Solar Terms Defined: Understanding Key Concepts in the Solar Energy Industry

The world of solar energy can be full of technical terms that may seem overwhelming at first. To help you better understand solar energy concepts and make informed decisions about your solar project, we've compiled a glossary of essential solar terms.

Key Solar Energy Terms Explained

Solar Panel

A device that converts sunlight into electricity using photovoltaic (PV) cells.

Photovoltaic (PV) Cell

The fundamental unit of a solar panel that converts sunlight into electricity through the photovoltaic effect.

Inverter

A device that transforms the direct current (DC) electricity generated by solar panels into alternating current (AC) electricity for powering homes and businesses.

Net Metering

A billing arrangement that enables solar panel owners to receive credit for excess electricity generated by their panels and fed back into the grid.

Kilowatt-Hour (kWh)

A unit of energy that measures the amount of electricity used over time.

Solar Array

A group of solar panels connected and working together to generate electricity.

Off-Grid System

A solar panel system not connected to the electrical grid, relying on batteries to store excess energy.

Grid-Tied System

A solar panel system connected to the electrical grid, capable of feeding excess energy back into the grid.

Solar Insolation

The amount of solar radiation that reaches a given area.

Solar Efficiency

A measure of the conversion rate of sunlight that hits a solar panel into usable electricity.

Solar Renewable Energy Credits (SRECs)

Tradable certificates representing the environmental benefits of solar energy production. Solar system owners can earn and sell SRECs based on their solar energy production to utilities or other entities to meet renewable energy goals.

Racking

The structure that holds solar panels in place, securely mounting them on the roof or ground.

Micro-inverter

A compact inverter attached to each solar panel, converting DC electricity into AC electricity at the panel level.

Solar Photovoltaic System

A comprehensive system of solar panels, inverters, and other components working together to generate and deliver electricity for powering homes or businesses.

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