Glossary
A
- AC Current (Alternating Current)
- The type of electricity used in homes and businesses, alternating directions in a circuit. Solar inverters convert DC (Direct Current) from panels into AC for household use.
- Annual Percentage Rate (APR)
- The yearly cost of borrowing money for a solar loan, including interest and fees, shown as a percentage.
- Azimuth
- The direction your roof faces, measured in degrees. South-facing roofs are typically best for solar panels because they get the most sunlight.
B
- BIPOC
- An acronym for Black, Indigenous, and People of Color. Many solar programs focus on bringing clean energy to underserved BIPOC communities.
- Batteries
- Devices that store energy from solar panels, providing power when the sun isn’t shining or during outages.
- Bill Credit
- Upon subscribing to a community solar farm, you receive energy credits on your electric bills based on the solar energy generated by your share of the farm. The quantity of bill credits fluctuates monthly, correlating with the solar energy production attributed to your share.
- Building-Integrated Photovoltaic (BIPV)
- Solar panels that blend into the building’s roof or walls, sometimes called “solar shingles.”
C
- CDFIs (Community Development Financial Institutions)
- Nonprofit lenders offering low-cost loans and financing for clean energy projects in underserved communities.
- Clean Electricity Investment Credit
- A federal incentive starting in 2025 that rewards investments in clean energy projects, including solar installations.
- Community Reinvestment Act (CRA)
- A federal law encouraging financial institutions to support projects, like solar, in low-income and underserved communities.
- Community Solar
- A shared solar project where residents buy or subscribe to a portion of the solar farm and get credits on their energy bills. Great for renters or those without suitable rooftops.
- Credit Score
- A number showing how reliable you are at repaying loans. A good score can help you get better loan terms for solar.
D
- DC Current (Direct Current)
- The electricity produced by solar panels, flowing in one direction. Inverters convert this to AC for household use.
- DOE
- In this context, always refers to the United States Department of Energy, although other departments may have the same acronym.
- Demand Charges
- Fees on your electricity bill based on the highest amount of energy you use at one time, often used for businesses.
- Depreciation-Based Incentives
- For businesses, these allow you to reduce taxes by spreading the cost of solar equipment over several years.
- Down Payment
- The initial amount required to secure a solar loan, though some loans offer no-money-down options. Down payment specifics can typically be found in loan quotes.
E
- EPA (Environmental Protection Agency)
- A federal agency responsible for protecting human health and the environment, including clean energy initiatives.
- Energy Audit
- A review of your home’s energy use to find ways to save energy and money before going solar. Many programs offer these for free.
- Energy Community
- Areas that relied on coal, oil, or gas industries and are transitioning to clean energy. Special incentives are available for these communities.
- Energy Service Companies (ESCOs)
- Companies that design, install, and finance energy-saving projects, including solar systems, for homes or businesses.
F
- Federal Investment Tax Credit (ITC)
- A tax credit that covers 30% of solar installation costs, helping reduce upfront expenses. Starting in 2025, new installations may qualify under the Clean Electricity Investment Credit.
- Feed-In Tariffs (FIT)
- Policies that pay you for the extra electricity your solar panels send back to the grid, often at a set rate.
G
- GGRF (Greenhouse Gas Reduction Fund)
- A federal fund supporting clean energy projects, especially in underserved and low-income communities.
- Gigawatt (GW)
- The collective capacity of community solar across the nation is quantified in gigawatts. One gigawatt equals 1,000 megawatts.
- Grid Alternatives
- A nonprofit organization that provides solar installations and job training for underserved communities.
- Gross System Price
- The total cost of your solar system, including all associated expenses before factoring in incentives or rebates.
- Ground-Mounted Solar
- Solar panel systems installed on a foundation in an open area of land rather than on a building’s roof.
H
- Home Equity Line of Credit (HELOC)
- A line of credit secured by the equity in your home, commonly used for home improvements such as solar panel installation.
- Home Equity Loan
- A loan that uses the value of your home to help pay for solar panels. Often has lower interest rates than other loans.
I
- IRA (Inflation Reduction Act)
- A federal law providing tax credits, funding, and incentives for clean energy adoption, including solar for low-income households.
- Inverter
- An essential component of a solar panel setup that transforms the electricity generated by solar panels into a usable format for powering homes.
- Investment Tax Credit (ITC)
- A federal tax credit covering 30% of solar installation costs, offered under the Clean Electricity Investment Credit starting in January 2025. This incentive helps make solar more affordable for homeowners.
J
- Justice40
- A federal initiative ensuring that 40% of climate-related federal investments benefit disadvantaged communities, including solar projects.
K
- Kilowatt (kW)
- The size of your solar system is measured in kilowatts. One kilowatt is 1,000 watts.
- Kilowatt-Hour (kWh)
- A measure of energy use or production. Your electric bill shows how many kWh your home uses each month.
L
- Loan Amount
- The total sum owed over the loan’s lifetime, encompassing the base amount, interest, and fees.
- Low-Interest Solar Loans
- Special loans with affordable rates that make it easier to pay for solar installations.
- Low-and-Moderate Income (LMI) Communities
- Areas where households spend a larger share of their income on energy bills. Many solar programs are designed specifically for these communities.
M
- Megawatt (MW)
- A unit of energy measurement. One megawatt is 1,000 kilowatts and can power around 173 homes.
- Modified Accelerated Cost Recovery System (MACRS)
- A tax benefit for businesses that lets them deduct the cost of solar systems over time.
- Monthly Payment
- The recurring payment due each month for the solar loan, which may vary depending on loan type.
N
- National Clean Investment Fund
- A program that provides funding for clean energy projects across the U.S.
- National Environmental Policy Act (NEPA)
- Federal legislation requiring environmental assessments for projects, including large-scale solar installations.
- Net Metering
- A policy that lets you earn credits for the extra solar energy your system produces. These credits offset your energy costs when you’re not generating solar power.
O
- Off-Grid Solar
- Solar systems that don’t rely on the electric grid. Homes with off-grid systems store energy in batteries.
P
- Payback Period
- The time it takes for your savings on electricity to cover the cost of installing solar.
- Photovoltaics (PV)
- Devices that turn sunlight into electricity using special materials called semiconductors. Solar panels are a common example of a PV system.
- Power Outage
- When electricity is unavailable, solar systems with battery storage can keep your lights on.
- Power Purchase Agreement (PPA)
- A solar company installs panels on your home, and you pay for the electricity at a lower rate than your utility charges.
- Production Ratio
- The yearly electricity output of a solar system (in kilowatt-hours) compared to its size (in watts). It depends on factors like weather, climate, and system condition.
R
- Renewable Energy Certificate (REC)
- A tradable certificate that represents the environmental benefits of renewable energy. Project owners usually keep RECs, but subscribers can buy them to support clean energy and claim its environmental impact.
S
- SEIA (Solar Energy Industries Association)
- A national trade association promoting solar energy and advocating for clean energy policies.
- SELF (Solar and Energy Loan Fund)
- A nonprofit offering affordable loans for solar and energy-saving upgrades, focusing on underserved communities.
- SREC (Solar Renewable Energy Certificate)
- Certificates representing the environmental benefits of solar energy. Homeowners can sell SRECs in some states for extra income.
- SREC (Solar Renewable Energy Certificate)
- Certificates representing the environmental benefits of solar energy. Homeowners can sell SRECs in some states for extra income.
- Solar Carport Canopy
- Elevated structures constructed above parking lots, equipped with solar panels to generate electricity while providing shade for parked cars.
- Solar Cells
- Small devices inside solar panels that convert sunlight into electricity.
- Solar Developer
- Handles planning, building, and connecting community solar projects to the grid. They may own or lease the land and manage the project directly or for others.
- Solar Incentives
- Financial benefits like tax credits, rebates, and grants that make solar installations more affordable.
- Solar Loan
- A loan specifically tailored for financing solar panel installation.
- Solar Monitoring System
- A tool that tracks your solar energy production in real time, helping ensure everything works correctly.
- Solar Panel Efficiency
- A measure of how much sunlight a panel converts into usable energy. Higher efficiency means more energy.
- Solar Panels
- Devices that capture sunlight and convert it into electricity for your home.
- Solar Plus Storage
- A solar system paired with batteries to store excess energy for later use, like during power outages.
- Solar Tracking System
- Technology that moves solar panels to follow the sun for maximum energy production.
T
- Third-Party Ownership (TPO)
- When a company owns your solar panels. You pay them to use the energy the panels generate.
- Tiered rates
- Typically implemented for commercial entities, tiered rate plans establish pricing tiers based on electricity consumption. Higher consumption levels correspond to higher rates.
- Time-of-Use (TOU) Rates
- Electricity costs more during peak hours. Solar can help avoid these higher costs.
U
- Unsecured Solar Loan
- A loan not requiring collateral, potentially offering faster approval but may entail higher fees.
V
- Virtual Net Metering (VNM)
- Allows you to get bill credits from a shared solar farm, even if the panels aren’t on your property.
W
- Watt (W)
- The basic unit of energy measurement for solar panels.
- Weatherization Assistance Program (WAP)
- A federal program helping families make their homes more energy-efficient, often combined with solar.
