Glossary

Energy Glossary

Clear, practical definitions of the terms energy managers and engineers deal with every day.

Active Energy

The energy that does real work, billed in kWh, forming the main line item of consumption.

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AMR (Automatic Meter Reading)

Infrastructure that collects electricity meter data remotely and automatically and transfers it to a central system.

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Capacitive Reactive Power

Reactive power pushed back to the grid by capacitor and cable capacitance, which can cause a capacitive penalty at low load.

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Capacitor Bank Panel

The panel housing stepped capacitor groups and a reactive relay to supply reactive power.

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Capacitor Step

A capacitor group in a compensation panel that can be switched in and out independently.

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Demand (Peak Power)

The average maximum power draw over a set interval; penalized if the contracted power is exceeded.

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Harmonics

Distorting components at multiples of the fundamental frequency that make grid voltage and current deviate from the ideal sine wave.

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Inductive Reactive Power

The non-working power component drawn from the grid by magnetic-field loads such as motors, transformers and coils.

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Loss and Theft

The gap between energy delivered to the grid and energy billed, arising from technical losses and unauthorized use.

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Peak Hours

The evening time band when electricity is most expensive and demand peaks (usually 5–10 PM).

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Performance Ratio (PR)

The ratio of a solar plant's actual production to its theoretical ideal production; the key indicator of efficiency.

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Power Factor (cosφ)

The ratio of active power to apparent power; it shows how efficiently electrical energy is used.

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Power Factor Correction (Compensation)

Supplying reactive power locally with a capacitor bank to raise the power factor and avoid reactive penalties.

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Reactive Power

The non-working power component drawn from the grid so inductive/capacitive loads can operate.

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Reactive Power Penalty

A charge added to the bill by the distribution company when reactive energy consumption exceeds a set ratio of active energy.

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Shunt Reactor

A coil that protects capacitors from resonance in high-harmonic environments, enabling detuned compensation.

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Transformer Load

The ratio of the load a power transformer carries at a given moment to its rated capacity.

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Energy Glossary — Key Terms Explained | SolarTools