Glossary
The solar world, in plain words
The terms you’ll hear when you shop for solar in Puerto Rico, explained without jargon or fine print. If something isn’t here, message us.
- Net metering
- The arrangement with LUMA by which the extra energy your panels produce feeds the grid and is credited back to you for when you’re not producing, like at night. It’s protected by law in Puerto Rico (Act 10-2024): whoever connects today keeps their terms for 20 years.
- kWh (kilowatt-hour)
- The unit electricity is measured in: it’s what LUMA charges you for on your bill. Your monthly kWh usage is the figure we use to size your system.
- kW (kilowatt)
- The measure of your system’s size: how much power your panels can generate at once. A typical home system in Puerto Rico runs between 4 and 12 kW, depending on your usage.
- Inverter
- The equipment that converts the panels’ energy (direct current) into the kind your home uses (alternating current). It also reports your production to the monitoring app.
- Backup battery
- Stores your panels’ energy so your home stays on when the power goes out. The switch is automatic: it keeps the essentials —fridge, water, fans, internet— running while the block sits in the dark. In Puerto Rico, 9 of 10 homes that go solar include one.
- Prepay
- A way to pay for your system where the price already includes the federal incentive benefit, through our program. You see that final number in your quote, without having to claim anything yourself.
- Federal incentive
- A federal tax benefit for solar energy that, in our program, already comes applied to your price. Incentive information is general, may change and is subject to eligibility: consult your tax advisor.
- UCC-1
- The legal notice that the solar equipment is financed, much like the one when you finance a car. It secures only the panels and battery —it is not a mortgage or a lien on your home or your property title. Once you finish paying, it’s released.
- Interconnection
- LUMA’s permission to connect your system to the grid and activate net metering. We file it in your name; it’s one of the stages that makes the process take 6 to 12 weeks from signing.
- PTO (permission to operate)
- LUMA’s final go-ahead where your system officially starts producing and crediting under net metering. It’s the milestone where your system is truly "switched on."
- Guaranteed production
- The amount of energy your system is guaranteed to produce, written into your contract with the guarantor named. If it produces less than guaranteed, you know exactly who to claim from and how.
- LUMA fixed charges
- The meter charges LUMA bills for being connected to the grid, separate from your consumption. They don’t disappear with solar: that’s why your bill doesn’t drop to $0, even when you produce your own energy.
- Monocrystalline panel
- The high-efficiency type of solar panel we install: it makes better use of light in your roof’s space. The exact model is written into your proposal and contract.