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.
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 Power Purchase Agreement is a contract in which a third-party developer installs and operates a solar system on your property, and your business agrees to buy the electricity it produces at a fixed rate—usually below market utility prices.
A Renewable Energy Certificate represents proof that one megawatt-hour of electricity was generated from a renewable energy source like solar. Businesses can sell or retire RECs to meet sustainability goals or regulatory requirements.
A Retail Electric Provider sells electricity in deregulated areas of Texas and offers rate plans that can impact solar savings.
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.
A solar buyback program pays a business for the extra electricity its solar system exports to the grid.
A solar carport is a parking lot canopy that supports solar panels and provides shaded parking while generating electricity.
Time of Use rates charge different electricity prices depending on the time of day, often making on peak power more expensive.
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