Solar Definitions

1 Kilowatt (kW): Also known as 1000 Watts. Systems are sold in Kilowatts but measured Watts.  A typical home will need a 7 kW system.

kWh: kilowatt hour

An Incandescent 100-watt bulb running for 10 hours (100*10 = 1000 watts) uses 1 kilowatt-hour

A LED 10-watt bulb running for 100 hours (10*100 = 1000 watts) uses 1 kilowatt-hour

Solar Array: Is an arrangement of components designed to supply usable electric power for a variety of purposes, using the sun as a power source.

PV: Photovoltaic.  Solar panels produce DC power.

Inverter: Converts direct current (DC) to alternating current (AC), the type of power used in homes.

Net Meter: A utility meter that counts customers credits.

• The panels produce DC power

• AC power goes into the home after the inverter

• Sunny hours of the day will produce more energy than the home uses.

• Extra energy is pushed into the grid through the net meter.

• The Net Meter is a bi-directional meter.  Electricity can flow both ways.

• During daytime the meter goes goes backwards as you push power into the grid

• When the sun goes down, the net meter draws like a normal meter from the grid back into the home.  

• The goal to have the number of credits you push into the grid gets you to a net zero where you are not paying for electricity.

TOU: Time Of Use net metering employs a smart (electric) meter that is programmed to determine electricity usage any time during the day. Time-of-use allows utility rates and charges to be assessed based on when the electricity was used (i.e., day/night and seasonal rates).

Feed In Tarrif (FIT): A FIT is a long-term contract where utilities agree to purchase electricity generated by renewable sources (like solar) at a set rate, typically higher than the market rate, for a fixed period.

NBT: Net Billing Tariff.  With the net billing tariffs in place, your solar-generated electricity is sold to the utility at a lower rate and you buy at a higher rate.  Pairing solar with battery storage is often more beneficial where this type of tariff happens.

Peak Rate Shaving: A battery management strategy where you store energy when net metering rates (export rates) are low and using battery during peak rates, and delaying exports until payments are the highest during a 24 hour period.

NEM 3.0 (Net Energy Metering 3): Also known as an Export Rate, Net Billing Tariff (NBT), or Solar Billing Plan is a new version of California net energy metering policy approved by the California Public Utilities Commission (CPUC) on December 15, 2022. 

It applies to utility customers in the territories of California’s three major Investor Owned Utilities (IOUs):

• Pacific Gas & Electric (PG&E)

• Southern California Edison (SCE)

• San Diego Gas & Electric (SDG&E)

With the new net billing tariff, your solar-generated electricity is sold to the utility at a lower rate and you buy at a higher rate.  Pairing solar with battery storage will be more beneficial under NEM 3.0.

A major theme in NEM 3.0 is a push for pairing solar with battery storage. That’s because the issue isn’t generating solar electricity in California; it’s storing and using it, since peak solar production doesn’t align with peak energy consumption.

Adders: Adders are additional costs to a project.  Extras such as high roof tilt, flat roof, reroof, MPU, electrical upgrades, etc.

Market Access Adjuster / Watt: This is an adjustment in cost for the region to make it so people can sell the same in all areas.

Subtractors: Is the opposite of an adder.  Things that lower the price on a deal.  Generally used in market adjusters.

Dealer Fee: The dealer fee is a method finance companies let home owners buy down the interest rate.  If you don't have a dealer fee the interest rate will be higher.  If someone is planning on paying off their loan faster, choose a finance plan that does not have a high dealer fee.

Gross Price Per Watt: Same as customer price per watt

Customer Price Per Watt: Final cost to install the system (including dealer fees, adders, and other costs) / watt

Sold Price Per Watt: Gross Price Per Watt - Dealer Fee

Net Price Per Watt (Net PPW):   Net Price Per Watt is the “price per watt” (PPW) of the solar array per watt after all adders have been removed including dealer fees and other costs.

Lead: A lead is a potential person that has the potential to buy your service.

UB:  Utility Bill -  All signed deals require a copy of the utility bill

Opportunity: Most leads are considered as an opportunity.

Clean Deal: Is a deal that has all the needed items completed to make the job go through.  (See Project Roadblocks)

Project Roadblocks: Items that are missing that may hold up a deal and delay the project workflow.

• missing welcome calls

• missing bill

• docs not signed

• site survey 

• scheduling/re-scheduling

• loan stipulations

• sales tickets

• change orders

• permits/HOA applications past timeframe

• scheduling/re-scheduling

• installs/inspections etc.

Homeowners Association Questionnaire: Is a document the homeowner signs declaring if their home is in an HOA and includes information about the HOA.

Finance Document:  Loan docs

HIC: Home Improvement Contract (Installation Document)

Interconnection Agreement: Is an agreement with the utility for distributed generated systems, including solar photovoltaics.

Contract Signed: When an opportunity is signed

Make sure you have all the following submitted

• Homeowners Association Questionnaire

• Finance Document

• Home Improvement Contract (HIC)

• Interconnection Agreement

• Make sure the customer actually clicks “Finish” to sign the docs.  This is often missed in some document signing systems.

Verification Call:  A verification call is a quality assurance step where new customers speak to the finance company to confirm key points of the agreement.

Deal Submission:  A submitted project through Freedom Forever's Lightspeed portal.

Site Survey: An initial review of of a property to determine its suitability for installing solar panels.  Shading analysis, review of solar potential, and measurement and mapping help determine panel placement.

Site Audit: This is a review of a home to check the electrical, and make sure solar is a good fit.  Pictures will be taken of MPU, attic, roof, and a review of roof with measurements will be completed to finalize the solar placement.

NTP:  Notice to Proceed (same as M0)

M0: Milestone 0: Notice to Proceed.  Financing sends this as a notice that the job can move forward.

CRC:  Contract Received and Confirmed.  Also synonymous with M0 from the financing.   Also known as CR at some companies as "Contract Received".  Some companies refer to this as Scope of Work (SOW) Confirmed.

Project Review: Construction, Engineering, and Account Management review the site audit details, and create the project's Scope of work.

SOW: Scope of Work

SOW Confirmed:  Scope of Work is sent to Sales for approval and has been confirmed.  Also known as:

• Contract Received and Confirmed (CRC).  

• M0 from the financing.   

• CR at some companies as "Contract Received".

Permit: Plans are sent to the city (AHJ) for approval.  Interconnection team submits for utility approval if applicable.

M1: Milestone 1 - This is a stage that where a partial payment is made.  Some companies pay an M1 payment. If the job cancels, this money will be "charged back" and generally taken out of M2 or PTO payments if the person is in good standing with the company.

M2: Milestone 2 - This is another time that the installation company often makes a payment.  This happens after financing is approved.  The industry is moving towards making the final payment at the time of PTO.

PTO: Permission to Operate (Also known as M3).  Interconnection works with the utility to get approval to turn on the system.  The monitoring team will verify the system is producing.  The industry is moving towards making the time of PTO a third payment.  Some may refer to this as M3.

Breaker Box: Electrical panel where the power comes into the home.

MSP: Main Service Panel .  Same as breaker box.

Main Panel Upgrade (MPU):  The breaker box may need to be upgraded to handle solar. 

Offset: This is the amount of energy that the solar system is expected to produce compared to the total household usage.  Most systems aim for under 100% usage due to Net Metering Issues.

Azimuth: The roof azimuth angle is the angle that the solar panels are facing and is measured in a clockwise direction from north.  The azimuth angle of the equivalent wall. For example increase the tilt angle until it is vertical and it is the orientation looking out from inside. A horizontal roof has an azimuth angle of 0 and a tilt angle of 0.

HO: Home Owner

HOA: Home Owners Association - a community of homes that control aspects of homes.  Each HOA is different.  Most HOAs control appearance of the homes.  Installing solar panels changes the outward appearance so HOAs can specify rules and restrictions about solar installation or even deny solar if they want.

ARC Request: Architectural Review Committee Request - This language is used in an HOA.  If the home you are installing solar is an HOA, the HOA may require a review to determine if they will allow solar.

AOG: Act of God.  On insurance if something like a tornado hits, this is considered an act of God and the homeowner insurance should cover.  The insuance policy will state what is covered.

FTC: Federal Tax Credit.  Same as ITC.

ITC: The solar Investment Tax Credit (ITC) is tax credit.  Currently it is 30% of the cost of the system.  If the person does not pay taxes or pays very few taxes they will not get the benefit of the ITC.  Also know as the Federal Tax credit.  The 30% tax credit can be applied to costs such as: 

• Cost of The Solar System

• Cost of Financing

• Re-Roof

• Electrical Upgrades

RR: Reroofing: The process of recovering or replacing an existing roof covering. Roof Recover: The process of installing an additional roof covering over a prepared existing roof covering without removing the existing roof covering.

EPC: Equipment, procurement, construction.  Contracts (a type of turnkey contract) are a form of contract used to undertake construction works by the private sector on large-scale and complex infrastructure projects.

PPA: A Power Purchase Agreement (PPA) often refers to a long-term electricity supply agreement between two parties, usually between a power producer and a customer (an electricity consumer or trader). The PPA defines the conditions of the agreement, such as the amount of electricity to be supplied, negotiated prices, accounting, and penalties for non-compliance.

AHJ: Authority Having Jurisdiction - The AHJ in each area determine the rules and give approvals for installing solar on each home.

Load calculator: Gives you the daily electricity consumption to properly size your solar sytem.

Performance Meter: The digital meter that communicates between corporate offices to monitor the production of the system.

WTS: Watertight seal.  A way to say that the roof won't leak.

CP: Channel Partner

Setter: People focused on finding new sales opportunities

Closer: Individuals focused on generating new sales opportunities through prospecting, as well as presenting opportunities with products and services offered, securing financing, and completing all necessary documentation needed to turn an opportunity into a project and installation.

Glass on the roof: Solar installed

CRM: Is software that helps companies sell things and helps manage customers.  Aurora design software refers to Freedom Forever Lightspeed Portal as a CRM.

Chargeback: Also known as Clawback.  Most solar companies pay some money before a job is installed.  This is called an M1.  If the deal cancels, the money paid will be owed back. 

Override: This is a payment made to managers who are managing a team.  Override payments are for people that are still at the company to help grow their teams.

Self Override: This is the same as override, but some ranks in an organization allow a self override.  For example if you manage a team and you close a deal, you will get a self override on your deal in the same way the person would get an override from a team member sale.