RESOURCES
THE SOLAR GLOSSARY
Authority Having Jurisdiction (AHJ) – The local government agency or regulatory body responsible for reviewing, approving, and inspecting a solar installation. The AHJ ensures that the solar system meets building codes, electrical codes, safety standards, and permitting requirements before it can be turned on.
Community Solar – Allows people to share energy from a nearby solar project and get bill credits for the power their portion of the solar farm generates.
Dual Billing – A payment method where customers receive two separate bills; one from their utility showing the solar credits applied to their electric account, and another from the solar provider for the discounted cost of those credits. Together, these two bills reflect the customer’s total energy charges, which are lower than what they would pay without community solar.
Ground-mounted Solar Panels – Solar panels installed on the ground rather than on a building’s roof. They are typically used in solar farms or large solar projects where panels are placed on frames or racks in open areas to capture maximum sunlight and generate electricity for multiple homes or businesses.
Kilowatt (kW) – A measure of the amount of power a solar energy system can produce at a given moment. kW indicates the size or capacity of a system. A higher kW rating means the system can generate more electricity at peak sunlight.
Kilowatt Hours (kWh) – A unit of measurement used to show how much electricity is produced or used over time. In solar energy, kWh represent the amount of power generated by a solar system or used by a home. For example, one kilowatt of power used continuously for one hour equals one kilowatt-hour.
Low-to-Moderate Income (LMI) – Refers to households whose income falls at or below a certain percentage of the area’s median income, or who qualify through approved government assistance programs. Many community solar projects reserve capacity for LMI customers and offer them higher guaranteed savings to ensure clean energy benefits are accessible to all communities.
Net Metering – A billing system designed to benefit solar energy owners by providing credits for any surplus solar energy they send back to the grid.
Notice to Proceed (NTP) – The official approval that allows a solar project to move forward with construction. It is issued after all required permits, contracts, and design approvals have been completed, signaling that the installer can begin installing the solar system.
Permission to Construct (PTC) – The approval granted by the utility or local authority that allows a solar project to begin physical construction. It confirms that the system’s design and interconnection plans have been reviewed and approved, and that installation can proceed according to regulations and safety standards.
Permission to Operate (PTO) – The final approval from the utility company that allows a solar system to be turned on and begin producing electricity. PTO is issued after the system has been installed, inspected, and verified to meet all safety and interconnection requirements.
Personal Loans – Counts as an unsecured loan and just like a regular solar loan. It allows you to own your system right away and instantly makes you eligible for financial incentives. You could also use the loan for other solar-related expenses, outside of installation costs.
Power Purchase Agreement – This is a slightly different version of a solar lease. A power purchase agreement (PPA) is similar to a lease in that it also involves an agreement between the homeowner and a solar company. They also share benefits regarding immediate savings and no maintenance responsibility for you the customer. However with a PPA, instead of paying a fixed monthly fee, you pay for each kilowatt-hour of electricity your system generates. A PPA also provides more stable savings since you only pay for the solar energy your panels produce.
Rooftop Solar Panels – Solar energy systems installed directly on a home or building that convert sunlight into electricity for that specific property. The energy produced is used to power the building, and any extra electricity may be sent back to the utility grid, often reducing the customer’s electric bill through net metering or similar programs.
Site Survey – A detailed inspection of a home or property to confirm that it is suitable for a solar system. It includes evaluating the roof condition, sunlight exposure, electrical setup, and structural details to ensure the panels can be safely installed and will perform as expected.
Solar Credits – The value of the electricity produced by a customer’s share of a solar farm. These credits are applied directly to the customer’s utility bill, reducing the amount they owe for electricity. The customer then pays the solar provider for those credits at a discounted rate, allowing them to save money on their energy costs.
Solar Energy – Electricity generated by converting sunlight into usable power through solar technology, such as photovoltaic (solar) panels. This energy can be used to power homes, businesses, and utilities, providing a renewable and sustainable alternative to traditional fossil-fuel-based electricity.
Solar Farm – A large, professionally operated solar power facility that generates electricity for many subscribers at once. Instead of installing panels on their own roof, customers subscribe to a share of the solar farm’s energy, which is converted into solar credits and applied to their utility bills to reduce what they owe.
Solar Leasing – A long-term financing agreement between a homeowner and a solar service company. Under a lease, the solar company fully owns the solar panels while the homeowner leases them for a fixed monthly price. Any stress from installation or maintenance that might be needed for the solar system falls solely on the company that owns the panels.
Solar Loans – A flexible option if you want to own your solar system right away but simply can’t afford to pay for it in cash. With a loan, your initial costs are very small (or even zero in some cases) but you’ll need to keep up with your monthly payments.
Solar Panels – Devices made up of photovoltaic cells that capture sunlight and convert it into electricity. They are used on rooftops, solar farms, and other installations to generate renewable energy that can power homes, businesses, and electric utility grids.
Solar Photovoltaic (PV) System – A complete solar power setup that uses solar panels to convert sunlight into electricity, along with supporting equipment such as inverters, wiring, and mounting hardware. The system generates usable electrical power for a home, business, or the utility grid.
Solar Renewable Energy Certificates (SRECs) – A SREC is a financial incentive that helps homeowners earn money from the sale of extra energy produced by their rooftop panels. They can earn 1 SREC for every 1 MWh or 1000 kWH of electricity their solar system generates.
Solar Savings Calculator – A tool created by Finray Solar that allows you to check how much money you can save by joining a local solar farm.
Solar Tax Credits – Government incentives that allow homeowners or businesses to reduce the amount of taxes they owe when they install eligible solar energy systems. These credits help lower the upfront cost of rooftop solar by allowing a portion of the installation cost to be deducted from federal or state taxes.
Third Party Energy Supplier – A company that sells electricity or natural gas to customers while the local utility continues to deliver the energy and maintain the power lines. Customers may choose a third-party supplier for pricing or contract options, but their utility still handles billing, outages, and grid reliability.
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