Solar Energy Definitions
We hope this solar energy information answers some of your questions about the basics of solar power.
AC power (alternating current) power—the form of energy used in your home to power all your lights, appliances and other household gadgets.
DC power (direct current) power—the form of energy generated by the sun and solar cells contained in solar panels. An inverter, which is installed inside or outside of your home, converts the DC power to AC electricity, so it can be used in your home.
Electrical Grid—a vast distribution system that links the power which utility companies produce to homes and businesses.
Going Green—making a conscious effort to be more environmentally friendly.
Government Rebates—the state and federal government offer homeowners certain rebates, if they decide to produce their own power using solar energy. These rebates can vary and are constantly changing. Your solar consultant can give you all the details about which rebates are currently available.
Inverter—a piece of equipment installed inside or outside your home that converts DC power to AC electricity.
Kilowatt (kw)—electric power is measured in watts. 1 kilowatt is equal to 1,000 watts. This is the amount of power being used by 10 100-watt bulbs at any point in time.
Kilowatt hours (kwh)—the amount of power used over time. Kwh is used to measure energy consumption. If 10 100-watt bulbs were on for 1 hour, they would have consumed 1,000 watts per hour or 1 kwh. Your monthly electric bill contains the kwh usage for your home.
Mounting racks—special racks that are attached to your roof and connected to solar panels which allow the panels to sit atop your roof.
Net metering—When you install a solar system for your home, a new meter will replace your existing one. The new meter allows you to track any excess power you send to the utility company. If you generate more power than you consume, the meter will spin backwards (not forward) showing how much power you’re giving back to the electrical grid. The meter will track how much you exported to the utility and how much you imported. The utility company then bills (or credits) you for the “net” energy consumed, which is the difference between what you provided to the utility vs. what you took in.
Non-renewable energy—energy derived from fossil fuels, such as coal or gas. This type of energy cannot be renewed, so once it’s used up, it no longer exists. Plus, it produces harmful gases that pollute the air and water.
Property tax exemption—in many states, solar systems are exempt from property taxes, so installing one on your home does not increase your real estate taxes.
Renewable energy—energy derived from natural resources, such as sun or wind. This type of energy can be renewed, so its supply is never depleted. Is solar energy renewable? Yes, it is!
Solar cells—silicon cells contained in solar panels that help convert the sun’s rays into DC power.
Solar energy—How do you define solar energy? It’s a safe, reliable way to use the power of the sun to generate electricity for homes and businesses.
Solar panels—panels containing solar cells that are installed on rooftops (or mounted on the ground) to capture the sun’s rays. On average, individual panel sizes are 40 inches wide by 68 inches tall. They weigh 35 to 45 pounds and produce from 350 to 400 watts per panel – depending on which panels are used on your home.
Solar rebates—certain states provide up-front incentives to reduce the initial cost of installing solar. Your solar consultant can give you all the details about which rebates are currently available.
Solar thermal energy—the use of solar energy to produce heat (rather than electricity, which is what solar PV systems produce). A solar thermal energy system can be used to heat water, for example.
SRECs (available in New Jersey only) – As of July 2021, the New Jersey Board of Public Utilities (NJBPU) has established a new Successor Solar Incentive Program known as the “SuSI Program”. SRECs (Solar Renewable Energy Certificates) are a unique way to actually get paid for producing solar energy. SRECs are only available to New Jersey residents and are good for 15 years. As you generate your own electricity with your very own custom built solar panel system, you earn SRECs, which can be sold back to your utility company for cash. Essentially, SRECs are earned until you sell them. For every 1000 kwh of energy you produce through your solar system, you earn 1 SREC worth $85. A typical solar system may generate 7-10 SRECs per year. So, for example, if you generate 10 SRECs this year, you would get paid $850 for the year. Keep in mind that everyone’s situation is different, so your results may vary.