Glossary · 50 terms

The terms in your proposal, explained.

Every word an installer uses as if you already knew it. Direct definition, why it matters in Florida and the most common mistake.

25D tax credit: The 25D tax credit (Residential Clean Energy Credit) was the 30% federal credit on the cost of a solar system for a homeowner who bought it with cash or a loan. Under the One Big Beautiful Bill Act, it ended for systems placed in service after December 31, 2025. Confirm your situation with your tax preparer. →
48E tax credit: The 48E tax credit (Clean Electricity Investment Credit) is the federal credit received by the company that owns a solar system installed under a lease, PPA, prepaid lease or subscription. Unlike 25D, it remains in force for third-party-owned systems through the end of 2027. The homeowner does not claim it directly: in theory, it shows up as a lower price. Confirm with your tax preparer. →
Annual true-up: The annual true-up is the moment, twelve months after interconnection, when your utility settles the net metering credit accumulated over the year. In Florida, FPL, Duke and TECO pay that surplus at the generation rate, which is lower than the full retail rate you pay to consume. It is why heavily oversizing a system does not earn you money. →
APR (Annual Percentage Rate): APR (Annual Percentage Rate) is the yearly cost of a loan expressed as a percentage, including the interest rate and some mandatory fees. It is useful for comparing loans against each other, but in solar it does not reflect the dealer fee the installer adds to the system price, so a low APR does not mean a cheap loan. →
Azimuth: Azimuth is the angle that tells which compass direction a surface faces, measured in degrees clockwise from north (0°): 90° is east, 180° is south, 270° is west. In the northern hemisphere, a roof with an azimuth near 180° (south) receives the most sun over the year; east and west produce somewhat less, and north is the worst orientation. →
Battery cycle: A battery cycle is the equivalent of one full charge followed by one full discharge. Two 50% discharges count as one cycle. Solar battery warranties are stated in cycles or years (whichever comes first) and in the percentage of capacity the battery will retain at the end. Each cycle wears the battery slightly; how it is used decides how long it lasts. →
Bidirectional meter: A bidirectional meter is the meter your utility installs or reprograms after approving the solar interconnection. It records separately the kWh flowing into your home from the grid and the kWh your panels send out, and that difference is used to calculate your net metering credit. →
BTU and ton: A BTU (British Thermal Unit) is a unit of heat: the energy needed to raise one pound of water by one degree Fahrenheit. An air conditioner's capacity is expressed in BTU per hour it can remove from the house, and one ton of cooling equals 12,000 BTU per hour. A 3-ton unit removes 36,000 BTU per hour. →
Buyout: The buyout is the option, within a solar lease or PPA, to purchase the system from the owning company before the contract ends or at the end of the term. The price is usually set in a year-by-year schedule or as fair market value at that time. It is the number that decides how much it costs to get out of the contract if you sell the house. →
Dealer fee: The dealer fee is a commission the lender charges the installer in exchange for offering you a solar loan with a low interest rate. The installer does not absorb it: it is added to the system price. That is why the same system can cost considerably more financed than paid in cash, even when the APR looks attractive. →
Degradation: Degradation is the slow, predictable loss of a solar panel's production capacity over its useful life, expressed as a percentage per year. Each manufacturer states it in its production warranty (how much the panel yields in year 25). A serious proposal builds it into the savings projection; one that does not inflates the later-year numbers. →
Depth of discharge (DoD): Depth of discharge (DoD) is the percentage of a battery's total capacity that can be used in each cycle without shortening its life. A 10 kWh battery with a recommended DoD of 90% gives you 9 usable kWh. Today's LFP batteries allow very deep discharges; older chemistries and lead-acid allow far less. →
DSIRE: DSIRE (Database of State Incentives for Renewables and Efficiency) is a public database, maintained by North Carolina State University with support from the Department of Energy, that lists federal, state, local and utility incentives for renewable energy and efficiency. It is the tool to check whether an incentive you are offered actually exists. →
Duct leakage: Duct leakage is the loss of conditioned air through poorly sealed joints, loose connections or tears in the ducts that carry air from the equipment to each room. When ducts run through a hot attic, as in most Florida homes, that cold air is lost and the unit runs longer to make up for it. It is measured with a pressurization test, not by eye. →
Escalator: The escalator is the clause in a solar lease or PPA that automatically raises the monthly payment (or the per-kWh price) every year by a fixed percentage, typically between 0% and 2.9%. A high escalator compounded over 20-25 years can push the solar payment above the utility rate. →
Fuel charge: The fuel charge is the line on your bill through which FPL, Duke or TECO pass along what they paid for natural gas and other fuels to generate electricity. It is adjusted periodically and is one of the main reasons your bill rises even when you do not use more. →
Heat pump: A heat pump is a device that moves heat from one place to another instead of producing it with a resistance element: the same principle as an air conditioner, in reverse. In a heat pump water heater, it pulls heat from the air around the tank into the water, using far less electricity than a conventional electric water heater. It also exists as an air conditioning and heating system. →
Interconnection: Interconnection is the process by which your utility authorizes connecting the solar system to its grid. It includes the application, a technical review of the equipment, an inspection and the signing of an interconnection agreement. It comes right before PTO and is what activates net metering. →
Inverter: The inverter is the device that converts the direct current (DC) generated by solar panels into the alternating current (AC) used by your appliances and the grid. There are two families: the string inverter (one central unit for all panels) and microinverters (one per panel). →
ITC (Investment Tax Credit): ITC (Investment Tax Credit) is the umbrella term the solar industry uses for the federal credit for installing a system. In practice it is two sections of the code: 25D for homeowners who buy (ended for systems placed in service after 2025) and 48E for third-party-owned systems (in force through the end of 2027). Confirm with your tax preparer. →
kW (kilowatt): A kW (kilowatt) equals 1,000 watts and measures power: how much energy an appliance draws or a solar system produces at an instant. Solar systems are sized in kW; the energy they produce over time is measured in kWh. →
kWh (kilowatt-hour): A kWh (kilowatt-hour) is the energy a 1,000-watt appliance uses when it runs for one hour. It is the unit FPL, Duke and TECO use to measure and bill your consumption, and the same unit used to measure what solar panels produce. →
LFP battery (lithium iron phosphate): An LFP battery (lithium iron phosphate, LiFePO4) is a lithium battery whose chemistry is more thermally stable and withstands more charge and discharge cycles than earlier chemistries (NMC), in exchange for somewhat lower energy density. It is what most current residential solar batteries use and the best option for Florida's heat. →
Lien: A lien is a legal claim a creditor records against your home as security for a debt: if you do not pay, they can go after the property. In solar it shows up with PACE financing (a property lien with priority over the mortgage) and with some secured loans; leases use a UCC-1 filing on the equipment, which is different. →
Manual J: Manual J is the industry-standard procedure (published by ACCA, the air conditioning contractors' association) for calculating a home's cooling and heating load from its size, insulation, windows, orientation, air infiltration, occupants and local climate. Its result, in BTU per hour, is what defines the correct equipment size. →
Microinverter: A microinverter is a compact inverter installed under each solar panel that converts its direct current to alternating current independently. Unlike a string inverter, shade or a fault on one panel does not affect the output of the others, and it lets you monitor every panel separately. →
Minimum Bill Guarantee: The Minimum Bill Guarantee is E-Minded Solutions' commitment that, if your solar system produces less than the proposal states in any given month, E-Minded pays the difference. It is measured month by month, not as an annual average. It is possible because we design the system at roughly 110% of your real consumption, with margin for Florida summers and degradation. →
Minimum charge: The minimum charge is the fixed amount FPL, Duke or TECO bill every month to keep your home connected to the grid, no matter how much you use. With solar and net metering, the bill drops to that floor, not to zero. That is why we say minimum bill, never zero bill. →
Monocrystalline panel: A monocrystalline panel is a solar panel made from cells cut from a single silicon crystal, which gives it higher efficiency per area and a uniform black appearance. It is the current standard in residential installations; polycrystalline panels (bluish, less efficient) are almost never installed on new homes anymore. →
Net metering: Net metering is the arrangement with your utility where every kWh your panels export to the grid is credited at the same value you pay to consume it. In Florida, FPL, Duke Energy and TECO credit residential customers 1 to 1; surplus rolls over month to month and is settled at the end of the year. →
Offset: Offset is the percentage of your annual electricity consumption (in kWh) that a solar system is designed to produce. A 100% offset means the system produces, in theory, the same amount you use in a year. E-Minded designs at roughly 110% to cover Florida's hottest months. →
PACE (Property Assessed Clean Energy): PACE (Property Assessed Clean Energy) is financing for solar, roofing, air conditioning or efficiency upgrades that is collected as a special assessment on your property tax bill. It is approved based on home equity rather than credit score, and it is recorded as a lien on the property with priority over the mortgage. →
Partial backup: Partial backup is the configuration where a solar battery powers only a selected group of essential circuits during an outage (fridge, lights, modem, outlets, sometimes a small air conditioner) instead of the whole house. It is the realistic option for most Florida homes: central AC and an electric water heater draw too much for one or two batteries. →
Peak sun hours: Peak sun hours are the number of hours per day during which solar radiation equals its standard maximum intensity (1,000 watts per square meter). It is not the same as daylight hours: a day can have 13 hours of light and considerably fewer peak sun hours. It is the figure used to calculate how many kWh each installed kW produces in your area. →
Phantom load: Phantom load (standby power) is the electricity appliances draw when they are switched off but plugged in or in standby mode: TVs, cable boxes, game consoles, chargers, microwaves with clocks, coffee makers. Individually it is small; added up across the house it is a continuous 24-hour draw. Even so, in Florida it is rarely the main reason for a high bill. →
PPA (Power Purchase Agreement): A PPA (Power Purchase Agreement) is a contract where a company installs and maintains solar panels on your roof, keeps ownership of the system and charges you for every kWh it produces at an agreed price. You do not buy the equipment: you buy the energy. Typical terms run 20 to 25 years, almost always with an annual escalator. →
Production guarantee: A production guarantee is the written commitment that a solar system will generate a minimum number of kWh over a period, usually per year. It can come from the panel manufacturer (covering the panel's capacity) or from the installer or system owner (covering the whole system installed on your roof). Only the second protects your actual savings; the first protects the equipment. →
Property tax exemption: Florida's renewable energy property tax exemption means the value a residential solar system adds to your home is not included in the assessment used to calculate property tax. It is not money you receive: it is a tax increase that does not happen. It applies to homeowner-owned systems and is administered through the county property appraiser. →
PTO (Permission to Operate): PTO (Permission to Operate) is the written authorization from your utility to switch on the solar system and start receiving net metering credit. It comes after the county inspection and the interconnection application; until then, the installed system must stay off. →
R-value: R-value is the measure of a material's thermal resistance: how much it slows the flow of heat. Higher R-value means better insulation. It adds up with thickness, so a thicker layer of insulation has more R. In Florida, attic insulation is the main barrier between the sun-baked roof and the air conditioner. →
Radiant barrier: A radiant barrier is a sheet of reflective material (usually aluminum on a backing) installed under the roof deck or over the attic rafters that reflects the sun's radiant heat instead of absorbing it. It lowers attic temperature in hot climates like Florida's. It works alongside insulation; it does not replace it. →
Reverse osmosis: Reverse osmosis is a purification method that pushes water under pressure through a semipermeable membrane with pores so small they hold back dissolved salts, heavy metals, nitrates, residual chlorine and most chemical contaminants. It is usually installed under the sink for drinking and cooking water, and it discards a portion of the water as reject. →
SEER and SEER2: SEER (Seasonal Energy Efficiency Ratio) is the efficiency rating of an air conditioner: how much cooling it delivers over a season for each kWh of electricity it uses. Higher SEER means less consumption for the same cooling. SEER2 is the updated version of the metric, with a test procedure closer to a real installation; SEER2 numbers run somewhat lower than their SEER equivalents. →
Shading: In solar, shading is any obstruction (trees, chimneys, vents, neighboring buildings, antennas) that blocks part of the light on the panels during the day. Its effect is not proportional: with a string inverter, partial shade on a single panel can reduce the output of the entire string. It is quantified during the site survey with shade analysis tools, not by looking. →
Site survey: A site survey is the technical inspection an installer performs at your home before finalizing the solar design: measuring the roof, checking its condition and structure, assessing shade, inspecting the electrical panel and attic, and confirming the wiring route. It is the step that turns a proposal made from satellite images into a real design. →
Solar lease: A solar lease is a rental contract where a company installs panels on your roof, keeps ownership and charges you a fixed monthly fee to use them, typically for 20 to 25 years. You do not buy the system or receive the tax credit; in exchange you put no money down and maintenance belongs to the owner. →
Solar subscription: A solar subscription is a model where a provider installs panels on your roof with no upfront cost and you pay a fixed monthly fee for 3 or 5 years, with no loan, no debt and no lien on the property, with 30% savings on your total bill guaranteed by contract and verified in an annual true-up. At the end of the term the system is removed for free. →
Time-of-use rate (TOU): A time-of-use or TOU rate is an optional utility plan where the price per kWh changes by hour: higher during peak-demand hours and lower the rest of the time. It only pays off if you can move a meaningful share of your consumption out of the expensive windows. →
UCC-1: A UCC-1 is a security notice the finance company behind a solar lease or PPA files with the state to declare that the panels on your roof belong to it. It is not a lien on the house but on the equipment; still, it appears in title searches and must be dealt with when you sell or refinance. →
Water hardness: Water hardness is the amount of dissolved minerals, mainly calcium and magnesium, that water contains. It is measured in grains per gallon (gpg) or milligrams per liter. Florida's water comes largely from limestone aquifers and is hard across most of the state: it forms scale in pipes, water heaters and fixtures, reduces water heater efficiency and shortens appliance life. →

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