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Energy Glossary

Search and explore definitions of common solar, battery, and renewable energy terms.

Showing 502 of 502 terms

kWh (Kilowatt-hour)

Units

A 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

Policy

A 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

Equipment

A 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

Equipment

A 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

Equipment

A 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

Rates

An 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)

Incentives

Investment 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)

Incentives

A 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

Systems

A 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

Systems

A 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

Performance

The 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

Performance

The 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

Process

The 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)

Financing

A 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

Financing

A 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

Equipment

A small inverter attached to each solar panel, allowing independent operation and optimization of each panel.

Related Terms

String Inverter · Inverter

String Inverter

Equipment

A 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)

Economics

The 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

Performance

The 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

Installation

The 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

Installation

The 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

Installation

An 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

Planning

A 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

Environment

The amount of CO2 emissions per unit of electricity generated. Varies by grid mix (coal, gas, renewables).

Related Terms

Community Solar

Demand Charge

Rates

A 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

Policy

A 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

Programs

A 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

Policy

A 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

Process

A 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

Performance

The 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)

Units

A 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)

Technical

Electricity 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)

Technical

Electricity that periodically reverses direction. Standard household electricity in the US is 120/240V AC.

Related Terms

DC (Direct Current) · Inverter

Payback Period

Economics

The 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)

Economics

The 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)

Incentives

A 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)

Policy

A 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)

Incentives

A 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)

Incentives

A 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)

Financing

A 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)

Programs

A 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)

Programs

A 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)

Policy

Landmark 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)

Policy

California'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

Rates

The 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

Rates

The 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

Financing

A 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

Incentives

A 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

Incentives

A 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

Incentives

A 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

Equipment

A 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

Equipment

A 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)

Equipment

A 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

Equipment

An 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

Equipment

An 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

Equipment

An 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)

Equipment

Electric 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

Equipment

An 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

Equipment

A 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

Equipment

A 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

Rates

An 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

Rates

The 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

Rates

The 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

Technical

The 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

Rates

The 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

Rates

Fees 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

Programs

A 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

Technical

A 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

Economics

The 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

Rates

An 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

Economics

The 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)

Economics

The 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)

Economics

The 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

Economics

The 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

Economics

Non-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)

Equipment

All 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

Financing

A 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

Economics

A 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

Financing

A 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

Economics

The 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

Systems

A 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

Systems

A 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

Systems

A 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)

Systems

Software 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

Systems

A 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

Equipment

Solar 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

Equipment

Solar 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

Equipment

Solar 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

Equipment

An 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

Equipment

A 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)

Technical

An 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)

Technical

A 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)

Technical

A 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

Performance

The 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)

Equipment

Solar 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

Technical

A 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

Technical

A 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)

Technical

The 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)

Process

The 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

Performance

Energy 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

Performance

When 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

Technical

The 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

Performance

A 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)

Equipment

A 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)

Equipment

A 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

Performance

The 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)

Performance

The 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)

Performance

The 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

Technical

An 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

Performance

The 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

Equipment

An 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)

Systems

A 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

Equipment

An 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

Technical

The 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

Systems

A 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

Technical

The 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

Technical

The 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

Technical

A 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

Economics

A 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

Policy

An 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

Technical

Services 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

Technical

When 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

Technical

The 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)

Equipment

A 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

Technical

The 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)

Performance

The 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)

Performance

The 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)

Performance

The 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)

Performance

The 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)

Performance

The 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

Equipment

A 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

Equipment

A 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

Planning

The 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)

Equipment

A 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

Technical

The 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)

Equipment

A 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)

Equipment

The 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

Equipment

EV 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

Equipment

EV 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)

Equipment

High-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)

Systems

Bidirectional 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)

Systems

Technology 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

Incentives

The 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

Incentives

The 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

Incentives

The 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)

Incentives

An 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)

Incentives

An 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

Financing

When 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)

Incentives

A 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)

Incentives

An 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

Process

A 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)

Economics

The 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

Economics

The 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

Economics

The 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)

Policy

A 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

Policy

A 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

Policy

The 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)

Policy

A 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)

Policy

The 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)

Policy

The 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)

Policy

A 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

Technical

A 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

Process

The 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

Process

A 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)

Performance

The 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

Process

A 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

Performance

A 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)

Performance

A 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

Technical

Heat 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

Performance

Air 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

Equipment

An 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

Environment

The 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

Environment

The 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

Environment

The 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)

Environment

A 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

Environment

The 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

Environment

A 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)

Environment

A 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

Rates

The 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

Rates

The 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)

Rates

A 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

Rates

An 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

Rates

An 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

Planning

An 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)

Process

Formal 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

Process

An 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

Planning

The 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

Process

Official 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

Installation

Replacing 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

Programs

A 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

Financing

A 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)

Financing

An 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

Programs

A 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)

Performance

The 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)

Performance

The 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

Equipment

Hardware 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

Technical

A 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)

Technical

An 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

Systems

The 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)

Financing

A 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

Equipment

An 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

Performance

The 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)

Units

The 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)

Technical

The 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)

Process

The 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

Process

The 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

Equipment

The 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

Technical

The 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

Performance

The 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

Performance

The 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

Technical

The 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

Technical

The 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)

Technical

The 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

Technical

The 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

Equipment

Colloquial 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

Installation

A 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

Systems

Moving 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

Systems

Using 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

Systems

Large 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)

Systems

Any 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

Technical

A 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

Technical

The 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

Technical

The 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

Technical

A 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

Process

The 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)

Technical

Uranium 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)

Equipment

A 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

Technical

Nuclear 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)

Policy

The 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

Equipment

A 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

Technical

The 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

Technical

In 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

Technical

Fuel 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)

Equipment

A 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

Equipment

A 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)

Process

A 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

Technical

Natural 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

Process

A 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)

Technical

Natural 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)

Units

A 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

Units

A 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

Performance

A 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)

Technical

Technologies 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

Incentives

A 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)

Technical

Technology 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

Environment

The 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

Equipment

A 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

Systems

A 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

Equipment

A 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

Equipment

A 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

Environment

A 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)

Systems

A 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

Equipment

A 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

Technical

Hydrogen 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

Technical

Hydrogen 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

Technical

Hydrogen 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

Process

The 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

Equipment

An 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

Incentives

The 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

Technical

An 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

Technical

A 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)

Technical

Methane 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

Technical

A 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)

Policy

A 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)

Technical

Jet 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

Technical

The 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)

Economics

The 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

Systems

Power 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

Systems

The 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

Economics

The 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

Technical

The 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

Technical

The 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)

Systems

The 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

Units

The 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

Units

A 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

Performance

The 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

Environment

Earthquakes 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)

Units

A 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)

Units

The 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)

Units

A 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)

Units

One 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)

Units

One 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)

Units

One 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)

Units

The 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)

Units

A 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

Planning

A 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

Planning

A 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

Planning

A 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

Planning

An 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

Planning

Designing 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

Planning

A 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

Planning

A 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

Planning

A 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

Installation

A 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

Installation

Digging 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

Installation

A 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

Installation

A 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

Installation

A 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

Installation

Solar 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

Installation

The 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

Installation

A 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)

Programs

A 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

Programs

A 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

Programs

A 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

Programs

A 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

Programs

State 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

Programs

A 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

Programs

Federal 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

Programs

Rate 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

Financing

Two 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)

Financing

A 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

Financing

An 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)

Financing

The 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

Financing

A 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)

Financing

Additional 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)

Rates

A 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

Rates

A 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)

Rates

A 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

Rates

The 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

Rates

The 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

Rates

A 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

Rates

An 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

Rates

A 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

Economics

The 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

Economics

Simple 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)

Economics

The 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

Economics

The 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

Economics

Combining 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

Economics

The 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

Economics

The 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

Environment

An 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

Environment

The 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

Environment

The 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)

Environment

The 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

Environment

The 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

Environment

A 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)

Technical

A 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)

Technical

An 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

Technical

The 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

Technical

The 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

Technical

A 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)

Technical

Connecting 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)

Technical

An 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)

Technical

Electricity 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

Technical

Electronic 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

Technical

A 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

Technical

The 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

Technical

The 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

Technical

Automated 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

Performance

The 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)

Performance

The 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

Performance

The 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

Performance

The 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

Performance

How 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

Performance

The 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

Policy

State-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

Policy

Minimum 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

Policy

State 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

Policy

A 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

Policy

A 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

Policy

An 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

Policy

An 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

Equipment

An 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)

Equipment

A 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)

Equipment

A 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

Equipment

A 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

Equipment

A 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

Equipment

A 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

Equipment

A 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

Equipment

A 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)

Equipment

A 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

Equipment

Materials 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

Equipment

A 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

Equipment

Light-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)

Equipment

A 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

Systems

An 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)

Systems

Software 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

Systems

The 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)

Systems

A 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

Systems

A 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

Systems

A 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

Process

A 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

Process

The 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

Process

An 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

Process

The 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

Process

Real-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

Process

The 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)

Incentives

A 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

Incentives

The 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

Incentives

A 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

Incentives

A 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)

Incentives

A 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

Technical

A 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

Equipment

A 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

Systems

The 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

Technical

The 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

Process

Improving 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

Policy

Upgrading 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

Policy

A 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

Technical

Switching 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

Economics

A 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

Systems

Techniques 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)

Systems

A 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

Planning

A 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)

Equipment

A 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

Equipment

An 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

Performance

When 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

Policy

When 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

Systems

A 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

Systems

Disconnecting 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

Process

A 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

Process

The 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)

Performance

The 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

Economics

Inflated 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

Performance

A 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

Systems

A 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

Economics

A 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

Technical

Using 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)

Rates

Varying 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

Performance

The 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

Technical

Software-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

Policy

State 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

Process

A 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

Equipment

An 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

Equipment

An 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

Equipment

An 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

Equipment

Equipment 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

Equipment

An 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

Equipment

An 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

Equipment

An 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)

Equipment

A 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

Technical

A 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

Technical

Calculating 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

Technical

The 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

Technical

The 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

Technical

A 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

Technical

A 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

Technical

A 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

Technical

The 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

Technical

An 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

Performance

Energy 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

Performance

Energy 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

Performance

Energy 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

Performance

Reduction 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

Performance

The 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

Performance

A 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

Systems

A 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

Systems

A 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)

Systems

Technology 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

Systems

Buying 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

Systems

A 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

Economics

Non-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)

Economics

The 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

Economics

The 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

Economics

The 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)

Policy

A 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)

Policy

A 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)

Policy

The 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

Policy

The 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

Process

An 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

Process

The 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

Process

A 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)

Incentives

A 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)

Incentives

The 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)

Incentives

A 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)

Incentives

A 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)

Incentives

A 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)

Incentives

A 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

Environment

The 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)

Environment

The 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

Environment

Unintended 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

Financing

A 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

Financing

An 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

Financing

A 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

Financing

If 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

Rates

The 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

Rates

The 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

Rates

An 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

Planning

The 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

Planning

A 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

Planning

A 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

Planning

An 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

Systems

The 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

Systems

A 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

Systems

A 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

Systems

The 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)

Technical

The 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

Technical

The 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

Technical

A 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

Performance

The 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)

Performance

The 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

Performance

PVUSA 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

Performance

Solar 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

Performance

The 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

Process

A 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

Economics

The 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

Technical

The 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

Economics

The 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

Process

The 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

Performance

When 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

Installation

The 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

Rates

The 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