Solar Terms
Photovoltaic (PV) Panel – A device that converts sunlight directly into electricity using semiconductor materials.
Inverter – Equipment that converts the direct current (DC) electricity produced by solar panels into alternating current (AC) used in homes.
Net Metering – A billing arrangement where homeowners earn credits for excess electricity sent back to the grid.
Kilowatt (kW) – A unit of power equal to 1,000 watts; used to describe the capacity of a solar system.
Kilowatt-hour (kWh) – A unit of energy representing one kilowatt of power used or produced over one hour.
Renewable Energy Credit (REC) – A tradable certificate representing the environmental benefits of generating one megawatt-hour (MWh) of renewable electricity.
Solar Renewable Energy Credit (SREC) – A specific type of REC that applies to solar energy systems; can be sold for income in participating states.
Grid-Tied System – A solar system connected to the utility grid, allowing electricity to flow both to and from the home.
Off-Grid System – A solar setup that operates independently from the utility grid, usually with battery storage.
Battery Storage – A system that stores excess solar energy for use when the sun isn’t shining
Interconnection Agreement – A contract with the utility company that allows a solar system to connect and operate in parallel with the grid.
Production Meter – A device that measures the total amount of electricity generated by a solar system.
Payment Terms
Minting – The process of officially creating (or “issuing”) Renewable Energy Credits (RECs) based on verified solar energy production, typically through a state-approved registry.
Automatic Reporting – A data submission method where solar production information is sent directly from a system’s inverter or monitoring platform to the REC tracking registry without installer or homeowner intervention.
Manual Reporting – A data submission method where the system owner or aggregator manually enters production data into the REC tracking platform, often using monthly inverter readings or utility bills.
True Up Request – A correction process used to reconcile underreported or missed solar production in previous months by submitting accurate production data for credit issuance.
