We asked our experts to help define these top energy-related terms

Technology is advancing at a rapid rate with some of the fastest growing segments being the renewable energy and cleantech markets. There are plenty of factors spurring this on from a concerning increase of extreme weather events due to climate change, to the decreasing cost of many of these technologies—including solar panels and solar batteries. The International Energy Agency recently reported that the prices of home batteries have fallen by more than a whopping 90% since 2010. As the adoption of cleantech continues to rise, understanding the inner workings of this ever-changing landscape can be challenging. This is especially true for newer devices on the market like energy management systems and smart panels. 

We consulted some of the electrical and engineering experts on team Lumin to help us identify routinely used industry terms and explain them. This short guide should help you determine what technologies are a great fit for your smart home and even distinguish between similar products from various brands.  

Defining the differences between energy, power and electricity  

Let’s get started with the basics. The terms energy, power and electricity float around the Internet often, especially when researching renewable energy options. Sometimes these words are used interchangeably but they each have a unique job. Here’s what we mean:  

Energy- The capacity to do work, measured in kilowatt-hours (kWh). It represents the total amount of electricity consumed over time.   

Power- The energy consumption or production rate measured in kilowatts (kW). It represents the instantaneous electricity demand.  

Electricity- The flow of electrical power or charge. It is the medium through which energy is transferred and measured in terms of both power and energy.   

Understanding energy efficiency, energy-efficient, energy savings and energy management  

Now that we’ve better defined the differences between energy, power and electricity, let’s dive more into frequently used energy-related terms. Seeing as energy is a hot topic these days, you have probably seen the word connected to multiple concepts, including efficiency. Let’s take a closer look at some of these key phrases.    

Energy efficiency- The ability to use less energy to perform the same task or produce the same outcome. It focuses on reducing energy waste and optimizing performance.  

Energy-efficient- A device that uses less energy than standard appliances while providing the same service. Examples include energy-efficient refrigerators, washing machines and lighting. These appliances contribute to overall energy efficiency in a home.  

Energy management- A strategic approach to monitoring, controlling and conserving energy in a building or facility. It involves using tools and systems to optimize energy use and improve efficiency.  

Comparing utility-scale energy storage with residential energy storage  

Energy storage is playing a major role in reducing our reliance on fossil fuels. But, there are different types of energy storage and each helps out our environment in its own way. Here are two of the most common types of energy storage you’ll run into.   

Utility-scale energy storage- Large-scale systems store energy for the grid, balancing supply, integrating renewables and offering backup power. Technologies include batteries, pumped hydro and compressed air.  

Residential energy storage- Smaller-scale systems in homes that store solar or other energy to provide backup power for a handful of selected loads. Common terms include battery backup, home backup, battery storage and residential energy storage.   

Getting familiar with important home electrical components  

If you’re a homeowner, some of the terms on this next list of definitions may sound familiar. But unless you’re an electrician, installer or in a similar profession, you may not fully understand their differences. Luckily, we’ve got you covered. Let’s get to know a little more about your main service panel. 

Service panel- The public may use this term interchangeably with “electrical panel,” but it refers specifically to the panel that contains the point at which the grounded conductor is bonded to the grounding conductor.  

Subpanel- A secondary panel that distributes power from the main panel to specific areas or circuits in a building. It helps manage and organize electrical distribution. The Lumin Smart Panel is not a subpanel. 

Electrical panel- A general term for a panel that distributes electricity to various circuits. It can refer to the main distribution panel or any subpanel within the system.  

Load center- Often used interchangeably with distribution panel or electrical panel, focusing on the distribution and protection of electrical circuits.  

Breaker box- Another term for the electrical panel, emphasizing its role in housing circuit breakers.  

Backup (backed-up) loads panel- A panel dedicated to essential circuits that receive power from a backup source, like a generator or battery system, during an outage. Since this panel is always energized, it ensures important loads remain powered when the main power supply fails. Depending on how a backup system is designed, the main distribution panel may be a backed-up loads panel (whole-home backup) or a subset of loads may be clustered onto a backed-up loads subpanel (partial-home backup).    

Congrats! You’ve made it through the entire list. We hope you walk away from this guide learning something new.