Cracking the Solar Code: Understanding Key Terminology for Homeowners

Feb 12

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February 12th, 2025

Aerial view of a rural village with red-roofed houses, solar panels, and autumn trees. Rolling green fields and a sunny, blue sky.

As the solar energy industry continues to grow, homeowners are increasingly exploring the benefits of transitioning to renewable power. However, with all the technical jargon and industry-specific terminology, the world of solar can often feel daunting and overwhelming.

At Bracket, we believe that empowering homeowners with a solid understanding of solar terminology is the key to making informed decisions and unlocking the full potential of this clean energy solution. In this blog post, we'll break down the essential solar terms that every homeowner should know.

Photovoltaic (PV) Panels

Photovoltaic panels, often referred to as "solar panels," are the core component of a solar energy system. These panels convert sunlight into direct current (DC) electricity, which is then converted to alternating current (AC) for use in your home.

Aerial view of a house with solar panels on the roof, surrounded by trees and a driveway with a parked car. Sunny day in a suburban setting.

Inverter

The inverter is a critical piece of equipment in a solar energy system, as it transforms the DC electricity generated by the PV panels into the AC electricity that powers your home. There are several types of inverters, including string inverters, microinverters, and power optimizers, each with their own unique benefits.

Net Metering

Net metering is a billing arrangement that allows homeowners with solar energy systems to receive credit or compensation for the excess electricity they generate and send back to the utility grid. This ensures that you are compensated for the clean energy you contribute.

Solar Insolation

Solar insolation refers to the amount of sunlight that hits a specific area, and it's a key factor in determining the energy-generating potential of a solar energy system. Geographic location, weather patterns, and seasonal changes can all impact solar insolation levels.

Man in goggles and gloves installs a solar panel on a red-tiled roof, sunny day. Cream house with white window in background.

Renewable Energy Credits (RECs)

Renewable Energy Credits, or RECs, are tradable certificates that represent the environmental benefits of producing one megawatt-hour (MWh) of renewable electricity. Homeowners with solar energy systems may be able to sell their RECs to utility companies or other entities, providing an additional source of revenue.

Payback Period

The payback period is the amount of time it takes for the savings and benefits of a solar energy system to offset the initial investment. This is an important consideration when evaluating the long-term financial viability of going solar.

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By familiarizing yourself with these key solar terms, you'll be better equipped to navigate the solar energy landscape, ask informed questions, and make the best decision for your home and your energy needs.

At Bracket, our team of solar experts is dedicated to providing homeowners with the knowledge and support they need to confidently transition to renewable power. Contact us today, and let us guide you through the process of understanding solar terminology and unlocking the benefits of this clean energy solution.