As solar energy continues to shape the future of clean power in New York and beyond, understanding the terminology used in the industry is essential. Whether you’re reviewing your proposal, reading your electric bill, or comparing system options, it’s common to encounter terms, abbreviations, and tax-related information that you may not be familiar with. 

This glossary breaks down the key terms you’ll encounter when working with Mpower Solar. 

Solar Energy Units and Measurements

Kilowatt-Hour (kWh)
A kilowatt-hour measures how much electricity is used or produced over time. One kilowatt-hour equals using one kilowatt of power for one hour.

Kilowatt (kW)
A kilowatt is a unit of power equal to 1,000 watts. It measures the rate at which energy is generated or consumed.

Watt (W)
The watt is the basic unit of power that measures energy transfer at a rate of one joule per second.

Consumption
The total amount of electrical energy used by a home or business during a specific period, typically measured in kilowatt-hours.

Production
The amount of electricity generated by a solar system, usually tracked in kilowatt-hours.

Sun Hours
The number of hours per day or per year when sunlight is strong enough for effective solar energy production.

Shading
The reduction of sunlight on solar panels caused by nearby trees, buildings, or other obstructions.

Solar Billing and Financial Terms

Supply
The part of your electric bill that represents the cost of generating the electricity you use, based on current market energy rates.

Delivery
The portion of your electric bill that covers the cost of transmitting and distributing electricity from the power plant to your home or business.

Price Per Watt (PPW)
A way to compare system costs, representing the total price of a solar system divided by its total wattage capacity.

Power Purchase Agreement (PPA)
A contract used by some companies (not Mpower Solar) in which customers purchase electricity from a solar provider at a fixed price per kilowatt-hour.

Lease
An agreement where Mpower Solar owns the panels, and the homeowners “borrows” them for a set period (typically 25 years) through monthly payments with no large upfront costs. 

Escalator
The annual percentage increase in a solar lease payment.

Price or Rate Protection
The stability and predictability of paying a consistent or capped electricity rate, protecting you from future utility rate hikes.

Net Metering
A billing arrangement that credits solar system owners for the excess electricity they produce and send back to the grid.

Net Zero
When a home’s solar panels produce as much energy as the household consumes over the course of a year.

Offset
A measure of how much of your current electricity usage is covered by solar production. For example, a 100% offset means your panels generate as much electricity as you use.

Solar Equipment and System Design

Roof Mount
Solar panels installed directly on a home’s roof.

Ground Mount
Solar panels installed on a dedicated structure built on the ground, often used when roof space is limited or orientation isn’t optimal.

Tilt Mount
Panels mounted at an angle to optimize exposure to sunlight.

Flat Mount
Panels installed flush with the roof surface, offering a sleek, low-profile design.

Canopy Mount
Raised panels mounted above the roof to increase solar exposure, production, or system size.

Microinverter
A device that converts DC electricity to AC electricity at each panel, improving performance and monitoring accuracy.

Central Inverter with Optimizers
A system where one main inverter converts DC to AC power, while power optimizers under each panel maximize output and system efficiency.

Enphase App
A mobile and web app by Enphase Energy that lets homeowners monitor their solar system’s performance in real time. It shows energy production, usage, and system status, providing full visibility into how much power the panels generate and use.

Solar Installation Process 

Solar Proposal
This custom offering from Mpower Solar outlines the proposed system design, cost, and projected savings based on your home’s energy profile.

Site Survey
A technician’s visit to inspect your property and determine your home’s qualification for solar. The survey includes both interior and exterior evaluations. At this time the technician will also note any needed repairs to your roof and electrical systems. 

The Grid
The traditional electric utility network that distributes power to and from homes and businesses—in NYC this is synonymous with Con Edison. 

Account Manager
Your dedicated Mpower Solar representative who maintains your account, keeps you informed, and ensures customer satisfaction throughout your journey.

Project Manager
The individual responsible for overseeing all stages of your installation—ensuring it stays on schedule, on budget, and up to quality standards.

Solar Tax Incentives and Abatements

Solar Tax Incentives
This is a general term that applies to incentives New York homeowners can receive to recoup some of the costs of their system. Specifically, in NYC it usually refers to the New York State Solar Tax Credit and the NYC property tax abatement. Read our guide on how to claim your NY state and NYC solar rebates for more info.

New York State Solar Tax Credit‍

A 25% tax credit toward the cost of your solar project, capped at $5,000. This credit can be used against your state income tax liability and any unused portion can be carried forward to future years. Also known as the Solar Energy System Equipment Credit, this is claimed by the homeowner or their tax preparer by filing Form IT-255 with your state taxes. 

NYC Solar Property Tax Abatement (PTA)
Officially known as the Solar Electric Generating Systems Tax Abatement, this allows NYC property owners to reduce their property taxes by a total of 30% of the system's eligible installation costs, spread over four years. Homeowners will see the credit on their property tax bill in the tax year following system activation. Note: The solar installer applies for this abatement—the homeowner only needs to apply for the state solar tax credit (see definition above). 

Federal Solar Tax Credit ‍

Also known as the Investment Tax Credit (ITC), this 30% tax credit offered to homeowners for going solar was originally scheduled to expire in 2032. This credit was eliminated by the Big Beautiful Bill and will end December 31, 2025.

Permitting and NYC Organizations

Department of Buildings (DOB)
The New York City Department of Buildings (DOB) oversees all construction, alteration, and maintenance of buildings in the five boroughs. For solar projects, the DOB is responsible for reviewing and approving installation plans and issuing permits and final approvals.

Letter of Completion (LOC)
An official document issued by the DOB to the solar installer after a solar installation passes all required inspections. The LOC confirms that the project complies with city building and electrical codes and is formally complete. Installers must receive the LOC before the utility can grant Permission to Operate (PTO).‍

‍
Permission to Operate (PTO)‍

Permission to Operate is the formal approval granted by the utility company (in NYC this is granted by Con Edison) after your solar energy system has been installed, inspected, and connected to the electrical grid. Once PTO is issued, the system can be turned on and begin generating solar power.

Department of Finance (DOF)‍

The New York City Department of Finance (DOF) administers property assessments, taxes, and exemptions within the city. In the context of solar, the DOF manages the NYC Solar Property Tax Abatement (PTA), which reduces a homeowner’s property taxes to offset the cost of installing solar panels. 

Your Partner in Understanding Solar

At Mpower Solar, we believe transparency builds trust. Understanding these terms empowers homeowners to make confident, informed decisions about their energy future. Whether you’re just starting to explore solar or ready to move forward with an installation, our team is here to help you every step of the way.