Key terms

Kilowatt (kW): A measurement unit for electric power.

Kilowatt-hour (kWh): A unit of energy equal to the power consumption of 1 kW sustained for one hour.

Electricity Price: Measured in cents per kilowatt-hour.

Utility Company: An organization that supplies essential services such as electricity, gas, water, and telecommunications to the public. These companies often hold monopolies within certain regions but are regulated by state and local government entities.

Photovoltaic (PV) Cell: A device made from semiconductor material that converts light into direct current (DC) electricity.

Inverter: A device that converts DC from solar panels into alternating current (AC), usable in homes and businesses.

Array: A collection of solar panels configured together.

Net Metering: A billing arrangement that credits solar energy system owners for the electricity they add to the grid.

Interconnection: The process by which a solar system is connected to the grid, involving approval from the utility provider for net metering and potentially for solar buy-back arrangements.

Investment Tax Credit (ITC): A federal tax incentive for investments in renewable energy to reduce carbon emissions.

Annual Degradation: The gradual loss of solar panel efficiency, about 0.05% per year, resulting in an approximate 15% decrease over 30 years.

Solar Panel Efficiency: The effectiveness of solar panels in converting sunlight to electricity, which has improved over time but does not advance as rapidly as some other technologies.

Power Purchase Agreement (PPA): An agreement where a third party owns and maintains a solar system on a property, and the homeowner pays for the power generated.

Lease: Similar to a PPA but typically involves paying for a year’s estimated production upfront.

Power Production Guarantee: A promise that a certain amount of electricity will be produced over the lifetime of a solar agreement.

Tax Incentive: A policy intended to encourage economic activities by reducing tax liabilities.

Rebate: A return of part of the original payment for some service or merchandise, serving as a reduction or refund on what has already been paid or contributed.

Shade Report: An analysis determining how shadows affect solar panel output during various times of the day.

Price Per Watt (PPW): The cost of a solar system per watt of capacity.

Engineering, Procurement, and Construction (EPC): A common form of contracting arrangement within the construction industry.

Site Audit: An inspection that evaluates the suitability of a site for solar installation, including potential obstacles or necessary upgrades.

Final Layout: The conclusive design drawing of a solar project, used to progress to permitting and installation.

Micro-Inverter: A compact inverter mounted on the back of each solar panel to convert DC to AC.

String Inverter: An inverter connected to multiple solar panels, converting DC from the entire string of panels into AC.

Title or Deed: A legal document proving ownership of a property.

Land Survey: A detailed mapping that outlines property boundaries and other features.

Roof Pitch: The angle of a roof, influences the installation and efficiency of solar panels.

Azimuth: The angle between the north direction and the perpendicular projection of the sun down onto the horizon.

Solar Module: Another term for a solar panel, typically consisting of multiple solar cells assembled together.

Solar Cell: Also known as a PV cell, this is the basic unit that makes up solar panels and converts sunlight directly into electricity.

Solar Panel System: Refers to the complete set of components required for solar power generation, including solar panels, inverters, and other necessary hardware.

Solar Energy: The energy derived from the sun’s radiation, which can be converted into electrical power or thermal energy.

Feed-in Tariff: A policy mechanism designed to accelerate investment in renewable energy technologies by offering long-term contracts to renewable energy producers, typically based on the cost of generation of each technology.

Renewable Energy: Energy generated from natural resources that are continuously replenished, such as sunlight, wind, and water, which are environmentally friendly and less harmful in terms of carbon emissions.

Carbon Footprint: The total amount of greenhouse gases, including carbon dioxide and methane, that are emitted by an individual, organization, event, or product.

Solar Panel Efficiency: The ratio of energy output from a solar panel relative to the energy input from sunlight, expressed as a percentage.

Solar Panel Degradation: The loss of efficiency and output power that occurs in solar panels over time due to exposure to environmental factors.

Solar Panel Warranty: A guarantee provided by the manufacturer that covers defects and sometimes performance of solar panels for a specified period.

Solar Panel Lifetime: The operational lifespan of a solar panel, during which it is expected to produce electricity efficiently, typically around 20-25 years.

Solar Panel Capacity: The maximum power output that a solar panel can produce, measured in watts.

Solar Panel Wattage: The output of a solar panel in terms of power, calculated in watts, indicating the rate of electricity generation at a given moment.

Solar Panel System Size: The total power capacity of an entire solar installation, measured in kilowatts or megawatts.

Solar Panel System Production: The total amount of electricity generated by a solar system over a specific period, usually measured in kilowatt-hours.

Solar Panel System Cost: The total expense incurred for the installation of a solar panel system, including components and labor.

Solar Panel System Payback Period: The estimated time it takes for the energy savings from a solar panel system to cover the initial installation costs.

Solar Panel System ROI (Return on Investment): The financial return gained from the investment in a solar panel system, calculated as a percentage of the cost saved over time relative to the initial expenditure.

Solar Panel System Performance: The effectiveness of a solar system in converting sunlight into electricity, typically evaluated based on output relative to its size.

Solar Panel System Monitoring: The ongoing process of tracking and evaluating the performance of a solar system to ensure optimal operation and detect any issues.

Solar Panel Mounting: The setup and securing of solar panels in their designated positions, either on rooftops or ground-based installations.

Solar Panel Orientation and Tilt: The positioning and angle at which solar panels are set up to maximize sunlight exposure and energy production.

Solar Panel Racking: The framework or structure that supports solar panels in their mounting position.

Solar Panel Tracking: A system that adjusts the position of solar panels throughout the day to follow the sun's path, maximizing energy capture.

Solar Panel Shading: The obstruction of sunlight caused by nearby objects such as trees or buildings, which can reduce the efficiency of solar panels.

Solar Panel Cleaning, Washing, Dusting: Various methods of maintaining the cleanliness of solar panels to ensure maximum efficiency by removing dirt, debris, and other obstructive residues.

Solar Panel Inspection: Regular checks performed to assess the condition of solar panels and identify any potential issues that may affect their performance.