January 18, 2017 By Leave your thoughts

Installation of residential solar panels on the roof of a suburban home.

Half the battle of learning about the solar energy industry is understanding the jargon. Whether you’re just getting started or need a little refresher, review our simple definitions below to gain better insight on the solar industry.

Building-Integrated Photovoltaics (BIPV)

This term refers to the practice of integrating photovoltaics (PV) into building construction. BIPV modules typically replace other conventional building materials while simultaneously serving as power generators. These modules can be integrated into building facades, roofing, and awnings, and some solar cells can even replace certain types of glass.

See Also Photovoltaic (PV), Solar Array, Solar Cell

Electrical Grid

Sometimes simply called “the grid,” this term refers to the system that delivers electricity from suppliers to consumers. Electrical grids are made up of generating stations, transmission lines, and distribution lines. Generating stations produce the electrical power, which is carried over high-voltage transmission lines to demand centers. Distribution lines then move the electricity from the demand centers to individual customers.

Energy Audit

An energy audit is an assessment that evaluates how much energy is consumed in a home and identifies ways to make a home more energy efficient. An energy audit can help homeowners recognize patterns or problems that may, over time, waste energy and money. Most audits come with recommendations to change or correct any identified problems.

Feed-In Tariff (FIT)

A feed-in tariff is a pricing policy that promotes the use of renewable energy sources. Feed-in tariffs are long-term agreements that allow utilities to purchase energy from customers who use FIT-eligible sources to generate renewable energy. Rooftop solar panels are often eligible for FIT programs, so solar users can receive a set payment for any electricity that is produced and delivered to the grid. Not all states offer FIT programs, however.

See Also Net Metering

Grid-Connected System

A grid-connected system acts much the same as an independent PV system, but instead of running all on its own, it works in tandem with a utility grid. Although PV systems can provide power to homes or small businesses without being connected to the grid, those setups depend on ample sunlight. A home or office with a grid-connected system, on the other hand, can feed excess power back to the utility and draw energy from the grid in times when renewable resources are not available.


Interconnection is what allows power to be transmitted between two parties—a utility provider and an end-user, for instance, or two separate utility companies. Linked transmission lines let power move back and forth in either direction. In relation to renewable power specifically, interconnection refers to the process of connecting renewable technologies to the larger electrical grid.


A solar inverter converts direct current (DC) power to alternating current (AC) electricity, either for individual solar panels or for grid-connected solar power systems. DC power produced by a solar array must be converted to AC electricity so it can be used in household appliances — without an inverter, the energy from your solar panels cannot easily be put to use. There are three basic types of inverters:

  • Microinverters are installed in individual solar panels and are ideal for small solar power systems.
  • String inverters are ideal for large residential or small commercial setups.
  • Central inverters are ideal for large-scale systems like solar farms.


Irradiance is the amount of power received per a specific area. Solar irradiance measures all radiation from the sun that strikes a particular surface, whether it’s direct or reflected. Irradiance is typically demonstrated in kilowatts per square meter (kW/m2).

Kilowatt/Kilowatt Hours

A kilowatt (kW) is a measure of power — the demand at any given time. A kilowatt-hour (kWh), on the other hand, is a measure of energy — the consumption of power over a period of time. A kWh is the power demand (kW) multiplied by the total amount of time the power is being used (in hours). So, if a 30-watt bulb is running for 24 hours, 720 watt-hours or .72 kWh is consumed (30 watts times 24 hours).

The average household consumes about 30 kWh per day. If your solar panels receive five hours of peak sunlight per day, you need 6 kW of output (30 kWh divided by 5 hours — that’s your demand) to cover 100% of your energy use. A typical solar panel can produce between 250 and 270 watts of peak power during ideal conditions, which means you’ll need about 24 solar panels to make a 6-kW array.

See Also Solar Array, Solar Panel

Megawatt/Megawatt Hours

One megawatt (MW) is equal to one thousand kilowatts (kW). One megawatt hour (MWh) is equivalent to 1,000 kilowatt-hours (kWh) continuously consumed in an hour. One MW can power an average of 164 homes, though that number can vary significantly by region.

See Also Kilowatt/Kilowatt Hours

National Electrical Code (NEC)

The NEC, also known as NFPA 70, is a publication from the National Fire Protection Association that provides guidelines for all manner of electrical installation in the United States. Article 690, which details specific installation codes for solar photovoltaic (PV) systems, should be consulted for all PV system installations. Local and state guidelines may qualify some NEC suggestions and should also be considered prior to installation of any solar energy system.

Net Metering

Net metering is a billing system that allows users with a solar array to send excess or unused solar energy back to the utility grid for nearby users to consume. This system helps solar power users gain significant savings per month on their utility bills.

When energy demand is low during the day, a typical solar panel system produces more electricity than one household can utilize. Net metering allows users to gain credits for the excess energy their solar panel systems produce during this time. Then, during the evening or periods of peak usage, a household can use these credits to consume electricity that is already paid for.

Net metering benefits vary between states. To learn about your state’s net metering policies, check out the Database of State Incentives for Renewables & Efficiency® (DSIRE).

Peak Sun Hours

Not to be confused with an hour of daylight, one peak sun hour is one hour’s worth of sunshine at an irradiance of 1 kilowatt per square meter (kW/m2). Peak sun hours, measured as kilowatt-hours per square meter (kWh/m2), are influenced by the time of day, the season, the presence of clouds, and geographic location. Even though solar panels may receive eight hours of partial sunlight in a given day, that may average out to only three or four peak sun hours.

See Also Irradiance

Photovoltaic (PV)

The term photovoltaic (PV) comes from two root words: “photo” (light) and “voltaic” (voltage).

In physics, “photovoltaic” refers to anything that produces electricity when exposed to light or other radiant energy. Solar cells, solar modules, and solar panels are often referred to as PV cells, PV modules, and PV panels to express how their electricity is produced.

See Also Solar Cell, Solar Module, Solar Array

Photovoltaic Conversion Efficiency

Photovoltaic (PV) conversion efficiency refers to the percentage of solar energy that a photovoltaic cell can successfully convert into usable electric power. A lot of research in the renewables field focuses on improving the conversion efficiency of PV devices in order to make solar energy more competitive with traditionally generated energy.

Power Purchase Agreement (PPA)

This is a type of solar-purchasing contract. A developer finances a solar energy system and installs it on a customer’s property—usually at little to no cost for the customer. The energy produced is then sold to the customer at a set cost that is cheaper than traditional utility rates. When the agreement ends, the customer often has the option to extended the term, remove the equipment, or purchase the array from the developer at a reduced cost.

Note that under this type of agreement, the developer receives any tax credits or rebates for a given array.

Real-Time Pricing

Real-time pricing (RTP) is a type of time-varying rate (TVR): it empowers users to pay for the actual price of electricity at any given time and save on utilities by adjusting their personal energy use during periods of high or low demand.

RTP policies vary from state to state, and the cost of electric power can vary significantly within a 24-hour period — cost depends on a variety of factors, including expected supply and demand, temperatures, fuel prices, or even a generator outage. Despite these cost fluctuations, however, users tend to pay the same price regardless of when their energy is consumed.

With RTP, a user receives a price signal in short intervals that reflects the real cost of consuming electricity during that time. This pricing system requires the installation of a smart meter to transmit electricity cost data, but can save users an average of 15% on their utility bills.

See Also Time of Use (TOU)

Smart Grid

Smart grids are electrical grids that incorporate digital technology, allowing for computer-based automation, remote control, and two-way communication between a utility and its customers. Because smart grids consist of technology and equipment working together, they can respond digitally to immediate changes in demand for electricity. Smart grids should offer increased energy efficiency both on the grid and in end-users’ homes and offices.

See Also Electrical Grid

Solar Array

A solar array is a collection of solar panels wired together to create the desired energy output. The typical residential solar array consists of 20–25 solar panels to cover 100% of its energy consumption.

See Also Solar Panel

Solar Cell

A solar cell — also known as a photovoltaic (PV) cell — is the basic component of a solar panel. When sunlight hits the cell’s surface, the electrons in the cell are knocked loose and electricity is produced.

Each solar cell is typically made of a thin, crystallized silicon wafer. A solar cell is octagonal in shape, bluish-black in color, and about 156×156 mm in size. A large bundle of solar cells can be wired together into a solar panel, or a cell can be chopped to pieces and fit into tiny gadgets like calculators and digital watches.

A standard solar cell can generate about 1 or 2 watts of power; some solar cells can generate as much as 3 to 4.5 watts. A typical solar panel is made of 36 to 40 solar cells.

See Also Photovoltaic (PV), Solar Module, Solar Panel

Solar Farm

A solar farm is often referred to as a solar ranch, solar field, or solar park. Spanning between an acre and 100 acres of solar panels, a solar farm allows a community to reap the benefits of a solar electricity system without purchasing, installing, or maintaining individual systems. Solar farms usually install solar panels on towers that can track the sun to produce a higher energy output each day compared to a typical — static — residential solar array.

Solar Module

See Solar Panel

Solar Panel

When solar cells are wired together to generate larger amounts of power — typically in a bundle of 36 to 40 cells — they form a solar panel. The term solar panel is often used interchangeably with solar panel. To accomplish desired current and voltage, solar panels are wired together to form an array.

The average household will require 20–25 solar panels in its solar array to cover 100% of its energy consumption — though you’ll want to use a solar calculator to determine how many panels your household’s average energy consumption will require.

See Also Photovoltaic, Solar Array, Solar Cell

Time of Use

Time of Use (TOU) is a type of rate-varying use (RVU) pricing: it breaks up the 24-hour day into three or four pre-defined time blocks, not based on actual usage at those specific times. This tiered pricing structure will remain fixed on a daily basis over seasons. TOU pricing encourages users to shift their electricity consumption to certain time blocks where demand is low and costs are cheaper.

See Also Real Time Pricing (RTP)

It may be quite a challenge to wrap your head around the solar industry’s vernacular for the first time. Bookmark this glossary just in case a word or phrase leaves you scrambling.

Get a free solar quote

Find how much you can save today

By clicking above, you authorize Solar Power Authority and up to four Solar Companies to call you and send you pre-recorded messages and text messages at the number you entered above, using an autodialer, with offers about their products or services, even if your phone number is on any national or state “Do Not Call” list. Message and data rates may apply. Your consent here is not based on a condition of purchase.

Leave a Reply

Your email address will not be published. Required fields are marked *