Solar Glossary

30 terms you'll run into while planning solar or battery storage, explained without the jargon — each linked to the calculator or guide that uses it.

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A

AC (Alternating Current)

The type of electricity used in your home and the grid. Solar panels produce DC, so an inverter converts it to AC before it can power household appliances.

A

Amortization

The process of paying off a loan through fixed payments over time. See the Solar Loan Calculator for the standard amortization formula used for solar financing.

A

Amp (Ampere)

The unit of electrical current. Cable size, charge controllers and inverters are all rated in amps — see the Solar Cable Size Calculator.

A

Azimuth

The compass direction a panel faces. South-facing (in the northern hemisphere) is typically optimal — often a bigger factor in production than tilt angle. See the Roof Angle & Tilt Calculator.

B

Battery Bank

One or more batteries wired together to form a storage system. Size one with the Battery Size Calculator.

B

Bypass Diode

A small component inside a panel that routes current around a shaded or damaged cell so it doesn't drag down the whole panel's output.

C

Charge Controller

Regulates the flow of power from panels to battery so the battery isn't overcharged. See the Charge Controller Sizing Calculator.

D

DC (Direct Current)

The type of electricity solar panels and batteries natively produce and store, before an inverter converts it to AC for household use.

D

Degradation Rate

How much a panel's output shrinks each year, typically around 0.5% — used in the Solar ROI Calculator's 25-year production model.

D

Depth of Discharge (DoD)

The share of a battery's rated capacity you can safely use. Lithium batteries typically allow 90-100% DoD; lead-acid is usually limited to 50%. Explained fully in our battery storage guide.

D

Derate Factor

A conservative multiplier (commonly 0.8) applied to a panel's rated output to account for real-world losses — inverter conversion, wiring, heat, dust. Built into the Solar Panel Calculator.

F

Feed-in Tariff

A fixed rate paid per kWh of solar exported to the grid, common in the UK, Germany and Australia — distinct from net metering. See the Net Metering Calculator.

G

Grid-Tied

A solar system connected to the utility grid, able to draw power when production is low and (often) export excess. The opposite of off-grid.

I

Interconnection Agreement

The contract with your utility that governs how your solar system connects to the grid, including your net metering or net billing terms.

I

Inverter

Converts DC power from panels/battery into AC power your home can use. Size one with the Inverter Size Calculator.

K

kW vs. kWh

kW (kilowatt) measures instantaneous power — how fast energy flows. kWh (kilowatt-hour) measures total energy used or produced over time. A 6kW system running for 1 hour at full output produces 6 kWh.

L

LiFePO4 (Lithium Iron Phosphate)

The most common home battery chemistry today — high depth of discharge, long cycle life, and better thermal stability than older lithium chemistries. Compare cost with the Battery Storage Cost Calculator.

M

MPPT (Maximum Power Point Tracking)

The technology most modern charge controllers and inverters use to continuously find the optimal voltage/current combination for maximum power output — more efficient than older PWM technology.

N

Net Metering

A billing arrangement where excess solar you export earns a credit, typically near the retail rate, offsetting what you import later. Full explanation in our net metering guide.

N

Net Billing

Similar to net metering, but exports are credited at a lower rate (often tied to wholesale prices) rather than the full retail rate — increasingly common as utilities phase out traditional net metering.

O

Off-Grid

A solar system with no utility connection at all — every watt used has to come from panels or battery. See our off-grid solar guide and the Off-Grid System Calculator.

P

Panel Wattage (STC Rating)

A panel's rated output under Standard Test Conditions (1,000 W/m² irradiance, 25°C cell temperature) — real-world output is usually somewhat lower, which is why calculators apply a derate factor.

P

Payback Period

How many years until cumulative savings equal what you paid for the system. Check yours with the Solar Payback Period Calculator.

P

Peak Sun Hour

The equivalent number of hours per day at 1,000 W/m² irradiance — not the same as daylight hours. Look yours up with the Solar Irradiance Calculator.

P

PPA (Power Purchase Agreement)

A contract where a third party owns the panels on your roof and sells you the power at a per-kWh rate, usually below utility price. Compare against ownership with the Lease vs. Buy vs. PPA Calculator.

P

PWM (Pulse Width Modulation)

An older, less efficient charge controller technology that requires panel voltage to closely match battery voltage — largely superseded by MPPT in modern systems.

R

ROI (Return on Investment)

The net financial return a system generates relative to what it cost. Model yours with the Solar ROI Calculator.

S

SREC (Solar Renewable Energy Certificate)

A tradable certificate representing 1 MWh of solar production, sellable for extra income in states with SREC markets (e.g. New Jersey, Pennsylvania, Illinois, Massachusetts, Maryland) — separate from net metering credits.

S

String Inverter vs. Microinverter

A string inverter converts DC to AC for a whole "string" of panels at once — cheaper, but one shaded panel can drag down the whole string. Microinverters work panel-by-panel, costing more but limiting shade losses to just the affected panel. See the Shading Loss Calculator.

V

Voltage Drop

The loss of voltage (and power) as current travels through a cable — the main reason cable size matters. Calculate the right size with the Solar Cable Size Calculator.

V

Voc / Isc

A panel's open-circuit voltage (Voc) and short-circuit current (Isc) — the maximum voltage and current it can produce, used when sizing charge controllers and wiring strings safely.

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