Solar Terms Explained: A Guide to the Basics

Written By Austin Thompson

Whether you live on British Columbia’s rainy coast or under Alberta’s big prairie skies, going solar means navigating a few new concepts. Use this quick glossary to get comfortable with the lingo before you size a system, compare quotes, or apply for incentives.

Core Components

  • Solar Panel (PV Module): A weather-sealed panel that turns sunlight into direct-current (DC) electricity via many tiny photovoltaic cells.

  • Photovoltaic (PV) Cell: The basic building block of a solar panel. When photons strike the silicon wafer inside the cell, they knock loose electrons and create electric current.

  • Inverter: Think of this as your system’s “translator.” It converts the DC output from panels into the alternating current (AC) that Canadian homes and the grid both use.

  • Micro-inverter: A toaster-sized inverter mounted behind each individual panel. By converting DC to AC right on the roof, it minimizes energy loss and lets every panel perform independently.

  • Solar Array: Two or more solar panels wired together and mounted on racking to act as one power-producing unit.

  • Racking: The aluminum or steel framework that secures panels to a sloped roof, a flat roof, or ground posts. Proper racking keeps panels watertight and immovable in Canadian wind and snow loads.

System Connection Types

  • Grid-Tied System: A PV system linked to your local utility. You draw electricity when the sun is down and export surplus when it’s bright, typically under a provincial net-metering or micro-generation program.

  • Off-Grid System: A stand-alone array paired with batteries (and often a backup generator) for cabins, remote homes, and other places beyond utility lines.

Measuring Power & Sunlight

  • Kilowatt-Hour (kWh): A unit of energy equal to using 1 kilowatt for 1 hour. Your utility bills, net-metering credits, and production estimates are all expressed in kWh.

  • Solar Insolation: The total solar radiation reaching a specific area, usually measured in kWh per square metre per day. Canada’s insolation ranges from about 2.5 kWh/m²/day in the Yukon to 4.5 kWh/m²/day in southern Alberta.

  • Module Efficiency: The percentage of incoming sunlight a panel converts into electricity. Most modern residential panels fall in the 19–22 % range.

Policy & Incentive Terms

  • Net Metering: A provincial billing arrangement that tracks the kWh you export versus the kWh you consume. Credits roll forward month-to-month (up to 12 months in Ontario, BC and Québec) and offset future utility charges. Credits are usually valued at your retail rate, not wholesale.

  • Micro-Generation (Alberta): Under Alberta’s Micro-Generation Regulation, solar owners ≤ 5 MW can sell excess power back to the grid and, with optional “Solar Club” plans, even time the sale to higher seasonal rates.

  • Renewable Energy Certificates (RECs): Each REC represents 1 MWh of clean electricity put on the grid. While the U.S. has dedicated SREC markets, Canadians typically sell RECs or carbon offsets on voluntary or provincial platforms (e.g., Alberta’s solar-offset programs).

Bringing It All Together

A Solar Photovoltaic System combines panels, inverters, racking, wiring, and monitoring to generate clean electricity for your property.

Master these terms and you’ll be ready to size your array, navigate incentive paperwork, and chat confidently with any solar installer!

Austin Thompson
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Net Metering: How It Works & Why It Matters