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Solar Acronyms Glossary: 70+ Industry Terms Defined

Solar acronyms glossary: 83 terms including GHI, DNI, POA, PR, LCOE, P90, STC and MPPT, defined in plain words with a worked P90 example.

Keyur Rakholiya

Written by

Keyur Rakholiya

CEO & Co-Founder · SurgePV

Rainer Neumann

Edited by

Rainer Neumann

Editorial contributor · SurgePV

Published ·Updated

Answer

Solar acronyms are short names for sunlight data, equipment, output and finance terms. GHI, DNI and POA measure sunlight. MPPT and BESS describe equipment. PR and P90 describe output. LCOE, NPV and IRR describe money. This glossary defines 83 of them from A to Z in plain words.

Last updated: November 2026

Solar datasheets, simulation reports and permit packs run on shorthand. This glossary lists 83 acronyms in alphabetical order, each with its full name, a group, a plain meaning and a link to a longer glossary page where one exists.

SurgePV publishes this page and sells solar design software. PVsyst and SAM are other tools named in the list.

Find your term below. Use the letters to jump to a section.

A · B · C · D · E · F · G · I · K · L · M · N · O · P · R · S · T · V · W · Y

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Solar Acronyms A to Z

The 83 terms below fall into 11 groups. Electrical and finance terms are the largest groups.

Acronyms in this glossary by group (number of terms)
  • Electrical13
  • Finance11
  • Sunlight9
  • Batteries8
  • Projects8
  • Panels8
  • Inverters6
  • Software6
  • Performance6
  • Grid5
  • Compliance3

Source: count of the entries in the A to Z tables on this page, checked November 2026.

Terms Starting with A

Acronym Full name Group Meaning Learn more
AC Alternating Current Electrical Power that changes direction many times a second. The grid and most home appliances use it. AC page
AFCI Arc-Fault Circuit Interrupter Inverters A device that shuts off a circuit when it detects a dangerous electrical arc. AFCI page
AHJ Authority Having Jurisdiction Compliance The local office or person who approves your permit and inspects your work, such as a building department. AHJ page
AM Air Mass Sunlight How much air the sunlight passes through. AM1.5 is the standard value used for panel ratings.
Anti-islanding Anti-islanding Inverters A safety rule that makes an inverter stop sending power when the grid goes down. Anti-islanding page
AOI Angle of Incidence Sunlight The angle between the sun’s rays and a line straight out from the panel surface. AOI page

Terms Starting with B

Acronym Full name Group Meaning Learn more
BESS Battery Energy Storage System Batteries A full battery installation: cells, battery management system, inverter and safety equipment. BESS page
BIM Building Information Modeling Software A digital 3D model of a building that holds data about its parts.
BIPV Building-Integrated Photovoltaics Projects Solar cells built into the building itself, such as roof tiles or glass, instead of added on top. BIPV page
BMS Battery Management System Batteries The electronics that watch and protect a battery. It tracks charge, temperature and safe limits. BMS page
BOM Bill of Materials Projects A list of every part needed for a system, with quantities. BOM page
BoS Balance of System Projects Everything in a solar system except the panels: wiring, mounts, inverters and other parts. BoS page
BTM Behind the Meter Grid Equipment on the customer’s side of the utility meter, such as rooftop solar. BTM page

Terms Starting with C

Acronym Full name Group Meaning Learn more
CAD Computer-Aided Design Software Software for drawing plans and layouts.
COD Commercial Operation Date Projects The date a power plant starts to run as a working, selling asset.
C-rate Charge rate Batteries How fast a battery charges or discharges compared with its size. 1C means a full charge or discharge in one hour. C-rate page
CUF Capacity Utilization Factor Performance Energy made in a year divided by the energy the plant would make at full rated power all year. Check whether a contract uses AC or DC capacity. CUF page

Terms Starting with D

Acronym Full name Group Meaning Learn more
DC Direct Current Electrical Power that flows in one direction. Solar panels and batteries make and store DC. DC page
DC/AC ratio (ILR) Inverter Loading Ratio Electrical Panel DC size divided by inverter AC size. A ratio of 1.2 means the panels are 20% larger than the inverter. DC/AC ratio (ILR) page
DER Distributed Energy Resource Grid A small power source or storage unit connected near where power is used, such as rooftop solar or a home battery. DER page
DHI Diffuse Horizontal Irradiance Sunlight Sunlight scattered by the sky and clouds, measured on a level surface. DHI page
DNI Direct Normal Irradiance Sunlight Sunlight that comes straight from the sun, measured on a surface that faces the sun. DNI page
DoD Depth of Discharge Batteries The share of a battery’s capacity that you have used. 80% DoD means 80% is used and 20% is left. DoD page

Terms Starting with E

Acronym Full name Group Meaning Learn more
EPC Engineering, Procurement and Construction Projects A company that designs, buys equipment for and builds a project. EPC page

Terms Starting with F

Acronym Full name Group Meaning Learn more
FIT Feed-in Tariff Finance A fixed price paid for each unit of power you send to the grid, set for a set period. FIT page
FTM Front of the Meter Grid Equipment on the utility side of the meter, such as a solar farm that sells to the grid. FTM page

Terms Starting with G

Acronym Full name Group Meaning Learn more
GFDI Ground-Fault Detection and Interruption Inverters A safety device that finds a ground fault and stops the current.
GHI Global Horizontal Irradiance Sunlight All the sunlight that lands on a flat, level surface. It includes direct and scattered light. GHI page
GIS Geographic Information System Software Software for maps and location data, used to study sites. GIS page

Terms Starting with I

Acronym Full name Group Meaning Learn more
IEEE 1547 IEEE Standard 1547 Grid The IEEE standard for connecting distributed energy resources, such as solar and batteries, to the utility grid. IEEE 1547 page
Imp Current at Maximum Power Panels The current a panel makes when it is delivering its maximum power.
IRR Internal Rate of Return Finance The yearly return rate that makes a project’s NPV equal zero.
Isc Short-Circuit Current Panels The highest current a panel can make when its two terminals are joined together. Isc page
ITC Investment Tax Credit Finance A US federal tax credit for energy property. The IRS says the investment credit includes an energy credit, claimed on Form 3468. Rates and rules depend on current law. ITC page

Terms Starting with K

Acronym Full name Group Meaning Learn more
kV Kilovolt Electrical 1,000 volts. A unit of electrical pressure. kV page
kVA Kilovolt-ampere Electrical A unit of apparent power: volts times amps, divided by 1,000.
kW Kilowatt Electrical 1,000 watts. A unit of power, which is how fast energy is used or made. kW page
kWh Kilowatt-hour Electrical The energy used or made by 1 kW running for 1 hour. Your power bill uses this unit. kWh page
kWp Kilowatt-peak Electrical The DC power rating of a solar array under standard test conditions. kWp page

Terms Starting with L

Acronym Full name Group Meaning Learn more
LCOE Levelized Cost of Energy Finance The average cost of each unit of energy over a system’s life, found by dividing lifetime cost by lifetime energy. LCOE page
LFP Lithium Iron Phosphate Batteries A lithium-ion battery chemistry that uses iron phosphate in the cathode. LFP page

Terms Starting with M

Acronym Full name Group Meaning Learn more
MACRS Modified Accelerated Cost Recovery System Finance The main US tax depreciation system for business property placed in service after 1986, according to IRS Publication 946. MACRS page
MLPE Module-Level Power Electronics Inverters Devices fitted to each panel, such as microinverters and power optimizers. MLPE page
MPPT Maximum Power Point Tracking Inverters A control method that keeps panels working at the voltage that gives the most power. MPPT page
MW Megawatt Electrical 1,000 kilowatts, or 1 million watts. MW page

Terms Starting with N

Acronym Full name Group Meaning Learn more
NABCEP North American Board of Certified Energy Practitioners Compliance A US certification body for solar and storage professionals. Its credentials include PV Installation Professional and Energy Storage Installation Professional. NABCEP page
NEC National Electrical Code (NFPA 70) Compliance The US electrical code published by NFPA as NFPA 70. NEC page
NEM Net Energy Metering Grid A billing method that credits you for power you send to the grid. The credit rate depends on your utility’s rules. NEM page
NMC Nickel Manganese Cobalt Batteries A lithium-ion battery chemistry that uses nickel, manganese and cobalt in the cathode. NMC page
NOCT / NMOT Nominal Operating Cell Temperature / Nominal Module Operating Temperature Panels How hot a panel gets in typical sun. IEA-PVPS describes NMOT at 800 W/m² of sunlight and 20°C air temperature. NOCT / NMOT page
NPV Net Present Value Finance Future cash flows, reduced to today’s value, minus the money you spend now. A positive NPV means the project earns more than the rate you used. NPV page
NSRDB National Solar Radiation Database Sunlight A database of sunlight and weather data, mainly for the US. The National Laboratory of the Rockies (NLR, formerly NREL) runs it.

Terms Starting with O

Acronym Full name Group Meaning Learn more
OCPD Overcurrent Protection Device Electrical A fuse or breaker that opens a circuit when current is too high. OCPD page
O&M Operations and Maintenance Projects The work of running a plant and keeping it in good condition. O&M page

Terms Starting with P

Acronym Full name Group Meaning Learn more
P50 50th percentile energy Performance The yearly energy figure that the system should beat in half of all years. P50 page
P90 90th percentile energy Performance The yearly energy figure that the system should beat in nine years out of ten. It is lower than P50. See the P90 section below. P90 page
P95 95th percentile energy Performance The yearly energy figure that the system should beat in 19 years out of 20. It is lower than P90. P95 page
Payback Payback Period Finance The time it takes for savings or income to repay the cost of a system. Payback page
Pmax Maximum Power Panels The highest power a panel can deliver under test conditions. Datasheets list it in watts. Pmax page
POA Plane of Array Sunlight The sunlight that reaches the tilted face of the panels. This is the light the panels use. POA page
PPA Power Purchase Agreement Finance A contract to buy the power from a solar system at an agreed price per unit. PPA page
PR Performance Ratio Performance How much of the energy the panels could make in the sunlight they received is actually delivered. Heat, dirt, wiring and the inverter lower it. PR page
PSH Peak Sun Hours Sunlight A way to state daily sunlight as hours of full-strength sun. PSH page
PTO Permission to Operate Projects The utility’s approval to switch on a finished system and connect it to the grid. PTO page
PV Photovoltaic Projects Making electricity directly from light with solar cells. PV page
PVsyst PVsyst Software A software package that simulates how much energy a PV system will make.

Terms Starting with R

Acronym Full name Group Meaning Learn more
REC Renewable Energy Certificate Finance The EPA says a REC represents the property rights to the environmental, social and other non-power attributes of renewable electricity. One REC is issued per megawatt-hour. REC page
ROI Return on Investment Finance Your gain divided by your cost, shown as a percentage. ROI page
RSD Rapid Shutdown Inverters A safety feature that quickly lowers the voltage on rooftop wiring so firefighters can work safely. RSD page
RTE Round-Trip Efficiency Batteries The share of energy you get back out of a battery for each unit you put in. RTE page

Terms Starting with S

Acronym Full name Group Meaning Learn more
SAM System Advisor Model Software A free desktop program for studying the technical and financial side of power projects. The National Laboratory of the Rockies (NLR) makes it.
SCADA Supervisory Control and Data Acquisition Software A system that monitors and controls equipment from a central screen. SCADA page
SoC State of Charge Batteries How full a battery is, as a percentage. SoC page
SREC Solar Renewable Energy Certificate Finance A renewable energy certificate issued for solar power. SREC page
STC Standard Test Conditions Panels The lab settings for a panel’s rated power: 25°C cell temperature, 1,000 W/m² of sunlight and an AM1.5 spectrum (IEA-PVPS). STC page

Terms Starting with T

Acronym Full name Group Meaning Learn more
TC Temperature Coefficient Panels How much a panel’s power falls for each degree of heat above the test temperature. TC page
TMY Typical Meteorological Year Sunlight One year of hourly weather data built to stand for a typical year at a site.

Terms Starting with V

Acronym Full name Group Meaning Learn more
V Volt Electrical The unit of electrical pressure. V page
VAr Volt-Ampere reactive Electrical The unit of reactive power, which moves back and forth in the circuit and does no useful work. VAr page
Vmp Voltage at Maximum Power Panels The voltage a panel makes when it is delivering its maximum power.
Voc Open-Circuit Voltage Panels The highest voltage a panel makes when nothing is connected to it. Voc page

Terms Starting with W

Acronym Full name Group Meaning Learn more
W / Wp Watt / Watt-peak Electrical The base unit of power. Wp is a panel’s rating under standard test conditions. W / Wp page

Terms Starting with Y

Acronym Full name Group Meaning Learn more
Yield Specific Yield Performance Annual energy divided by system size, shown as kWh per kWp. Yield page

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What Does P90 Mean in Solar?

P90 is a yield expected to be met or exceeded in 90% of years (P50: 50%). It is lower than P50, the median.

PVsyst’s documentation explains it this way. The tool assumes yearly energy follows a normal (bell-shaped) curve around your simulation result. For that curve, P90 sits 1.28 standard deviations (σ) below the mean. See PVsyst P50-P90 evaluations. The size of σ comes from the weather data and other uncertainties, which you must set yourself.

Here is a made-up example. Say the simulated yearly energy (P50) is 1,000 MWh. Say σ is 5% of that, or 50 MWh. Then P90 = 1,000 − (1.28 × 50) = 1,000 − 64 = 936 MWh.

Always say whether a figure is P50 or P90.

Key Takeaway

In the example, P90 is 64 MWh (6.4%) below P50. The wider the spread, the bigger the gap, so a lender that asks for P90 will see a lower number than your P50 simulation.

Acronyms People Mix Up

Pair The difference
kW and kWh kW is power, how fast energy is used or made. kWh is energy, the amount used or made over time.
kW and kWp kW is any power rating. kWp is the DC rating of a panel array under standard test conditions.
STC and NOCT / NMOT STC is a lab test setting. NOCT / NMOT describes how hot a panel gets in typical sun.
PR and CUF PR compares output with the sunlight received. CUF compares output with full rated power all year.
Voc and Vmp Voc is the voltage with nothing connected. Vmp is the voltage at maximum power. Vmp is lower.
NEM and FIT NEM credits you for power sent to the grid under your utility’s rules. A FIT pays a fixed price per unit for a set period.

Pro Tip

When a report gives a yield, ask two questions: is it P50 or P90, and is the capacity in AC or DC? A mismatch on either one changes the number you compare.

Keep Learning

For sunlight terms in more depth, read the solar irradiance guide for GHI, DNI and DHI and the solar insolation reference. For design basics, see solar design principles for installers. For general sunlight terms, you can also open the solar irradiance glossary page. To see how these terms show up in a real design, read about energy yield and financial modeling in SurgePV or book a demo.

Sources used on this page: IEA-PVPS Task 13 report on climatic rating of PV modules, PVsyst documentation, NSRDB, System Advisor Model, EPA on RECs, IRS Form 3468, IRS Publication 946, IEEE 1547-2018 and NABCEP.

Frequently Asked Questions

What is the difference between GHI, DNI, DHI, and POA in solar?

GHI (Global Horizontal Irradiance) is all the sunlight on a flat, level surface. DNI (Direct Normal Irradiance) is the sunlight that comes straight from the sun. DHI (Diffuse Horizontal Irradiance) is the sunlight scattered by the sky. POA (Plane of Array) is the sunlight that reaches the tilted panels, which is the light the panels use.

What does P90 mean in solar?

P90 is the yearly energy figure that a solar system should beat in 9 years out of 10. PVsyst documentation says annual production has a 90% chance of exceeding the P90 value. P90 is lower than P50, which is the median.

What does PR mean in solar?

PR (Performance Ratio) shows how much of the energy the panels could make in the sunlight they received is actually delivered. Heat, dirt, wiring and inverter losses lower it. A lower PR than expected is a sign to check for shade, dirt, clipping or wiring problems.

What is LCOE in solar and how is it calculated?

LCOE (Levelized Cost of Energy) is the average cost of each unit of energy over a system’s life. You divide the total lifetime cost, in today’s money, by the total lifetime energy, also adjusted the same way. Use the same method for every option you compare.

What is the difference between IRR and NPV in solar finance?

IRR (Internal Rate of Return) is a yearly return rate, such as 12%. NPV (Net Present Value) is an amount of money, such as $18,000, found by reducing future cash flows to today’s value and subtracting what you spend now. IRR gives you a rate. NPV gives you an amount.

What does STC stand for in solar panel ratings?

STC stands for Standard Test Conditions. The IEA-PVPS Task 13 report on module ratings gives them as 25°C cell temperature, 1,000 W/m² of sunlight and an AM1.5 spectrum. Datasheet ratings are given at STC. Real panels often work in different conditions, so real output differs.

What is the difference between kW and kWp in solar?

A kW (kilowatt) is a unit of power. A kWp (kilowatt-peak) is the DC power rating of a solar array under standard test conditions. A 10 kWp array has 10,000 watts of panel rating at STC. Its real output is lower or higher at other times because of sunlight, heat and losses.

Where this fits

This article is part of SurgePV's Solar Design hub, which works through the topic from first principles to the decisions a project team actually has to make.

About the Contributors

Author
Keyur Rakholiya
Keyur Rakholiya

CEO & Co-Founder · SurgePV

Keyur Rakholiya is identified by SurgePV as its CEO and a company co-founder. His SurgePV author page lists only role information that can be tied to the public profile below; credentials, project totals, testing claims, media appearances, and speaking engagements are not asserted without retained evidence.

Editor
Rainer Neumann
Rainer Neumann

Editorial contributor · SurgePV

Rainer Neumann is credited as an editorial contributor on SurgePV content. This profile does not assert engineering credentials, project totals, software-testing experience, education, speaking engagements, or media citations because independent verification evidence is not retained in the publication record.

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