Solar Energy Glossary of Terms for Homeowners

Grid Connection – This is the process of connecting the solar photovoltaic (PV) system to the electrical grid. This connection allows homeowners to draw electricity from the grid when needed.

Ground-Mounted Solar – This refers to a solar system that is installed on the ground rather than on a rooftop.

Inverter – This is a device that converts the direct current (DC) electricity produced by solar panels into alternating current (AC) electricity. The AC electricity is then suitable for use in the home.

Interconnection Agreement – This is an agreement between a solar system owner and the utility company. The agreement outlines the terms and conditions under which the solar system is connected to the grid.

Installer – This refers to a contractor or company that is responsible for the installation of the solar system.

Kilowatt (kW) – This is a unit of power. It represents the rate at which electricity is generated or consumed.

Kilowatt-hour (kWh) – This is a unit of energy. It represents the total amount of electricity produced or consumed over time.

Microinverter – This is a small inverter installed on each solar panel. It allows each panel to convert sunlight into AC electricity independently.

Module-Level Power Electronics (MLPE) – These are devices, such as microinverters or power optimizers, that are installed at the individual solar panel level. Their purpose is to optimize performance and monitor output.

Monitoring System – This is a system that allows homeowners to track and monitor the performance of their solar photovoltaic (PV) system. This includes monitoring energy production and consumption.

Net Metering – This is a billing arrangement that allows homeowners to receive credits for excess electricity. The electricity is generated by their solar panels and then fed back into the grid.

Off-Grid System – This refers to a standalone solar photovoltaic (PV) system that is not connected to the electrical grid. These systems are typically used in remote areas where grid access is limited.

O&M (Operation and Maintenance) – These are the ongoing tasks necessary to keep a solar system functioning optimally. This includes tasks like cleaning, inspections, and repairs.

Performance-Based Incentive (PBI) – This is a financial incentive that provides payments based on the performance of a solar system over time.

Performance Ratio (PR) – This is a measure of the actual output of a solar system compared to its potential output under ideal conditions.

Permission to Operate (PTO) – It is the final step in the utility interconnection process to receive approval to activate your solar system and begin electricity generation.

Photovoltaic (PV) System – This is a system that converts sunlight into electricity using solar panels.

Photovoltaic Cell (PV Cell) – This is the basic unit of a solar panel. It converts sunlight into electricity.

Power Optimizer – This is a device installed on each solar panel. It maximizes power generation by adjusting the panel’s output to current light conditions.

Power Purchase Agreement (PPA) – This is an agreement in which a solar company owns and maintains solar panels on a homeowner’s roof and sells the electricity to the homeowner.

Racking System – This is the structure used to mount solar panels to a roof or the ground.

Roof Orientation – This refers to the direction that the roof faces, which affects the amount of sunlight received by the solar panels.

Single-Line Diagram (SLD) – This is a simplified diagram of an electrical system, including the solar panels, inverter, and connection to the grid.

Site Assessment – This is an evaluation performed by solar professionals to determine the suitability of a location for solar panel installation.

Soiling – This refers to dust, dirt, or other substances that accumulate on the surface of solar panels and reduce their efficiency.

Solar Array – This refers to a group of solar panels wired together to create a single, unified system that generates electricity from sunlight.

Solar Canopy – A structure that provides shade while also housing solar panels.

Solar Carport – A carport equipped with solar panels on the roof, providing shade for parked vehicles and generating electricity.

Solar Efficiency – The percentage of sunlight that is converted into electricity by the solar panels.

Solar Energy – Energy derived from the sun’s radiation.

Solar Lease – A financing arrangement where the homeowner pays a fixed monthly fee to lease the solar system from a third-party owner.

Solar Loan – A financing option where the homeowner borrows money to finance the solar system, repaying the loan over time.

Solar Panel – A device made up of solar cells that generate electricity when exposed to sunlight.

Solar Permitting – The process of obtaining necessary permits and approvals from local authorities before installing a solar photovoltaic (PV) system.

Solar Renewable Energy Certificate (SREC) – A tradable commodity earned by producing renewable energy, which can be sold to utilities to help them meet their renewable energy goals.

Solar Shading – Obstacles such as trees, buildings, or other structures that block sunlight and reduce the efficiency of solar panels.

String Inverter – An inverter that converts DC electricity from a string (or series) of solar panels into AC electricity.

Sun Path – The arc that the sun follows across the sky, which impacts the amount of sunlight a solar panel receives.

Tilt Angle – The angle at which solar panels are installed on the roof, optimized for capturing maximum sunlight.

Time-of-Use (TOU) Rates – A rate structure where the cost of electricity varies based on the time of day, encouraging homeowners to consume less energy during peak hours.

Warranty – A guarantee provided by the manufacturer or installer that covers defects, performance, and the durability of the solar panels and related components.

30-Year Monitoring and Warranty – A product provided by Solar Insure that offers both monitoring and warranty coverage for your solar products and installation.

20-Year Battery Monitoring and Warranty – A product provided by Solar Insure that offers monitoring and warranty for battery coverage. This includes battery replacement if capacity drops below 30% between years 11-20.

Certificate to Product Warranty Registration Form – This is a document you receive 2 to 4 weeks after your system is installed. It marks the beginning of the Solar Insure monitoring and warranty.

Contractor’s liability insurance – This is insurance that covers potential damages to the home during solar installation.

Filing a claim – This is the process of submitting a claim to Solar Insure in the event of component failures or defects.

Homeowner’s insurance policy – This is insurance that typically covers damage to the home and solar panels due to factors such as fire, theft, rodents, and hail.

RMA process – This is the return merchandise authorization process, required in the event of a claim when the manufacturer’s warranty is still in effect.

Roof penetrations – This term refers to the points where the solar installation attaches to the roof.

Solar Insure Partners – Partnerships such as Energy Sage, Solo, and BrightOak are considered our partners. These partnerships aim to extend support to solar installers and homeowners.

Solar Insure Approved Vendor List – This is the list of manufacturers that are covered for Solar Insure’s monitoring and warranty products.

Solar Insure Certified Installers – These are installers approved by Solar Insure to provide their protection plans.

Solar Insure Elite Certified Installers – These are high-performing installers approved by Solar Insure to provide their protection plans.

Solar Manufacturer Default Coverage – This is coverage for when the solar manufacturer defaults. It is backed by an A.M. Best A+ Rated Insurance carrier.