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Glossary of Solar & Grid Terms

An A–Z reference of all the terms, abbreviations, and metrics used across SolarVsGrid calculators and guides.

A

AC (Alternating Current)

Electricity supplied by the grid and used by most home appliances. Solar panels generate DC, which must be converted by an inverter.

Ampere (Amp)

Unit of electric current. Used in Peak Load Analyzer.

B

Battery Sizing

The process of determining how much storage (in kWh) you need. Try the Battery Calculator.

Base Load

The minimum level of demand over 24 hours, usually from always-on devices.

C

Capacity Factor

Ratio of actual energy output to maximum possible output.

Circuit Breaker

Protective device that cuts current if limits are exceeded.

D

DC (Direct Current)

Electricity that flows in one direction, generated by panels and batteries.

Degradation Rate

Annual panel efficiency loss (0.3–0.8%). Used in ROI and LCOE calculations.

I

IRR (Internal Rate of Return)

Shows annualized return of a solar investment. Calculated in ROI calculator.

Inverter

Device that converts DC to AC. See Inverter Sizing Calculator.

K

kW (Kilowatt)

A unit of power equal to 1,000 watts. Used to rate system sizes.

kWh (Kilowatt-hour)

A unit of energy equal to using 1 kW for 1 hour. Used in billing and production.

L

LCOE (Levelized Cost of Energy)

The average cost per kWh over a system’s life.

Load

Any device consuming electricity. See Appliance Calculator.

N

Net Metering

Billing system crediting you for exported solar energy.

NPV (Net Present Value)

The present-day value of future savings. A positive NPV = profitable.

O

O&M (Operations & Maintenance)

Annual upkeep such as cleaning, inspection, and insurance.

P

PR (Performance Ratio)

A factor (0.7–0.8) representing system losses. Used in production estimates.

PSH (Peak Sun Hours)

The equivalent number of hours per day of full sun. See Sun Hours Guide.

T

TOU (Time-of-Use)

A utility rate where prices vary by time of day. See Rate Plans guide.

U

Utility Rate

The price per kWh charged by your utility. Can be flat, tiered, or TOU.

UPS (Uninterruptible Power Supply)

A backup device providing short-term power during outages.

V

Voltage (V)

Electrical potential difference. Common household supply: 120V/240V.

W

Watt (W)

Unit of power. 1 kW = 1,000 W.

Watt-hour (Wh)

A measure of energy equal to using 1 watt for 1 hour.

X

Placeholder

No major solar terms currently start with X. Reserved for future.

Y

Yield

Total energy output of a system over time, usually expressed as kWh/kW installed.

Z

Zero Export

A system configuration where solar is used onsite only and never exported to the grid.

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