Energy Glossary
Essential terms for understanding home energy efficiency, solar power, and savings.
Categories
Units
kWh (Kilowatt-hour)
A unit of energy equal to using 1,000 watts for one hour. Your electricity bill is measured in kWh. The average US home uses about 900 kWh per month.
Solar
Solar Panel (Photovoltaic Panel)
A device that converts sunlight directly into electricity using semiconductor materials. Most residential panels produce 300-400 watts each and last 25-30 years.
Net Metering
A billing arrangement where solar panel owners receive credit for excess electricity they send to the grid. Your meter spins backward when you produce more than you use.
Grid-Tie System
A solar power system connected to the utility grid, allowing you to use grid power when needed and sell excess back to the utility.
Heating & Cooling
Heat Pump
A device that transfers heat from one place to another, providing both heating and cooling. Heat pumps are 2-4 times more efficient than traditional furnaces because they move heat rather than generate it.
SEER Rating (Seasonal Energy Efficiency Ratio)
A measure of air conditioner and heat pump cooling efficiency. Higher SEER ratings mean lower energy consumption. Modern efficient units have SEER ratings of 15-25.
Financial
ROI (Return on Investment)
A measure of profitability calculated as (Net Profit / Cost of Investment) × 100. In home energy, ROI tells you how quickly your upgrade pays for itself and continues saving money.
Payback Period
The time required for an investment to pay for itself through savings. Shorter payback periods indicate better investments.
Incentives
ITC (Investment Tax Credit)
A US federal tax credit for solar installations, currently set at 30% of system cost through 2032. This directly reduces your tax liability.
Feed-in Tariff (FIT)
A policy mechanism that pays renewable energy producers a set rate for electricity fed into the grid, often higher than retail rates to encourage adoption.
Smart Home
Smart Thermostat
A programmable thermostat that learns your schedule and preferences, automatically adjusting temperature for comfort and efficiency. Can reduce heating/cooling costs by 10-15%.
Environment
Carbon Footprint
The total greenhouse gas emissions caused by an individual, organization, or activity, usually measured in tons of CO2 equivalent per year.
Insulation
R-Value
A measure of insulation's ability to resist heat flow. Higher R-values indicate better insulating properties. Required R-values vary by climate zone.
Assessment
Energy Audit
A professional assessment of your home's energy use, identifying inefficiencies and recommending improvements. Many utilities offer free or subsidized audits.
Storage
Battery Storage (Home Battery)
A rechargeable battery system that stores electricity for later use, typically paired with solar panels. Provides backup power and can maximize solar savings.