Jargon Busting: Your Energy Industry Glossary

By Guste Feb 08, 2019

Confused by some the terms thrown around about the energy industry? We can be too! Luckily, we’ve got this handy guide to explain some of the energy jargon.

What is a kWh vs a MWh?

The abbreviation “kWh” stands for kilowatt hours, which is one kilowatt amount of power delivered in one hour (this is what you see on your energy bill). 1 kWh = 0.001 MWh. The abbreviation “MWh” stands for megawatt hours, which is one million watts amount of power delivered in one hour (1 MWh = 1000 kWh).


This refers to the process of reducing greenhouse gas emissions produced as a result of various energy-related sectors, such as transport, residential, commercial and industrial. Greenhouse gases is one of the main contributing factors accelerating climate change.

Carbon Footprint

Your carbon footprint is the amount of carbon dioxide which is released into the atmosphere as a result of your activities. Carbon footprint is usually expressed in the equivalent tonnes of carbon dioxide (CO2). For example, an economy class, direct, return flight from London to New York is the equivalent to 0.96 tonnes of CO2. You can calculate your own carbon footprint here or learn how to reduce your carbon footprint on our blog post here.

Feed-In Tariff (FIT)

A government scheme that paid people for generating their own clean energy. Most forms of renewable energy (solar, wind, hydro, heat, etc.) were eligible to apply. Introduced in April 2010, the scheme closed to new applicants on March 31st 2019. The government is currently consulting on a proposed Smart Export Guarantee to replace the export tariff.

The Generation Tariff

The main payment that micro-generators (homeowners with solar) receive from the Feed-In Tariff, based on each kilowatt-hour produced. It is paid on the total output of your renewable energy system, regardless of whether you feed the energy back into the grid or use it yourself.

The Export Tariff

An additional payment micro-generators receive from their energy supplier for each unit of electricity that you don’t use but export back to the grid. This is applied in cases when you generate more electricity than you can use.

Smart Export Guarantee

With the end of the Feed-in Tariff on March 31st 2019, the government announced the Smart Export Guarantee, the current proposal to ensure that homeowners who generate their own energy are fairly paid by energy suppliers for any electricity that they export to the grid. There are currently very few details available about this. 

Smart Tariff

A energy pricing plan that that works in conjunction with a smart meter to supply electricity at varying prices, depending on the time of the day.

Time of Use Tariff

A tariff that charges a cheaper price for electricity at off-peak times during night or day. It is designed to incentivise users to consume more electricity during off-peak times which in turn helps the DNO’s manage energy demand.

Economy 7

A commonly referred to type of time of use tariff that offers cheaper electricity rates during the night and a more expensive one during the day.

MCS Accredited

This is an accreditation for installers which shows that they hold a nationally recognised quality assurance certificate which is required to be eligible for FIT payments.

Home Insulation & Energy Systems Scheme (HIES)

HIES is a consumer protection organisation covering the installation of renewable energy products. At Moixa we are HIES members and follow their stringent set of rules when dealing with our customers. Find out more information on their website.

Renewable Energy Association (REA)

A not-for-profit trade association representing British renewable energy producers that promotes the use of renewable energy in the UK.

Renewable Energy Consumer Code (RECC)

A scheme set up by the Renewable Energy Association (REA) to guarantee a high quality experience for consumers wishing to buy or lease small-scale energy generation systems for their homes.

DNO (Distribution Network Operator)

This is a company who is responsible for distributing electricity from the national transmission grid to your home or business and maintaining the cables, equipment and substations. If you have a power cut at home, for example, you will need to call one of the six Distribution Network Operators that operate across Great Britain, depending on which one is looking after your area.

DSO (Distribution System Operator)

A new-generation DNO that takes a more active role in managing local electricity generation and use. When the transition from DNO to DSO happens, the DSO will act as a smart platform that enables a whole range of new energy technologies, such as renewable sources, energy storage and sharing and micro-grids.

VPP (Virtual Power Plant)

A network of decentralised power-generating units, such as solar-power or battery-backed homes, wind farms and solar parks and flexible power consumers and batteries. It’s a type of smart grid that delivers surplus energy back into the grid to power other locations.

Energy aggregation

A method for communities to combine their buying power to bargain the best energy price and use one supplier for the entire group.

Energy arbitrage

This refers to the practice of purchasing energy at a particular time and place to benefit from a lower price, storing the energy during off-peak times and then selling it when demand is high for a much higher price.

Flexibility services

A new approach to energy production and consumption. It converges three trends: demand-side response (rewarding consumers for how and when they use electricity), energy storage (using batteries to store surplus energy) and distributed generation (using low-carbon electricity generated locally).

Behind-the-meter (BTM)

This is an energy storage solution that allows large businesses and whole industries to install battery storage systems on site (i.e., behind-the-meter) to lower their energy bills. That’s achieved by using batteries to store power in off-peak times and using it when the electricity is more expensive.


Another energy storage solution that utility companies use to even out their loads. It’s a win-win method that protects the consumer from price hikes and helps the supplier avoid price drops in the wholesale market.

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At Moixa we want to make energy make sense for you and get as many people as possible to join the green energy revolution. Contact one of our friendly team today to learn about how our Moixa Smart Battery and Solar can help you lower your energy bills, reduce your carbon footprint and unlock the full potential of renewable energy.

Email us on [email protected] or call our team on 0161 883 2374.

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