Federal solar credit ended Dec 31, 2025
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Glossary

Solar terms, in plain English.

The words on solar quotes, utility bills and tariffs, defined without the sales pitch.

A

Avoided Cost Calculator (ACC)The California model that sets hourly values for solar exports under the Net Billing Tariff.

C

Capacity factorActual output over a year divided by what the system would make running at full power all year.Customer Benefit Contribution (CBC)A monthly per-kW charge New York solar customers pay under Phase One net metering.

D

Dealer feeA charge a solar lender takes from the installer, usually built into a financed system's price.Degradation rateHow much a solar panel's output declines each year as it ages.

I

InterconnectionThe utility process for connecting a home solar or battery system to the grid.

K

Kilowatt (kW) vs. kilowatt-hour (kWh)kW measures power (system size); kWh measures energy (what you produce and use).

M

MicroinverterA small inverter mounted at each panel that converts its DC output to AC on the roof.

N

NABCEP certificationA voluntary national certification for solar installation professionals.Net billingBilling in which exported solar is credited at a rate below what you pay for power.Net meteringBilling in which solar power you export offsets power you buy, kWh for kWh, at the retail price.

P

Payback periodThe number of years until a solar system's savings equal what you paid for it.Permission to operate (PTO)The utility's written approval to switch on a grid-connected solar system.Power purchase agreement (PPA)An agreement to buy the power from company-owned panels on your roof at a set price per kWh.Price per wattTotal installed price divided by system size in watts: the fairest way to compare quotes.PVWattsA free model from the national laboratory formerly called NREL that estimates solar output for any location.

R

Resource Comparison Proxy (RCP)Arizona's export rate for APS and TEP solar customers, reset yearly and locked for new customers.Round-trip efficiencyThe share of energy put into a battery that you can get back out.

S

Self-consumptionThe share of your solar output you use in your home as it is produced.Solar leaseAn agreement to rent panels a company owns and installs on your roof, for a fixed monthly payment.SolarAPP+An automated online permitting platform some cities use to issue residential solar permits quickly.String inverterOne central inverter that converts the DC output of a series of panels to AC.

T

Time-of-use rateAn electricity rate whose price per kWh depends on the hour, highest in the evening peak.True-upThe annual settlement of solar credits and charges under net metering or net billing.

V

Value of Solar tariffA credit for every kWh your panels produce at a utility-set value, separate from your usage bill.