billing period, divided into usage tiers (e.g., Tier 1: 0-500 kWh, Tier 2: 501-1000 kWh).
Why It Matters
Solar is especially valuable under tiered rates because it offsets the most expensive top-tier usage first, maximizing dollar savings per kWh produced.
Example
If Tier 1 is $0.12/kWh and Tier 3 is $0.36/kWh, solar that keeps you in Tier 1 saves $0.36 for every kWh that would have been in Tier 3.
Related Terms
Time-of-Use (TOU) Rate · Baseline Allowance · Flat Rate
Baseline Allowance
RatesThe amount of electricity a utility allocates at the lowest rate tier, based on your climate zone, season, and heating source. Usage above baseline is billed at higher tiers.
Related Terms
Tiered Rate · Load Profile
Peak Demand
RatesThe highest rate of electricity consumption (measured in kW) recorded during a billing period. Commercial customers often pay demand charges based on their peak demand.
Why It Matters
Demand charges can account for 30-50% of commercial electric bills. Solar alone doesn't always reduce peak demand, but solar + battery can shave peaks dramatically.
Related Terms
Demand Charge · Demand Response · Load Profile
Power Factor
TechnicalThe ratio of real power (kW) used to do work versus apparent power (kVA) drawn from the grid. A power factor below 1.0 means some energy is wasted as reactive power.
Related Terms
Peak Demand · kWh (Kilowatt-hour)
Distribution Charges
RatesThe portion of your electric bill covering the cost of the local power lines, transformers, and infrastructure that deliver electricity from substations to your home.
Why It Matters
Distribution charges are typically unavoidable even with solar, as you remain connected to the grid. They're a key reason why solar doesn't eliminate your bill entirely.
Related Terms
Transmission Charges · Demand Charge
Transmission Charges
RatesFees for transporting electricity over high-voltage power lines from generation plants to local distribution substations. Usually a smaller portion of residential bills.
Related Terms
Distribution Charges · Demand Charge
Demand Response
ProgramsA program where utilities pay customers to reduce electricity usage during peak demand events, often by cycling AC units, adjusting thermostats, or discharging batteries to the grid.
Why It Matters
Demand response programs can earn $50-200+/year for battery owners. Some virtual power plant programs pay even more for allowing the utility to dispatch your battery during grid emergencies.
Example
Tesla Powerwall owners enrolled in a virtual power plant program earn credits for allowing the utility to discharge their battery during heat waves or emergencies.
Related Terms
Peak Demand · Battery Storage · Time-of-Use (TOU) Rate
Duck Curve
TechnicalA graph of net electricity demand that shows a deep midday dip (from solar overproduction) and a steep evening ramp (as solar drops off and demand peaks), shaped like a duck.
Why It Matters
The duck curve explains why utilities are shifting to TOU rates with expensive evening peaks and cheap midday rates. It's also why battery storage is increasingly valuable — store cheap midday solar, use it during the expensive evening peak.
Related Terms
Time-of-Use (TOU) Rate · Battery Storage · Peak Demand
Grid Parity
EconomicsThe point at which the cost of solar electricity equals or falls below the cost of grid-purchased electricity, making solar economically competitive without subsidies.
Why It Matters
Most of the US has already reached grid parity for residential solar. In high-rate states, solar is now significantly cheaper than grid power even without incentives.
Related Terms
Levelized Cost of Energy (LCOE) · Cost Per Watt
Flat Rate
RatesAn electricity pricing structure where the same per-kWh rate applies regardless of usage amount or time of day. Simpler but less common than tiered or TOU rates.
Related Terms
Tiered Rate · Time-of-Use (TOU) Rate
Cost Per Watt
EconomicsThe standard metric for comparing solar installation prices, calculated by dividing total system cost by its DC wattage. US average is $2.50-$3.50/W before incentives (2024).
Why It Matters
Cost per watt normalizes pricing across different system sizes, allowing apples-to-apples comparisons. A $0.25/W difference on a 10 kW system means $2,500.
Example
A 10 kW system at $3.00/W costs $30,000 before incentives. After the 30% ITC, net cost is $21,000, or effectively $2.10/W.
Related Terms
Balance of System (BOS) · Soft Costs
Internal Rate of Return (IRR)
EconomicsThe annualized rate of return on a solar investment accounting for all cash flows over the system's lifetime, including tax credits, energy savings, and maintenance costs.
Why It Matters
IRR lets you compare solar to other investments. Residential solar typically delivers 10-20% IRR, competitive with or exceeding stock market historical returns.
Related Terms
ROI (Return on Investment) · Net Present Value (NPV) · Payback Period
Net Present Value (NPV)
EconomicsThe total value today of all future solar savings minus the initial investment, discounted at a chosen rate. A positive NPV means the investment is financially worthwhile.
Why It Matters
NPV accounts for the time value of money, giving a more accurate financial picture than simple payback. Most residential solar systems have strongly positive NPV.
Related Terms
Internal Rate of Return (IRR) · Payback Period · Energy Escalation Rate
Energy Escalation Rate
EconomicsThe annual percentage increase in electricity prices over time. Historically 2-4% nationally, but varying significantly by state and utility.
Why It Matters
Higher escalation rates make solar more valuable over time because your locked-in solar cost stays flat while grid prices rise. A 3% escalation rate doubles electricity costs in 24 years.
Related Terms
Net Present Value (NPV) · Levelized Cost of Energy (LCOE)
Soft Costs
EconomicsNon-hardware expenses in a solar installation: permitting, inspection, interconnection fees, customer acquisition, labor, overhead, and profit margin. Soft costs are ~65% of US residential solar prices.
Why It Matters
While panel prices have dropped 99% since 1976, soft costs have declined much more slowly. They're the main reason US solar costs more than in Australia or Germany.
Related Terms
Cost Per Watt · Balance of System (BOS)
Balance of System (BOS)
EquipmentAll solar system components beyond the panels themselves: inverter, racking, wiring, monitoring, electrical panel upgrades, and installation labor.
Why It Matters
BOS accounts for 50-60% of total system cost. When comparing quotes, differences in BOS components (inverter brand, racking quality, monitoring) explain much of the price variation.
Related Terms
Cost Per Watt · Soft Costs · Inverter
Solar Loan
FinancingA financing product specifically designed for solar installations, typically offering 10-25 year terms. May be secured (using home equity) or unsecured, with rates from 3-9%.
Why It Matters
Solar loans let you own the system (and the tax credit) with $0 down. Unlike leases, you build equity and benefit from the full increase in home value.
Example
A $25,000 system financed at 5.5% over 15 years has a ~$204/month payment. If your current electric bill is $250, you save from day one.
Related Terms
PPA (Power Purchase Agreement) · Solar Lease · PACE (Property Assessed Clean Energy)
Depreciation
EconomicsA tax deduction that allows business solar system owners to deduct the cost of the system over time. Under MACRS, commercial solar depreciates over 5 years with possible bonus depreciation in year one.
Why It Matters
Depreciation is one of the biggest financial benefits of commercial solar. Combined with the ITC, it can return over 50% of system cost through tax savings alone.
Related Terms
MACRS (Modified Accelerated Cost Recovery System) · Federal Tax Credit (ITC)
Energy Savings Agreement
FinancingA contract (similar to a PPA) where an energy services company installs efficiency or solar improvements and the customer pays from guaranteed energy savings. Common in commercial and municipal projects.
Related Terms
PPA (Power Purchase Agreement) · Solar Lease
Total Cost of Ownership
EconomicsThe complete cost of a solar system over its lifetime, including purchase price, financing costs, maintenance, inverter replacement, monitoring fees, and insurance — minus all incentives and energy savings.
Why It Matters
Comparing total cost of ownership across financing options (cash, loan, lease, PPA) reveals the true long-term cost and helps choose the best path.
Related Terms
Cost Per Watt · Levelized Cost of Energy (LCOE) · Payback Period
Hybrid Solar System
SystemsA solar installation that is connected to the grid and includes battery storage, offering both grid-tied benefits (net metering, lower bills) and backup power during outages.
Why It Matters
Hybrid systems are the fastest-growing segment of residential solar. They provide the best of both worlds: utility savings plus energy security.
Related Terms
Grid-Tied System · Off-Grid System · Battery Storage
AC-Coupled System
SystemsA battery configuration where the battery has its own inverter and connects on the AC side of the electrical panel. Allows adding a battery to an existing solar installation without replacing the solar inverter.
Why It Matters
AC coupling is the go-to retrofit option. Since the battery has its own inverter, it works with any existing solar system regardless of inverter type.
Example
Adding a Tesla Powerwall (AC-coupled) to an existing solar system with a string inverter requires no changes to the solar equipment.
Related Terms
DC-Coupled System · Battery Storage · Inverter
DC-Coupled System
SystemsA battery configuration where the battery connects on the DC side of the solar system, sharing an inverter (hybrid inverter) with the panels. More efficient but requires compatible equipment.
Why It Matters
DC coupling avoids the double conversion loss (DC→AC→DC) of AC coupling, making it 3-8% more efficient. It's the better choice for new installations designed with storage from the start.
Related Terms
AC-Coupled System · Battery Storage · Inverter
Energy Management System (EMS)
SystemsSoftware and hardware that monitors and controls energy production, storage, and consumption in real time to optimize self-consumption, minimize costs, and manage battery dispatch.
Why It Matters
An intelligent EMS can increase solar self-consumption from ~30% to 70%+ by predicting usage patterns, weather, and rate schedules to optimize when to store, use, or export energy.
Related Terms
Smart Electrical Panel · Battery Storage · Time-of-Use (TOU) Rate
Whole-Home Backup
SystemsA battery system sized to power an entire home during a grid outage, as opposed to backing up only essential/critical loads. Typically requires 2-4 batteries (30-50+ kWh).
Why It Matters
Whole-home backup eliminates the need to choose which circuits to prioritize during outages. It's the premium option, costing $15,000-$40,000+ more than a critical-loads-only setup.
Example
A home using 30 kWh/day needs about 40 kWh of battery (accounting for efficiency losses) for one full day of whole-home backup.
Related Terms
Battery Storage · Smart Electrical Panel · Hybrid Solar System
Monocrystalline Silicon
EquipmentSolar cells made from a single continuous crystal of silicon. They offer the highest efficiency (20-24%) among mainstream technologies and are identified by their uniform dark appearance.
Why It Matters
Monocrystalline panels dominate the residential market because their higher efficiency means more power per square foot of roof — critical when roof space is limited.
Related Terms
Polycrystalline Silicon · Module Efficiency · Solar Panel
Polycrystalline Silicon
EquipmentSolar cells made from multiple silicon crystal fragments melted together. Slightly less efficient (17-20%) than monocrystalline but historically cheaper to manufacture.
Why It Matters
Polycrystalline panels were the budget choice for years, but monocrystalline prices have dropped so much that poly panels are being phased out of most residential offerings.
Related Terms
Monocrystalline Silicon · Module Efficiency · Solar Panel
Thin-Film Solar
EquipmentSolar cells made by depositing thin layers of photovoltaic material (CdTe, CIGS, or amorphous silicon) on a substrate. Lower efficiency (11-18%) but flexible and lightweight.
Why It Matters
Thin-film is rarely used in residential rooftop applications due to lower efficiency, but it dominates utility-scale with First Solar's CdTe panels and is emerging in building-integrated PV.
Related Terms
Monocrystalline Silicon · Module Efficiency · BIPV
Perovskite Solar Cell
EquipmentAn emerging photovoltaic technology using perovskite-structured compounds (typically methylammonium lead halides) as the light-absorbing layer. Lab efficiencies exceed 26%.
Why It Matters
Perovskite-silicon tandem cells have achieved 34%+ efficiency — far beyond silicon alone. If durability challenges are solved, they could significantly increase solar panel output within 3-5 years.
Related Terms
Monocrystalline Silicon · Module Efficiency · Tandem Solar Cell
Tandem Solar Cell
EquipmentA multi-junction solar cell that stacks two or more absorber layers to capture different parts of the solar spectrum. Perovskite-silicon tandems are the most promising near-term technology.
Why It Matters
Tandem cells break through silicon's ~29% theoretical efficiency limit. Commercial tandem modules at 28-30% efficiency could mean 30% more power from the same roof area.
Related Terms
Perovskite Solar Cell · Module Efficiency
TOPCon (Tunnel Oxide Passivated Contact)
TechnicalAn advanced silicon solar cell architecture that adds an ultra-thin oxide layer and doped polysilicon to reduce electron recombination at the contacts, improving efficiency to 24-26%.
Why It Matters
TOPCon is becoming the new standard cell technology, replacing PERC as the mainstream high-efficiency option. Most premium residential panels launched after 2024 use TOPCon cells.
Related Terms
PERC Cell · HJT Cell · Module Efficiency
PERC Cell (Passivated Emitter Rear Contact)
TechnicalA silicon solar cell design that adds a passivation layer to the rear surface, reducing electron recombination and boosting efficiency to 21-23%. Formerly the industry standard.
Why It Matters
PERC was the dominant cell technology from 2018-2024. It's being superseded by TOPCon and HJT for new production, but billions of PERC panels remain in service.
Related Terms
TOPCon · HJT Cell · Module Efficiency
HJT Cell (Heterojunction Technology)
TechnicalA solar cell that combines crystalline silicon with thin amorphous silicon layers, achieving high efficiency (24-26%) with excellent temperature coefficient and bifacial performance.
Why It Matters
HJT cells perform better than PERC or TOPCon in hot climates due to their superior temperature coefficient. They also have lower degradation rates.
Related Terms
TOPCon · PERC Cell · Temperature Coefficient
Temperature Coefficient
PerformanceThe rate at which a solar panel's power output changes with temperature, expressed as %/°C. A typical coefficient is -0.3% to -0.4% per °C — meaning output decreases as panels get hotter.
Why It Matters
In hot climates (Arizona, Texas, Florida), panels routinely reach 60-70°C on summer afternoons. A panel with -0.35%/°C loses about 14% of rated output at 65°C vs. the 25°C test condition.
Example
A 400W panel with -0.35%/°C coefficient produces about 344W when the cell temperature is 65°C (a typical hot summer afternoon).
Related Terms
Module Efficiency · HJT Cell · Peak Sun Hours
BIPV (Building-Integrated Photovoltaics)
EquipmentSolar cells integrated directly into building materials — roof tiles, facades, windows, or canopies — serving as both building envelope and electricity generator.
Why It Matters
BIPV products like Tesla Solar Roof offer a combined roof-and-solar solution, though typically at higher cost per watt than rack-mounted panels. Useful when aesthetics are paramount.
Related Terms
Solar Panel · Thin-Film Solar
Anti-Islanding
TechnicalA safety feature that automatically disconnects a grid-tied solar system from the utility grid during a power outage, preventing the system from energizing downed power lines.
Why It Matters
Anti-islanding is why your solar panels don't work during blackouts unless you have a battery with islanding capability. It's required by UL 1741 and NEC code for all grid-tied inverters.
Related Terms
Grid-Tied System · Inverter · Rapid Shutdown
Ground-Fault Protection
TechnicalA safety system that detects unintended current flow to ground (often through damaged wiring or insulation) and disconnects the circuit to prevent fire or electrocution.
Why It Matters
Ground faults in solar systems can cause fires if undetected. Modern inverters include sophisticated ground-fault detection. NEC 690.5 requires ground-fault protection on all PV systems.
Related Terms
Rapid Shutdown · Inverter · NEC (National Electrical Code)
NEC (National Electrical Code)
TechnicalThe U.S. standard for electrical installation safety (NFPA 70). Article 690 specifically covers solar PV systems, including wiring, grounding, labeling, and rapid shutdown requirements.
Why It Matters
NEC requirements determine how your solar system is designed, installed, and inspected. Code updates (like 2017 rapid shutdown rules) can affect component choices and installation costs.
Related Terms
Rapid Shutdown · Interconnection · AHJ
AHJ (Authority Having Jurisdiction)
ProcessThe local government entity (city, county, or township) responsible for permitting, inspecting, and approving solar installations and other electrical/building work.
Why It Matters
AHJ requirements vary significantly. Some jurisdictions have streamlined solar permitting (1-2 weeks), while others require multiple inspections and months of processing.
Related Terms
Interconnection · NEC (National Electrical Code)
Soiling Loss
PerformanceEnergy production lost due to dirt, dust, pollen, bird droppings, or other debris accumulating on solar panel surfaces and blocking sunlight.
Why It Matters
In most U.S. climates, soiling causes 2-5% annual production loss. Regular rain provides natural cleaning, but arid regions (Arizona, California interior) may see 5-10% loss without washing.
Example
A dusty panel in Phoenix might lose 7% of output over summer. A single rain event typically restores most of the lost production.
Related Terms
Degradation Rate · Module Efficiency
Clipping
PerformanceWhen a solar inverter limits output because the DC input power from the panels exceeds the inverter's AC output rating. The excess energy is lost.
Why It Matters
Solar systems are often designed with a DC/AC ratio above 1.0 (e.g., 1.2 or 1.3), meaning panels can produce more DC than the inverter converts. Clipping occurs during peak hours but increases total energy harvest overall.
Example
A 10 kW DC array with a 7.6 kW inverter (1.32 ratio) clips during midday peaks but produces more total energy per year than a 7.6 kW array with the same inverter.
Related Terms
Inverter · String Inverter · DC/AC Ratio
DC/AC Ratio
TechnicalThe ratio of a solar array's DC panel capacity to the inverter's AC output rating. Typical residential values range from 1.1 to 1.35.
Why It Matters
Higher ratios (more panels per inverter) reduce hardware costs and increase morning/evening production, with some midday clipping. A well-designed ratio maximizes lifetime energy value.
Related Terms
Clipping · Inverter · String Inverter
Production Guarantee
PerformanceA written guarantee from a solar installer specifying the minimum kWh of electricity the system will produce annually. If actual production falls short, the installer compensates the difference.
Why It Matters
A production guarantee shifts performance risk from the homeowner to the installer. Not all installers offer one — those who do are expressing confidence in their system design.
Related Terms
Degradation Rate · Solar Panel
LFP (Lithium Iron Phosphate)
EquipmentA lithium-ion battery chemistry (LiFePO₄) known for long cycle life (4,000-10,000 cycles), high safety (no thermal runaway), and lower energy density compared to NMC.
Why It Matters
LFP has become the default chemistry for home batteries. Tesla Powerwall 3, Enphase IQ 5P, and Franklin WH all use LFP. It's safer, lasts longer, and uses no cobalt or nickel.
Related Terms
NMC Battery · Battery Storage · Cycle Life
NMC Battery (Nickel Manganese Cobalt)
EquipmentA lithium-ion battery chemistry (LiNiMnCoO₂) with higher energy density than LFP but shorter cycle life (1,500-3,000 cycles) and higher thermal runaway risk.
Why It Matters
NMC was the dominant home battery chemistry until 2023 (LG Chem/RESU, earlier Powerwalls). Higher energy density means smaller size, but LFP's safety and longevity advantages have shifted the market.
Related Terms
LFP (Lithium Iron Phosphate) · Battery Storage · Cycle Life
Cycle Life
PerformanceThe number of complete charge-discharge cycles a battery can perform before its capacity drops below a specified threshold (typically 70-80% of original capacity).
Why It Matters
A battery cycling once daily for 10 years completes ~3,650 cycles. LFP batteries rated for 6,000+ cycles can outpace this easily, while NMC at 2,000 cycles may degrade sooner.
Example
A battery rated for 6,000 cycles at 80% depth of discharge would last approximately 16.4 years with one full cycle per day.
Related Terms
LFP (Lithium Iron Phosphate) · NMC Battery · Depth of Discharge
Depth of Discharge (DoD)
PerformanceThe percentage of a battery's total capacity that is used during a discharge cycle. Most modern batteries allow 90-100% DoD.
Why It Matters
Shallower discharges (lower DoD) extend battery life but reduce usable capacity. A 13.5 kWh battery with 100% DoD provides 13.5 kWh usable; at 80% DoD, only 10.8 kWh.
Related Terms
Cycle Life · Battery Storage · State of Charge
State of Charge (SoC)
PerformanceThe current charge level of a battery expressed as a percentage of its total capacity, similar to a fuel gauge. 100% SoC means fully charged; 0% means fully discharged.
Related Terms
Depth of Discharge (DoD) · Battery Storage
Thermal Runaway
TechnicalAn uncontrolled self-heating chain reaction in a battery that can lead to fire or explosion if the internal temperature exceeds a critical threshold.
Why It Matters
LFP batteries have a thermal runaway onset temperature of ~270°C vs. ~150°C for NMC — making LFP dramatically safer. This is a key reason the industry has shifted to LFP for home storage.
Related Terms
LFP (Lithium Iron Phosphate) · NMC Battery · Battery Storage
Round-Trip Efficiency
PerformanceThe percentage of energy put into a battery that can be retrieved. Typical lithium-ion batteries have 90-95% round-trip efficiency — meaning 5-10% is lost as heat during charge/discharge.
Why It Matters
A battery with 90% round-trip efficiency loses 10% of every kWh stored. Over a year with daily cycling, this adds up to significant energy loss that should be factored into system sizing.
Related Terms
Battery Storage · Cycle Life
Sodium-Ion Battery
EquipmentAn emerging battery technology using sodium ions instead of lithium. Lower energy density but uses abundant, cheap materials and performs well in cold temperatures.
Why It Matters
Sodium-ion could significantly reduce grid-scale storage costs by 2028-2030, benefiting all ratepayers. Residential products are expected later as the technology matures.
Related Terms
LFP (Lithium Iron Phosphate) · Battery Storage
Virtual Power Plant (VPP)
SystemsA network of distributed energy resources (solar, batteries, EVs, smart appliances) coordinated by a central platform to provide grid services collectively, functioning like a power plant.
Why It Matters
VPP programs pay battery owners $200-$750/year for allowing their batteries to be dispatched during grid emergencies. You keep backup protection; the utility gets flexible capacity.
Related Terms
Demand Response · Battery Storage · Grid-Tied System
Transformer
EquipmentAn electrical device that changes voltage levels. Step-up transformers increase voltage for long-distance transmission; step-down transformers decrease it for distribution and household use.
Why It Matters
Transformer shortages (lead times of 18-24+ months) are driving some of the cost increases in utility rate cases. They're also a bottleneck for solar interconnection in some areas.
Related Terms
Distribution Charges · Transmission Charges · Interconnection
Frequency Regulation
TechnicalThe process of maintaining the electric grid at exactly 60 Hz (in North America) by continuously balancing supply and demand in real time.
Why It Matters
Batteries are excellent at frequency regulation (millisecond response vs. minutes for gas turbines). Grid-scale batteries providing this service help keep electricity reliable for everyone.
Related Terms
Demand Response · Duck Curve · Grid Parity
Microgrid
SystemsA localized energy system that can operate connected to the main grid or independently (islanded). Typically includes generation (solar), storage (batteries), and load management.
Why It Matters
Microgrids provide resilience for critical facilities and communities. Residential microgrids (solar + battery + smart panel) can island your home during outages.
Related Terms
Off-Grid System · Battery Storage · Anti-Islanding
Curtailment
TechnicalThe intentional reduction of renewable energy output below what the resource could produce, typically because the grid cannot absorb the excess generation.
Why It Matters
Curtailment wastes clean energy. In California, solar curtailment reached over 2.4 million MWh in 2023. Battery storage is the primary solution — storing surplus instead of wasting it.
Related Terms
Duck Curve · Battery Storage
ERCOT
TechnicalThe Electric Reliability Council of Texas — the independent system operator that manages the Texas electric grid, which covers ~90% of the state and is largely isolated from other U.S. grids.
Why It Matters
Texas's unique deregulated, isolated grid means Texas consumers face different market dynamics than most of the U.S. — including wholesale price volatility and unique solar/storage incentive structures.
Related Terms
Demand Response · Grid Parity
PJM Interconnection
TechnicalA regional transmission organization (RTO) coordinating the movement of wholesale electricity in 13 states and D.C., from Illinois to the mid-Atlantic coast. The largest power market in North America.
Related Terms
Transmission Charges · Demand Response
Capacity Market
EconomicsA market mechanism where power generators and storage systems are paid to be available to produce electricity during peak demand periods, ensuring sufficient supply exists to meet forecasted demand.
Why It Matters
Capacity market payments are a revenue stream for grid-scale batteries and VPPs. These costs are passed through to consumers as part of the supply portion of electricity bills.
Related Terms
Demand Response · Virtual Power Plant (VPP) · Demand Charge
Net Billing
PolicyAn export compensation mechanism where excess solar electricity sent to the grid is credited at a rate lower than the retail rate — typically wholesale, avoided cost, or a set export rate.
Why It Matters
Net billing is replacing net metering in many states (California NEM 3.0 is a form of net billing). It reduces the value of exports, making batteries and self-consumption more important.
Related Terms
Net Metering · NEM 3.0 (Net Billing) · Avoided Cost
Ancillary Services
TechnicalServices needed to maintain grid reliability beyond simply generating electricity — including frequency regulation, voltage support, spinning reserves, and black start capability.
Why It Matters
Batteries provide ancillary services more effectively than traditional generators. FERC Order 2222 allows distributed resources (including home batteries in VPPs) to participate in ancillary service markets.
Related Terms
Frequency Regulation · Virtual Power Plant (VPP) · Demand Response
Congestion
TechnicalWhen too much electricity needs to flow through a transmission line or path that doesn't have enough capacity, leading to rerouting, curtailment, or higher prices in the constrained area.
Related Terms
Transmission Charges · Curtailment
Baseload
TechnicalThe minimum amount of electric power delivered or required over a given period at a constant rate. Historically provided by coal and nuclear plants that run continuously.
Why It Matters
The concept of baseload is evolving as renewables + storage can now provide reliable around-the-clock power. Solar + battery "firms" variable generation into something resembling traditional baseload.
Related Terms
Capacity Factor · Grid Parity
Peaker Plant (Peaking Power Plant)
EquipmentA power plant that runs only during periods of peak electricity demand. Typically natural gas combustion turbines that can start up quickly but have high per-kWh costs.
Why It Matters
Battery storage is increasingly replacing peaker plants because batteries respond faster (milliseconds vs. minutes), cost less to operate, and produce zero emissions.
Related Terms
Peak Demand · Demand Response · Battery Storage
Black Start
TechnicalThe process of restoring a power grid after a complete shutdown (blackout) without relying on external electricity. Requires generators or batteries that can start independently.
Related Terms
Microgrid · Battery Storage · Ancillary Services
COP (Coefficient of Performance)
PerformanceThe ratio of heating or cooling output to electrical energy input for a heat pump. A COP of 3.0 means the system produces 3 kWh of heat for every 1 kWh of electricity consumed.
Why It Matters
COP is how heat pumps "cheat" physics — they move heat rather than create it. Even in cold weather, modern heat pumps maintain a COP of 1.5-2.5, while electric resistance heating has a COP of exactly 1.0.
Example
At 47°F outdoor temperature, a typical heat pump has a COP of 3.5 — producing 3.5 kWh of heat per kWh of electricity. This makes it 350% efficient.
Related Terms
HSPF2 · SEER2 · Heat Pump
SEER2 (Seasonal Energy Efficiency Ratio 2)
PerformanceThe updated cooling efficiency metric for air conditioners and heat pumps, measured under 2023 DOE test procedures with higher external static pressure (more realistic conditions).
Why It Matters
SEER2 numbers are ~5% lower than old SEER ratings for the same equipment due to stricter testing. The federal minimum for central AC/heat pumps varies by region (13.4-14.3 SEER2). High-efficiency units reach 20+ SEER2.
Related Terms
HSPF2 · COP (Coefficient of Performance) · Heat Pump
HSPF2 (Heating Seasonal Performance Factor 2)
PerformanceThe updated heating efficiency metric for heat pumps under 2023 DOE test procedures. Represents total heating output (BTU) divided by total electricity input (Wh) over a heating season.
Why It Matters
HSPF2 tells you how efficiently a heat pump heats in winter. Federal minimum is 7.5 HSPF2; high-efficiency cold-climate units reach 10-12 HSPF2. Higher is better; it directly affects your winter electricity bills.
Related Terms
SEER2 · COP (Coefficient of Performance) · Heat Pump
AFUE (Annual Fuel Utilization Efficiency)
PerformanceThe efficiency rating for gas furnaces, boilers, and water heaters — the percentage of fuel energy that becomes useful heat. A 95% AFUE furnace converts 95% of gas energy to heat.
Why It Matters
AFUE helps compare gas vs. heat pump costs. A 95% AFUE furnace converts 0.95 units of gas to heat; a heat pump with COP 3.0 delivers 3.0 units of heat per unit of electricity. Even at higher electricity rates, heat pumps often win.
Related Terms
COP (Coefficient of Performance) · Heat Pump · UEF
UEF (Uniform Energy Factor)
PerformanceThe standard efficiency metric for water heaters. It measures overall energy efficiency including standby losses. Heat pump water heaters achieve UEF of 2.5-4.0 vs. 0.6-0.7 for gas tank units.
Why It Matters
UEF directly determines your water heating costs. A HPWH with 3.5 UEF uses roughly 5× less energy than a gas tank water heater. Federal standards now require higher minimums.
Related Terms
Heat Pump · AFUE
Variable-Speed Compressor
EquipmentA compressor that can modulate its speed continuously (using an inverter-driven motor) rather than cycling fully on and off. This allows the system to match output precisely to demand.
Why It Matters
Variable-speed systems are 20-40% more efficient than single-stage, provide more even temperatures, better dehumidification, and quieter operation. They're the standard for modern heat pumps.
Related Terms
Heat Pump · SEER2 · HSPF2
Mini-Split
EquipmentA ductless heat pump system with an outdoor compressor unit connected to one or more indoor air handlers (heads) mounted on walls or ceilings. Each head controls its own zone.
Why It Matters
Mini-splits are the most efficient way to heat and cool specific zones, especially in homes without existing ductwork. Adding a mini-split to a cold room can be cheaper than extending ductwork.
Related Terms
Heat Pump · Variable-Speed Compressor
Manual J Load Calculation
PlanningThe industry-standard method (ACCA Manual J) for calculating a home's heating and cooling loads based on climate, insulation, windows, orientation, occupancy, and other factors.
Why It Matters
Proper sizing is critical for heat pumps. Oversized systems short-cycle (reducing efficiency and comfort); undersized systems can't keep up on extreme days. A Manual J calculation prevents both.
Related Terms
Heat Pump · Variable-Speed Compressor
Cold-Climate Heat Pump (ccASHP)
EquipmentA heat pump specifically designed to maintain high heating capacity at very low outdoor temperatures (typically rated to -13°F/-25°C or lower).
Why It Matters
Cold-climate heat pumps have eliminated the old objection that heat pumps don't work in winter. Brands like Mitsubishi (Hyper-Heating) and Daikin (Aurora) maintain full capacity to 5°F.
Related Terms
Heat Pump · COP (Coefficient of Performance) · HSPF2
Refrigerant
TechnicalThe fluid that circulates through a heat pump, absorbing and releasing heat as it changes between liquid and gas states. Modern systems use R-410A or the newer, lower-GWP R-32 and R-454B.
Why It Matters
The refrigerant transition from R-410A to lower-GWP alternatives (R-32, R-454B) is underway due to AIM Act regulations. New equipment purchased after 2025 increasingly uses these newer refrigerants.
Related Terms
Heat Pump · COP (Coefficient of Performance)
Geothermal Heat Pump (Ground Source)
EquipmentA heat pump that exchanges heat with the earth via underground loops filled with circulating fluid. The ground maintains a relatively constant temperature (50-60°F) year-round.
Why It Matters
Geothermal systems achieve COP of 4-5 (the highest of any HVAC technology) because they exchange heat with 55°F ground instead of variable outdoor air. Upfront costs are higher but operating costs are the lowest.
Related Terms
Heat Pump · COP (Coefficient of Performance)
NACS (North American Charging Standard)
EquipmentThe electric vehicle charging connector standard (also known as J3400/SAE) originally developed by Tesla and now adopted industry-wide as the U.S. standard, replacing CCS1 for new vehicles.
Why It Matters
NACS adoption means one connector type for all EVs and all public chargers — ending the confusing Tesla vs. everyone else split. All major automakers now ship new vehicles with NACS ports.
Related Terms
EV Charger (EVSE) · Level 2 Charging
Level 1 Charging
EquipmentEV charging using a standard 120-volt household outlet. Provides approximately 3-5 miles of range per hour of charging, or about 1.2-1.4 kW.
Why It Matters
Level 1 is adequate for plug-in hybrids and very light driving (<20 miles/day). For full battery EVs driven daily, Level 1 is too slow — you'll want Level 2 at home.
Related Terms
Level 2 Charging · DC Fast Charging · EV Charger (EVSE)
Level 2 Charging
EquipmentEV charging using a 240-volt circuit (same as a dryer or stove). Provides 12-60 miles of range per hour depending on the charger amperage (typically 20-80 amps).
Why It Matters
Level 2 is the standard for home EV charging. A 48-amp Level 2 charger fully charges most EVs overnight (6-10 hours). Installation costs $400-$1,500 and qualifies for a 30% tax credit (30C).
Example
A typical 48-amp Level 2 charger delivers 11.5 kW, adding about 35-40 miles of range per hour. Plugging in at 10 PM provides a full charge by 6 AM for most vehicles.
Related Terms
Level 1 Charging · DC Fast Charging · EV Charger (EVSE)
DC Fast Charging (DCFC)
EquipmentHigh-power EV charging (50-350+ kW) that converts AC power to DC before delivering it directly to the battery, bypassing the vehicle's onboard charger for much faster charging.
Why It Matters
DCFC enables road trips — adding 200+ miles of range in 20-30 minutes. It's primarily used at public stations along highways, not for daily home charging.
Related Terms
Level 2 Charging · NACS (North American Charging Standard)
V2H (Vehicle-to-Home)
SystemsBidirectional technology that allows an EV battery to power a home during grid outages or for daily energy management, effectively using the car as a home battery.
Why It Matters
With 60-100 kWh batteries, EVs store 4-8× more energy than a typical home battery. V2H is available on the Ford F-150 Lightning and emerging for GM and Hyundai vehicles.
Related Terms
V2G (Vehicle-to-Grid) · Battery Storage · EV Charger (EVSE)
V2G (Vehicle-to-Grid)
SystemsTechnology that allows EVs to discharge energy back to the utility grid, potentially earning revenue and providing grid services. Extends V2H beyond the home to the broader grid.
Why It Matters
V2G could transform parked EVs into a massive distributed battery fleet. If millions of EVs participate, the grid could access hundreds of GWh of flexible storage at peak demand.
Related Terms
V2H (Vehicle-to-Home) · Virtual Power Plant (VPP)
25C Tax Credit
IncentivesThe federal Energy Efficient Home Improvement Credit (IRC §25C) providing 30% of the cost of qualifying energy efficiency upgrades: heat pumps ($2,000), insulation ($1,200), HPWH ($2,000), and more.
Why It Matters
The 25C credit resets annually — you can claim up to $3,200/year across all qualifying improvements. It's a dollar-for-dollar reduction in your federal tax liability, not a deduction.
Related Terms
Federal Tax Credit (ITC) · 30C Tax Credit · IRA (Inflation Reduction Act)
30C Tax Credit
IncentivesThe federal Alternative Fuel Vehicle Refueling Property Credit (IRC §30C) providing 30% of the cost of installing EV charging equipment at a residence, up to $1,000.
Why It Matters
If you're installing a Level 2 EV charger at home, the 30C credit covers 30% of equipment and installation costs. This reduces the effective cost of a $1,200 installation to $840.
Related Terms
25C Tax Credit · Federal Tax Credit (ITC) · EV Charger (EVSE)
25D Tax Credit
IncentivesThe federal Residential Clean Energy Credit (IRC §25D) providing 30% of the cost of solar panels, battery storage, and other clean energy systems installed on a residence through 2032.
Why It Matters
The 25D credit is the single largest solar incentive — no cap on the dollar amount, and it carries forward to future tax years if your liability is insufficient in one year.
Related Terms
Federal Tax Credit (ITC) · 25C Tax Credit
HEEHRA (High-Efficiency Electric Home Rebate Act)
IncentivesAn IRA-funded point-of-sale rebate program for electrification upgrades: up to $8,000 for a heat pump, $1,750 for a HPWH, $4,000 for an electrical panel, and $14,000 total for LMI households.
Why It Matters
HEEHRA rebates are applied at the point of purchase (not on your tax return), making them accessible to low-income households who may not have sufficient tax liability for credits.
Related Terms
HOMES Rebate · 25C Tax Credit · IRA (Inflation Reduction Act)
HOMES Rebate (Home Owner Managing Energy Savings)
IncentivesAn IRA-funded rebate program for whole-home energy efficiency improvements. Offers $2,000-$4,000 based on measured or modeled energy savings (typically 20-35% reduction).
Why It Matters
HOMES rebates reward comprehensive efficiency improvements (insulation, air sealing, HVAC). Unlike 25C, they're based on the energy savings achieved, not just the cost of equipment.
Related Terms
HEEHRA · 25C Tax Credit · IRA (Inflation Reduction Act)
Tax Credit Carryforward
FinancingWhen a tax credit exceeds your tax liability in a given year, the unused portion can be carried forward and applied to future tax years. The 25D clean energy credit allows unlimited carryforward.
Why It Matters
If you install a $30,000 solar system (30% = $9,000 credit) but only owe $5,000 in federal taxes, you claim $5,000 in year one and carry $4,000 forward to next year.
Related Terms
Federal Tax Credit (ITC) · 25D Tax Credit
Solar Renewable Energy Certificate (SREC)
IncentivesA tradeable certificate representing 1 MWh (1,000 kWh) of solar electricity generation. In states with SREC markets, solar owners earn SRECs that can be sold for additional income.
Why It Matters
In active SREC states (NJ, MA, PA, MD, DC, IL), SREC income can be worth $20-$300+ per MWh — adding hundreds to thousands of dollars per year to your solar system's value.
Related Terms
REC (Renewable Energy Certificate) · RPS (Renewable Portfolio Standard)
Performance-Based Incentive (PBI)
IncentivesAn incentive paid based on the actual energy produced by a solar system over time (typically per kWh over several years), rather than a one-time upfront payment.
Related Terms
SREC (Solar Renewable Energy Certificate) · State Rebate
Interconnection Fee
ProcessA fee charged by the utility to process the application for connecting a solar system to the grid. Ranges from $0 to $1,000+ depending on the utility and system size.
Why It Matters
Interconnection fees are part of your total solar cost. Some utilities charge nothing; others charge $200-$500 for residential systems. Your installer should include this in their quote.
Related Terms
Interconnection · AHJ (Authority Having Jurisdiction)
Cost Per Watt ($/W)
EconomicsThe standard metric for comparing solar system prices: total installed cost divided by system size in watts DC. National residential average: $2.50-$3.50/W before incentives (2025-2026).
Why It Matters
Cost per watt normalizes solar pricing across different system sizes. A $25,000 system at 10 kW = $2.50/W. Compare quotes on a $/W basis, not total cost alone — system sizes may differ.
Related Terms
Levelized Cost of Energy (LCOE) · Soft Costs
Energy Burden
EconomicsThe percentage of household income spent on home energy costs. The median U.S. household spends about 3%, while low-income households often spend 8-20%.
Why It Matters
High energy burden disproportionately affects LMI families. Programs like HEEHRA, LIHEAP, and community solar with LMI provisions directly address this inequity.
Related Terms
LIHEAP (Low Income Home Energy Assistance Program) · HEEHRA
Discount Rate
EconomicsThe interest rate used to calculate the present value of future cash flows. In solar economics, it reflects the homeowner's opportunity cost of capital — what return they'd earn elsewhere.
Why It Matters
A lower discount rate makes solar's long-term savings more valuable in present-value terms. Typical residential analysis uses 5-8% real discount rate.
Related Terms
Net Present Value (NPV) · Internal Rate of Return (IRR) · Levelized Cost of Energy (LCOE)
RPS (Renewable Portfolio Standard)
PolicyA state-level policy requiring utilities to source a specified percentage of their electricity from renewable sources by a target date. Over 30 states and DC have RPS policies.
Why It Matters
RPS mandates drive utility-scale renewable deployment and create SREC markets. Stricter RPS targets correlate with better solar incentives and lower long-term electricity rates.
Related Terms
SREC (Solar Renewable Energy Certificate) · REC (Renewable Energy Certificate)
Solar Carve-Out
PolicyA provision within an RPS requiring that a specific portion of the renewable target be met by solar energy, creating dedicated demand for solar generation.
Why It Matters
States with solar carve-outs (NJ, MA, MD, DC, IL) typically have the strongest SREC markets, providing solar owners with additional income beyond energy savings.
Related Terms
RPS (Renewable Portfolio Standard) · SREC (Solar Renewable Energy Certificate)
Rate Case
PolicyThe regulatory proceeding through which a utility requests approval from the state public utility commission (PUC) to change customer rates — typically to recover infrastructure investments.
Why It Matters
Rate cases determine what you pay for electricity. They're public proceedings where consumers and advocates can participate. Understanding rate cases helps you anticipate future rate changes.
Related Terms
Public Utility Commission (PUC) · Distribution Charges
Public Utility Commission (PUC)
PolicyA state-level regulatory body (also called PSC, BPU, or CPUC depending on the state) that oversees utility operations, approves rate changes, and sets interconnection rules.
Why It Matters
Your PUC determines net metering rules, interconnection procedures, and rate structures. PUC decisions directly affect the economics of solar and storage in your state.
Related Terms
Rate Case · Net Metering · Interconnection
Deregulation (Energy)
PolicyThe unbundling of electricity generation from transmission and distribution, allowing consumers to choose their electricity supplier in competitive markets. ~17 states have some form of deregulation.
Why It Matters
In deregulated states (Texas, Ohio, PA, NY, CT, etc.), you can shop for electricity suppliers — potentially getting lower rates or 100% renewable supply. In regulated states, you have one utility.
Related Terms
ERCOT · Distribution Charges
FERC (Federal Energy Regulatory Commission)
PolicyThe federal agency that regulates interstate electricity transmission, wholesale electricity markets, and natural gas pipelines. FERC does not regulate retail electricity rates.
Why It Matters
FERC Order 2222 requires wholesale energy markets to allow distributed energy resources (including aggregated home batteries) to participate — opening revenue opportunities for VPP participants.
Related Terms
Virtual Power Plant (VPP) · Ancillary Services
Building Performance Standard (BPS)
PolicyA policy that sets energy performance targets for existing buildings, requiring improvements over time. Applied by city or state to commercial buildings and large multifamily.
Related Terms
Deregulation (Energy) · Rate Case
R-Value
TechnicalA measure of thermal resistance — how well a material resists heat flow. Higher R-values mean better insulation. Recommended attic R-values range from R-38 to R-60 depending on climate zone.
Why It Matters
Adding insulation from R-19 to R-49 in your attic can reduce heating costs by 10-15%. R-value requirements are specified by climate zone in building codes.
Example
A 12-inch layer of blown-in fiberglass provides approximately R-30. Climate zones 4-8 (most of the northern U.S.) recommend R-49 to R-60 in attics.
Related Terms
Air Sealing · Blower Door Test · ENERGY STAR
Air Sealing
ProcessThe process of identifying and sealing unintentional air leaks in a building envelope — including gaps around pipes, wires, ducts, windows, and the attic hatch.
Why It Matters
Air leakage accounts for 25-40% of heating and cooling energy loss in typical homes. Air sealing is the single most cost-effective energy upgrade, often costing $200-$500 for DIY.
Related Terms
Blower Door Test · R-Value · Energy Audit
Blower Door Test
ProcessA diagnostic test that uses a calibrated fan mounted in an exterior doorway to depressurize the house and measure the total air leakage rate, expressed in CFM50 or ACH50.
Why It Matters
A blower door test quantifies exactly how leaky your home is. Results guide air sealing priorities and verify improvements. Target: 3-5 ACH50 for existing homes; 1-3 ACH50 for tight new construction.
Related Terms
Air Sealing · Energy Audit · ACH50
ACH50 (Air Changes per Hour at 50 Pascals)
PerformanceThe number of times the total air volume of a house is exchanged per hour when the house is depressurized to 50 Pascals (about 0.2 inches of water column) during a blower door test.
Why It Matters
ACH50 is the standard air tightness metric. An older leaky house might measure 12-15 ACH50; an energy-efficient new home targets 3 ACH50 or less; Passive House requires under 0.6 ACH50.
Related Terms
Blower Door Test · Air Sealing
Energy Audit
ProcessA professional assessment of a home's energy performance, including blower door testing, thermal imaging, duct leakage testing, insulation evaluation, and appliance efficiency review.
Why It Matters
A $300-$500 audit identifies the highest-ROI improvements for your specific home. The 25C credit covers 30% of audit costs (within the $150 annual limit for audits).
Related Terms
Blower Door Test · Air Sealing · R-Value
ENERGY STAR
PerformanceA U.S. EPA/DOE program that certifies products meeting energy efficiency standards above federal minimums. ENERGY STAR products use 10-50% less energy than standard models.
Why It Matters
ENERGY STAR certification is a reliable minimum bar for efficiency. When 25C credits require "meets or exceeds ENERGY STAR," the certification determines which products qualify for tax credits.
Related Terms
UEF · SEER2 · HSPF2
HERS Index (Home Energy Rating System)
PerformanceA scoring system from 0-150+ that rates a home's energy efficiency. A HERS Index of 100 equals the reference home; lower scores are more efficient. A net-zero home scores 0.
Why It Matters
A HERS rating is the "MPG sticker" for homes. A typical new home scores 50-70; an existing home 80-130. Buyers increasingly look at HERS scores when comparing homes.
Related Terms
Energy Audit · ENERGY STAR
Thermal Bridging
TechnicalHeat transfer through building elements (like studs, concrete slabs, or window frames) that are more conductive than the surrounding insulation, creating "bridges" for heat to escape.
Why It Matters
Framing lumber in walls conducts heat 3-4× faster than insulation. In a typical wood-frame wall, thermal bridging through studs can reduce the wall's effective R-value by 20-30%.
Related Terms
R-Value · Air Sealing
Duct Leakage
PerformanceAir escaping from ductwork joints, connections, and holes before reaching conditioned rooms. The average U.S. duct system leaks 20-30% of airflow.
Why It Matters
Leaky ducts waste conditioned air into attics, crawlspaces, and walls — costing 20-30% of your HVAC energy. Sealing ducts with mastic (not duct tape) is a high-ROI improvement.
Related Terms
Blower Door Test · Energy Audit · Manual J Load Calculation
Induction Cooktop
EquipmentAn electric cooking surface that uses electromagnetic induction to directly heat magnetic cookware, without heating the cooktop surface itself. 85-90% energy efficient vs. 32% for gas.
Why It Matters
Induction is faster, more efficient, and safer than gas cooking — with no indoor combustion byproducts (NO₂, CO, PM2.5). It's the cooking technology at the heart of kitchen electrification.
Related Terms
Heat Pump
Carbon Footprint
EnvironmentThe total greenhouse gas emissions caused directly and indirectly by an individual, organization, event, or product, usually expressed in metric tons of CO₂ equivalent (tCO₂e).
Why It Matters
The average U.S. household's energy carbon footprint is 7.5 tCO₂e/year through electricity and heating. Solar can eliminate 3-5 tons; electrification can address most of the rest.
Related Terms
Carbon Intensity · Emissions Factor
Emissions Factor
EnvironmentThe amount of CO₂ (or CO₂ equivalent) emitted per unit of electricity generated, typically in lbs CO₂/kWh or kg CO₂/MWh. It varies by region based on the generation mix.
Why It Matters
Your electricity's emissions factor determines how much CO₂ your solar system displaces. In coal-heavy regions (0.9 kg CO₂/kWh), solar displaces more emissions than in clean-grid areas (0.2 kg CO₂/kWh).
Related Terms
Carbon Intensity · Carbon Footprint · eGRID
eGRID
EnvironmentThe EPA's Emissions & Generation Resource Integrated Database — the definitive source for emissions data on U.S. power plants and electric grids, organized by region and subregion.
Why It Matters
eGRID data tells you exactly how clean (or dirty) your regional electricity is. It's the basis for calculating your home's electricity-related carbon footprint.
Related Terms
Emissions Factor · Carbon Intensity
GWP (Global Warming Potential)
EnvironmentA measure of how much heat a greenhouse gas traps in the atmosphere relative to CO₂ over a specified period (usually 100 years). CO₂ has a GWP of 1; methane has a GWP of ~28-36.
Related Terms
Carbon Footprint · Emissions Factor
Embodied Carbon
EnvironmentThe total greenhouse gas emissions generated during the manufacturing, transportation, installation, and end-of-life processing of a product — before it's ever turned on.
Why It Matters
A solar panel's embodied carbon is "paid back" in 1-3 years of operation through displaced grid emissions. Over its 25+ year life, a panel avoids 10-20× more carbon than it took to manufacture.
Related Terms
Carbon Footprint · Lifecycle Assessment
Net Zero
EnvironmentA building or home that produces as much energy as it consumes on a net annual basis, typically through a combination of efficiency measures and on-site renewable generation (solar).
Why It Matters
Achieving net zero means your annual energy bill is effectively $0 (or close to it). It requires aggressive efficiency + right-sized solar + possibly storage.
Related Terms
HERS Index (Home Energy Rating System) · Net Metering
Lifecycle Assessment (LCA)
EnvironmentA comprehensive analysis of a product's environmental impacts across its entire life cycle: raw material extraction, manufacturing, use, and disposal/recycling.
Related Terms
Embodied Carbon · Carbon Footprint
Delivery Charges
RatesThe portion of your electric bill covering the cost of maintaining poles, wires, transformers, and the local distribution system that physically delivers electricity to your home.
Why It Matters
Delivery charges are typically 40-60% of your total bill and are charged regardless of where your electricity is generated. Solar reduces the supply portion of your bill but not delivery charges.
Related Terms
Distribution Charges · Transmission Charges · Supply Charges
Supply Charges
RatesThe portion of your electric bill covering the actual cost of generating or procuring electricity — the energy commodity itself. This is the portion solar offsets directly.
Why It Matters
In deregulated states, you can shop for a different electricity supplier while keeping your delivery utility. Solar replaces some or all of your supply charges.
Related Terms
Delivery Charges · Deregulation (Energy)
Fixed Charge (Customer Charge)
RatesA flat monthly fee on your electric bill regardless of how much electricity you use. It covers meter reading, billing, and basic service. Typically $5-$20/month but some utilities are proposing $20-$50.
Why It Matters
Fixed charges cannot be offset by solar — they're charged even if you produce 100% of your electricity. Rising fixed charges reduce solar's economic value.
Related Terms
Delivery Charges · Supply Charges
Volumetric Rate
RatesAn electricity rate charged per kWh of consumption. The higher the volumetric rate, the more valuable solar is, because each kWh of solar production offsets a more expensive kWh of grid electricity.
Related Terms
Fixed Charge (Customer Charge) · Tiered Rate · Time-of-Use (TOU) Rate
Real-Time Pricing
RatesAn electricity rate structure where the price per kWh changes hourly based on wholesale market conditions. Offered by some utilities in deregulated markets.
Why It Matters
Real-time pricing can save money for flexible consumers (EV charging, battery dispatch), but exposes you to price spikes during extreme weather or grid emergencies.
Related Terms
Time-of-Use (TOU) Rate · Demand Response
Site Assessment
PlanningAn evaluation of a property's suitability for solar installation, including roof condition, orientation, shading, structural capacity, electrical panel, and utility interconnection.
Why It Matters
A thorough site assessment prevents surprises during installation. It should identify shading issues, necessary roof repairs, panel upgrade needs, and any code compliance requirements before you commit.
Related Terms
Shading Analysis · Solar Azimuth · AHJ (Authority Having Jurisdiction)
PTO (Permission to Operate)
ProcessFormal approval from the utility allowing a grid-connected solar system to be energized and begin exporting electricity. PTO is the final step after installation and inspection.
Why It Matters
You cannot run your solar system until PTO is granted. Timelines range from same-day (some utilities) to 4-12 weeks (large utilities with backlogs). Ask your installer about typical PTO wait times.
Related Terms
Interconnection · Net Metering · AHJ (Authority Having Jurisdiction)
Structural Engineering Review
ProcessAn assessment by a licensed structural engineer confirming that a roof can support the additional weight of solar panels and mounting hardware (typically 2-4 lbs/sq ft).
Why It Matters
Required by most AHJs, especially for older roofs or non-standard structures. The cost ($200-$500) is usually included in your installer's quote.
Related Terms
Site Assessment · AHJ (Authority Having Jurisdiction)
String Sizing
PlanningThe process of determining how many solar panels to connect in series per inverter string based on voltage, temperature, and inverter operating window specifications.
Why It Matters
Incorrect string sizing can cause inverter shutdown (voltage too high) or reduced production (voltage too low). It's affected by local temperature extremes and NEC requirements.
Related Terms
String Inverter · DC/AC Ratio · Inverter
Permit
ProcessOfficial authorization from local government (AHJ) to install a solar system. Typically requires construction, electrical, and sometimes structural drawings. Costs range from $0-$500+.
Why It Matters
Permit timelines are one of the biggest variables in solar installation speed. Some cities have online same-day permitting; others take 4-8 weeks.
Related Terms
AHJ (Authority Having Jurisdiction) · Interconnection · NEC (National Electrical Code)
Panel Upgrade
InstallationReplacing a home's electrical panel with a higher-capacity one (typically 100A to 200A) to accommodate additional electric loads like solar, battery, EV charger, or heat pump.
Why It Matters
Many older homes have 100A or 150A panels that can't support solar + EV + heat pump. A panel upgrade costs $2,000-$4,000 and may qualify for a 25C tax credit or HEEHRA rebate.
Related Terms
Smart Electrical Panel · NEC (National Electrical Code)
Solarize Campaign
ProgramsA community-organized group purchasing program where residents collectively negotiate lower solar prices from a pre-selected installer through bulk buying power.
Why It Matters
Solarize programs typically deliver 10-20% lower prices than individual purchases. They also simplify the process — one vetted installer, one set of pricing tiers.
Related Terms
Community Solar · Cost Per Watt ($/W)
Green Bank
FinancingA state or local institution that uses public funds to attract private investment in clean energy projects, offering low-interest loans, credit enhancements, and other financing tools.
Why It Matters
Green banks help fill financing gaps, especially for LMI households, nonprofits, and small businesses. Connecticut Green Bank was the first (2011); now a dozen+ states have them.
Related Terms
PACE (Property Assessed Clean Energy) · Solar Loan
Energy Savings Performance Contract (ESPC)
FinancingAn agreement where an energy service company (ESCO) guarantees a certain level of energy savings from efficiency improvements. If savings fall short, the ESCO covers the difference.
Related Terms
Energy Savings Agreement · Production Guarantee
Net Zero Community
ProgramsA residential development or neighborhood designed to produce as much clean energy as it consumes collectively, through shared solar, individual rooftop systems, and high-efficiency construction.
Related Terms
Net Zero · Community Solar
Specific Power (kWh/kWp)
PerformanceThe energy output per unit of installed capacity over a period (typically one year). Expressed as kWh per kWp (kilowatt-peak). A good residential system in the U.S. achieves 1,200-1,800 kWh/kWp annually.
Why It Matters
Specific power normalizes performance across different system sizes. If your 8 kW system produces 12,000 kWh/year, your specific power is 1,500 kWh/kWp — a healthy number in most U.S. regions.
Related Terms
Performance Ratio · Capacity Factor · Peak Sun Hours
Performance Ratio (PR)
PerformanceThe percentage of a solar system's theoretical maximum output that is actually achieved, accounting for all real-world losses (temperature, shading, soiling, wiring, inverter). Typical: 75-85%.
Why It Matters
A declining performance ratio indicates a problem — soiling, equipment degradation, or a fault. Monitoring your PR over time helps catch issues early.
Related Terms
Specific Power (kWh/kWp) · Degradation Rate · Soiling Loss
Energy Monitoring System
EquipmentHardware and software that tracks your home's real-time electricity production (from solar), consumption (by load), and grid interaction. Common brands: Sense, Emporia, Enphase, SolarEdge.
Why It Matters
Monitoring reveals where your energy goes — often surprising. Identifying that your pool pump uses 2,000 kWh/year or your old fridge uses 800 kWh/year enables targeted efficiency improvements.
Related Terms
Energy Management System (EMS) · Smart Electrical Panel
CTA-2045
TechnicalA communication standard (ANSI/CTA-2045-B) that provides a standardized interface module for smart grid-enabled appliances, allowing utilities and aggregators to communicate with water heaters, HVAC, etc.
Why It Matters
CTA-2045 enables your appliances to participate in demand response programs without proprietary apps. Look for CTA-2045 compatibility when buying new water heaters and HVAC equipment.
Related Terms
Demand Response · Energy Management System (EMS) · Smart Electrical Panel
Matter (Smart Home Protocol)
TechnicalAn open-source smart home connectivity standard backed by Apple, Google, Amazon, and Samsung. Matter-compatible devices work across all major ecosystems without vendor lock-in.
Why It Matters
Matter simplifies home energy management by allowing devices from different brands to communicate reliably. A Matter-compatible smart thermostat works with Apple Home, Google Home, and Alexa.
Related Terms
Energy Management System (EMS) · CTA-2045
Islanding
SystemsThe ability of a solar + battery system to disconnect from the grid and operate independently, powering the home from stored and locally generated energy during an outage.
Why It Matters
Intentional islanding (via battery backup) provides power during outages. Unintentional islanding (without a battery) is dangerous and prevented by anti-islanding protection.
Related Terms
Anti-Islanding · Microgrid · Whole-Home Backup
Power Purchase Agreement (Residential PPA)
FinancingA contract where a third party owns the solar system on your roof and you purchase the electricity it produces at a set rate — typically lower than the utility rate, with annual escalators.
Why It Matters
PPAs require zero upfront cost, but you don't own the system or the tax credits. Savings are smaller than ownership. Escalator rate (1-3%/year) means your PPA rate might approach utility rates over time.
Related Terms
Solar Lease · Solar Loan · Federal Tax Credit (ITC)
Hybrid Inverter
EquipmentAn inverter that manages both solar panels and battery storage in a single unit, handling DC-to-AC conversion for solar and bi-directional charging/discharging for the battery.
Why It Matters
Hybrid inverters simplify installations when adding solar and battery together. They're more efficient than separate solar + battery inverters (DC-coupled approach avoids conversion losses).
Related Terms
DC-Coupled System · Inverter · Battery Storage
Net Annual Production
PerformanceThe total electricity (kWh) a solar system generates over a full year, accounting for all seasonal variations, weather, and system losses.
Why It Matters
Net annual production is the single most important number for calculating solar savings and payback. It should be verified against the installer's projections after the first year of operation.
Related Terms
Specific Power (kWh/kWp) · Performance Ratio (PR) · Production Guarantee
Kilowatt-Peak (kWp)
UnitsThe maximum output of a solar system under Standard Test Conditions (STC: 1000 W/m² irradiance, 25°C cell temperature). This is the nominal system size quoted by installers.
Why It Matters
kWp is the system size you see in quotes (e.g., "8 kW system"). Real-world output is always lower than kWp due to temperature, angles, and shading — typically 75-85% of nameplate.
Related Terms
Watt (W) · Specific Power (kWh/kWp) · Performance Ratio (PR)
Standard Test Conditions (STC)
TechnicalThe standardized laboratory conditions under which solar panels are rated: 1,000 W/m² irradiance, 25°C cell temperature, and AM 1.5 spectrum. Panel wattage ratings are always at STC.
Why It Matters
Real-world conditions rarely match STC — panels often operate at 40-65°C (not 25°C) and irradiance varies throughout the day. This is why actual output is lower than the nameplate rating.
Related Terms
Kilowatt-Peak (kWp) · Temperature Coefficient · Module Efficiency
NABCEP (North American Board of Certified Energy Practitioners)
ProcessThe gold-standard certification body for solar installers. NABCEP-certified PV Installation Professionals have demonstrated advanced knowledge through examination and experience verification.
Why It Matters
Asking whether your installer holds NABCEP certification is one of the best ways to vet quality. It's not required by law but indicates serious professional commitment.
Related Terms
AHJ (Authority Having Jurisdiction) · Site Assessment
Interconnection Queue
ProcessThe backlog of energy projects (solar, wind, battery) waiting for utility approval to connect to the grid. As of 2024, over 2,000 GW of generation is waiting in U.S. queues.
Why It Matters
Residential solar interconnection is typically faster than utility-scale, but queue backlogs can still cause delays. In some utility territories, PTO wait times have increased significantly.
Related Terms
Interconnection · PTO (Permission to Operate) · Interconnection Fee
Racking
EquipmentThe mounting hardware (rails, clamps, flashings, and brackets) that secures solar panels to a roof or ground structure. Key types: rail-mounted, rail-less, and ballasted (flat roof).
Why It Matters
Racking quality determines long-term roof integrity and panel security. Cheap racking can lead to leaks or wind damage. Look for flashed penetrations and certified wind-load ratings.
Related Terms
Solar Panel · Ground-Fault Protection
Azimuth
TechnicalThe compass direction a solar panel faces, expressed in degrees (0° = north, 90° = east, 180° = south, 270° = west). Due south (180°) is optimal for maximum annual production in the Northern Hemisphere.
Why It Matters
A south-facing array produces ~100% of potential; southwest/southeast ~95%; west/east ~80-85%. West-facing can be optimal in TOU markets where afternoon production is most valuable.
Related Terms
Solar Azimuth · Tilt Angle · Shading Analysis
Self-Consumption
PerformanceThe percentage of solar electricity that is consumed on-site by the household rather than exported to the grid. Without a battery: typically 25-40%. With a battery: 60-90%.
Why It Matters
Self-consumed solar offsets full retail-rate electricity. In net billing states, self-consumption is far more valuable than exports — making batteries essential for maximizing savings.
Related Terms
Net Metering · Net Billing · Battery Storage
Energy Independence
PerformanceThe degree to which a household meets its electricity needs from on-site generation and storage rather than grid purchases. 100% energy independence = off-grid capability.
Related Terms
Self-Consumption · Off-Grid System · Net Zero
Irradiance
TechnicalThe power of solar radiation received per unit area, measured in W/m² (watts per square meter). Standard peak irradiance at earth's surface is ~1,000 W/m² under clear skies at solar noon.
Why It Matters
Your location's average irradiance (available through NREL's NSRDB) determines how much electricity solar panels will produce. The Southwest U.S. has 30-50% more irradiance than the Northeast.
Related Terms
Peak Sun Hours · Standard Test Conditions (STC) · Capacity Factor
Insolation
TechnicalThe total solar energy received on a surface over a period, typically measured in kWh/m²/day. Similar to peak sun hours but expressed as energy rather than equivalent hours.
Related Terms
Irradiance · Peak Sun Hours
NREL (National Renewable Energy Laboratory)
TechnicalThe U.S. Department of Energy's primary laboratory for renewable energy and energy efficiency research. Located in Golden, Colorado. Provides definitive data on solar resource, costs, and technology.
Why It Matters
NREL's PVWatts calculator and annual technology baseline reports are widely used to estimate solar production and costs. Their data backs most solar savings calculators.
Related Terms
Irradiance · Peak Sun Hours
IQ (Interconnection Queue) Backlog
TechnicalThe accumulated volume of energy projects awaiting grid connection approval. The U.S. backlog exceeds 2,600 GW as of 2024 — primarily wind, solar, and storage projects.
Related Terms
Interconnection Queue · Interconnection
Power Wall
EquipmentColloquial reference to a wall-mounted residential battery storage system, often used specifically to refer to Tesla's Powerwall product (now in its third generation).
Related Terms
Battery Storage · LFP (Lithium Iron Phosphate) · Whole-Home Backup
Backfeed Breaker
InstallationA dedicated circuit breaker in the electrical panel that receives power from the solar inverter. It connects the solar system to the home's electrical distribution system.
Why It Matters
NEC code limits the total breaker amperage feeding a panel. If your panel is already near capacity, you may need a panel upgrade or a feed-through lug kit to accommodate the solar backfeed breaker.
Related Terms
Panel Upgrade · NEC (National Electrical Code) · Inverter
Load Shifting
SystemsMoving electricity consumption from one time period to another — typically from expensive peak hours to cheaper off-peak hours — using timers, smart controls, or batteries.
Why It Matters
On TOU rates with 2:1+ peak/off-peak ratios, load shifting can save 10-20% on electricity bills without reducing consumption. Batteries automate this; smart appliances can help too.
Related Terms
Time-of-Use (TOU) Rate · Battery Storage · Demand Response
Peak Shaving
SystemsUsing batteries or load management to reduce maximum power demand during peak hours, lowering demand charges (for commercial) or maximizing TOU savings (for residential).
Why It Matters
Peak shaving is the primary economic use case for commercial batteries and increasingly for residential batteries on TOU rates or with demand charges.
Related Terms
Demand Charge · Load Shifting · Battery Storage
Utility-Scale Solar
SystemsLarge solar installations (typically 1 MW to 1 GW+) that sell electricity on the wholesale market or to utilities through power purchase agreements.
Why It Matters
Utility-scale solar at $0.025-$0.04/kWh (unsubsidized LCOE) is the cheapest form of new electricity generation in most of the U.S. — which is why utilities are building it at record pace.
Related Terms
Levelized Cost of Energy (LCOE) · Community Solar
Distributed Energy Resource (DER)
SystemsAny small-scale energy generation or storage connected at the distribution level rather than the transmission level. Includes rooftop solar, home batteries, EVs, and demand response.
Why It Matters
DERs are transforming the grid from a one-way delivery system to a bidirectional network. Your solar + battery system makes you a DER — and increasingly, a grid participant (via VPPs).
Related Terms
Virtual Power Plant (VPP) · Microgrid · Demand Response
Prosumer
TechnicalA portmanteau of "producer" and "consumer" — a household or business that both produces and consumes electricity, typically through rooftop solar.
Why It Matters
The prosumer model is reshaping utility-customer relationships. As more homes generate their own electricity, the traditional utility business model is evolving to accommodate two-way energy flows.
Related Terms
Net Metering · Distributed Energy Resource (DER) · Self-Consumption
Nuclear Fission
TechnicalThe process of splitting a heavy atomic nucleus (such as uranium-235 or plutonium-239) into two lighter nuclei, releasing a large amount of energy. This is the reaction that powers all current nuclear power plants.
Why It Matters
Fission provides about 19% of U.S. electricity — the largest single source of carbon-free power. Understanding fission vs. fusion clarifies what nuclear energy can and cannot do today.
Related Terms
Nuclear Fusion · Uranium · Chain Reaction
Nuclear Fusion
TechnicalThe process of combining light atomic nuclei (typically hydrogen isotopes deuterium and tritium) to form heavier nuclei, releasing enormous energy. Fusion powers the sun but has not yet been achieved at commercial scale on Earth.
Why It Matters
Fusion promises virtually unlimited clean energy with minimal waste, but commercial fusion power plants are likely 15-25+ years away. Understanding the distinction between fission (proven, operating) and fusion (experimental) prevents confusion.
Related Terms
Nuclear Fission · Tokamak · Plasma
Uranium
TechnicalA naturally occurring radioactive element used as fuel in nuclear reactors. Natural uranium is 99.3% U-238 and 0.7% U-235. Most reactors require enrichment to 3-5% U-235.
Why It Matters
Uranium fuel has extraordinary energy density — a single fuel pellet the size of a pencil eraser contains the energy of 17,000 cubic feet of natural gas. This is why nuclear plants need refueling only every 18-24 months.
Related Terms
Enrichment · Nuclear Fission · HALEU
Enrichment
ProcessThe process of increasing the concentration of uranium-235 (the fissile isotope) in uranium fuel. Most commercial reactors need 3-5% enrichment (natural is 0.7%). Advanced reactors may need HALEU (5-20%).
Why It Matters
Enrichment is a critical and geopolitically sensitive step in the nuclear fuel cycle. Russia currently controls about 40% of global enrichment capacity, creating a supply chain vulnerability.
Related Terms
Uranium · HALEU · Nuclear Fission
HALEU (High-Assay Low-Enriched Uranium)
TechnicalUranium enriched to between 5% and 20% U-235. Several advanced reactor designs (including many SMRs) require HALEU fuel, which is not yet commercially available at scale in the U.S.
Why It Matters
HALEU availability is a bottleneck for deploying next-generation reactors. DOE is working to establish a domestic HALEU supply chain independent of Russian enrichment.
Related Terms
Enrichment · Uranium · Small Modular Reactor (SMR)
Small Modular Reactor (SMR)
EquipmentA nuclear reactor with electrical output under 300 MW (vs. 1,000+ MW for conventional reactors), designed for factory fabrication and site assembly. Key designs include NuScale VOYGR, TerraPower Natrium, and X-energy Xe-100.
Why It Matters
SMRs aim to solve nuclear's cost and construction problems through factory manufacturing, standardized designs, and incremental scaling. They could provide firm clean power at coal plant sites starting in the late 2020s.
Related Terms
Nuclear Fission · HALEU · Passive Safety
Passive Safety
TechnicalNuclear reactor safety systems that rely on natural physical processes (gravity, convection, thermal radiation) rather than active components like pumps, valves, or human operators. Many SMR designs feature passive safety that prevents meltdown without any external intervention.
Why It Matters
Passive safety is a key selling point of new reactor designs. It means the reactor self-regulates — if something goes wrong, physics shuts it down automatically, without needing electricity or operator action.
Related Terms
Small Modular Reactor (SMR) · Nuclear Fission
NRC (Nuclear Regulatory Commission)
PolicyThe U.S. federal agency responsible for licensing and regulating civilian nuclear power plants, reactors, materials, and waste. The NRC reviews and certifies reactor designs and issues operating licenses.
Why It Matters
NRC approval is required before any nuclear reactor can operate in the U.S. Design certification takes 3-7+ years. The pace of NRC reviews directly affects how quickly new reactor types can be deployed.
Related Terms
Small Modular Reactor (SMR) · Nuclear Fission
Tokamak
EquipmentA donut-shaped (toroidal) device that uses powerful magnetic fields to confine hot plasma for nuclear fusion. The tokamak is the most developed approach to magnetic confinement fusion, used by ITER and SPARC.
Why It Matters
The tokamak is the leading candidate for the first commercial fusion power plant. Understanding it helps you evaluate fusion progress reports and timelines in the news.
Related Terms
Nuclear Fusion · Plasma
Plasma
TechnicalThe fourth state of matter — a superheated gas where atoms are stripped of their electrons. In fusion reactors, hydrogen isotopes are heated to 100+ million degrees Celsius, forming a plasma that enables fusion reactions.
Why It Matters
Confining and controlling plasma at extreme temperatures is the central engineering challenge of fusion energy.
Related Terms
Nuclear Fusion · Tokamak
Chain Reaction
TechnicalIn nuclear fission, a self-sustaining series of reactions where neutrons released by splitting one atom cause additional atoms to split, releasing more neutrons and energy. Reactors control this process; bombs let it run away.
Why It Matters
Understanding that reactors maintain a controlled chain reaction (not an explosion) is fundamental to understanding nuclear safety. The reactor operates at "criticality" — each fission event triggers exactly one more.
Related Terms
Nuclear Fission · Uranium
Spent Nuclear Fuel
TechnicalFuel assemblies that have been used in a reactor and are no longer efficient for sustaining a chain reaction. Spent fuel is highly radioactive and requires secure storage — initially in water pools, then in dry cask storage.
Why It Matters
The U.S. has no permanent repository for spent nuclear fuel. About 90,000 metric tons are stored at reactor sites across the country. This is a political and practical challenge, though the actual volume is small (all U.S. spent fuel would fit on a single football field stacked 10 yards high).
Related Terms
Nuclear Fission · Uranium
Combined Cycle Gas Turbine (CCGT)
EquipmentA power plant that uses natural gas in two stages: first burning it in a gas turbine, then using the waste heat to produce steam for a steam turbine. This two-stage process achieves 55-63% thermal efficiency — the highest of any thermal power plant.
Why It Matters
CCGT plants generate about 43% of U.S. electricity and are the most efficient fossil fuel technology. They are also relatively quick to build (2-3 years) and can ramp output to complement wind and solar.
Related Terms
Heat Rate · Peaker Plant
Peaker Plant
EquipmentA power plant that operates only during periods of peak electricity demand — typically natural gas simple-cycle turbines that can start up in 5-15 minutes. They run a few hundred hours per year and charge premium electricity rates.
Why It Matters
Peaker plants are the most expensive electricity on the grid and are increasingly being replaced by battery storage, which can respond even faster and at lower operating cost.
Related Terms
Combined Cycle Gas Turbine (CCGT) · Demand Response
Hydraulic Fracturing (Fracking)
ProcessA technique that injects high-pressure fluid into rock formations to create fractures, allowing oil and natural gas to flow to the wellbore. Combined with horizontal drilling, fracking unlocked vast shale oil and gas resources in the U.S.
Why It Matters
Fracking transformed the U.S. energy landscape — making the country the world's largest oil and gas producer and driving down natural gas prices, which in turn displaced coal from power generation.
Related Terms
Shale Gas · Horizontal Drilling
Shale Gas
TechnicalNatural gas trapped within fine-grained sedimentary rock (shale) formations. Previously considered unrecoverable, shale gas became accessible through hydraulic fracturing and horizontal drilling — the "shale revolution" of the 2000s-2010s.
Why It Matters
Shale gas production roughly doubled U.S. natural gas output, driving prices to historically low levels. This made natural gas the dominant electricity fuel and enabled U.S. LNG exports to global markets.
Related Terms
Hydraulic Fracturing (Fracking) · Horizontal Drilling
Horizontal Drilling
ProcessA drilling technique where the wellbore turns from vertical to horizontal, running laterally through a thin rock formation for thousands of feet. This accesses far more of the resource than a vertical well alone.
Why It Matters
Combined with fracking, horizontal drilling made the U.S. shale revolution possible. The same techniques are now being adapted for enhanced geothermal systems.
Related Terms
Hydraulic Fracturing (Fracking) · Shale Gas
LNG (Liquefied Natural Gas)
TechnicalNatural gas cooled to -162°C (-260°F), at which point it becomes a liquid occupying 1/600th of its gaseous volume. LNG is shipped in specialized tankers to markets that pipelines cannot reach.
Why It Matters
The U.S. became the world's largest LNG exporter, providing gas to Europe and Asia. LNG trade connects U.S. gas prices to global markets and has geopolitical implications (e.g., reducing Europe's dependence on Russian gas).
Related Terms
Shale Gas · MMBtu
MMBtu (Million British Thermal Units)
UnitsA unit of energy commonly used to price natural gas. One MMBtu equals approximately 1,000 cubic feet of natural gas. U.S. natural gas prices are typically quoted in dollars per MMBtu.
Why It Matters
When you see natural gas prices quoted (e.g., "$2.50/MMBtu"), this unit lets you understand the cost of gas as a fuel for power generation, heating, and industrial use.
Related Terms
Therm · BTU
Therm
UnitsA unit of heat energy equal to 100,000 BTU. Natural gas bills for residential customers are typically measured in therms. One therm is roughly equivalent to 100 cubic feet (1 Ccf) of natural gas.
Why It Matters
If you have a gas furnace, water heater, or stove, your gas bill is measured in therms. Understanding this unit helps you compare the cost of gas vs. electric heating.
Related Terms
MMBtu · BTU
Heat Rate
PerformanceA measure of power plant efficiency — the amount of fuel energy (in BTU) needed to produce one kilowatt-hour of electricity. Lower heat rates mean higher efficiency. A typical CCGT has a heat rate of about 6,400 BTU/kWh.
Why It Matters
Heat rate determines fuel cost per kWh. A plant with a 6,400 BTU/kWh heat rate at $2.50/MMBtu gas costs about $16/MWh in fuel alone — explaining why gas is cheap for power generation.
Related Terms
Combined Cycle Gas Turbine (CCGT) · Thermal Efficiency
Carbon Capture and Storage (CCS)
TechnicalTechnologies that capture CO2 emissions from power plants or industrial facilities before they reach the atmosphere, then transport and store the CO2 permanently underground in geological formations.
Why It Matters
CCS could allow continued use of some fossil fuels while reducing emissions, or it could prove too expensive compared to renewables. The debate is highly relevant to energy policy and natural gas investment decisions.
Related Terms
45Q Tax Credit · Direct Air Capture (DAC)
45Q Tax Credit
IncentivesA federal tax credit for capturing and permanently sequestering CO2. The IRA increased the credit to $85/ton for geological storage and $180/ton for direct air capture. Available for projects that capture specified minimum amounts annually.
Why It Matters
The 45Q credit is the primary federal incentive making carbon capture projects economically viable. At $85/ton, it can close the economics gap for CCS on power plants and industrial facilities.
Related Terms
Carbon Capture and Storage (CCS) · Direct Air Capture (DAC)
Direct Air Capture (DAC)
TechnicalTechnology that captures CO2 directly from ambient air (as opposed to from a smokestack). DAC requires significant energy and currently costs $400-$1,000+ per ton of CO2 removed, but costs are expected to decline with scale.
Why It Matters
DAC is one of the few ways to achieve "negative emissions" — actually removing historical CO2 from the atmosphere. The IRA provides $180/ton credits for DAC with permanent storage.
Related Terms
Carbon Capture and Storage (CCS) · 45Q Tax Credit
Methane
EnvironmentThe primary component of natural gas (CH4). Methane is a potent greenhouse gas — about 80x more warming than CO2 over a 20-year period. Methane leakage from natural gas infrastructure is a significant climate concern.
Why It Matters
Methane leakage rates determine whether natural gas is truly "cleaner" than coal. If more than about 3% of natural gas leaks during production and delivery, the climate benefit over coal largely disappears.
Related Terms
LNG (Liquefied Natural Gas) · Shale Gas
Hydroelectric Dam
EquipmentA structure that impounds water in a reservoir, releasing it through turbines to generate electricity. The energy comes from the gravitational potential of water stored at elevation.
Why It Matters
Hydropower is America's oldest and largest source of renewable electricity (~6%). Existing dams provide cheap, reliable, dispatchable clean power — a unique combination among renewables.
Related Terms
Pumped Storage Hydropower · Penstock · Run-of-River
Pumped Storage Hydropower
SystemsA grid-scale energy storage system using two reservoirs at different elevations. Excess electricity pumps water uphill; when power is needed, water flows downhill through turbines. About 22 GW of capacity exists in the U.S.
Why It Matters
Pumped hydro is the largest and most proven form of grid-scale energy storage — storing far more energy than all batteries combined. It provides 8-12+ hours of storage and lasts 50-100 years.
Related Terms
Hydroelectric Dam · Grid-Scale Battery
Run-of-River
EquipmentA type of hydroelectric facility that generates power from the natural flow and elevation drop of a river, without creating a significant reservoir. Output varies with river conditions.
Why It Matters
Run-of-river projects have lower environmental impact than dammed reservoirs because they don't flood valleys. However, their output varies with natural water flow and they offer less control over generation timing.
Related Terms
Hydroelectric Dam · Capacity Factor
Penstock
EquipmentA pipe or channel that carries water from a dam's reservoir to the turbines below. The penstock converts the water's potential energy (from height) to kinetic energy (from velocity) as it descends.
Why It Matters
The height of the penstock (called "head") directly determines how much energy each gallon of water can produce. Higher dams = more energy per unit of water.
Related Terms
Hydroelectric Dam · Head
Fish Ladder
EnvironmentA structure built alongside a dam that allows fish (especially salmon and other migratory species) to pass upstream to spawning grounds. Fish ladders consist of ascending pools that fish jump between.
Why It Matters
Dams block fish migration routes, devastating salmon populations in the Pacific Northwest and elsewhere. Fish ladders mitigate this but don't fully restore natural fish passage — it's a major environmental trade-off of hydropower.
Related Terms
Hydroelectric Dam
Enhanced Geothermal System (EGS)
SystemsA geothermal power system that creates artificial reservoirs by drilling into hot dry rock and fracturing it, then circulating water through the fractures to extract heat. EGS removes the need for natural underground water and permeability.
Why It Matters
EGS could expand geothermal from a niche resource (3.7 GW in a few western states) to a major 100+ GW clean energy source available across most of the U.S. — providing 24/7, weather-independent clean power.
Related Terms
Geothermal Energy · Binary Cycle
Binary Cycle Power Plant
EquipmentA geothermal (or waste heat recovery) power plant where hot water from the earth heats a secondary working fluid with a lower boiling point through a heat exchanger. The secondary fluid vaporizes to drive a turbine. The geothermal water never touches the turbine and is reinjected.
Why It Matters
Binary cycle plants work at lower temperatures (100-180°C) than flash steam, making more geothermal resources accessible. They're also closed-loop — no emissions and minimal water consumption.
Related Terms
Enhanced Geothermal System (EGS) · Geothermal Energy
Green Hydrogen
TechnicalHydrogen produced by splitting water (electrolysis) using renewable electricity. The process produces zero direct greenhouse gas emissions. Currently costs $4-$8/kg vs. $1-$2/kg for conventional (gray) hydrogen.
Why It Matters
Green hydrogen is considered key to decarbonizing heavy industry (steel, ammonia), long-haul transport, and seasonal energy storage. The IRA's 45V credit ($3/kg) could make it cost-competitive within this decade.
Related Terms
Electrolysis · Gray Hydrogen · Blue Hydrogen · 45V Tax Credit
Gray Hydrogen
TechnicalHydrogen produced from natural gas via steam methane reforming (SMR) without capturing the resulting CO2 emissions. This is how 95% of hydrogen is produced today, emitting about 10 kg of CO2 per kg of H2.
Why It Matters
Nearly all hydrogen used in industry today is gray hydrogen. Transitioning to green or blue hydrogen is necessary for hydrogen to be a climate solution rather than a contributor.
Related Terms
Green Hydrogen · Blue Hydrogen · Steam Methane Reforming
Blue Hydrogen
TechnicalHydrogen produced from natural gas with carbon capture and storage (CCS) applied to capture 85-95% of the CO2 emissions. Costs between gray and green hydrogen.
Why It Matters
Blue hydrogen is controversial — proponents see it as a bridge to green hydrogen; critics argue upstream methane leakage and imperfect capture make it insufficiently clean.
Related Terms
Gray Hydrogen · Green Hydrogen · Carbon Capture and Storage (CCS)
Electrolysis
ProcessThe process of using electricity to split water (H2O) into hydrogen (H2) and oxygen (O2). The main electrolyzer types are PEM (proton exchange membrane), alkaline, and solid oxide (SOEC).
Why It Matters
Electrolysis is how green hydrogen is made. The efficiency and cost of electrolyzers are key factors determining whether green hydrogen can compete with fossil-fuel-derived hydrogen.
Related Terms
Green Hydrogen · Fuel Cell
Fuel Cell
EquipmentAn electrochemical device that converts hydrogen and oxygen directly into electricity, water, and heat — the reverse of electrolysis. Fuel cells are 40-60% electrically efficient with no combustion emissions.
Why It Matters
Fuel cells are used in hydrogen vehicles (Toyota Mirai), forklifts (~70,000 in U.S. warehouses), backup power, and stationary generation. They're a key hydrogen end-use technology.
Related Terms
Green Hydrogen · Electrolysis · PEM
45V Tax Credit
IncentivesThe IRA's Clean Hydrogen Production Tax Credit, providing up to $3.00 per kilogram for hydrogen produced with very low lifecycle CO2 emissions (less than 0.45 kg CO2/kg H2). Lower credits available for less-clean production methods.
Why It Matters
At $3/kg, the 45V credit could make green hydrogen cost-competitive with gray hydrogen for the first time — potentially unlocking the clean hydrogen economy.
Related Terms
Green Hydrogen · Electrolysis
Ethanol
TechnicalAn alcohol fuel (C2H5OH) typically produced from corn in the U.S. Blended into nearly all gasoline sold in America at 10% (E10). The U.S. produces about 16 billion gallons per year — the world's largest producer.
Why It Matters
If you drive a gasoline vehicle, you're already using ethanol — virtually all U.S. gasoline contains 10% ethanol. It's a significant agricultural product using about 35-40% of the U.S. corn crop.
Related Terms
Renewable Fuel Standard (RFS) · Biodiesel
Biodiesel
TechnicalA renewable diesel substitute made from vegetable oils (primarily soybean), used cooking oil, or animal fats through a chemical process called transesterification. Used in blends (B5-B20) with petroleum diesel.
Why It Matters
Biodiesel reduces lifecycle CO2 emissions compared to petroleum diesel and supports domestic agriculture. Renewable diesel (chemically identical to petroleum diesel) is a growing alternative.
Related Terms
Ethanol · Renewable Fuel Standard (RFS)
Renewable Natural Gas (RNG)
TechnicalMethane captured from organic waste sources (landfills, dairy farms, wastewater treatment) and cleaned to pipeline quality. Chemically equivalent to fossil natural gas, usable in any gas appliance or pipeline.
Why It Matters
RNG captures methane that would otherwise be released to the atmosphere, turning a waste product into useful fuel. It's particularly valuable when captured from dairy operations and landfills where the alternative is methane emissions.
Related Terms
Methane · Biogas
Biogas
TechnicalA gas mixture (primarily methane and CO2) produced by the anaerobic decomposition of organic matter. Sources include landfills, wastewater treatment plants, livestock manure, and food waste digesters.
Why It Matters
Biogas can be used directly for heat or electricity, or cleaned to become renewable natural gas. Over 500 U.S. landfills and 300+ farms capture biogas for energy.
Related Terms
Renewable Natural Gas (RNG) · Methane
Renewable Fuel Standard (RFS)
PolicyA federal program (established 2005, expanded 2007) that requires transportation fuel sold in the U.S. to contain specified volumes of renewable fuel. Mandates roughly 20 billion gallons/year of biofuel blending.
Why It Matters
The RFS is the primary policy driving ethanol and biodiesel production in the U.S. It supports rural economies and reduces petroleum dependence, though its climate benefits are debated.
Related Terms
Ethanol · Biodiesel · Renewable Natural Gas (RNG)
Sustainable Aviation Fuel (SAF)
TechnicalJet fuel produced from renewable or waste sources (biomass, used cooking oil, municipal waste, green hydrogen + CO2) that achieves significant lifecycle CO2 reductions compared to petroleum jet fuel. A drop-in replacement for conventional jet fuel.
Why It Matters
Aviation is one of the hardest sectors to decarbonize because batteries can't power large aircraft. SAF is currently the only near-term option for reducing aviation emissions, with a federal goal of 3 billion gallons by 2030.
Related Terms
Biodiesel · Green Hydrogen
Energy Density
TechnicalThe amount of energy stored per unit of weight (gravimetric, Wh/kg) or volume (volumetric, Wh/L). Gasoline has about 12,500 Wh/kg; lithium-ion batteries have about 250-300 Wh/kg — a 40-50x gap.
Why It Matters
Energy density explains why batteries work for cars but not airplanes, why nuclear fuel lasts decades, and why the energy transition is harder for some sectors than others.
Related Terms
Battery Storage · Capacity Factor
LCOE (Levelized Cost of Energy)
EconomicsThe average total cost of building, fueling, and operating a power plant per unit of electricity produced over its lifetime, expressed in $/MWh. LCOE enables apples-to-apples comparison across different generation technologies.
Why It Matters
LCOE is the most commonly cited metric for comparing power plant costs. Utility-scale solar ($25-$50/MWh) and onshore wind ($25-$55/MWh) now have the lowest LCOE of any new-build generation in most regions.
Related Terms
Capacity Factor
Dispatchable Generation
SystemsPower plants that can be turned on, off, or adjusted in output on demand by grid operators. Natural gas, hydropower, nuclear, geothermal, and batteries are dispatchable. Wind and solar are "variable" (weather-dependent).
Why It Matters
The grid must balance supply and demand in real time. As variable wind and solar grow, the value of dispatchable clean sources (hydro, nuclear, geothermal, batteries) increases — they fill gaps when the sun isn't shining and wind isn't blowing.
Related Terms
Capacity Factor · Peaker Plant · Baseload
Baseload
SystemsThe minimum level of electricity demand on the grid, typically met by power plants that run continuously at low cost — traditionally coal and nuclear. The concept is evolving as variable renewables and storage change grid operations.
Why It Matters
Understanding baseload helps explain why nuclear and coal plants run 24/7 (they're designed for it), and why the grid needs a mix of generation types to serve different levels of demand.
Related Terms
Dispatchable Generation · Peaker Plant · Merit Order
Merit Order
EconomicsThe sequence in which power plants are dispatched to meet electricity demand, ranked from cheapest to most expensive operating cost. Renewables and nuclear (near-zero fuel cost) dispatch first; expensive peaker plants dispatch last.
Why It Matters
Merit order dispatch determines which plants run at any given time and what you pay for electricity. As zero-fuel-cost renewables grow, they push expensive plants off the grid, potentially lowering wholesale electricity prices.
Related Terms
Dispatchable Generation · Peaker Plant · Baseload
Black Start
TechnicalThe ability of a power plant to restart independently without relying on external electricity from the grid. Hydroelectric dams and some gas turbines have black start capability — essential for recovering from grid-wide blackouts.
Why It Matters
After a total blackout, the grid can't restart itself — it needs generators that can start without grid power. Black start capability is a critical grid reliability service.
Related Terms
Hydroelectric Dam · Dispatchable Generation
Energy Transition
TechnicalThe global shift from fossil fuels (coal, oil, natural gas) toward cleaner energy sources (solar, wind, nuclear, storage, efficiency, electrification). Driven by economics, climate policy, technology advancement, and energy security.
Why It Matters
The energy transition is reshaping every sector of the economy — from how we generate electricity to how we heat homes and drive cars. Understanding it helps you make informed decisions about energy purchases, home improvements, and investments.
Related Terms
Electrification · Decarbonization
Strategic Petroleum Reserve (SPR)
SystemsThe world's largest government-owned emergency petroleum stockpile, stored in salt caverns along the U.S. Gulf Coast. Current capacity: ~714 million barrels; current inventory: ~370-400 million barrels.
Why It Matters
The SPR is America's insurance policy against oil supply disruptions. Its largest-ever release (180 million barrels in 2022) helped moderate gasoline prices after Russia's invasion of Ukraine.
Related Terms
Energy Security
Primary Energy
UnitsThe total raw energy consumed by a country before conversion losses — including all fuels for transportation, electricity generation, industrial processes, and heating. The U.S. consumes about 100 quadrillion BTU (quads) of primary energy annually.
Why It Matters
Primary energy statistics can be misleading because they count the waste heat from fossil fuel combustion (60-70% of energy is wasted). Renewables and direct electrification avoid much of this waste, so their contribution appears smaller in primary energy terms than their actual useful energy share.
Related Terms
BTU · Quad
Quad
UnitsA unit of energy equal to one quadrillion (10^15) BTU. Used for national and global energy accounting. U.S. primary energy consumption is approximately 100 quads per year.
Why It Matters
You'll see quads in government energy reports and statistics. One quad is approximately the energy in 170 million barrels of oil, or 1 trillion cubic feet of natural gas.
Related Terms
Primary Energy · BTU · MMBtu
Thermal Efficiency
PerformanceThe percentage of fuel energy that a thermal power plant converts into electricity. The rest is waste heat. Typical values: coal 33-37%, gas CCGT 55-63%, nuclear 32-34%, gas simple cycle 30-40%.
Why It Matters
Higher thermal efficiency means more electricity from less fuel — reducing both cost and emissions. This is why CCGT plants displaced less efficient coal plants when gas prices dropped.
Related Terms
Heat Rate · Combined Cycle Gas Turbine (CCGT)
Induced Seismicity
EnvironmentEarthquakes caused or triggered by human activities, including wastewater injection from oil/gas operations, hydraulic fracturing, geothermal energy production, and reservoir filling. Most are small (below magnitude 3) but some have exceeded magnitude 5.
Why It Matters
Oklahoma experienced a dramatic increase in earthquakes due to oil and gas wastewater disposal injection. Managing induced seismicity is also a consideration for enhanced geothermal systems.
Related Terms
Hydraulic Fracturing (Fracking) · Enhanced Geothermal System (EGS)
BTU (British Thermal Unit)
UnitsA traditional unit of heat energy, approximately the energy needed to heat one pound of water by one degree Fahrenheit. One kWh equals about 3,412 BTU. Used to rate furnaces, water heaters, and heating/cooling systems.
Why It Matters
Furnace and water heater ratings use BTU, so understanding this unit helps compare gas vs electric appliances and estimate fuel costs.
Related Terms
kWh (Kilowatt-hour) · Therm · MMBtu (Million British Thermal Units)
Amp (Ampere)
UnitsThe base unit of electric current, measuring how many electrons flow through a conductor per second. Household circuits are typically rated at 15, 20, or 30 amps.
Why It Matters
Panel upgrade decisions, EV charger installation, and circuit load calculations all depend on amperage. A 200-amp panel is the modern standard for electrified homes.
Related Terms
Watt (W) · Panel Upgrade · EV Charger (EVSE)
Volt (V)
UnitsA unit of electrical pressure or potential difference. US residential power is typically 120V (standard outlets) or 240V (large appliances, EV chargers). Solar panels produce 30-50V each.
Why It Matters
Understanding voltage explains why EV chargers and heat pumps need 240V circuits, and why electricians check voltage when sizing solar inverters.
Related Terms
Amp (Ampere) · Watt (W) · DC (Direct Current)
Megawatt (MW)
UnitsOne million watts, used to measure the capacity of power plants and utility-scale energy installations. A typical US home uses about 1.2 kW on average, so 1 MW can serve roughly 800 homes.
Why It Matters
News about power plants and solar farms uses MW. Understanding scale helps you evaluate community solar projects and grid capacity discussions.
Related Terms
Watt (W) · kWh (Kilowatt-hour) · Utility-Scale Solar
Gigawatt (GW)
UnitsOne billion watts or 1,000 megawatts. Used to describe national energy capacity. The US has about 1,300 GW of total installed generating capacity.
Why It Matters
Policy discussions about the energy transition reference GW to describe how much solar, wind, or nuclear capacity is being added nationally.
Related Terms
Megawatt (MW) · Capacity Factor
Megawatt-hour (MWh)
UnitsOne thousand kilowatt-hours, used for wholesale electricity pricing and utility-scale energy production metrics. The average US home uses about 10.5 MWh per year.
Why It Matters
Wholesale electricity prices are quoted per MWh. Understanding this unit helps interpret energy market reports and community solar credit calculations.
Related Terms
kWh (Kilowatt-hour) · Megawatt (MW)
Joule (J)
UnitsThe SI unit of energy. One watt-second equals one joule. One kWh equals 3.6 million joules. Rarely used in consumer energy contexts but common in physics and engineering.
Why It Matters
Scientific literature and some international product ratings use joules. Knowing the conversion (1 kWh = 3.6 MJ) bridges the gap between technical papers and practical energy decisions.
Related Terms
kWh (Kilowatt-hour) · BTU (British Thermal Unit)
Ton (Cooling Capacity)
UnitsA measure of air conditioning and heat pump capacity equal to 12,000 BTU per hour. A typical home needs 2-5 tons of cooling capacity depending on climate and square footage.
Why It Matters
HVAC contractors quote system sizes in tons. An oversized system short-cycles and wastes energy; an undersized one cannot keep up on extreme days.
Related Terms
BTU (British Thermal Unit) · Manual J Load Calculation · Heat Pump
Energy Model
PlanningA computer simulation of a building that predicts energy consumption based on climate data, insulation levels, HVAC equipment, occupancy patterns, and appliance usage. Tools like EnergyPlus and BEopt are used by auditors.
Why It Matters
An energy model identifies which upgrades deliver the most savings before you spend money, reducing the risk of costly improvements that underperform.
Related Terms
Energy Audit · HERS Index (Home Energy Rating System) · Manual J Load Calculation
Electrification Plan
PlanningA phased strategy to replace fossil fuel appliances (gas furnace, water heater, stove, clothes dryer) with high-efficiency electric alternatives (heat pumps, induction), often coordinated with solar and panel upgrades.
Why It Matters
Switching appliances one at a time can waste money on gas infrastructure. A planned approach sequences upgrades to maximize incentives and avoid redundant utility connections.
Related Terms
Heat Pump · Induction Cooktop · Panel Upgrade
Load Analysis
PlanningA calculation of the total electrical demand of a home or building, accounting for all circuits, appliances, and future additions like EV chargers or heat pumps. Required for panel upgrade decisions.
Why It Matters
Before adding solar, batteries, or EV chargers, an electrician performs a load analysis to determine if your electrical panel can handle the additional demand.
Related Terms
Manual J Load Calculation · Panel Upgrade · Load Profile
Solar Feasibility Study
PlanningAn assessment of whether a property is suitable for solar panels, considering roof condition, orientation, shading, structural capacity, local regulations, and utility interconnection requirements.
Why It Matters
Not every roof is a good solar candidate. A feasibility study prevents you from wasting money on a system that will underperform due to shading or structural issues.
Related Terms
Site Assessment · Shading Analysis · Azimuth · Tilt Angle
Resilience Planning
PlanningDesigning a home energy system to maintain critical loads (refrigeration, medical equipment, lighting, communications) during extended power outages using battery storage, generators, or microgrids.
Why It Matters
Climate change is increasing the frequency of severe weather events. A resilience plan ensures your most important systems keep running when the grid goes down.
Related Terms
Whole-Home Backup · Microgrid · Battery Storage · Islanding
Decarbonisation Roadmap
PlanningA timeline for reducing a household or community carbon emissions to net zero, typically by switching to renewable electricity, electrifying heating and transport, and improving building efficiency.
Why It Matters
Many states have adopted net-zero targets by 2050. A personal decarbonisation roadmap helps you sequence investments to align with falling technology costs and available incentives.
Related Terms
Net Zero · Carbon Footprint · Energy Transition
Utility Rate Analysis
PlanningA review of all available electricity rate plans from your utility to find the tariff structure that minimizes your bill given your usage patterns, solar production, and battery storage.
Why It Matters
Choosing the wrong rate plan can cost hundreds per year. Time-of-use rates benefit solar owners but penalize peak evening users without batteries.
Related Terms
Time-of-Use (TOU) Rate · Tiered Rate · Flat Rate · Real-Time Pricing
Home Energy Score
PlanningA DOE-developed rating from 1 to 10 that assesses a home energy efficiency based on the building envelope, heating/cooling systems, and hot water system. Similar to a miles-per-gallon rating for vehicles.
Why It Matters
Some cities (Portland, Berkeley) require energy scores for home sales. A higher score can increase property value and reduce buyer concerns about utility costs.
Related Terms
HERS Index (Home Energy Rating System) · Energy Audit
Electrical Inspection
InstallationA review by a licensed inspector to verify that electrical work meets National Electrical Code (NEC) requirements. Required before utility interconnection of solar systems and after panel upgrades.
Why It Matters
Failed inspections delay your solar system activation. Understanding common inspection points (grounding, labeling, rapid shutdown) helps set expectations.
Related Terms
NEC (National Electrical Code) · AHJ (Authority Having Jurisdiction) · PTO (Permission to Operate)
Trenching
InstallationDigging a narrow channel to bury electrical conduit, typically for ground-mount solar arrays, detached garage EV charger wiring, or battery storage systems installed away from the main panel.
Why It Matters
Trenching adds $5-15 per foot to installation costs. Knowing when it is required helps you budget accurately for ground-mount solar or detached garage EV charging.
Related Terms
Balance of System (BOS) · Soft Costs
Roof Penetration
InstallationA hole drilled through the roof to attach solar panel mounting hardware. Properly flashed penetrations use waterproof sealant and metal flashing to prevent leaks for the life of the system.
Why It Matters
Many homeowners worry about roof leaks from solar. Quality installers use industry-standard flashing that keeps the warranty intact and prevents water intrusion.
Related Terms
Racking · BIPV (Building-Integrated Photovoltaics)
Ballasted Mount
InstallationA solar racking system that uses heavy blocks (concrete or steel) to hold panels in place without penetrating the roof. Common on flat commercial roofs and some residential flat roofs.
Why It Matters
If your roof cannot be penetrated (e.g. membrane roofs, lease restrictions), ballasted mounting is an alternative. It requires the roof to support the additional weight.
Related Terms
Racking · Roof Penetration
Ground-Mount System
InstallationA solar array installed on a metal frame structure anchored to the ground rather than a rooftop. Allows optimal tilt and orientation, and avoids roof condition issues.
Why It Matters
If your roof is shaded, old, or poorly oriented, ground-mount may deliver 10-20% more production. It typically costs $0.10-0.30/W more than roof-mount due to trenching and racking.
Related Terms
Racking · Tilt Angle · Azimuth · Trenching
Carport Solar
InstallationSolar panels mounted on a covered parking structure, providing both electricity generation and vehicle shade. Popular for homes with poor roof orientation and for commercial properties.
Why It Matters
Carport solar solves two problems at once — shading your car (reducing EV range loss from cabin heat) while generating clean energy. It is a growing option where ground space is available.
Related Terms
Ground-Mount System · EV Charger (EVSE)
Commissioning
InstallationThe process of verifying that a newly installed energy system (solar, battery, HVAC) operates correctly and meets design specifications before handoff to the owner.
Why It Matters
Proper commissioning catches wiring errors, firmware bugs, and suboptimal settings before they cost you money. Always request commissioning documentation from your installer.
Related Terms
PTO (Permission to Operate) · Interconnection
Subpanel
InstallationA secondary electrical panel fed from the main panel, used to distribute circuits to a specific area (garage, workshop, addition). Solar systems and EV chargers are sometimes connected via subpanels.
Why It Matters
Adding a subpanel can be cheaper than upgrading your main panel when you only need a few new high-amperage circuits for solar or EV charging.
Related Terms
Panel Upgrade · Smart Electrical Panel
Community Choice Aggregation (CCA)
ProgramsA program where a local government purchases electricity on behalf of residents, often choosing a greener energy mix than the default utility, while the utility still handles delivery.
Why It Matters
CCAs operate in California, Illinois, New York, and other states. They can provide 100% renewable energy at competitive rates without requiring you to switch your utility.
Related Terms
Deregulation (Energy) · REC (Renewable Energy Certificate)
Green Tariff
ProgramsA utility rate option that allows customers to pay for electricity sourced from specific renewable energy projects, often with a price premium or discount locked in for 10-20 years.
Why It Matters
If you cannot install rooftop solar (renter, shaded roof), a green tariff lets you support renewable energy and potentially lock in a fixed rate.
Related Terms
Community Solar · REC (Renewable Energy Certificate) · Feed-in Tariff
On-Bill Financing
ProgramsA loan program where energy efficiency or solar upgrades are repaid through a line item on your monthly utility bill, often with no upfront cost and favorable interest rates.
Why It Matters
On-bill financing removes the biggest barrier to efficiency upgrades — upfront cost. Monthly payments are typically less than the energy savings, so you come out ahead from day one.
Related Terms
PACE (Property Assessed Clean Energy) · Energy Savings Agreement
Solarize Campaign
ProgramsA community-organized group purchasing program for solar installations, where bulk buying power negotiates lower per-watt prices for all participants. Often facilitated by nonprofits or local governments.
Why It Matters
Solarize programs typically reduce costs by 10-20% compared to individual purchases. They also vet installers and simplify the decision process.
Related Terms
Community Solar · Soft Costs
Low-Income Solar Program
ProgramsState or utility programs that provide free or heavily subsidized solar installations to qualifying low-income households. Examples include California SOMAH, Illinois Solar for All, and federal programs under the IRA.
Why It Matters
Low-income households spend a disproportionate share of income on energy. These programs can eliminate electricity bills and improve housing stability.
Related Terms
LIHEAP (Low Income Home Energy Assistance Program) · Community Solar · Energy Burden
Demand Response Program
ProgramsA utility program that pays customers to reduce electricity use during peak demand periods, usually through smart thermostat adjustments, water heater cycling, or battery discharge scheduling.
Why It Matters
Enrolled customers earn $50-200/year for letting their utility make small comfort adjustments during rare peak events, typically 10-20 times per summer.
Related Terms
Demand Response · Peak Demand · Smart Electrical Panel
Home Energy Rebate Program
ProgramsFederal and state programs providing point-of-sale rebates for energy efficiency upgrades (insulation, heat pumps, electrical panels, windows). The IRA authorized up to $14,000 per household through HEEHRA.
Why It Matters
IRA rebates cover 50-100% of costs for qualifying households. Combining federal tax credits with state rebates can make electrification nearly free for moderate-income families.
Related Terms
HEEHRA (High-Efficiency Electric Home Rebate Act) · HOMES Rebate (Home Owner Managing Energy Savings) · 25C Tax Credit
Net Metering Successor Tariff
ProgramsRate structures that replace traditional 1:1 net metering, typically crediting solar exports at a lower rate based on time-of-day, grid value, or avoided cost. Examples include California NEM 3.0.
Why It Matters
As states move away from full retail net metering, battery storage becomes more important to self-consume solar production during peak hours.
Related Terms
Net Metering · NEM 3.0 (Net Billing) · Net Billing · Avoided Cost
Solar Lease vs Solar Loan
FinancingTwo financing models for solar: a lease means a company owns the panels and you pay monthly rent; a loan means you own the panels and make loan payments, keeping the tax credit and all incentives.
Why It Matters
Owning via loan typically saves $10,000-20,000 more over 25 years than leasing because you keep the 30% federal tax credit and all production savings.
Related Terms
Solar Lease · Solar Loan · Federal Tax Credit (ITC) · PPA (Power Purchase Agreement)
EEM (Energy Efficient Mortgage)
FinancingA mortgage product that allows borrowers to finance energy improvements into their home loan at the time of purchase or refinance, based on projected energy savings reducing future expenses.
Why It Matters
An EEM lets you roll solar or efficiency upgrades into your mortgage at the lower mortgage interest rate instead of using a separate, higher-rate improvement loan.
Related Terms
PACE (Property Assessed Clean Energy) · On-Bill Financing
Cost Segregation
FinancingAn IRS-approved accounting method to accelerate depreciation of solar systems on commercial or rental properties, allowing owners to deduct a larger portion of the cost in early years.
Why It Matters
For rental property owners, cost segregation combined with MACRS depreciation can recover 85-90% of system cost through tax benefits within the first 6 years.
Related Terms
MACRS (Modified Accelerated Cost Recovery System) · Depreciation
Transferability (Tax Credit)
FinancingThe IRA provision allowing entities to sell clean energy tax credits to unrelated taxpayers for cash. Enables project developers without sufficient tax liability to monetize credits.
Why It Matters
Transferability increases the pool of capital for clean energy projects. Some residential solar installers use this mechanism to reduce system costs for customers.
Related Terms
Federal Tax Credit (ITC) · IRA (Inflation Reduction Act) · Tax Credit Carryforward
Green Bond
FinancingA fixed-income security issued to raise capital specifically for climate and environmental projects, including renewable energy installations, energy efficiency retrofits, and grid modernization.
Why It Matters
Green bonds fund utility-scale projects that reduce grid carbon intensity. Some municipalities issue green bonds that homeowners can invest in to support local clean energy.
Related Terms
Green Bank
Adder (Tax Credit Bonus)
FinancingAdditional percentage points on top of the base 30% ITC for projects meeting specific criteria: low-income community (+10-20%), domestic content (+10%), energy community (+10%), under 5 MW (+10%).
Why It Matters
Adders can increase a project tax credit from 30% to 50-70%. Community solar projects in low-income areas with domestic panels can stack multiple adders.
Related Terms
Federal Tax Credit (ITC) · IRA (Inflation Reduction Act)
Critical Peak Pricing (CPP)
RatesA rate structure where electricity prices spike dramatically (5-10x normal) during a few designated critical peak hours per year, typically the hottest summer afternoons. Customers receive advance notice.
Why It Matters
If your utility uses CPP, a battery that discharges during critical peaks can save $100-500 per event. Smart thermostats can pre-cool your home before the peak period begins.
Related Terms
Time-of-Use (TOU) Rate · Peak Demand · Demand Response
Inclining Block Rate
RatesA tiered pricing structure where the per-kWh rate increases as usage rises through defined blocks. The first block (baseline) is cheapest; higher tiers penalize heavy consumption.
Why It Matters
Under inclining block rates, solar saves you money at your highest rate tier first, making the per-kWh value of solar significantly higher than the average rate.
Related Terms
Tiered Rate · Baseline Allowance
Demand Rate (Residential)
RatesA rate structure that includes a charge based on your highest 15-minute average power draw (kW) during the billing period, in addition to volumetric kWh charges.
Why It Matters
Running an EV charger, dryer, and oven simultaneously creates a high demand spike. Battery storage or smart load management can shave demand peaks and reduce this charge.
Related Terms
Demand Charge · Peak Shaving · Load Shifting
Wholesale Electricity Price
RatesThe price at which generators sell electricity to utilities and retailers in regional markets (PJM, ERCOT, CAISO, etc.), typically $20-80/MWh. Not directly paid by residential customers.
Why It Matters
Wholesale prices drive retail rate changes with a lag. Spikes in wholesale markets (like the 2021 Texas crisis) eventually show up in your utility bills.
Related Terms
ERCOT · PJM Interconnection · Merit Order
Export Rate
RatesThe per-kWh credit received for electricity exported from a home solar system to the grid. May equal retail rate (net metering), avoided cost (net billing), or a time-varying amount.
Why It Matters
Your export rate determines whether battery storage makes financial sense. When export rates are much lower than retail, storing solar for self-use saves more than exporting.
Related Terms
Net Metering · Net Billing · Buyback Rate · Avoided Cost
Fixed Charge
RatesA flat monthly fee on your electricity bill regardless of how much energy you use. Covers utility infrastructure costs. Typically $5-30 for residential customers but rising in many states.
Why It Matters
Rising fixed charges reduce the savings from solar because you cannot offset them with self-generated electricity. Some states cap fixed charges to protect solar economics.
Related Terms
Fixed Charge (Customer Charge) · Delivery Charges
Revenue-Grade Meter
RatesAn electricity meter certified to accuracy standards required for financial transactions, such as net metering credits, community solar allocation, or performance-based incentive payments.
Why It Matters
Some incentive programs require revenue-grade metering on your solar system. Consumer-grade monitoring may not qualify for production-based payments.
Related Terms
Net Metering · Production Guarantee · Performance-Based Incentive (PBI)
Rate Case
RatesA regulatory proceeding where a utility requests permission from the Public Utility Commission to change its rates, rate structure, or cost recovery mechanisms. Typically occurs every 2-4 years.
Why It Matters
Rate cases determine your future electricity prices. Public comment periods let you advocate for fair solar policies, reasonable fixed charges, and continued net metering.
Related Terms
Public Utility Commission (PUC) · Deregulation (Energy)
Energy Cost Escalation
EconomicsThe historical and projected rate at which electricity prices increase over time. US electricity prices have risen about 2-3% annually over the past 20 years, though this varies by state.
Why It Matters
Solar locks in your electricity cost for 25+ years while utility rates keep climbing. A 2.5% annual escalation means today $0.16/kWh rate becomes $0.26/kWh in 20 years.
Related Terms
Energy Escalation Rate · Total Cost of Ownership
Simple Payback vs Discounted Payback
EconomicsSimple payback counts years until cumulative savings equal cost. Discounted payback adjusts future savings for the time value of money, producing a longer but more accurate payback period.
Why It Matters
Simple payback is easy to understand but overstates the value by ignoring that a dollar saved 10 years from now is worth less than one saved today.
Related Terms
Payback Period · Discount Rate · Net Present Value (NPV)
Levelized Cost of Storage (LCOS)
EconomicsThe total lifetime cost of a battery system divided by total energy it delivers over its life, expressed in $/kWh. Accounts for purchase price, installation, degradation, replacement, and round-trip efficiency losses.
Why It Matters
LCOS lets you compare battery economics to grid electricity prices. When LCOS falls below the difference between peak and off-peak rates, time-shifting becomes profitable.
Related Terms
LCOE (Levelized Cost of Energy) · Round-Trip Efficiency · Cycle Life
Solar Savings Rate
EconomicsThe effective per-kWh value of solar electricity to the homeowner, accounting for self-consumption at retail rates, exports at lower rates, demand charge reduction, and avoided rate escalation.
Why It Matters
Your solar savings rate is almost always different from your utility average rate. Self-consumed solar is worth retail; exported solar may be worth much less.
Related Terms
Self-Consumption · Export Rate · Net Metering
Stacking Incentives
EconomicsCombining multiple financial incentives (federal ITC, state rebate, SREC income, utility rebate, property tax exemption) on a single project to maximize total savings.
Why It Matters
A well-stacked incentive package can reduce net solar cost by 50-70%. The order of application matters — some incentives are calculated before others are deducted.
Related Terms
Federal Tax Credit (ITC) · State Rebate · SREC (Solar Renewable Energy Certificate)
Avoided Cost of Energy
EconomicsThe cost a utility avoids by not having to generate or purchase electricity because a customer-sited resource (like rooftop solar) provides it instead. Used to set export rates in net billing tariffs.
Why It Matters
Avoided cost is typically 30-60% of retail rate. States using avoided cost for solar credits offer less favorable economics than traditional net metering.
Related Terms
Avoided Cost · Net Billing · Export Rate
Installed Cost Per Watt
EconomicsThe total all-in price of a solar system divided by its nameplate DC capacity. US residential solar averages $2.50-3.50/W installed in 2026, down from $7+/W a decade ago.
Why It Matters
Cost per watt is the standard metric for comparing solar quotes. A $3.00/W system has a 25-year LCOE of about $0.06-0.08/kWh — far below most utility rates.
Related Terms
Cost Per Watt · Balance of System (BOS) · Soft Costs
Social Cost of Carbon
EnvironmentAn estimate of the economic damage from emitting one additional ton of CO2, including impacts on agriculture, health, property, and ecosystems. The EPA estimate is approximately $51 per ton (2020 dollars).
Why It Matters
The social cost of carbon is used in cost-benefit analyses of energy policies. Including it makes almost every clean energy investment look cost-effective compared to fossil fuels.
Related Terms
Carbon Footprint · Emissions Factor · Carbon Intensity
Grid Emissions Factor
EnvironmentThe amount of CO2 emitted per kWh of electricity generated by the local grid, varying by region and time of day based on the generation mix. Ranges from 0.1 lb/kWh (hydro-heavy) to 1.8 lb/kWh (coal-heavy).
Why It Matters
Your solar environmental benefit depends on what it displaces. Solar in a coal-heavy state avoids 3-4x more emissions than in a hydro-heavy state.
Related Terms
Emissions Factor · Carbon Intensity · eGRID
Marginal Emissions Rate
EnvironmentThe CO2 emissions rate of the next power plant that would turn on (or off) in response to a change in demand. Often higher than the average grid emissions factor because peaker plants are usually gas-fired.
Why It Matters
When you reduce usage or export solar, you displace the marginal generator — not the average. This means evening demand reduction has different climate impact than midday.
Related Terms
Grid Emissions Factor · Peaker Plant · Merit Order
End-of-Life Recycling (Solar)
EnvironmentThe process of recovering valuable materials (silicon, silver, copper, aluminum, glass) from decommissioned solar panels. The EU mandates solar recycling; US federal regulation is still developing.
Why It Matters
With 150 GW of US solar installed and panels lasting 25-30 years, a massive recycling challenge looms by 2050. Look for manufacturers with take-back programs.
Related Terms
Lifecycle Assessment (LCA) · Embodied Carbon
Land-Use Intensity
EnvironmentThe area of land required per unit of energy produced, measured in acres per MW or square meters per kW. Solar farms need about 5-7 acres per MW; wind farms need 30-60 acres per MW (but most land remains usable).
Why It Matters
Rooftop solar has zero additional land-use impact. For utility-scale projects, agrivoltaics (farming under panels) is an emerging solution to land-use concerns.
Related Terms
Utility-Scale Solar · Capacity Factor
Carbon Offset
EnvironmentA credit representing one metric ton of CO2 equivalent avoided or removed from the atmosphere, purchased to compensate for emissions elsewhere. Quality varies widely by project type and verification standard.
Why It Matters
Direct emissions reduction (solar, efficiency) is always better than offsets. If you do purchase offsets, look for Gold Standard or Verra-verified projects.
Related Terms
Carbon Footprint · REC (Renewable Energy Certificate)
Arc Fault Circuit Interrupter (AFCI)
TechnicalA safety device that detects dangerous electrical arcs (sparks) in wiring and disconnects the circuit. Required by NEC in most living spaces and now in solar systems to prevent rooftop fires.
Why It Matters
Solar arc fault detection is a code requirement. Modern inverters include built-in AFCI protection, which is one reason to choose UL-listed equipment.
Related Terms
NEC (National Electrical Code) · Rapid Shutdown
Maximum Power Point Tracking (MPPT)
TechnicalAn algorithm in solar inverters and charge controllers that constantly adjusts voltage and current extraction to keep panels operating at their maximum power output as conditions change.
Why It Matters
MPPT enables 20-30% more harvest compared to non-MPPT controllers. All modern solar inverters use MPPT, but it is especially important for battery charge controllers.
Related Terms
Inverter · Power Optimizer · Charge Controller
String Design
TechnicalThe configuration of how solar panels are wired in series and parallel to match inverter voltage and current requirements. Proper string design maximizes production and prevents equipment damage.
Why It Matters
Mismatched strings cause lost production and can void inverter warranties. This is why professional system design matters even for DIY installations.
Related Terms
String Inverter · String Sizing · DC/AC Ratio
Power Density
TechnicalThe watts generated per unit area of a solar panel, calculated as panel wattage divided by area. Higher efficiency panels have greater power density, meaning fewer panels for the same output.
Why It Matters
When roof space is limited, higher power density panels (400W+ in standard residential size) maximize total system capacity.
Related Terms
Module Efficiency · Kilowatt-Peak (kWp)
Bypass Diode
TechnicalA small electronic component inside solar panels that allows current to flow around shaded or damaged cells, preventing them from becoming resistive loads that heat up and reduce output.
Why It Matters
Bypass diodes prevent hot spots that can permanently damage panels. They are why partial shading reduces output proportionally rather than shutting down the entire panel.
Related Terms
Shading Analysis · Clipping · Soiling Loss
Grounding (Electrical)
TechnicalConnecting electrical equipment to the earth to provide a safe path for fault current, preventing electric shock and allowing protective devices to operate correctly.
Why It Matters
Proper grounding is a code requirement for solar systems. Missing or corroded ground connections are a common inspection failure and safety hazard.
Related Terms
NEC (National Electrical Code) · Ground-Fault Protection
Transformer (Distribution)
TechnicalAn electrical device on utility poles or in ground-level boxes that steps voltage down from distribution level (4-35 kV) to residential service (120/240V). Solar export capacity may be limited by local transformer ratings.
Why It Matters
Utilities sometimes deny interconnection if neighborhood solar exceeds transformer capacity. Understanding this helps you navigate interconnection delays.
Related Terms
Interconnection · Interconnection Queue · Utility Interconnection Agreement
Phantom Load (Standby Power)
TechnicalElectricity consumed by electronic devices when they are turned off but still plugged in (standby mode). The average US home wastes 5-10% of electricity on phantom loads — about $100/year.
Why It Matters
Eliminating phantom loads is the easiest free energy savings. Smart power strips that cut standby power can save more than many expensive efficiency upgrades.
Related Terms
Load Profile · Energy Management System (EMS)
Power Electronics
TechnicalElectronic circuits that convert and control electrical power, including inverters, charge controllers, power optimizers, and EV charging circuits. The technology enabling the clean energy transition.
Why It Matters
Power electronics determine system efficiency and reliability. Silicon carbide (SiC) electronics are enabling smaller, more efficient inverters and EV chargers.
Related Terms
Inverter · Microinverter · Power Optimizer · Charge Controller
Bidirectional Meter
TechnicalA utility meter that records both electricity consumed from the grid and electricity exported to the grid, required for net metering and net billing customers with solar or battery systems.
Why It Matters
Your utility installs a bidirectional meter when your solar system is approved. Older homes may still have analog meters that run backward — these are being replaced.
Related Terms
Net Metering · Revenue-Grade Meter
Bifacial Gain
TechnicalThe additional energy produced by bifacial solar panels from light reflected onto their rear surface. Typical bifacial gain is 5-15% depending on ground reflectivity (albedo), mounting height, and tilt angle.
Why It Matters
Bifacial panels on white or light-colored surfaces (rooftop, gravel, snow) can produce significantly more energy for a small cost premium over standard monofacial panels.
Related Terms
Bifacial Solar Panel · Module Efficiency
Cell Temperature
TechnicalThe operating temperature of solar cells under sunlight, typically 20-40 degrees Celsius above ambient temperature. Higher cell temperatures reduce voltage and power output.
Why It Matters
A panel rated at 400W produces that power at 25 degrees C. On a 35 degrees C day, cell temps reach 55-65 degrees C, reducing output by 8-15%. This is why solar production dips in extreme heat.
Related Terms
Temperature Coefficient · Standard Test Conditions (STC)
Islanding Detection
TechnicalAutomated systems in grid-tied inverters that detect when the utility grid has lost power and immediately disconnect the solar system to prevent energizing downed power lines.
Why It Matters
Islanding detection is a safety requirement. It is why grid-tied solar without battery backup shuts off during outages, even when the sun is shining.
Related Terms
Anti-Islanding · Islanding · Microgrid
System Availability
PerformanceThe percentage of time a power system (solar, battery, generator) is operational and available to produce energy. Well-maintained residential solar achieves 98-99% availability over its lifetime.
Why It Matters
Inverter failures are the most common cause of downtime. Monitoring systems that alert you to production drops help maintain high availability and protect your investment.
Related Terms
Performance Ratio (PR) · Capacity Factor
Specific Yield (kWh/kWp)
PerformanceThe annual energy production per kilowatt of installed solar capacity, measuring how effectively a system converts nameplate capacity into actual production. US values range from 1,000-1,800 kWh/kWp depending on location.
Why It Matters
Specific yield normalizes production across system sizes. A system in Arizona producing 1,700 kWh/kWp dramatically outperforms one in Seattle at 1,100 kWh/kWp.
Related Terms
Capacity Factor · Performance Ratio (PR) · Peak Sun Hours
Production Factor
PerformanceThe ratio of actual energy produced by a solar system to its theoretical maximum if operating at nameplate power for all daylight hours. Accounts for real-world losses from temperature, shading, soiling, and inverter efficiency.
Why It Matters
A typical residential system achieves a production factor of 75-85%. If your system is significantly below this range, something may be wrong.
Related Terms
Performance Ratio (PR) · Degradation Rate · Soiling Loss
Annual Degradation
PerformanceThe gradual decline in solar panel output over time, typically 0.3-0.5% per year for modern panels. After 25 years, panels still produce 87-92% of their original rated power.
Why It Matters
Panel warranties guarantee minimum production (usually 80-85% at year 25). Degradation is factored into ROI calculations and is why system sizes are designed slightly larger than needed.
Related Terms
Degradation Rate · Production Guarantee
Spectral Response
PerformanceHow efficiently a solar cell converts light at different wavelengths. Monocrystalline cells respond best to near-infrared; thin-film and perovskite cells capture a broader spectrum.
Why It Matters
Spectral response explains why some panels perform better in cloudy or diffuse light conditions. Tandem cells combining two spectral ranges may achieve 30%+ efficiency.
Related Terms
Monocrystalline Silicon · Tandem Solar Cell · Perovskite Solar Cell
Battery Calendar Life
PerformanceThe total lifespan of a battery regardless of usage, determined by chemical aging. Even an unused lithium-ion battery degrades over time, especially at high temperatures or extreme states of charge.
Why It Matters
Calendar life sets the upper bound on battery warranty. A 10-year warranty means the battery is expected to function for at least a decade, even if cycle life has not been exhausted.
Related Terms
Cycle Life · Depth of Discharge (DoD) · State of Charge (SoC)
Interconnection Standard
PolicyState-level rules governing how solar and battery systems connect to the utility grid, including application requirements, timelines, fees, insurance, and technical standards (IEEE 1547).
Why It Matters
Some states have streamlined interconnection for small systems (under 25 kW) while others require lengthy engineering studies. This affects your timeline from signed contract to producing power.
Related Terms
Interconnection · PTO (Permission to Operate) · AHJ (Authority Having Jurisdiction)
Building Energy Code
PolicyMinimum energy efficiency standards for new construction and major renovations, set by states/cities based on IECC or ASHRAE 90.1. Some states now require solar-ready or solar-equipped new homes.
Why It Matters
California, Washington, and other states require solar on new homes. Even where not required, building to above-code standards saves thousands in lifetime energy costs.
Related Terms
Building Performance Standard (BPS) · ENERGY STAR · HERS Index (Home Energy Rating System)
Right to Solar
PolicyState laws that prevent HOAs, municipalities, or other entities from prohibiting or unreasonably restricting residential solar installations. Over 30 states have some form of solar access law.
Why It Matters
If your HOA tries to block your solar installation, state right-to-solar laws may override their restrictions. Know your state protections before engaging with your HOA.
Related Terms
AHJ (Authority Having Jurisdiction) · Permit
Clean Energy Standard
PolicyA state or federal policy requiring utilities to source an increasing percentage of electricity from clean energy sources (not just renewables — may include nuclear, CCS). More inclusive than an RPS.
Why It Matters
Clean energy standards drive utility procurement of renewables, which can improve net metering economics and create SREC markets in your state.
Related Terms
RPS (Renewable Portfolio Standard) · REC (Renewable Energy Certificate)
Carbon Tax
PolicyA fee levied on fossil fuel producers or users based on the CO2 emissions of their fuel. Sets a direct price signal without capping total emissions. Not currently implemented at US federal level.
Why It Matters
A carbon tax would increase fossil electricity costs, improving the economics of solar, batteries, heat pumps, and EVs. Several bills have been proposed in Congress.
Related Terms
Social Cost of Carbon · Emissions Factor · Carbon Intensity
Energy Community
PolicyAn IRA-defined geographic area with brownfields, retired coal mines/plants, or high fossil fuel employment, qualifying clean energy projects built there for a 10% bonus tax credit.
Why It Matters
The DOE energy communities ITC bonus applies to both residential and commercial projects. Check if your property qualifies at energycommunities.gov.
Related Terms
Federal Tax Credit (ITC) · IRA (Inflation Reduction Act) · Adder (Tax Credit Bonus)
Domestic Content Bonus
PolicyAn IRA provision granting a 10% ITC bonus for solar projects using panels and components manufactured or assembled in the United States, as defined by percentage of cost thresholds.
Why It Matters
Choosing US-manufactured panels can increase your federal tax credit from 30% to 40%. As more factories open domestically, qualifying products are becoming more available.
Related Terms
Federal Tax Credit (ITC) · IRA (Inflation Reduction Act) · Adder (Tax Credit Bonus)
All-in-One Battery System
EquipmentAn integrated home battery product combining battery cells, inverter, charge controller, and battery management system in a single enclosure. Examples: Tesla Powerwall, Enphase IQ Battery, SonnenCore.
Why It Matters
All-in-one systems simplify installation and reduce costs compared to separately sourced components. They are the dominant residential battery format in the US.
Related Terms
Battery Storage · Hybrid Inverter · Round-Trip Efficiency
Energy Recovery Ventilator (ERV)
EquipmentA ventilation system that exchanges stale indoor air for fresh outdoor air while recovering 70-80% of the energy (heat and moisture) from the outgoing air stream. Essential for tight, efficient homes.
Why It Matters
Modern well-sealed homes need mechanical ventilation to maintain air quality. An ERV does this without throwing away the energy you already paid to heat or cool the air.
Related Terms
Air Sealing · ACH50 (Air Changes per Hour at 50 Pascals) · Blower Door Test
Heat Pump Water Heater (HPWH)
EquipmentA water heater that uses a heat pump to extract warmth from surrounding air rather than burning gas or using resistive electric elements. Uses 2-3x less energy than a standard electric water heater.
Why It Matters
HPWHs qualify for a $2,000 federal tax credit and $1,750 HEEHRA rebate. They also dehumidify and cool the space where they are installed — a bonus in garages and basements.
Related Terms
Heat Pump · COP (Coefficient of Performance) · UEF (Uniform Energy Factor)
Smart Thermostat
EquipmentA Wi-Fi-connected thermostat that learns occupancy patterns, optimizes temperature schedules, responds to demand response signals, and can be controlled remotely. Saves 10-15% on heating/cooling.
Why It Matters
Smart thermostats are one of the highest-ROI energy investments at $100-250. Many utilities give them away free through demand response enrollment programs.
Related Terms
Demand Response · Energy Management System (EMS)
Whole-House Fan
EquipmentA large fan installed in the ceiling/attic that pulls cool evening air through open windows and exhausts hot air from the attic. Can reduce air conditioning use by 50-90% in dry climates.
Why It Matters
In climates with cool evenings (most of the Western US), a whole-house fan costs $300-700 installed and can eliminate AC use for much of the year.
Related Terms
Energy Audit · Load Shifting
Ductless Mini-Split
EquipmentA type of heat pump consisting of an outdoor condenser and one or more indoor air handlers connected by refrigerant lines rather than ductwork. Each indoor unit independently controls one zone.
Why It Matters
Mini-splits are the most efficient way to heat and cool specific rooms without ductwork. They are ideal for room additions, garages, or homes with no existing ducts.
Related Terms
Mini-Split · Heat Pump · Cold-Climate Heat Pump (ccASHP)
Solar Shingle
EquipmentA roofing product that integrates photovoltaic cells into shingle-shaped modules, replacing conventional roofing while generating electricity. Examples: Tesla Solar Roof, GAF Energy Timberline Solar.
Why It Matters
Solar shingles cost 2-3x more per watt than traditional panels but eliminate the separate roofing cost. They make sense when you need a roof replacement anyway.
Related Terms
BIPV (Building-Integrated Photovoltaics) · Monocrystalline Silicon
Portable Power Station
EquipmentA rechargeable lithium-ion battery pack with built-in inverter and outlets, ranging from 500Wh to 3,000Wh+. Used for emergency backup, camping, and powering small loads during outages.
Why It Matters
A portable station can keep phones, laptops, CPAP machines, and a mini-fridge running for hours during outages — a cheaper alternative to whole-home battery backup.
Related Terms
Battery Storage · LFP (Lithium Iron Phosphate)
Electric Vehicle (EV)
EquipmentA vehicle propelled entirely by one or more electric motors, powered by a rechargeable battery pack. Includes battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs).
Why It Matters
EVs consume 25-35 kWh per 100 miles, adding 30-50% to a typical home electricity usage. Planning for EV charging is essential when sizing solar and upgrading electrical panels.
Related Terms
EV Charger (EVSE) · Level 2 Charging · DC Fast Charging (DCFC) · V2G (Vehicle-to-Grid)
Thermal Mass
EquipmentMaterials in a building (concrete, brick, tile, water) that absorb and store heat, moderating temperature swings. Homes with high thermal mass stay cooler in summer days and retain warmth longer at night.
Why It Matters
Thermal mass works like free energy storage. A well-insulated concrete floor can be heated with cheap overnight electricity and release warmth throughout the day.
Related Terms
R-Value · Air Sealing · Load Shifting
Backup Generator
EquipmentA standby or portable engine-driven generator that produces electricity during power outages, typically fueled by natural gas, propane, or gasoline. Rated in watts (e.g. 7,500W portable, 22,000W whole-home).
Why It Matters
Generators provide unlimited runtime (with fuel) but require ventilation, fuel storage, and maintenance. Battery systems are quieter and cleaner but have limited capacity.
Related Terms
Whole-Home Backup · Microgrid · Battery Storage
LED Lighting
EquipmentLight-emitting diode bulbs that use 75% less energy and last 25 times longer than incandescent bulbs. A full home LED conversion saves $100-200/year in electricity.
Why It Matters
LED conversion is the fastest-payback energy upgrade. If you still have any incandescent or CFL bulbs, replacing them provides an immediate return.
Related Terms
Phantom Load (Standby Power) · Energy Audit
Window Film (Energy)
EquipmentA thin polymer film applied to window glass that blocks infrared heat while allowing visible light. Can reduce solar heat gain by 40-70%, lowering cooling costs without darkening rooms.
Why It Matters
Window film costs $5-12 per square foot installed and can reduce cooling bills by 10-25% — much cheaper than replacing windows entirely.
Related Terms
R-Value · Weatherization ROI
Solar + Storage System
SystemsAn integrated installation combining solar panels with battery storage, allowing self-consumption of solar energy, time-of-use arbitrage, and backup power during outages.
Why It Matters
As net metering policies become less favorable, solar + storage is increasingly the optimal configuration. Battery costs have fallen 90% in the past decade.
Related Terms
Battery Storage · AC-Coupled System · DC-Coupled System · Self-Consumption
Home Energy Management System (HEMS)
SystemsSoftware that coordinates solar production, battery storage, EV charging, smart appliances, and grid signals to minimize energy costs and maximize self-consumption automatically.
Why It Matters
A HEMS can increase solar self-consumption from 30-40% to 70-80%, dramatically improving the economics of solar + storage under net billing tariffs.
Related Terms
Energy Management System (EMS) · Smart Electrical Panel · Load Shifting
Agrivoltaics
SystemsThe practice of co-locating agricultural activity (crops, grazing, pollinator habitat) with solar panel installations. Panels provide shade and reduce water evaporation; agriculture maintains land productivity.
Why It Matters
Agrivoltaics addresses concerns about solar farms consuming farmland. Studies show certain crops (lettuce, berries, herbs) produce higher yields under partial shade from solar panels.
Related Terms
Community Solar · Utility-Scale Solar · Land-Use Intensity
Building Automation System (BAS)
SystemsA centralized system that controls and monitors a building mechanical, electrical, lighting, and security systems. In residences, smart home platforms (Home Assistant, Google Home) serve this role.
Why It Matters
Automating energy-consuming systems (HVAC scheduling, blinds, lighting) based on occupancy, weather, and electricity prices can reduce consumption 15-25%.
Related Terms
Energy Management System (EMS) · Smart Thermostat · Matter (Smart Home Protocol)
District Energy System
SystemsA community-scale thermal energy network that distributes heating or cooling from a central plant to multiple buildings through underground pipes, achieving higher efficiency than individual building systems.
Why It Matters
Some new housing developments and campuses use ground-source district energy, providing geothermal-class efficiency without individual ground loops in every building.
Related Terms
Geothermal Heat Pump (Ground Source) · Net Zero Community
Peer-to-Peer Energy Trading
SystemsA system where neighbors can buy and sell excess solar electricity directly to each other using blockchain or utility-mediated platforms, bypassing traditional wholesale markets.
Why It Matters
P2P trading could let solar households earn more for exports than utility buyback rates while letting neighbors buy local, clean power cheaper than retail.
Related Terms
Prosumer · Virtual Power Plant (VPP) · Community Solar
Utility Billing Audit
ProcessA systematic review of past electricity bills to identify billing errors, suboptimal rate plans, unexpected usage spikes, and opportunities for savings through rate switching or demand reduction.
Why It Matters
Studies show 1-2% of utility bills contain errors in the utility favor. A billing audit also reveals seasonal patterns that inform solar sizing and battery decisions.
Related Terms
Load Profile · Utility Rate Analysis
Permitting Process
ProcessThe steps required to obtain local government approval for a solar or battery installation, typically including plan submittal, structural review, electrical review, and zoning verification.
Why It Matters
Permitting can take 1-8 weeks depending on jurisdiction. Some cities offer over-the-counter solar permits (same-day approval), while others require multi-week engineering review.
Related Terms
Permit · AHJ (Authority Having Jurisdiction) · Soft Costs
Net Metering True-Up
ProcessAn annual settlement date when your utility calculates whether you have a net credit or balance from 12 months of net metering. Excess credits may roll over, be paid out at avoided cost, or expire.
Why It Matters
Designing your solar system to match annual consumption avoids losing excess credits at true-up. Oversizing wastes money if your utility expires unused credits.
Related Terms
Net Metering · Net Billing · Self-Consumption
Competitive Procurement
ProcessThe practice of obtaining 3+ quotes from different solar installers and comparing them on price, equipment quality, warranty terms, and company reputation before making a decision.
Why It Matters
Solar prices vary 30-50% between installers for identical systems. Getting multiple quotes is the single best way to save money on a solar installation.
Related Terms
Cost Per Watt · Soft Costs
System Monitoring
ProcessReal-time tracking of solar production, battery status, and energy consumption using manufacturer apps (Enphase, SolarEdge, Tesla) or third-party platforms (Solar Analytics, PVOutput).
Why It Matters
Monitoring detects problems (inverter failures, shading changes, panel degradation) quickly. Unmonitored systems can lose months of production before anyone notices.
Warranty Claim Process
ProcessThe steps to file a manufacturer warranty claim for defective solar panels, inverters, or batteries: document the issue, contact manufacturer, obtain RMA number, arrange replacement, and handle reinstallation labor.
Why It Matters
Labor to remove and reinstall a defective panel costs $200-500, which panel warranties rarely cover. Some installers offer workmanship warranties that fill this gap.
Related Terms
Production Guarantee · Degradation Rate
Federal Solar Tax Credit (ITC)
IncentivesA dollar-for-dollar reduction in federal income taxes equal to 30% of the total installed cost of a residential solar system (through 2032). Steps down to 26% in 2033 and 22% in 2034.
Why It Matters
The ITC is the single largest solar incentive. On a $25,000 system, it saves $7,500. You must have sufficient tax liability to claim it (or carry it forward).
Related Terms
Federal Tax Credit (ITC) · Tax Credit Carryforward · 25D Tax Credit
Battery Tax Credit
IncentivesThe IRA extended the 30% ITC to standalone battery storage systems installed after January 1, 2023. Previously, batteries only qualified if installed with solar. Capacity must be 3 kWh or more.
Why It Matters
You can now add a battery to an existing solar system — or install a battery without solar — and receive the 30% federal tax credit separately.
Related Terms
Federal Tax Credit (ITC) · Battery Storage · IRA (Inflation Reduction Act)
Utility Rebate
IncentivesA cash payment from your electric utility for installing qualifying energy equipment (solar, battery, heat pump, smart thermostat). Amounts and availability vary widely by utility.
Why It Matters
Utility rebates stack on top of federal and state incentives. Check your specific utility — rebates range from $100 for smart thermostats to $5,000+ for battery storage.
Related Terms
State Rebate · Stacking Incentives
Net Metering Credit
IncentivesA bill credit received for solar electricity exported to the grid under a net metering policy. At full retail net metering, each exported kWh earns a credit equal to the retail electricity rate.
Why It Matters
Net metering credits are the second-largest solar financial benefit after the tax credit. As states shift to net billing, credit values are declining but grandfathered rates are often locked in for 15-20 years.
Related Terms
Net Metering · Net Billing · Export Rate
Sales Tax Exemption (Solar)
IncentivesA state law exempting the purchase of solar energy equipment from state and local sales tax. Over 25 states provide full or partial solar sales tax exemptions.
Why It Matters
In states with 6-10% sales tax, the exemption saves $1,500-2,500 on a typical residential solar system. It is automatic at purchase — no paperwork required.
Related Terms
Sales Tax Exemption · Property Tax Exemption
N-Type Solar Cell
TechnicalA solar cell architecture using phosphorus-doped silicon (negative charge carriers). N-type cells (TOPCon, HJT) offer higher efficiency, lower degradation, and better shade tolerance than traditional P-type PERC cells.
Why It Matters
N-type panels are becoming the new standard, displacing P-type PERC. They deliver 1-3% higher real-world yields and degrade slower (0.3-0.4% per year vs 0.5%).
Related Terms
TOPCon (Tunnel Oxide Passivated Contact) · HJT Cell (Heterojunction Technology) · PERC Cell (Passivated Emitter Rear Contact)
AC Battery
EquipmentA battery storage system with a built-in inverter that connects to the home AC electrical panel. Can be added to any existing solar system without modifying the solar inverter.
Why It Matters
AC batteries (like Enphase IQ, Tesla Powerwall) are the easiest retrofit. They work with any solar system brand, simplifying the choice when adding storage years after solar installation.
Related Terms
AC-Coupled System · All-in-One Battery System · Battery Storage
Demand Flexibility
SystemsThe ability to shift or reduce electricity consumption in response to grid conditions, price signals, or renewable energy availability. Enabled by smart appliances, batteries, EV chargers, and water heaters.
Why It Matters
Demand flexibility is becoming monetizable through utility programs. Smart devices that shift loads to midday (when solar is abundant) help balance the grid and earn bill credits.
Related Terms
Demand Response · Load Shifting · Virtual Power Plant (VPP)
Electrification
TechnicalThe transition from fossil fuel-powered systems to electric alternatives: gas furnaces to heat pumps, gas stoves to induction, gasoline cars to EVs. A key strategy for reducing building carbon emissions.
Why It Matters
When powered by clean electricity, electric appliances produce zero direct emissions and cost less to operate. Heat pumps use 2-4x less energy than gas furnaces per unit of heat.
Related Terms
Heat Pump · Induction Cooktop · Electrification Plan
Weatherization
ProcessImproving a building envelope through air sealing, insulation, window upgrades, and duct sealing to reduce energy waste. The most cost-effective first step before any clean energy investment.
Why It Matters
The cheapest kilowatt-hour is the one you never use. Weatherization reduces the size (and cost) of solar and HVAC systems needed, and the WAP provides free weatherization for qualifying households.
Related Terms
Air Sealing · R-Value · Blower Door Test · WAP (Weatherization Assistance Program)
Grid Modernization
PolicyUpgrading the electrical grid with smart meters, sensors, automated switches, and two-way communication to handle distributed energy resources, reduce outages, and enable dynamic pricing.
Why It Matters
A modernized grid can better accommodate rooftop solar, speed up interconnection, and enable real-time pricing. Utilities are investing $80+ billion in grid modernization through the 2020s.
Related Terms
Smart Electrical Panel · Distributed Energy Resource (DER) · Bidirectional Meter
Energy Storage Mandate
PolicyA state policy requiring utilities to procure or incentivize a specified amount of energy storage capacity. California, New York, New Jersey, and Oregon have storage mandates.
Why It Matters
Storage mandates drive down battery costs through scale and create rebate programs. California SGIP provides up to $1,000/kWh for residential battery installations.
Related Terms
Battery Storage · RPS (Renewable Portfolio Standard)
Beneficial Electrification
TechnicalSwitching from fossil fuels to electricity specifically where doing so reduces total energy use, total emissions, or total cost compared to the fossil-fuel alternative.
Why It Matters
Not all electrification is beneficial in all locations. In coal-heavy grid regions, resistance electric heating may produce more emissions than efficient gas heating. Heat pumps, however, are beneficial virtually everywhere.
Related Terms
Electrification · Heat Pump · Grid Emissions Factor
Energy Poverty
EconomicsA condition where households spend more than 6-10% of income on energy bills (vs the national average of ~3%). Disproportionately affects low-income, elderly, and minority communities.
Why It Matters
Energy poverty forces trade-offs between heating/cooling and other necessities. Programs like LIHEAP, WAP, and low-income solar directly address this crisis.
Related Terms
Energy Burden · LIHEAP (Low Income Home Energy Assistance Program) · WAP (Weatherization Assistance Program)
Load Management
SystemsTechniques to reduce or reshape a building electricity demand profile: scheduling high-draw appliances during off-peak hours, pre-cooling/heating, and using battery storage to flatten demand peaks.
Why It Matters
Load management reduces demand charges, shifts consumption to cheap/clean hours, and enables smaller (cheaper) electrical service. Smart panels automate this.
Related Terms
Load Shifting · Peak Shaving · Demand Charge · Smart Electrical Panel
Zero Energy Ready Home (ZERH)
SystemsA DOE certification for homes so energy-efficient that a standard solar system can offset all or nearly all annual energy consumption. Requires high-performance envelope, HVAC, lighting, and appliances.
Why It Matters
ZERH homes use 40-60% less energy than code-built homes. The IRA provides a $2,500-5,000 tax credit for new homes meeting ZERH standards.
Related Terms
Net Zero · Building Energy Code · ENERGY STAR
Solar-Ready Home
PlanningA new home built with pre-run conduit from the electrical panel to the roof, a panel with spare breaker capacity, southern roof area free of penetrations, and structural capacity for panels.
Why It Matters
Making a home solar-ready at construction adds $500-1,000 but saves $2,000-5,000 in future installation costs by avoiding roof work, conduit runs, and panel upgrades.
Related Terms
Panel Upgrade · Electrification Plan
Lithium Iron Phosphate (LFP)
EquipmentA lithium battery chemistry (LiFePO4) known for safety, longevity, and thermal stability. Used in most residential battery systems. Lower energy density than NMC but 5,000-10,000 cycle rating.
Why It Matters
LFP batteries last 2-3x longer than NMC and do not present a thermal runaway fire risk. Most major home battery brands (Tesla, Enphase, Fortress) now use LFP.
Related Terms
LFP (Lithium Iron Phosphate) · NMC Battery (Nickel Manganese Cobalt) · Thermal Runaway · Cycle Life
Dual-Fuel System
EquipmentAn HVAC configuration pairing an electric heat pump with a gas furnace, automatically switching to gas when outdoor temperatures drop below the heat pump economic crossover point.
Why It Matters
Dual-fuel provides the efficiency of a heat pump most of the year while using gas backup for the coldest days when heat pump efficiency drops. A transitional step toward full electrification.
Related Terms
Heat Pump · Cold-Climate Heat Pump (ccASHP) · COP (Coefficient of Performance)
Inverter Clipping
PerformanceWhen solar panels produce more DC power than the inverter can convert to AC, the excess is clipped (wasted). Intentional with high DC/AC ratios to maximize morning/evening production at the cost of midday losses.
Why It Matters
A DC/AC ratio of 1.2-1.3 is standard, meaning some clipping occurs at peak sun. This design trade-off produces more total daily energy by boosting low-light hours.
Related Terms
DC/AC Ratio · Clipping · Maximum Power Point Tracking (MPPT)
Power Curtailment
PolicyWhen a grid operator instructs generators (including rooftop solar) to reduce output because supply exceeds demand. Increasing in regions with high solar penetration during spring midday hours.
Why It Matters
Curtailment means your solar system may be told to reduce exports, losing potential income. Battery storage avoids this by absorbing midday excess for evening self-use.
Related Terms
Curtailment · Duck Curve · Battery Storage
Embedded Network
SystemsA private electrical distribution network within a building complex (apartments, shopping centers) where a central buyer purchases wholesale electricity and resells it to occupants at a negotiated rate.
Why It Matters
Embedded networks can deliver solar savings to apartment tenants who cannot install their own panels. They are an alternative to community solar for renters.
Related Terms
Community Solar · Virtual Net Metering
Grid Defection
SystemsDisconnecting completely from the utility grid and meeting all energy needs with self-owned generation (solar, battery, generator). Currently rare and expensive but declining in cost.
Why It Matters
Full grid defection requires enough storage for multi-day cloudy/winter periods. For most homeowners, staying grid-connected with solar + storage is much more cost-effective.
Related Terms
Off-Grid System · Microgrid · Energy Independence
Interconnection Fee
ProcessA one-time charge by the utility to review and approve the connection of a customer-sited generation system (solar, battery) to the grid. Fees range from $0 to $1,000+ depending on system size and state.
Why It Matters
Interconnection fees are often nonnegotiable but should be included in your total project cost. Some states cap fees for small residential systems.
Related Terms
Interconnection · PTO (Permission to Operate) · Permitting Process
System Decommissioning
ProcessThe process of safely removing a solar or battery system at end of life: disconnecting from grid, removing panels and racking, filling roof penetrations, recycling or disposing of components.
Why It Matters
Decommissioning costs $1,000-3,000 for a typical residential system. Some installer contracts include decommissioning; others do not. Ask before signing.
Related Terms
End-of-Life Recycling (Solar) · Lifecycle Assessment (LCA)
Energy Efficiency Ratio (EER)
PerformanceThe cooling output of an air conditioner divided by its electrical input at a specific outdoor temperature (usually 95 degrees F). Higher EER means more efficient cooling. Being replaced by SEER2.
Why It Matters
EER measures peak-condition efficiency, while SEER2 measures seasonal average. Both matter: EER tells you performance on the hottest days when you need cooling most.
Related Terms
SEER2 (Seasonal Energy Efficiency Ratio 2) · COP (Coefficient of Performance)
Phantom Solar Savings
EconomicsInflated savings projections from solar installers that assume unrealistic energy escalation rates (5-7% vs actual 2-3%), cherry-picked production estimates, or ignore degradation and maintenance costs.
Why It Matters
Always scrutinize the assumptions behind a solar proposal savings estimate. Compare the assumed escalation rate, production estimate, and degradation rate to independent benchmarks.
Related Terms
Energy Cost Escalation · Annual Degradation · Solar Savings Rate
Local Solar Multiplier
PerformanceA factor accounting for climate, latitude, altitude, and local weather patterns that adjusts national average solar production estimates to your specific location. Ranges from 0.6 (Seattle) to 1.3 (Phoenix).
Why It Matters
A 10 kW system in Phoenix produces nearly twice the energy of the same system in Seattle. The local multiplier is the single biggest factor in solar ROI.
Related Terms
Peak Sun Hours · Insolation · Specific Yield (kWh/kWp)
Community Battery
SystemsA utility-owned or community-owned battery storage system serving multiple homes, typically installed on distribution transformers. Provides shared backup and grid services without individual home batteries.
Why It Matters
Community batteries let solar homes benefit from storage without the $10,000-20,000 cost of a home battery. Pilot programs are expanding in several states.
Related Terms
Community Solar · Virtual Power Plant (VPP) · Battery Storage
Split Incentive Problem
EconomicsA market failure where the person who pays for an energy upgrade (landlord) is not the person who benefits from lower energy bills (tenant), or vice versa, discouraging investment.
Why It Matters
The split incentive explains why rental properties are often less efficient. Green lease clauses and on-bill programs are emerging solutions.
Related Terms
Energy Burden · Energy Poverty · On-Bill Financing
Capacity Firming
TechnicalUsing energy storage or backup generation to guarantee that a renewable energy source can deliver a consistent, dispatchable power output regardless of weather or time of day.
Why It Matters
Capacity firming makes renewable energy more valuable to the grid. Utility-scale solar + storage projects now compete with gas peaker plants on reliability.
Related Terms
Dispatchable Generation · Battery Storage · Peaker Plant
Congestion Pricing (Grid)
RatesVarying electricity transmission charges based on grid congestion, where high-demand pathways cost more. Locational marginal pricing (LMP) reflects congestion in wholesale markets.
Why It Matters
Grid congestion affects local electricity prices and can create price spikes. Distributed solar and storage reduce local congestion, potentially earning higher value.
Related Terms
Congestion · Wholesale Electricity Price · Transmission Charges
Seasonal Solar Production
PerformanceThe variation in solar output across seasons due to changing sun angle, day length, and weather patterns. US systems typically produce 20-40% of annual energy in summer vs 10-15% in winter.
Why It Matters
If your utility uses annual net metering true-up, summer overproduction can offset winter underproduction. Battery sizing should account for winter being the weakest production period.
Related Terms
Net Metering True-Up · Peak Sun Hours · Tilt Angle
Virtual Metering
TechnicalSoftware-based allocation of solar production across multiple meters or units within a building, used for community solar and multi-family properties where physical net metering is impractical.
Why It Matters
Virtual metering enables renters and condo owners to benefit from shared solar installations on common areas or nearby community solar farms.
Related Terms
Virtual Net Metering · Community Solar
Solar Access Law
PolicyState legislation protecting homeowners right to install and operate solar energy systems by limiting restrictions from HOAs, local governments, and neighbors regarding aesthetics, placement, and shade.
Why It Matters
Over 30 states have solar access or solar rights laws. These can overrule HOA covenants that attempt to ban or unreasonably restrict solar panel installations.
Related Terms
Right to Solar · AHJ (Authority Having Jurisdiction)
NABCEP Certification
ProcessA professional certification from the North American Board of Certified Energy Practitioners validating that a solar installer has met education, experience, and examination requirements.
Why It Matters
Hiring a NABCEP-certified installer reduces the risk of poor system design, installation defects, and code violations. It is the closest thing to a gold standard in residential solar.
Related Terms
NABCEP (North American Board of Certified Energy Practitioners) · Competitive Procurement
Hybrid Inverter
EquipmentAn inverter that manages both solar panels and battery storage in a single unit, handling DC-to-AC conversion for solar, battery charging/discharging, and grid interaction.
Why It Matters
A hybrid inverter simplifies solar + battery installations by replacing two separate devices. It also enables future battery addition without rewiring.
Related Terms
Inverter · All-in-One Battery System · DC-Coupled System
Charge Controller
EquipmentAn electronic device that regulates the voltage and current from solar panels to a battery bank, preventing overcharging and deep discharge. Essential for off-grid and battery-based systems.
Why It Matters
Without a charge controller, batteries can be damaged by overcharging. MPPT controllers harvest 20-30% more energy than simpler PWM models.
Related Terms
Maximum Power Point Tracking (MPPT) · Battery Storage · Off-Grid System
Combiner Box
EquipmentAn electrical enclosure where multiple solar panel strings are combined into a single higher-current circuit before feeding into the inverter. Contains fuses or breakers for each string.
Why It Matters
Combiner boxes are a standard safety component in string inverter systems. They simplify maintenance by allowing individual strings to be isolated.
Related Terms
String Inverter · String Design
Rapid Shutdown Device
EquipmentEquipment that quickly reduces solar panel voltage to safe levels (under 80V within 30 seconds) when the system is shut off, as required by NEC 2017+ section 690.12.
Why It Matters
Rapid shutdown protects firefighters who may need to work on a roof with solar panels. Microinverters and power optimizers inherently provide this function.
Related Terms
Rapid Shutdown · NEC (National Electrical Code) · Power Optimizer · Microinverter
Transfer Switch
EquipmentAn electrical device that switches a home between utility grid power and backup power (generator or battery). Prevents backfeed that could endanger utility workers.
Why It Matters
A transfer switch is required for any backup power system. Automatic transfer switches (ATS) activate within seconds of detecting an outage.
Related Terms
Backup Generator · Whole-Home Backup · Islanding
Smart Electrical Panel
EquipmentAn electrical panel with built-in monitoring, circuit-level control, and automated load management. Examples include Span, Lumin, and Schneider Square D Energy Center.
Why It Matters
Smart panels eliminate the need for a traditional panel upgrade by managing loads intelligently. They can prioritize circuits during outages and optimize for TOU rates.
Related Terms
Panel Upgrade · Load Management · Demand Flexibility
Induction Cooktop
EquipmentAn electric cooking surface that uses magnetic fields to heat cookware directly rather than heating a burner element. Boils water 50% faster than gas, with 90% energy efficiency vs 40% for gas.
Why It Matters
Induction is the highest-performance electric cooking technology and eliminates indoor air pollution from gas combustion. IRA rebates cover up to $840 for qualifying households.
Related Terms
Electrification · Electrification Plan
Attic Fan (Solar-Powered)
EquipmentA ventilation fan installed in the roof or gable that is powered by a small integrated solar panel, reducing attic temperatures by 20-40 degrees F and lowering cooling costs.
Why It Matters
A hot attic (150+ degrees F in summer) radiates heat into living spaces below. Solar attic fans cost $300-600 and reduce air conditioning energy by 10-15%.
Related Terms
Whole-House Fan · R-Value
Ground-Fault Protection
TechnicalA safety system that detects current leaking to ground through unintended paths (damaged insulation, water intrusion) and disconnects the circuit to prevent shock or fire.
Why It Matters
Solar systems require ground-fault protection per NEC. Ground faults are the most common electrical safety issue in PV systems and can cause fires if undetected.
Related Terms
Grounding (Electrical) · Arc Fault Circuit Interrupter (AFCI)
String Sizing
TechnicalCalculating the number of solar panels to wire in series per string to match the inverter voltage window, accounting for temperature effects on panel voltage throughout the year.
Why It Matters
Incorrect string sizing can damage the inverter (too many panels) or cause it to shut down on cold mornings (voltage too high) or hot afternoons (voltage too low).
Related Terms
String Design · Temperature Coefficient · Inverter
DC/AC Ratio
TechnicalThe ratio of total solar panel DC nameplate capacity to inverter AC output capacity. A typical residential system has a DC/AC ratio of 1.1-1.3, meaning more panel watts than inverter watts.
Why It Matters
A higher DC/AC ratio (more panels per inverter) increases total daily energy by boosting morning and evening production, at the cost of some midday clipping.
Related Terms
Inverter Clipping · String Design · Maximum Power Point Tracking (MPPT)
Racking
TechnicalThe aluminum or steel mounting structure that attaches solar panels to roofs, ground frames, or pole mounts. Racking must withstand local wind and snow loads per building codes.
Why It Matters
Racking quality determines system longevity. Cheap mounts can corrode or loosen, causing panel detachment in storms. Look for UL 2703 certification.
Related Terms
Roof Penetration · Ballasted Mount · Ground-Mount System
Monitoring Gateway
TechnicalA device that connects solar inverters and batteries to the internet, enabling remote monitoring via manufacturer apps. Most modern inverters include built-in Wi-Fi; older systems need a separate gateway.
Why It Matters
Without monitoring, you would not know if your system stops producing. A gateway enables alerts, production tracking, and warranty claim documentation.
Related Terms
System Monitoring · System Availability
Selective Emitter
TechnicalA solar cell manufacturing technique that creates heavily doped regions under metal contacts and lightly doped regions elsewhere, improving both conductivity and light absorption.
Why It Matters
Selective emitter technology adds 0.3-0.5% absolute efficiency to solar cells. It is standard in modern PERC and TOPCon cells.
Related Terms
PERC Cell (Passivated Emitter Rear Contact) · TOPCon (Tunnel Oxide Passivated Contact)
Anti-Reflective Coating
TechnicalA thin layer applied to solar cell surfaces (typically silicon nitride) that reduces light reflection from 30-35% to under 3%, allowing more photons to enter the cell.
Why It Matters
Without anti-reflective coating, a third of sunlight would bounce off the panel surface. This coating is why solar panels appear dark blue or black.
Related Terms
Module Efficiency · Monocrystalline Silicon
Backsheet
TechnicalThe rear protective layer of a solar panel, typically white or black polymer film (Tedlar, TPT). Provides electrical insulation, moisture protection, and UV resistance.
Why It Matters
Backsheet failures (cracking, delamination) are a leading cause of panel degradation. Black backsheets look sleeker but run slightly hotter, reducing output by 1-2%.
Related Terms
Annual Degradation · Bifacial Solar Panel
Junction Box
TechnicalAn enclosure on the back of a solar panel containing bypass diodes and electrical connections where the panel output cables originate.
Why It Matters
Junction box quality affects long-term reliability. Water intrusion into a faulty junction box is a common cause of panel failure and potential fire hazard.
Related Terms
Bypass Diode · Backsheet
Soiling Loss
PerformanceEnergy production lost due to dirt, dust, pollen, bird droppings, and other debris accumulating on solar panel surfaces. Typically 2-5% annually, but up to 25% in dusty or agricultural areas.
Why It Matters
Regular cleaning can recover soiling losses, but it is often not cost-effective for small residential systems. Rain handles most cleaning in humid climates.
Related Terms
Annual Degradation · Performance Ratio (PR)
Mismatch Loss
PerformanceEnergy lost when panels in a string have different output levels due to manufacturing variation, uneven shading, soiling, or degradation. The weakest panel limits the entire string.
Why It Matters
Mismatch is why microinverters and power optimizers exist — they allow each panel to operate independently, eliminating the weakest-link problem.
Related Terms
Microinverter · Power Optimizer · String Inverter
Wiring Loss
PerformanceEnergy lost as heat in the electrical cables connecting solar panels to the inverter and from the inverter to the electrical panel. Typically 1-3% depending on wire gauge and run length.
Why It Matters
Using appropriately sized wire (thicker gauge for longer runs) minimizes wiring losses. This is especially important for ground-mount systems with long cable runs.
Related Terms
Balance of System (BOS) · String Design
Shading Loss
PerformanceReduction in solar output caused by shadows from trees, chimneys, neighboring buildings, or other obstructions falling on panels. Even partial shading of one cell can disproportionately reduce string output.
Why It Matters
A shading analysis before installation is essential. Even 10% shading can reduce production by 30-50% with string inverters due to the weakest-link effect.
Related Terms
Shading Analysis · Bypass Diode · Microinverter
Albedo
PerformanceThe reflectivity of the ground surface beneath or around solar panels, expressed as a fraction from 0 (absorbs all light) to 1 (reflects all light). Snow has high albedo (0.8); grass is low (0.2).
Why It Matters
Higher albedo increases bifacial panel production. Snow-covered ground in winter can boost rear-side generation by 15-25% for elevated bifacial installations.
Related Terms
Bifacial Gain · Bifacial Solar Panel
Inverter Efficiency Curve
PerformanceA graph showing inverter conversion efficiency at different power loading levels. Most inverters peak at 97-99% efficiency around 30-50% of rated capacity, dropping at very low and very high loads.
Why It Matters
Inverter efficiency varies throughout the day. A properly sized inverter operates near peak efficiency for the most hours, maximizing total energy harvest.
Related Terms
Inverter · DC/AC Ratio · CEC Efficiency
AC-Coupled System
SystemsA solar + battery configuration where the battery has its own inverter separate from the solar inverter. Solar DC is converted to AC, then back to DC to charge the battery.
Why It Matters
AC coupling allows adding a battery to any existing solar system regardless of inverter brand, but loses 5-10% energy in the double conversion.
Related Terms
DC-Coupled System · Hybrid Inverter · AC Battery
DC-Coupled System
SystemsA solar + battery configuration where solar panels charge the battery directly through a shared hybrid inverter or charge controller, without converting to AC first.
Why It Matters
DC coupling is 5-10% more efficient than AC coupling because it avoids double conversion. Ideal for new installations where solar and battery are installed together.
Related Terms
AC-Coupled System · Hybrid Inverter · Charge Controller
Vehicle-to-Home (V2H)
SystemsTechnology allowing an electric vehicle battery to power a home during outages or peak pricing periods. The EV acts as a mobile battery, typically providing 40-100 kWh of storage.
Why It Matters
A 60 kWh EV battery holds 4-6x more energy than a typical home battery. V2H-capable vehicles (Ford F-150 Lightning, Nissan Leaf) can power a home for 2-3 days.
Related Terms
V2G (Vehicle-to-Grid) · Electric Vehicle (EV) · Bidirectional Meter
Energy Arbitrage
SystemsBuying electricity when it is cheap (off-peak or midday solar surplus) and using or selling it when prices are high (peak evening hours). Battery storage enables residential energy arbitrage.
Why It Matters
Under TOU rates with large peak/off-peak price differences ($0.15+), battery arbitrage can generate $50-150/month in savings after accounting for round-trip efficiency losses.
Related Terms
Time-of-Use (TOU) Rate · Load Shifting · Peak Shaving
Prosumer
SystemsA consumer who also produces energy, typically through rooftop solar. Prosumers both consume grid electricity and export surplus generation, blurring the line between consumer and producer.
Why It Matters
The prosumer model is reshaping utility business models. Prosumers need different rate structures, billing systems, and grid management approaches than passive consumers.
Related Terms
Net Metering · Distributed Energy Resource (DER) · Peer-to-Peer Energy Trading
Soft Costs
EconomicsNon-hardware expenses in a solar installation: permitting, inspection, interconnection application, sales commission, design, overhead, and profit margin. Soft costs are 50-65% of total US residential solar cost.
Why It Matters
US solar is 2-3x more expensive than in Australia and Germany primarily due to higher soft costs. Streamlined permitting and standardised designs can cut these.
Related Terms
Balance of System (BOS) · Installed Cost Per Watt · Permitting Process
Energy Return on Investment (EROI)
EconomicsThe ratio of energy delivered by a system over its lifetime to the energy required to build, install, and maintain it. Solar panels have an EROI of 10-25, meaning they generate 10-25x the energy used to make them.
Why It Matters
Solar panels pay back their manufacturing energy in 1-3 years, then produce net-positive clean energy for 22-27 more years. This makes solar genuinely sustainable.
Related Terms
Lifecycle Assessment (LCA) · Embodied Carbon
Discount Rate
EconomicsThe interest rate used to calculate the present value of future cash flows. In solar economics, a higher discount rate reduces the calculated value of long-term savings, making projects look less attractive.
Why It Matters
Solar proposals that use a low discount rate (3-4%) make the investment look better than those using a realistic rate (6-8%). Ask what discount rate your proposal assumes.
Related Terms
Net Present Value (NPV) · Simple Payback vs Discounted Payback · LCOE (Levelized Cost of Energy)
Total Cost of Ownership
EconomicsThe complete lifetime cost of an energy system including purchase, installation, maintenance, degradation, inverter replacement, and eventual decommissioning over a 25-30 year period.
Why It Matters
Cheap panels with poor warranties can cost more over 25 years than quality panels with strong guarantees. Always compare total lifetime cost, not just upfront price.
Related Terms
LCOE (Levelized Cost of Energy) · Installed Cost Per Watt
Renewable Portfolio Standard (RPS)
PolicyA state mandate requiring utilities to generate or purchase a specified percentage of electricity from renewable sources by a target date. 30+ states and DC have an RPS.
Why It Matters
RPS mandates create demand for renewable energy, supporting SREC markets and driving utility investment in solar and wind that can lower wholesale electricity costs.
Related Terms
RPS (Renewable Portfolio Standard) · Clean Energy Standard · REC (Renewable Energy Certificate)
Public Utility Commission (PUC)
PolicyA state regulatory body that oversees electric, gas, and water utilities, approving rate changes, service quality standards, and policies like net metering. Also called PSC in some states.
Why It Matters
Your PUC decides your electricity rates and net metering rules. Attending public hearings and submitting comments is how citizens influence energy policy.
Related Terms
Rate Case · Deregulation (Energy)
Deregulation (Energy)
PolicyThe restructuring of electricity markets to separate generation from distribution, allowing consumers to choose their electricity supplier while the utility handles delivery.
Why It Matters
In deregulated states (TX, PA, OH, NY, etc.), you can shop for cheaper or greener electricity suppliers. In regulated states, you have only one option.
Related Terms
Public Utility Commission (PUC) · Community Choice Aggregation (CCA)
Net Metering Policy
PolicyThe regulatory framework governing how solar customers are credited for electricity they export to the grid. Policies vary dramatically by state, ranging from full retail credit to avoided cost only.
Why It Matters
Net metering policy is the single biggest factor in residential solar economics after the federal tax credit. A state with strong net metering can double solar ROI.
Related Terms
Net Metering · Net Billing · Export Rate · Net Metering Successor Tariff
Solar Site Assessment
ProcessAn on-site evaluation of a property for solar installation, examining roof condition, orientation, tilt, shading, structural capacity, electrical panel, and utility interconnection requirements.
Why It Matters
A thorough site assessment prevents costly surprises during installation. It identifies roof repairs needed, shade issues, and panel upgrade requirements before signing a contract.
Related Terms
Solar Feasibility Study · Shading Analysis · Site Assessment
Interconnection Application
ProcessThe formal request submitted to your utility for permission to connect a solar or battery system to the grid. Includes system specifications, single-line diagrams, and equipment datasheets.
Why It Matters
Interconnection is a separate process from building permits. Some utilities approve in days; others take months. Your installer should handle this paperwork.
Related Terms
Interconnection · PTO (Permission to Operate) · Interconnection Fee
Production Guarantee
ProcessA contractual commitment from a solar installer guaranteeing minimum annual energy production, with financial compensation if the system consistently underperforms.
Why It Matters
A production guarantee protects you if your system is poorly designed or installed. Not all installers offer one — this is a sign of quality and confidence.
Related Terms
Performance Ratio (PR) · Annual Degradation · System Monitoring
SREC (Solar Renewable Energy Certificate)
IncentivesA tradeable certificate representing 1 MWh of solar electricity generation. In states with SREC markets (NJ, MA, DC, MD, PA, OH, IL), solar owners earn SRECs they can sell for additional income.
Why It Matters
SRECs can be worth $20-300+ per MWh depending on the state market, adding $200-3,000+ per year in income on top of electricity savings.
Related Terms
REC (Renewable Energy Certificate) · Renewable Portfolio Standard (RPS)
MACRS Depreciation (Solar)
IncentivesThe Modified Accelerated Cost Recovery System allows commercial and rental property solar owners to depreciate the system cost over 5 years, with bonus depreciation enabling 80-100% first-year write-off.
Why It Matters
MACRS plus the ITC can recover 56-74% of commercial solar system cost through tax benefits in year one. This is why commercial solar has different economics than residential.
Related Terms
Federal Tax Credit (ITC) · Cost Segregation
Property Tax Exemption (Solar)
IncentivesA state law that excludes the added value of a solar installation from property tax assessments. Over 35 states provide full or partial solar property tax exemptions.
Why It Matters
Without this exemption, a $25,000 solar system could increase annual property taxes by $250-500 depending on your assessment rate. Most states prevent this.
Related Terms
Sales Tax Exemption (Solar)
EV Tax Credit (30D)
IncentivesA federal tax credit of up to $7,500 for new qualifying electric vehicles purchased in 2023-2032 under IRA section 30D. Income and MSRP caps apply. Assembly and battery sourcing rules restrict eligibility.
Why It Matters
The EV tax credit makes electric vehicles price-competitive with comparable gas models. Combined with lower fuel and maintenance costs, EVs are increasingly the cheaper option.
Related Terms
Electric Vehicle (EV) · IRA (Inflation Reduction Act)
Used EV Tax Credit (25E)
IncentivesA federal tax credit of up to $4,000 (or 30% of sale price, whichever is less) for qualifying used electric vehicles purchased from a dealer. Income cap: $75,000 AGI single / $150,000 joint.
Why It Matters
The used EV credit makes electric vehicles accessible to moderate-income households. Combined with lower fuel costs, a $15,000 used EV with a $4,000 credit is a strong value.
Related Terms
EV Tax Credit (30D) · Electric Vehicle (EV)
Heat Pump Tax Credit (25C)
IncentivesA federal tax credit of up to $2,000 per year for qualifying heat pump installations (air source and geothermal) under IRA section 25C. Covers the cost of the heat pump plus installation labor.
Why It Matters
The annual $2,000 heat pump credit can be claimed each year you install qualifying equipment, allowing you to spread HVAC electrification across multiple tax years.
Related Terms
25C Tax Credit · Heat Pump · Cold-Climate Heat Pump (ccASHP)
Embodied Carbon
EnvironmentThe total greenhouse gas emissions produced during the manufacturing, transportation, installation, and end-of-life processing of a product. Solar panels have embodied carbon of 20-50 g CO2/kWh over their lifetime.
Why It Matters
Solar panels pay off their carbon debt in 1-3 years, then produce nearly zero-emission electricity for 20+ more years. Even including embodied carbon, solar is 10-50x cleaner than coal.
Related Terms
Lifecycle Assessment (LCA) · Carbon Footprint · Energy Return on Investment (EROI)
Water Footprint (Energy)
EnvironmentThe volume of water consumed per unit of electricity generated. Coal and nuclear use 400-700 gallons per MWh for cooling; solar PV uses near-zero water during operation.
Why It Matters
In drought-prone regions, water consumption is a critical factor in energy planning. Solar and wind are dramatically more water-efficient than thermal power plants.
Related Terms
Grid Emissions Factor
Fugitive Emissions
EnvironmentUnintended releases of greenhouse gases during extraction, processing, and distribution of fossil fuels. Methane leaks from natural gas systems are a major source of fugitive emissions.
Why It Matters
Methane is 80x more potent than CO2 over 20 years. Fugitive emissions mean natural gas is not as clean as its combustion chemistry suggests, strengthening the case for electrification.
Related Terms
Emissions Factor · Carbon Intensity
Solar Loan
FinancingA personal or secured loan specifically for financing a solar installation. Terms typically range from 10-25 years with interest rates of 3-8%. The homeowner owns the system and keeps all incentives.
Why It Matters
With the 30% ITC, a $25,000 system effectively costs $17,500. A solar loan at 5% over 20 years costs about $115/month — often less than the average electricity bill you are replacing.
Related Terms
Solar Lease vs Solar Loan · Federal Tax Credit (ITC)
Solar Lease
FinancingAn agreement where a company installs and owns solar panels on your roof, and you pay a fixed monthly lease payment for the electricity they produce. Lease terms are typically 20-25 years.
Why It Matters
Leases require zero upfront cost but deliver less lifetime savings than owning. The leasing company keeps the tax credit, SRECs, and panel ownership.
Related Terms
Solar Lease vs Solar Loan · PPA (Power Purchase Agreement)
Green Bank
FinancingA public or quasi-public financial institution that uses limited public funds to leverage private investment in clean energy projects through loans, credit enhancements, and co-investment.
Why It Matters
Green banks offer favorable loan terms for clean energy projects that traditional banks consider too risky. The IRA allocated $27 billion to a national Green Bank network.
Related Terms
On-Bill Financing · Green Bond
Tax Credit Carryforward
FinancingIf your federal tax liability is less than your solar tax credit amount, you can carry the unused portion forward to future tax years. There is no limit on how many years you can carry forward.
Why It Matters
If you owe $5,000 in taxes but have a $7,500 solar credit, you reduce year-one taxes to $0 and apply the remaining $2,500 to next year taxes. The credit is never wasted.
Related Terms
Federal Solar Tax Credit (ITC) · Federal Tax Credit (ITC)
Baseline Allowance
RatesThe amount of electricity usage at the lowest tier rate under an inclining block rate structure, designed to cover basic needs at an affordable price. Set by the utility based on climate zone and season.
Why It Matters
Understanding your baseline helps determine how much solar you need. Usage within baseline saves at the lowest tier; solar eliminates the expensive upper tiers first.
Related Terms
Inclining Block Rate · Tiered Rate
Delivery Charges
RatesThe portion of your electricity bill covering the cost of transmitting and distributing power from generators to your home. Includes transmission, distribution, and infrastructure fees.
Why It Matters
Solar offsets the supply/generation charge but typically not delivery charges. In some states, delivery is 30-50% of the total bill, limiting maximum solar savings.
Related Terms
Fixed Charge · Transmission Charges
Real-Time Pricing
RatesAn electricity rate that changes hourly based on wholesale market conditions, reflecting the actual cost of generating power at each moment. Prices can spike during extreme demand events.
Why It Matters
Real-time pricing rewards flexibility. With battery storage and smart appliances, you can consume when prices are low (or negative) and avoid consumption during expensive hours.
Related Terms
Time-of-Use (TOU) Rate · Wholesale Electricity Price · Critical Peak Pricing (CPP)
Manual J Load Calculation
PlanningThe ACCA-standard method for calculating heating and cooling loads of a building based on climate, insulation, windows, orientation, occupancy, and infiltration. Required for proper HVAC sizing.
Why It Matters
Most HVAC systems are oversized by 25-50% because contractors skip Manual J. Oversizing wastes money on equipment and energy while reducing comfort (poor humidity control).
Related Terms
Load Analysis · Ton (Cooling Capacity) · Heat Pump
Backup Load Panel
PlanningA separate electrical sub-panel containing only the circuits you want powered during an outage (refrigerator, lights, internet, medical equipment). Simplifies battery system sizing and cost.
Why It Matters
A whole-home backup requires a much larger (more expensive) battery system. Selecting 6-10 critical circuits for a backup load panel can cut battery costs by 50-70%.
Related Terms
Whole-Home Backup · Battery Storage · Subpanel
Energy Budget
PlanningA planned allocation of energy consumption across building systems (heating, cooling, lighting, appliances, hot water) designed to meet a specific performance target like net zero or ENERGY STAR.
Why It Matters
Setting an energy budget before designing or renovating prevents oversizing expensive equipment. It is the foundation of high-performance building design.
Related Terms
Energy Model · Zero Energy Ready Home (ZERH) · HERS Index (Home Energy Rating System)
Roof Assessment
PlanningAn evaluation of a roof condition, age, material, orientation, and structural capacity to determine suitability for solar installation and remaining useful life.
Why It Matters
Installing solar on a roof that needs replacement within 5-10 years means paying to remove and reinstall panels. A roof assessment prevents this costly mistake.
Related Terms
Solar Feasibility Study · Site Assessment
ERCOT
SystemsThe Electric Reliability Council of Texas, the grid operator managing 90% of Texas electric load. ERCOT operates an isolated grid not connected to the Eastern or Western interconnections.
Why It Matters
ERCOT unique isolation means Texas cannot easily import power during emergencies, as seen in the 2021 winter storm. This drives strong interest in home solar and battery backup in Texas.
Related Terms
Wholesale Electricity Price · Grid Modernization
Duck Curve
SystemsA graph of net electricity demand (total demand minus solar production) that dips in midday when solar produces heavily, then ramps steeply in the evening as solar drops and demand rises.
Why It Matters
The duck curve explains why TOU rates charge more in the evening. Battery storage that shifts solar from midday production to evening consumption directly addresses the ramp.
Related Terms
Time-of-Use (TOU) Rate · Energy Arbitrage · Power Curtailment
Peaker Plant
SystemsA power plant that operates only during periods of peak electricity demand, typically natural gas turbines that can start up quickly but have higher per-kWh costs and emissions.
Why It Matters
Battery storage and demand response are replacing peaker plants. Solar + storage projects now bid into utility capacity markets at lower cost than new gas peakers.
Related Terms
Capacity Firming · Peak Demand · Duck Curve
Merit Order
SystemsThe sequence in which power plants are dispatched to meet demand, ranked from lowest to highest marginal cost. Renewables (near-zero marginal cost) dispatch first; gas peakers dispatch last.
Why It Matters
The merit order explains why adding solar and wind reduces wholesale electricity prices — they push expensive generators off the dispatch stack.
Related Terms
Wholesale Electricity Price · Peaker Plant · Marginal Emissions Rate
NEC (National Electrical Code)
TechnicalThe US standard (NFPA 70) governing safe electrical installation practices, updated every three years. NEC Article 690 specifically covers solar PV systems; Article 706 covers energy storage.
Why It Matters
Solar installations must comply with the NEC version adopted by your local jurisdiction. Recent NEC editions require rapid shutdown, AFCI protection, and specific labeling.
Related Terms
Arc Fault Circuit Interrupter (AFCI) · Rapid Shutdown Device · Electrical Inspection
IEEE 1547
TechnicalThe national standard for interconnecting distributed energy resources (solar, battery, generators) with the electric grid, specifying voltage regulation, frequency response, and islanding detection requirements.
Why It Matters
IEEE 1547-2018 enables solar inverters to provide grid support functions (voltage regulation, frequency response) that were previously prohibited, making rooftop solar more grid-friendly.
Related Terms
Interconnection Standard · Anti-Islanding · Grid Modernization
UL Listing
TechnicalA certification from Underwriters Laboratories indicating that a product has been tested and meets safety standards. Solar panels need UL 61730; inverters need UL 1741; batteries need UL 9540.
Why It Matters
Only UL-listed equipment qualifies for utility interconnection, building permits, and insurance coverage. Never install non-UL-listed solar or battery equipment.
Related Terms
NEC (National Electrical Code) · Electrical Inspection
CEC Efficiency
PerformanceThe California Energy Commission weighted efficiency rating for solar inverters, averaging efficiency across six power levels weighted for typical operating conditions. More realistic than peak efficiency claims.
Why It Matters
CEC efficiency is the industry standard for comparing inverters. A 97.5% CEC-rated inverter will deliver more real-world energy than a 98% peak-rated inverter with lower part-load efficiency.
Related Terms
Inverter Efficiency Curve · Inverter
Standard Test Conditions (STC)
PerformanceThe laboratory conditions under which solar panels are rated: 1,000 W/m2 irradiance, 25 degrees C cell temperature, AM1.5 spectrum. Real-world conditions rarely match STC exactly.
Why It Matters
A 400W panel produces 400W only at STC. In real conditions (hotter cells, lower irradiance), expect 75-85% of STC rating as actual average output.
Related Terms
Cell Temperature · Temperature Coefficient · Production Factor
PTC Rating
PerformancePVUSA Test Conditions rating — a more realistic solar panel power rating using 1,000 W/m2 irradiance but 45 degrees C cell temperature (vs 25 degrees C for STC). PTC is typically 88-92% of STC.
Why It Matters
PTC gives a more honest picture of panel output in warm real-world conditions. CEC uses PTC ratings for California rebate calculations.
Related Terms
Standard Test Conditions (STC) · Cell Temperature
Degradation-Adjusted Production
PerformanceSolar energy production estimates that account for the gradual decline in panel output over time, typically modeled at 0.3-0.5% per year from the first-year baseline.
Why It Matters
A 25-year financial model should use degradation-adjusted production, not fixed year-one numbers. Ignoring degradation overstates lifetime savings by 6-10%.
Related Terms
Annual Degradation · Degradation Rate · Production Guarantee
Capacity Factor
PerformanceThe ratio of actual energy produced over a period to the theoretical maximum if the system operated at full rated capacity continuously. US residential solar has a 15-25% capacity factor depending on location.
Why It Matters
Capacity factor explains why a 10 kW solar system does not produce 10 kW around the clock. Night, clouds, temperature, and system losses all reduce the effective output.
Related Terms
Specific Yield (kWh/kWp) · Peak Sun Hours
Electrical Inspection
ProcessA review by a local building inspector verifying that a solar or electrical installation meets code requirements. Typically required before the utility grants permission to operate.
Why It Matters
Failing inspection delays system activation. Common issues include incorrect labeling, missing grounding, and rapid-shutdown non-compliance.
Related Terms
NEC (National Electrical Code) · PTO (Permission to Operate)
Utility Rate Escalation
EconomicsThe historical and projected annual increase in electricity prices. US residential rates have averaged 2-4% annual increases over the past 20 years.
Why It Matters
Higher rate escalation makes solar more valuable because the savings grow each year. A 3% escalation doubles your electricity cost in 24 years.
Related Terms
LCOE (Levelized Cost of Energy) · Solar ROI
Reactive Power
TechnicalThe portion of electrical power that oscillates between source and load without doing useful work, measured in volt-amperes reactive (VAR). Required to maintain voltage levels on AC power systems.
Why It Matters
Modern smart inverters can provide reactive power support to the grid (IEEE 1547-2018), improving local voltage quality — a service utilities increasingly require or compensate.
Related Terms
Power Factor · IEEE 1547 · Smart Inverter
Energy Burden
EconomicsThe percentage of household income spent on energy bills. Low-income households often face energy burdens of 8-20%, compared to 3% for median-income households.
Why It Matters
High energy burden drives energy poverty, forcing choices between heating and other necessities. Solar, weatherization, and IRA rebates can cut energy burden in half.
Related Terms
Low-Income Solar · Weatherization
Commissioning
ProcessThe systematic process of verifying that all components of a solar or energy system are installed correctly, configured properly, and performing to specification before handoff to the owner.
Why It Matters
Proper commissioning catches wiring errors, communication failures, and configuration mistakes before they cause production losses or safety hazards.
Related Terms
PTO (Permission to Operate) · System Monitoring · Electrical Inspection
Clipping
PerformanceWhen solar panel output exceeds the inverter maximum AC capacity, the inverter limits (clips) the output to its rated power. Energy above the clip threshold is lost.
Why It Matters
Some clipping (1-3% annually) is intentional and economical — oversizing panels relative to the inverter (DC/AC ratio > 1.0) increases total daily energy despite midday clipping.
Related Terms
DC/AC Ratio · Inverter Clipping · Inverter Efficiency Curve
Fire Setback
InstallationThe minimum clear space required between solar panels and roof edges, ridges, valleys, and fire access pathways, as mandated by local fire codes and the International Fire Code (IFC).
Why It Matters
Fire setback rules reduce the available roof area for panels, sometimes by 15-25%. They ensure firefighters can safely ventilate roofs and access structures.
Related Terms
Roof Assessment · NEC (National Electrical Code)
Avoided Cost
RatesThe cost a utility avoids by not having to generate, transmit, or distribute electricity because a customer solar system is producing power instead. Often used as the basis for solar export compensation.
Why It Matters
Under net billing tariffs (like NEM 3.0), export credits based on avoided cost are much lower than retail rates — typically 4-8 cents/kWh instead of 25-40 cents.
Related Terms
Net Billing · Export Rate · Net Metering Successor Tariff