Glossary

Solar Photovoltaic (PV) - a method of converting the Sun's energy to electricity

On-Site (Distributed Generation) - producing and using energy on or near the same site thus bypassing the grid

Peak Demand Energy – utility managed electrical power that is expected to be provided for a sustained period at a significantly higher than average supply level. For energy provided during this period utilities charge the user with a peak demand surcharge that can dramatically increase your energy costs

Independent Energy Producer (IEP) - an entity that produces power on site and sells it to others on or near the production site, not using the grid

Power Purchase Agreement (PPA) – an agreement between the producer and user of electrical power

Operation & Maintenance Agreement (O&M) – an agreement that provides the terms and conditions under which a System is Operated Managed and Maintained

Solar Investment Tax Credit (ITC) provides a dollar-for-dollar reduction in the income taxes that a person or company claiming the credit would otherwise pay the federal government. The reduction is 30 percent of the project cost basis that is invested in a solar PV system if construction is commenced through 2019

Accelerated Depreciation (AD) The Modified Accelerated Cost Recovery System (MACRS) allows the cost of solar PV systems to be deducted from taxable revenue over a period of five years