Solar Glossary

A solar monitoring system tracks your solar panels' real-time and historical energy production through an app or web portal. It shows how much energy each panel or the overall system is producing, alerts you to underperforming panels, and helps you track your energy savings over time. Most modern solar inverters include built-in monitoring. In NE Florida's storm-prone environment, monitoring helps you quickly identify damage or performance issues after severe weather.

What contractors won't tell you: Some solar installers charge extra for monitoring systems or use proprietary platforms that lock you into their service contracts. Always ask whether monitoring is included in the installation price and whether you can access your production data independently if you switch service providers. Your monitoring data belongs to you — make sure you can access it freely.

Solar panels lose a small amount of efficiency every year through a process called degradation. Most quality panels degrade at 0.5% per year — meaning a panel that produces 400 watts today will produce about 380 watts after 10 years. Most manufacturers guarantee panels will produce at least 80% of their original output after 25 years. In NE Florida's heat and humidity, choosing panels with a strong degradation warranty is especially important.

What contractors won't tell you: Some solar installers use first-year production numbers in their savings calculations without accounting for degradation over time. This overstates long-term savings. Always ask your installer to show you a 25-year production estimate that accounts for panel degradation — and confirm the degradation rate matches the manufacturer's warranty.

A kilowatt (kW) measures power — how much electricity something uses or produces at any given moment. A kilowatt-hour (kWh) measures energy — the total amount of electricity used or produced over time. Your electric bill is measured in kWh. Solar systems are sized in kW. A 10kW solar system running at full capacity for one hour produces 10 kWh of energy. Understanding the difference helps you evaluate whether a proposed solar system is properly sized for your home's actual energy consumption.

What contractors won't tell you: Solar installers sometimes use kW and kWh interchangeably or unclearly in proposals — making systems sound more impressive than they are. Always ask your installer to show you your home's actual annual kWh consumption from your utility bills and confirm the proposed system size is designed to offset that specific number.

A solar lease means you don't own the panels — a solar company installs them on your roof and you pay a monthly fee to use the electricity they produce. A solar loan means you borrow money to purchase the system outright and own it completely after paying off the loan. Ownership matters for tax credits, home resale value, and long-term savings. In NE Florida, solar loans are almost always the better financial choice for homeowners who plan to stay in their home.

What contractors won't tell you: Solar leases are heavily marketed because they're profitable for the installer — not because they're the best deal for you. With a lease you get no tax credit, no ownership equity, and potentially complicated terms if you sell your home. The buyer must either assume your lease or you must pay it off at closing. Always ask specifically about loan options before agreeing to a lease.

The Federal Investment Tax Credit (ITC) allows homeowners to deduct 30% of the cost of a solar installation from their federal taxes. For a $20,000 system, that's a $6,000 tax credit. The credit applies to the full system cost including panels, inverter, battery storage, and installation. To claim the credit you must own your system outright — not lease it. The 30% credit is currently available through 2032.

What contractors won't tell you: The tax credit is a credit against taxes owed — not a refund. If your tax liability is less than the credit amount, you can carry the remainder forward to future tax years. Some solar salespeople imply the credit is a direct payment or refund which it is not. Always consult a tax professional to confirm you have sufficient tax liability to benefit from the full credit before making a purchase decision based on it.

The solar payback period is the amount of time it takes for your energy savings to equal the cost of your solar installation. In NE Florida, the average payback period is 6-10 years depending on system size, energy usage, utility rates, and available incentives. After the payback period, your solar energy is essentially free for the remaining life of the system — typically 25-30 years.

What contractors won't tell you: Solar installers routinely use overly optimistic assumptions to shorten the payback period in their proposals — inflating energy savings, assuming maximum net metering credits, and ignoring potential rate changes. Always ask for the payback calculation in writing and have it reviewed independently before signing. A payback period that seems too good to be true usually is.

A solar battery storage system stores excess solar energy produced during the day for use at night or during power outages. The most common residential battery is the Tesla Powerwall, though several competitors exist. In NE Florida, battery storage is increasingly popular due to hurricane season power outages. A typical home battery stores 10-13 kWh of energy — enough to power essential appliances for several hours.

What contractors won't tell you: Battery storage adds $10,000-$15,000 to a solar installation and may not be financially justified based on energy savings alone. The primary value in NE Florida is backup power during outages — not energy cost savings. Be wary of solar installers who include battery storage in every proposal without discussing whether your specific needs justify the cost. Ask for a separate analysis of the battery ROI versus the solar panel ROI.

Solar panel efficiency measures what percentage of sunlight hitting a panel gets converted into electricity. Most residential panels today range from 17-23% efficiency. Higher efficiency panels produce more power per square foot — important for homes with limited roof space. The most efficient panels on the market are monocrystalline silicon, followed by polycrystalline and thin-film panels.

What contractors won't tell you: Higher efficiency panels cost significantly more — and the premium isn't always justified. For a home with ample roof space, standard efficiency panels at a lower cost may produce the same total output as premium panels at a much lower price. Always ask your installer to show you the total system output comparison between standard and premium panels before paying for the upgrade.

A solar inverter converts the direct current (DC) electricity produced by your solar panels into alternating current (AC) electricity that your home can use. It's one of the most critical components in your solar system. There are three main types — string inverters (one central unit), microinverters (one per panel), and power optimizers (a hybrid approach). Inverters typically last 10-15 years and may need replacement before your panels do.

What contractors won't tell you: Some solar installers push microinverters heavily because they carry higher margins — not necessarily because they're the right choice for your home. Microinverters make sense when panels face multiple directions or have shading issues. For a simple south-facing roof with no shading, a quality string inverter works just as well at a lower cost. Always ask why a specific inverter type is being recommended.

Net metering is a billing arrangement where your utility company credits you for excess solar energy your system sends back to the grid. When your solar panels produce more electricity than you use, the surplus flows to the grid and your meter runs backwards — reducing your bill. In Florida, net metering is available through most major utilities including JEA in Jacksonville. The credits offset electricity you draw from the grid at night or on cloudy days.

What contractors won't tell you: Net metering policies can change — and several Florida utilities have been reducing credit rates for excess solar production. Before signing a solar contract, ask specifically what the current net metering rate is with your utility and whether the installer's payback period calculation accounts for potential future rate changes. An overly optimistic payback estimate is one of the most common solar sales tactics.

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Solar Terms
Plain English.

Solar Monitoring System

Solar Panel Degradation

Kilowatt vs. Kilowatt-Hour

Solar Lease vs. Solar Loan

Federal Solar Tax Credit (ITC)

Solar Payback Period

Battery Storage

Solar Panel Efficiency

Solar Inverter

Net Metering

Country/region

Solar TermsPlain English.