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Reference · 44 terms · Updated September 13, 2026

Canadian Solar Glossary

Every technical term we use on this site, defined in plain English. Solar, thermal, BIPV, battery, grid — no jargon left unexplained. Bookmark it, or use the category jumps below.

Technology & Equipment

18 terms

BIPV

also: building-integrated photovoltaics

Building-Integrated Photovoltaics. Solar panels that replace conventional building materials — the panel IS the roof, the facade, or the window.

Traditional solar panels bolt on top of an existing roof. BIPV panels are the roof (or the facade, or the glass). Common examples: solar shingles, solar curtain wall, photovoltaic skylights, coloured facade cladding. Best fit for new construction, heritage buildings, and luxury residential where visible rack-mount panels aren't wanted.

CHP

also: combined heat and power · cogen · cogeneration

Combined Heat and Power. Producing electricity AND capturing the waste heat instead of throwing it away.

A conventional generator throws away roughly 60% of its input energy as waste heat. CHP captures that heat and uses it to warm your building, dry crops, or heat water — pushing total efficiency past 80%. Hacienda North's Capstone microturbine setup is the case study.

Curtain Wall

The lightweight aluminum-framed skin on modern high-rise buildings — a mix of window glass and opaque panels.

Not the building's structure — hung on the outside of it like a curtain. Solar curtain wall replaces the opaque spandrel panels with photovoltaic panels of the same size, colour, and finish, so the facade generates electricity without changing how the building looks.

See also:bipvspandrel

Evacuated Tube Collector

A solar thermal panel made of vacuum-sealed glass tubes — each tube is a mini-thermos, dramatically reducing heat loss.

Vacuum insulation means these collectors keep more of the heat they capture, even on cold windy days. Costs more than flat-plate but performs better in Canadian winter. Heat-pipe versions (each tube contains a sealed metal pipe that transfers heat efficiently) are Enerworks' commercial platform used at Miller's Dairy and Travelodge Saskatoon.

Flat-plate Collector

The most common solar thermal panel — a flat metal panel behind glass that heats fluid running through pipes.

Cheapest solar thermal option and durable in mild-to-moderate climates. In deep Canadian winter it loses heat to ambient more than evacuated-tube collectors do, so it produces less on cold days.

Flywheel

Kinetic energy storage — a heavy rotor spinning inside a vacuum enclosure that charges by accelerating and discharges by decelerating.

No batteries, no chemistry. Fast response (milliseconds), enormous cycle life (millions of cycles), no capacity degradation. Best fit for high-cycle-count / short-duration jobs like frequency regulation. NRStor's Minto flywheel facility provided frequency regulation for Ontario's grid.

Glycol Loop

The closed pipe circuit in a solar thermal system carrying antifreeze between the collectors and the hot-water tank.

Pure water would freeze in Canadian winter, so the loop uses a glycol-water mix (usually propylene glycol). It never touches your potable water — a heat exchanger transfers heat from the glycol loop into your water tank. Needs a refractometer check + top-up every year or two.

See also:solar thermal

Grid-Forming Inverter

An inverter that can create its own grid — the frequency + voltage reference — instead of following an existing grid.

Standard grid-tie inverters shut off during outages because they need an existing grid signal to sync with. Grid-forming inverters run without one. That's what lets a solar + battery system keep the lights on when the utility grid goes down.

Heat Pipe

A sealed metal pipe inside an evacuated tube collector that transfers heat with very little loss.

Inside the pipe, a small amount of fluid evaporates when heated by the sun, rises to the top, condenses back to liquid at a heat exchanger, and falls back down. It's the same physics as a home HVAC heat pump, packaged into a single pipe. Enerworks' commercial platform uses heat-pipe evacuated tube collectors.

Islanding

A solar + battery system disconnecting from the utility grid and continuing to power the site on its own.

During a grid outage, an islanding-capable system keeps running by using battery + inverter as a mini-grid. Requires a grid-forming inverter + interconnection approval from your utility. Not all solar setups support islanding — check with your installer.

LFP Battery

also: lithium iron phosphate

Lithium Iron Phosphate battery — the safest, most durable modern battery chemistry.

LFP (LiFePO4) trades a small amount of energy density for much better thermal stability + cycle life + safety compared to NMC. Almost every Canadian commercial + farm battery installed today is LFP. Cycle life 4,000-8,000+ cycles, 10-15+ year warranty typical.

Microgrid

A local integrated energy system that combines generation (solar, wind, gas), storage (battery), and controls — able to run either connected to the grid OR on its own during an outage.

Different from just installing a solar array + a battery: microgrid controls actively manage which asset supplies what load, when to charge the battery from solar vs the grid, and when to seamlessly island (disconnect from the grid and keep running). Farm microgrids protect against crop-loss outages; industrial microgrids stack peak-shaving + resilience + demand-response revenue.

Microturbine

A small (30 kW to 1 MW) gas turbine that produces electricity, with high-quality waste heat you can capture.

Compact + efficient. Capstone Green Energy makes them for commercial + industrial customers. On its own, a microturbine looks like an expensive backup generator. Paired with waste-heat recovery (CHP), it becomes a year-round operating asset offsetting boiler load and generating electricity simultaneously.

See also:chpmicrogrid

Peak Shaving

Using a battery to reduce your highest 15-minute average power draw during a billing period — cutting demand charges.

Commercial electricity bills usually charge separately for total energy used (kWh) AND highest 15-minute average power (kW). Peak shaving discharges the battery during those short peak moments, capping demand-charge exposure. Battery pays back through demand-charge reduction even without solar.

PVT

also: hybrid solar · photovoltaic thermal

Photovoltaic-Thermal hybrid panel. One panel produces both electricity AND hot water at the same time.

A regular solar panel produces electricity. A regular solar thermal collector produces hot water. A PVT panel does both from the same footprint by circulating fluid behind the cells. Useful when roof area is tight and you need both electricity and hot water — dairy farms, hotels, some MURBs.

Solar Shingle

also: solar roof tile

A roof shingle with photovoltaic cells built in. The shingle IS the solar panel.

Looks like a slightly-thicker premium roof shingle from the street. Each shingle generates electricity while doing normal roof-shingle duty. Costs 1.5-3× a shingle roof plus rack-mount PV, but the value is architectural integration + heritage / HOA compatibility.

See also:bipv

Solar Thermal

A solar collector that heats water or air directly using the sun — no electricity involved.

Solar thermal doesn't make electricity. It heats a fluid (usually water + antifreeze) that then heats your building's hot water tank or space-heating loop. For high-hot-water-use buildings (dairies, hotels, laundromats, MURBs) it usually pays back faster than PV.

Spandrel

The opaque strip between windows on a high-rise curtain wall — usually hiding the floor slab or mechanical space.

In a curtain-wall high-rise, floors don't touch the exterior glass — there's a gap the building's structure lives in. Spandrel panels cover that gap so you don't see the concrete. Solar BIPV facades often replace spandrel panels with photovoltaic panels of the same colour, converting hidden building surface into a power source.

Programs, Codes & Incentives

17 terms

AAFC ACT

also: agricultural clean technology program

Agriculture and Agri-Food Canada's Agricultural Clean Technology Program — cost-shared funding for clean-tech on Canadian farms.

Funds solar, battery, biogas, precision agriculture, and other clean-technology investments on Canadian farms. Cost-shared (typically 25-50% of eligible cost, sometimes higher for underrepresented producers). Application windows open periodically — check ACT program status before quoting projects that depend on ACT funding.

Alberta Solar Club

A rate plan from some Alberta retail electricity providers that credits solar exports at time-varying wholesale prices — up to 30¢/kWh during summer peak periods.

Alberta's deregulated retail market lets electricity retailers offer time-varying export rates that other provinces can't match. Solar Club-style plans (Encor by EPCOR + others) meaningfully improve solar payback for Alberta customers with west-facing arrays that produce during evening peak hours.

See also:net metering

BC Energy Step Code

The performance-based path in British Columbia's building codes. Five steps of increasingly-strict energy performance, culminating in Passive-House-adjacent Step 5.

Vancouver + several other BC municipalities enforce Step Code through their local Building By-Laws. New construction targets typically Step 3-4 in 2026, moving to Step 4-5 by 2030. On-site solar becomes an increasingly-cost-effective way to close the gap at higher steps.

BC Hydro ESI

also: energy storage incentive

BC Hydro Energy Storage Incentive — funds up to 80% of the cost of eligible customer-sited battery storage for BC commercial + institutional customers.

Structured around peak-load reduction contracts — the customer commits to shave their peak by X kW, BC Hydro funds most of the battery capex. Stacks with the federal Clean Tech ITC. Requires eligible commercial rate class + BC Hydro service territory.

CASL

also: canadian anti-spam legislation

Canadian Anti-Spam Legislation — governs commercial electronic messages (email, SMS) sent to Canadian recipients.

Requires express or implied consent before sending marketing emails. We only send marketing content to leads who have explicitly opted in via a marketing-consent checkbox (see /privacy). Not a solar term per se, but relevant to how we handle your info after you submit a form.

Class 43.1

The CRA equipment classification for clean-energy generation property. Determines whether property qualifies for the Clean Tech ITC + accelerated depreciation.

Solar PV, most solar thermal, BIPV, wind, and paired battery all fall under CRA Class 43.1 when meeting equipment eligibility rules. Class 43.1 property gets 50% declining-balance CCA (much faster than the standard depreciation schedule) AND is the base class for Clean Tech ITC eligibility. Confirm with your accountant that your specific equipment qualifies before pricing.

Demand Charge

A commercial electricity bill line billed on your HIGHEST 15-minute average power draw during the month — not total energy used.

In Ontario, Alberta, BC, and Nova Scotia, demand charges run $8-$14 per kW of monthly peak — often 25-50% of a C&I customer's total bill. One brief peak (shift start, compressor cycle, welder inrush) locks in the charge for the whole month. Battery peak-shaving directly attacks this line.

Density Bonusing

Additional buildable floor area or height that a municipality grants to developers in exchange for meeting higher performance standards.

Toronto Green Standard Tier 2/3/4 developers can get density bonuses worth significant $/m² of additional buildable area. On a downtown Toronto MURB, density bonusing can more than pay for the BIPV + envelope + mechanical premium required to hit the tier.

See also:tgs

Federal Clean Tech ITC

also: itc · clean technology itc · cti

The federal Clean Technology Investment Tax Credit — up to 30% refundable on eligible commercial clean-technology property, including solar, BIPV, thermal, and battery paired with solar.

For a taxable Canadian-controlled corporation, applies to ~90% of installed cost as ITC-eligible property under CRA Class 43.1. Labour requirements apply for the maximum credit rate. Refundable means you get cash back even if you have no tax liability. The single biggest incentive on most Canadian commercial solar / BIPV / thermal / battery projects.

See also:class 43 1cca

GHGi

Greenhouse Gas Intensity — kg CO₂e per m² per year, the emissions equivalent of a building's operational energy use.

Reflects both energy consumption AND the fuel mix producing that energy. A high-TEUI building on hydroelectric grid (Quebec, BC, Manitoba) may have LOWER GHGi than a low-TEUI building on natural-gas-heavy grid (Alberta, some SK). Toronto Green Standard uses GHGi targets alongside TEDI + TEUI.

See also:teuitgs

Net Metering

A utility program that credits solar customers for the electricity they export to the grid — usually at retail or near-retail rate.

The meter runs backward when your solar generates more than you use. Most Canadian provinces offer some form of net metering, but rates and rules vary: BC Hydro Enhanced Net Metering (10¢/kWh export as of April 2026), Ontario IESO / LDC net metering (retail-rate offset), Hydro-Québec net metering, Alberta Solar Club (time-varying market rates up to 30¢/kWh in peak periods).

Passive House

A rigorous international certification for ultra-low-energy buildings — typically requiring 80-90% less heating energy than a conventional building.

Requires super-insulated envelope, airtight construction, heat-recovery ventilation, high-performance windows. Passive House buildings are the practical near-Zero-Emissions Buildings target for Vancouver + several other Canadian jurisdictions. Solar + BIPV close the final gap to full net-zero energy operation.

Save on Energy

Ontario's IESO-run energy efficiency + retrofit incentive program — funds commercial solar + battery + envelope + mechanical upgrades.

Prescriptive + custom incentive streams for commercial, industrial, institutional, MURB, and agricultural customers. Stacks with the federal Clean Tech ITC. Application windows change; verify current program status with Save on Energy before pricing.

TEDI

also: thermal energy demand intensity

Thermal Energy Demand Intensity — a building's heating energy use per m² per year, measured in kWh/m²/yr.

The lower the TEDI, the less heating energy the building needs. Toronto Green Standard, BC Energy Step Code, and Vancouver ZEBP all use TEDI targets. Solar PV doesn't directly reduce TEDI (that's an envelope + mechanical metric), but solar thermal, PVT, and building-integrated solar can contribute.

TEUI

also: total energy use intensity

Total Energy Use Intensity — a building's TOTAL energy use per m² per year, measured in kWh/m²/yr.

Includes heating, cooling, hot water, lighting, plug loads — everything the building consumes. On-site solar and BIPV directly reduce TEUI by generating electricity that offsets consumption. Toronto Green Standard, BC Energy Step Code, and other performance standards use TEUI targets.

TGS

also: toronto green standard

Toronto Green Standard — Toronto's tiered green building performance program.

Tier 1 is mandatory for every new development application. Tiers 2, 3, 4 are voluntary but come with density bonusing and expedited approvals. Tier 2+ often requires on-site renewables (rooftop PV, BIPV) to hit the TEDI / TEUI / GHGi targets that envelope + mechanical alone can't reach.

ZEBP

also: zero emissions buildings plan

Vancouver's Zero Emissions Buildings Plan — adopted 2016, targeting zero operational emissions in all new construction by 2030.

Implemented through the Vancouver Building By-Law + the BC Energy Step Code. Doesn't mandate solar directly, but Step 4+ envelope + heat-pump requirements + GHG intensity targets increasingly need on-site renewables to reach economically.

Business & Contracting

4 terms

C&I

also: commercial and industrial

Commercial & Industrial — the utility rate class for larger business customers, distinct from residential.

C&I customers face demand charges + commercial rate structures that residential customers don't. That's why battery peak-shaving pencils out for C&I but generally not for residential — the demand-charge signal doesn't exist in residential rate structures.

See also:demand charge

CCA

also: capital cost allowance

Capital Cost Allowance — the depreciation rate CRA lets you claim on business assets each year.

For clean-energy equipment on Class 43.1, CCA is 50% declining-balance — much faster than most business equipment. That accelerates the tax deductions and improves after-tax return on investment. Applies AFTER the Clean Tech ITC — they stack.

Energy-as-a-Service

also: eaas

An ownership structure where the integrator (PeakPower, Enel X, etc.) owns the equipment and you pay a monthly service fee for the energy or resilience they provide.

Zero-cost-resiliency deals are the classic example: the integrator keeps 50-70% of the demand-charge savings the battery produces, and you get the resilience + a share of savings without laying out capex. Trade-off: contract lock-in, complex termination, and the integrator captures the Clean Tech ITC (you don't).

MURB

also: multi-unit residential building · multi-unit residential

Multi-Unit Residential Building — condos, apartments, purpose-built rentals. Anything with more than one residential unit under one roof.

MURBs typically have centralized hot water + common-area electricity (lobby, elevators, garage vent). Both are strong solar retrofit targets. The One Old Mill Toronto case study is a 278-unit MURB running 30 Enerworks solar thermal collectors for centralized DHW.

Grid & Utility Concepts

5 terms

Energy Arbitrage

Buying electricity when wholesale prices are low, storing it, selling it back when prices are high.

Only meaningfully valuable in provinces with hourly wholesale price variation (Ontario, Alberta). Battery projects that participate in energy arbitrage stack it alongside frequency regulation, capacity payments, and behind-the-meter peak-shaving to reach acceptable returns.

Frequency Regulation

A grid ancillary service — fast-response storage or generation that helps grid operators maintain 60 Hz frequency within tight tolerances.

Grid operators like Ontario IESO run auction markets for frequency-regulation capacity, paying providers per MW of dispatchable capacity per hour. NRStor's Minto flywheel facility provided frequency regulation for Ontario's grid. Modern battery storage can also participate, subject to market registration.

Grid-Scale Storage

Battery, flywheel, or other storage installed at utility scale — typically 1 MW+ — providing services to the electricity grid rather than a single customer.

Distinct from behind-the-meter battery storage (which serves one customer's site). Grid-scale storage participates in wholesale markets like frequency regulation, capacity, and energy arbitrage. NRStor + several Canadian developers operate grid-scale projects.

Interconnection

The utility approval + technical review needed to connect a solar + battery system to the grid.

Every grid-tied solar or battery project needs interconnection approval from the local distribution company (LDC). Timelines vary widely — 4-8 weeks for a straightforward residential system, 6-18 months for a larger commercial or grid-parallel-with-islanding install. Start the application before ordering equipment.

See also:ldc

LDC

also: local distribution company

Local Distribution Company — the utility that operates the wires from the substation to your building's meter.

In Ontario there are dozens of LDCs (Toronto Hydro, Alectra, Hydro Ottawa, etc.). In BC most customers are served by BC Hydro. In Alberta there are multiple LDCs (ENMAX, EPCOR, ATCO Electric). Interconnection approvals go through your LDC, not the provincial utility as a whole.

Missing a term? Send it our way at editorial@solarquotes.ca and we'll add it. This page is updated as our content covers new technologies and programs.

Editorial note: definitions reflect Canadian solar + clean-energy usage as of September 13, 2026. Regulatory terms in particular change over time — verify current program status with the issuing agency before financial decisions.

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