Navigating commercial solar can be complex, from financing models to grid connections. This glossary simplifies the essential terms, technologies, and incentives behind solar for business. Learn what drives ROI, how systems work, and why more companies are investing in renewable energy to cut costs and power growth sustainably.
Search and explore key commercial solar terms, from financing and tax credits to system design and energy storage. This glossary makes it easy for business leaders to understand the concepts that drive solar performance, ROI, and long-term sustainability.
A Renewable Energy Certificate (REC) — sometimes called a Green Tag or Renewable Energy Credit — is a tradable certificate that represents proof that one megawatt-hour (MWh) of electricity was generated from a renewable energy source, such as solar, wind, or hydro.
When a solar system produces electricity, it actually creates two commodities:
Each REC verifies that clean energy was produced and delivered to the grid. Businesses or organizations can sell their RECs to generate additional revenue, or “retire” them to claim the environmental benefits — for example, to meet corporate sustainability targets, achieve carbon neutrality, or comply with state renewable portfolio standards (RPS).
For commercial solar customers, RECs are a valuable way to monetize the environmental impact of their system and demonstrate measurable progress toward ESG or sustainability commitments.
A solar array is a group of interconnected solar panels that work together to capture sunlight and generate electricity. Arrays can be mounted on rooftops, carports, or the ground, depending on the site’s available space and energy goals.
