DIRECT CURRENT (DC)
An electric current in which electrons flow in one direction only.
ALTERNATING CURRENT (AC)
An electric current that reverses direction at regular intervals.
DEMAND
Electrical demand is the level at which electricity is delivered to end-users at a given point in time.
DEPRECIATION

Accelerated depreciation is a method of depreciation used to depreciate the assets in a manner that greater deductions are allowed in the first few years. Accelerated depreciation can reduce costs during a company’s start up year. By increasing the deductions taken during the first few years of business, you will reduce your company’s overall tax debt

Depreciation is one aspect of the tax, that facilitates greater investment in renewable energy and ultimately lower costs for consumers. In solar projects, accelerated depreciation is widely used as an incentive to lessen the burden of tax. In India, Accelerated depreciation (AD) allows investors, mostly setting up capacity for captive use, to take advantage of up to 80% of the project cost.

 
ELECTRICAL GRID
The electricity transmission and distribution system that links power plants to customers through high-power transmission line service.
ENERGY AUDIT
Is a survey that shows how much energy used in a home, which helps find ways to use less energy.
ENERGY PAYBACK
The amount of time required for a solar panel to generate the amount of energy it took to manufacture it. Modern PV panels have an energy payback of 1 to 3 years depending on where they’re installed; over a 30+ year life, a PV system will return 10 to 30 times the energy that went into making them
FAIR MARKET BUYOUT
When equipment cannot be returned at end-of-lease, the best practice is to buy the equipment as opposed to either extending the lease (even at a reduced rate) or rolling the unreturned assets onto a replacement or new lease. To effectively negotiate a reduction in the buyout cost, an analysis of the all-in cost of leasing is critical.
HERTZ
The unit of electromagnetic frequency that is equal to one cycle per second.
INSOLATION
The measure of solar radiation energy received on a given surface area in a given time.
ITC 30%
  • The ITC is a 30 percent tax credit for solar systems on residential (under Section 25D) and commercial (under Section 48) properties.

  • The residential and commercial solar ITC has helped annual solar installation grow by over 1,600 percent since the ITC was implemented in 2006 - a compound annual growth rate of 76 percent. (See more solar industry data.)

  • The existence of the ITC through 2021 provides market certainty for companies to develop long-term investments that drive competition and technological innovation, which in turn, lowers costs for consumers.

  • In December 2018, Congress passed the Tax Cuts and Jobs Act, a comprehensive tax reform bill that modified many aspects of the U.S. tax code. The commercial and residential ITC were maintained under this legislation.

 
INTERCONNECTION
The linkage of transmission lines between two utilities, or between a utility and an end-user, enabling power to be moved in either direction.
INVERTER
A device that converts direct current electricity to alternating current either for stand-alone systems or to supply power to an electricity grid.
KILOWATT-HOUR (KWH)
The amount of kW produced over a period of time, or one kilowatt of electricity supplied for one hour. For example, a one kW system, if operating at full capacity
KILOWATT (KW)
1,000 watts. A unit of measure of the amount of electricity needed to operate given equipment. For example, a one kW system is enough power to illuminate 10 light bulbs at 100 watts each. (volts x amps = watts)
 
 
70% LEASE PAYMENT OPTION (VS) 100% LEASE PAYMENT OPTION
The 70% lease payment allows the customer to use their ITC Benefit to establish a lower interest rate. The 100% lease payment option does not incorporate the ITC Benefit.
MAXIMUM POWER POINT (MPP)
The point on the current-voltage (I-V) curve of a module under illumination, where the product of current and voltage is maximum. For a typical silicon cell, this is at about 0.45 volts.
MEGAWATT
A Megawatt is one thousand kilowatts or one million watts. One megawatt is enough to power 1,000 average California homes.
METER
A device that measures levels and volumes of customer's electricity use.
MODULE
A number of PV cells connected together, sealed with an encapsulant, and having a standard size and output power; the smallest building block of the power generating part of a PV array. Also called panel.
 
NET BENEFITS 
Net benefits is the total amount of revenue your solar system will produce.  These benefits include the average utility price, SRECs, and depreciation.
NET-METERING
Net-metering allows the solar electric system to send excess electricity back through the electric meter to the utility. The meter actually runs backwards! Your utility will bill you for the net (kWh used – kWh generated). While most utilities will not pay you cash if you generate more than you use, many will carry forward a credit toward your next bill.
PAYBACK PERIOD FOR DIRECT PURCHASE
The amount of years it takes to gain positive revenue from solar array
 
PHOTOVOLTAIC (PV) ARRAY
An interconnected system of PV modules that function as a single electricity-producing unit. The modules are assembled as a discrete structure, with common support or mounting. In smaller systems, an array can consist of a single module.
PHOTOVOLTAIC SYSTEM
a system which uses solar cells to convert light into electricity; consists of multiple components, including solar cells, mechanical and electrical connections and mountings and means of regulating and/or modifying the electrical output.
PHOTOVOLTAIC EFFICIENCY
The ratio of power produced by a solar cell at any instant to the power of radiant energy striking the cell; certain factors such as temperature can cause the efficiency rate to vary during the day.
REMOTE SYSTEM
A photovoltaic system not connected to the utility grid.
SOLAR ENERGY
Radiant energy emitted by the sun
SOLAR POWER
Energy from the sun that is converted into thermal or electrical energy.
SOLAR PANEL
Devices that collect energy from the sun (solar energy). This is usually solar photovoltaic (PV) modules that use solar cells to convert light from the sun into electricity, or solar thermal (heat) collectors that use the sun's energy to heat water or another fluid such as oil or antifreeze.
SOLAR RENEWABLE ENERGY CREDIT
An SREC is a solar renewable energy credit. One is created for every megawatt hour (MWh) of electricity produced by a solar generator. Keep in mind that SRECs are sold separately from the electricity they produce.
SOLAR RESOURCE
The amount of solar insolation a site receives, usually measured in kWh/m2/day, which is equivalent to the number of peak sun hours.
 
 
SREC
In SREC state markets, the Renewable Portfolio Standard (RPS) requires electricity suppliers to secure a portion of their electricity from solar generators. The SREC program provides a means for Solar Renewable Energy Certificates (SRECs) to be created for every megawatt-hour of solar electricity created.
  • 1 SREC = 1 Mwh of solar electricity

  • A 10 kW facility generates around 12 SRECs annually

  • SRECs are sold separately from the electricity

  • Value is determined by market supply and demand mechanics

  • Facilities must be certified by a state to sell SRECs

 
SYSTEM INFO
Includes the total system cost, proposed system size, and estimated 1st Year Production
 
SYSTEM LIFE
Photovoltaic (PV) modules typically come with 20 year warranties that guarantee that the panels will produce at least 80% of the rated power after 20 years of use. The general rule of thumb is that panels will degrade by about 1% each year.
 
TAX CREDITS (ITC)
The federal solar tax credit, also known as the investment tax credit (ITC), allows you to deduct 30 percent of the cost of installing a solar energy system from your federal taxes. The ITC applies to both residential and commercial systems, and there is no cap on its value.
TRANSFORMER
a device used to transfer electrical energy from one circuit to another; with an alternating current, a transformer will either raise or lower the voltage as it makes the transfer.
 
UTILITY GRID
The interconnection of electricity generation plants through the transmission and distribution lines to customers. The grid also refers to the interconnection of utilities through the electric transmission and distribution systems.
VOLT (V)
The amount of force required to drive a steady current of one ampere through a resistance of one ohm. Electrical systems of most homes and offices use 120 volts. (volts - watts/amps) (volts = amperes x resistance)