4CP is ERCOT’s four annual peak demand events that determine next year’s transmission charges for large commercial customers.

A Battery Energy Storage System stores energy for later use to lower costs and improve resiliency.

C-PACE lets property owners finance solar or storage through a long term property tax assessment with no upfront capital required.

Demand charges are utility fees based on the highest amount of power a business uses during a billing period. Solar and storage systems help reduce demand peaks, lowering these charges and creating more predictable energy costs over time.

Direct Pay allows eligible tax exempt organizations to receive a cash refund from the IRS for the value of federal solar tax credits.

The Domestic Content Adder provides an extra ten percent tax credit when a solar project uses qualifying U.S. made components.

An Energy Community is a designated area where solar projects qualify for an extra ten percent federal tax credit.

A Foreign Entity of Concern is a manufacturer or organization restricted by federal law, which can limit a solar project’s eligibility for certain tax credits if its equipment comes from an FEOC.

An interconnection agreement is the formal contract between a solar customer and the local utility that governs how the solar system connects to the electrical grid. It outlines technical requirements, safety standards, and the terms for sending excess energy back to the grid.

An inverter is the component that converts the direct current (DC) electricity generated by solar panels into alternating current (AC), which is used by most electrical systems and the grid. Modern inverters also track performance data and optimize system efficiency.

The Investment Tax Credit allows a business to reduce federal taxes by claiming a percentage of its commercial solar project cost as a credit.

The Levelized Cost of Energy measures the average total cost of building and operating a solar system over its lifetime, divided by the total energy it produces. It’s a key metric for comparing the long-term economics of solar to traditional power sources.

A load profile shows how a building uses electricity throughout the day and is essential for designing solar and battery systems.

MACRS allows businesses to quickly depreciate the cost of solar equipment, creating significant tax savings in the first several years of operation.

Net metering is a billing mechanism that allows businesses with solar systems to send excess electricity back to the grid in exchange for energy credits. These credits can offset power drawn from the grid at other times, reducing overall utility costs and improving the financial return of a solar investment.

Photovoltaic, or PV, refers to the technology that converts sunlight directly into electricity using semiconductor materials. When sunlight hits a PV cell, it excites electrons, creating an electric current. PV systems are the core of most solar installations, ranging from small rooftop arrays to utility-scale solar farms.