A clearer understanding.
A better business decision.

Inventory reserved for a specific buyer, project, account, sales channel, or geographic market.

Why it matters
Allocated inventory may appear available but cannot be sold to another buyer without approval.

Equipment that is currently available for purchase and is not reserved, sold, committed, or awaiting payment.

A detailed list of the equipment, components, quantities, and specifications required for a solar project.

A pricing structure in which the unit price decreases when a buyer purchases a larger quantity.

An installer, EPC, distributor, developer, reseller, contractor, business, or other organization purchasing solar equipment.

The process of reviewing a buyer's business details, purchasing authority, payment capability, certifications, or resale information.

Equipment included on an approved equipment list maintained by the California Energy Commission.

Buyers should confirm the specific equipment model and the current eligibility requirements for their project, since list status and program rules can change.

A document confirming that a product meets stated specifications, standards, or contractual requirements.

A document showing the seller, buyer, product description, quantity, price, payment terms, and shipment information.

The number of units, pallets, or total wattage that can be loaded into a standard shipping container.

A shipment large enough to fill or substantially use a shipping container.

The equipment price divided by its rated wattage.

Example
A 500-watt solar panel priced at $125 has a cost of $0.25 per watt.

The payment period and conditions offered to a qualified buyer. Common examples include Net 15, Net 30, and Net 60.

A technical document containing product specifications, electrical ratings, dimensions, certifications, operating conditions, and performance data.

The expected date or time range during which an order will be delivered.

An initial payment required to reserve inventory or begin processing an order.

A business that purchases equipment from manufacturers or suppliers and resells it to installers, EPCs, retailers, or other buyers.

The portion of a project or product that satisfies applicable U.S. domestic manufacturing or sourcing requirements.

Eligibility can depend on current tax, legal, project, and documentation requirements. Requirements may change and should be independently verified with qualified advisors.

A fulfillment method in which the seller ships equipment directly to the buyer or project site without the listing party physically handling the inventory.

A company responsible for designing, sourcing, and building a solar project.

Engineering, Procurement and Construction

The stated physical and commercial condition of equipment.

Common conditions include: New, Unused, Factory sealed, Open box, Surplus, Refurbished, Used, and B-grade.

Equipment a seller no longer needs because of project changes, forecasting differences, canceled orders, model transitions, or over-purchasing.

Warranty coverage provided directly by the equipment manufacturer, subject to the manufacturer's terms and eligibility requirements.

Equipment represented as meeting applicable Foreign Entity of Concern requirements.

Foreign Entity of Concern

Compliance depends on current law, project structure, manufacturer documentation, component sourcing, and applicable tax-credit rules. Buyers should perform their own legal, tax, and compliance review.

A sale that cannot be returned or canceled after purchase, except where required by contract or law.

A price the seller is not currently offering for negotiation.

The transportation cost associated with moving equipment from the shipping location to the delivery destination.

A shipping classification used for certain less-than-truckload shipments based on density, handling, stowability, and liability.

A shipment using an entire container for one buyer or shipment.

A shipment that uses most or all of a truck trailer.

Authentic equipment sold outside the manufacturer's authorized distribution channel.

Warranty coverage, software access, commissioning support, and manufacturer service may differ for equipment sold outside authorized channels.

Inventory physically available at the stated warehouse or shipping location.

The total cost of purchasing and receiving equipment.

It may include: product price, freight, insurance, duties, taxes, port fees, customs fees, handling, and last-mile delivery.

The expected amount of time between order confirmation and shipment or delivery.

A bank-backed payment instrument used to reduce payment risk in certain commercial or international transactions.

A shipment that shares container space with goods from other shippers.

A freight shipment that does not require a full trailer.

A product or inventory offer published by a seller for buyers to review and purchase.

A specified group of equipment offered together under one listing, price, or transaction.

The company that produces or brands the solar equipment.

Confirmation that a seller or distributor is authorized to sell products from a manufacturer.

The price a manufacturer recommends for retail sale.

The lowest price an authorized seller may publicly advertise under a manufacturer's policy.

The smallest quantity a seller will accept for an order.

Examples include one unit, one pallet, one container, 500 kW, or 1 MW.

The unique product identifier assigned by the manufacturer.

The rated output or capacity listed by the manufacturer.

Examples include a 450 W solar panel, a 10 kW inverter, or a 15 kWh battery.

Unused equipment manufactured in an earlier production period or belonging to a discontinued model generation.

A company that manufactures products or components that may be sold under its own brand or another company's brand.

A shipping document showing the contents, quantities, packaging, dimensions, and weights included in a shipment.

The number of units packaged on one pallet.

The agreed conditions governing when, how, and in what form payment must be made.

The price assigned to one panel, inverter, battery, charger, accessory, pallet, or other defined unit.

The purchase price divided by the total rated wattage.

A preliminary invoice provided before the final commercial invoice.

It commonly includes product, quantity, pricing, freight, payment terms, delivery terms, and offer validity.

Documentation showing that a buyer has sufficient funds or financing to complete a transaction.

A formal document issued by the buyer confirming the products, quantities, prices, delivery requirements, and purchasing terms.

Inventory that has been prepared and can be released for shipping once payment, documentation, and freight arrangements are completed.

A company that purchases equipment for resale to another buyer rather than for direct project installation.

A manufacturer, distributor, supplier, reseller, contractor, asset owner, or other organization offering solar equipment for sale.

The process of reviewing a seller's identity, business information, inventory ownership, product documentation, and transaction history.

A unique identifier assigned to an individual piece of equipment.

The warehouse, city, state, port, country, or other location from which the equipment will ship.

Equipment available for immediate or near-term purchase outside a long-term supply agreement.

A unique internal identifier used to manage a specific product, model, configuration, or variation.

A company or individual that provides equipment to a buyer, distributor, seller, contractor, or project.

A contract defining the terms under which a supplier will provide equipment over a specified period.

Unused equipment that is no longer required by the original buyer, installer, EPC, distributor, or project owner.

A commonly used commercial classification associated with manufacturer bankability and project financing history.

Tier 1 is not a universal product quality certification and may vary by the organization producing the ranking. It should not be treated as a guarantee of product quality.

The point at which legal ownership of the equipment passes from the seller to the buyer.

An arrangement allowing an approved buyer to receive goods and pay at a later date.

The price of one defined unit of equipment.

Authorization allowing inventory to leave the warehouse after required payment, documentation, and shipping conditions have been satisfied.

Whether warranty rights can move from the original purchaser to a subsequent owner.

The rated power output of a solar panel or other electrical device.

The sale of equipment in commercial quantities, typically to installers, EPCs, distributors, developers, resellers, or other businesses.

A notification sent by the seller before a shipment arrives, listing its contents, quantities, and expected delivery details.

An order for equipment that is temporarily out of stock and will be fulfilled once inventory becomes available.

A transport document issued by a carrier that acknowledges receipt of cargo and serves as a shipment contract and title document.

A payment arrangement in which the buyer pays for equipment at the time of delivery rather than in advance.

A deduction or reversal applied against a seller, often for issues such as noncompliance, shortages, damaged goods, or payment disputes.

An arrangement in which a seller places equipment with a buyer or partner who pays only after the equipment is sold or used.

The direct cost of the equipment a business sells, used to calculate gross margin.

A reduction offered when a buyer pays an invoice before its standard due date.

Example
A 2% discount when an invoice is paid within 10 days on Net 30 terms.

The expected date or time a shipment is projected to reach its destination.

An arrangement granting one party sole rights to sell, distribute, or represent a product within a defined territory, channel, or market.

The party responsible for sending equipment from one country to a buyer or destination in another country.

The percentage of an order a seller ships complete from available stock, without shortages or backorders.

The difference between the selling price and the cost of goods sold, usually expressed as a percentage of the selling price.

The party responsible for bringing equipment into a country, including customs clearance and applicable duties.

Import duties, tariffs, and clearance requirements can change and should be independently verified for each shipment.

A measure of how many times inventory is sold and replaced over a period, indicating how quickly stock moves.

An approach in which equipment is ordered to arrive close to when it is needed, reducing the amount of stock held.

The amount added to the cost of equipment to set its selling price, often expressed as a percentage of cost.

An order placed for equipment before it is available or in stock, often to reserve future supply.

A published schedule of prices for a seller's products, sometimes varying by quantity, customer tier, or region.

Documentation allowing a qualified buyer to purchase equipment for resale without paying sales tax at the point of purchase.

Resale and tax-exemption rules vary by jurisdiction and change over time. Buyers should confirm current requirements with a qualified tax advisor.

An approval issued by a seller that authorizes a buyer to return equipment, usually with a tracking number and instructions.

A person who sells equipment on behalf of a manufacturer, distributor, or seller, often managing accounts within a territory.

A tax applied to certain sales, which may or may not apply to a wholesale or resale transaction.

Sales-tax treatment depends on jurisdiction, buyer status, and current law, and should be confirmed with a qualified tax advisor.

Individual units of equipment provided for evaluation, testing, or verification before a larger order.

A recurring order placed on a fixed schedule or trigger so equipment is delivered automatically over time.

A standardized barcode used to identify a product for scanning, tracking, and inventory management.

A consumption tax applied at stages of production and distribution, common in international transactions.

VAT rules and rates vary by country and change over time, and should be confirmed with a qualified tax advisor.

A company or individual that sells equipment to a buyer, often used interchangeably with supplier or seller.

A set of requirements a buyer expects a seller to meet, covering areas such as labeling, packaging, documentation, and delivery.

The seller makes the goods available at its warehouse, factory, or other named location. The buyer is responsible for loading, transportation, export arrangements, import arrangements, and most related risks and costs.

Ex Works

Transport mode
Any mode of transport

Seller responsibilities
Make goods available at the named location

Buyer responsibilities
Loading · Transportation · Export clearance · Import clearance · Most risks and costs

Risk transfer
When goods are placed at the buyer's disposal at the seller's location

Example
Solar modules are made available at the seller's warehouse, and the buyer arranges pickup and all transportation.

Common misunderstanding: EXW places nearly all responsibility on the buyer, including loading and export clearance, which buyers sometimes assume the seller handles.

The seller delivers the goods to the carrier or location named by the buyer and completes export clearance when applicable.

Free Carrier

Transport mode
Any mode of transport

Seller responsibilities
Deliver to the named carrier or place · Export clearance when applicable

Buyer responsibilities
Main carriage · Insurance · Import clearance

Risk transfer
When goods are delivered to the buyer's nominated carrier or place

Example
The seller loads pallets onto the buyer's nominated truck at a named warehouse.

Common misunderstanding: the exact point of delivery, and who loads, depends on the named place, so it should be stated precisely in the contract.

The seller delivers the goods alongside the nominated vessel at the named port of shipment. The buyer assumes responsibility from that point.

Free Alongside Ship

This term is generally intended for sea or inland waterway transport.

Transport mode
Sea or inland waterway

Seller responsibilities
Deliver goods alongside the vessel · Export clearance

Buyer responsibilities
Loading on board · Main carriage · Insurance · Import clearance

Risk transfer
When goods are placed alongside the vessel at the port of shipment

Common misunderstanding: FAS is intended for sea or inland waterway transport and is not suited to containerized cargo handed over at a terminal.

The seller delivers the goods on board the nominated vessel at the named port of shipment. Risk transfers when the goods are on board.

Free On Board

This term is intended for sea or inland waterway transport and may not be appropriate for containerized shipments delivered to a terminal before loading.

Transport mode
Sea or inland waterway

Seller responsibilities
Deliver goods on board the vessel · Export clearance

Buyer responsibilities
Main carriage · Insurance · Import clearance

Risk transfer
When goods are on board the vessel at the port of shipment

Common misunderstanding: for containerized cargo delivered to a terminal before loading, FCA is often more appropriate than FOB.

The seller pays the cost and freight required to transport the goods to the named destination port. Risk transfers when the goods are loaded on board the vessel at the shipment port.

Cost and Freight

Transport mode
Sea or inland waterway

Seller responsibilities
Cost and freight to the destination port · Export clearance

Buyer responsibilities
Insurance · Import clearance · Onward transport from the destination port

Risk transfer
When goods are loaded on board at the shipment port

Common misunderstanding: the seller pays freight to the destination port, but risk still passes at the shipment port, so cost and risk transfer at different points.

The seller pays for transportation and specified minimum insurance coverage to the named destination port. Risk transfers when the goods are loaded on board at the shipment port.

Cost, Insurance and Freight

Transport mode
Sea or inland waterway

Seller responsibilities
Freight to the destination port · Minimum insurance coverage · Export clearance

Buyer responsibilities
Import clearance · Onward transport from the destination port

Risk transfer
When goods are loaded on board at the shipment port

Common misunderstanding: the insurance the seller must provide is only a specified minimum, so buyers may want additional coverage.

The seller pays transportation costs to the named destination. Risk transfers when the goods are handed to the first carrier.

Carriage Paid To

Transport mode
Any mode of transport

Seller responsibilities
Carriage to the named destination · Export clearance

Buyer responsibilities
Insurance · Import clearance · Unloading at destination

Risk transfer
When goods are handed to the first carrier

Common misunderstanding: risk passes at the first carrier, not at the destination, even though the seller pays carriage all the way to the destination.

The seller pays transportation and insurance to the named destination. Risk transfers when the goods are handed to the first carrier.

Carriage and Insurance Paid To

Transport mode
Any mode of transport

Seller responsibilities
Carriage to the named destination · Insurance to the named destination · Export clearance

Buyer responsibilities
Import clearance · Unloading at destination

Risk transfer
When goods are handed to the first carrier

Common misunderstanding: as with CPT, risk passes at the first carrier even though carriage and insurance are paid to the destination.

The seller delivers the goods to the named destination ready for unloading. The buyer is responsible for unloading and import clearance.

Delivered at Place

Transport mode
Any mode of transport

Seller responsibilities
Deliver to the named destination · Export clearance · Transport to destination

Buyer responsibilities
Unloading · Import clearance · Duties and taxes

Risk transfer
When goods are ready for unloading at the named destination

Example
The seller arranges delivery of solar panels to a project site, but the buyer unloads the truck.

Common misunderstanding: the buyer is responsible for unloading and for import clearance, duties, and taxes under DAP.

The seller delivers and unloads the goods at the named destination. The buyer handles import clearance when applicable.

Delivered at Place Unloaded

Transport mode
Any mode of transport

Seller responsibilities
Deliver to the named destination · Unload the goods · Export clearance · Transport to destination

Buyer responsibilities
Import clearance · Duties and taxes

Risk transfer
When goods are unloaded at the named destination

Common misunderstanding: DPU is the only Incoterm that requires the seller to unload the goods at the destination.

The seller is responsible for delivering the goods to the named destination, including transportation, export clearance, import clearance, duties, and applicable taxes, except where local rules prevent the seller from handling certain obligations.

Delivered Duty Paid

Transport mode
Any mode of transport

Seller responsibilities
Transport to destination · Export clearance · Import clearance · Duties and applicable taxes

Buyer responsibilities
Unloading, unless otherwise agreed · Receiving the goods

Risk transfer
When goods are ready for unloading at the named destination

Example
The seller delivers equipment to the buyer's warehouse with import duties and customs handling included.

Common misunderstanding: DDP places the maximum obligation on the seller, and some import obligations cannot legally be handled by a foreign seller in certain countries.

The price initially requested by the seller.

The buyer's or seller's final proposed terms before a decision is made.

A revised proposal made in response to an original offer.

The date or time after which an offer, quote, or negotiated price is no longer valid.

A reduction from the original listed or quoted price.

Discounts may be based on quantity, payment speed, repeat business, pickup arrangements, inventory age, bundle size, or delivery flexibility.

A contract term allowing pricing to change when specified costs or market conditions change.

Examples include freight, raw materials, tariffs, duties, and currency exchange rates.

Tariff, duty, and tax conditions referenced by an escalation clause can change and should be independently verified.

An offer that remains open under stated conditions until its expiration date.

A pricing term indicating that transportation is included in the quoted amount.

The quote should clearly identify the delivery location and any exclusions so both parties know what freight is covered.

A transaction in which the buyer and seller may negotiate who arranges freight, selects the carrier, pays transportation costs, or manages delivery.

The amount of time inventory will be reserved while the buyer completes payment, documentation, credit approval, or internal authorization.

The buyer's contractual right to inspect equipment or supporting documentation before acceptance.

A listed or quoted price that may be adjusted through discussion between the buyer and seller.

A preliminary price estimate that may change until the parties sign an agreement or issue an accepted purchase order.

A proposed price and set of commercial terms presented by a buyer or seller.

The period during which a quote or offer remains available for acceptance.

An arrangement allowing an order to be delivered in more than one shipment.

The timing and percentage of payments required during the transaction.

Example
20% deposit, 60% before shipment, and 20% after delivery.

An agreement by a seller to meet or improve a competing verified offer.

A lower unit price applied when the purchase reaches a specified volume.

A payment used to hold inventory for a defined period.

The negotiated conditions under which goods may be returned.

Return terms commonly cover eligible conditions, time limits, restocking fees, freight responsibility, inspection requirements, and exclusions.

A delivery arrangement in which different portions of an order are delivered to different destinations or on different dates.

The price a buyer is seeking to achieve during negotiation.

An agreement by the buyer to purchase a specified quantity over a defined period.

A price reduction provided for purchasing a larger quantity.

The negotiated or confirmed conditions governing warranty coverage.

Warranty terms commonly cover warranty duration, covered defects, labor coverage, shipping responsibility, transferability, manufacturer support, and seller-provided support.

A bank-to-bank payment method commonly used in wholesale transactions.

Payment instructions should be independently verified before funds are sent, since wire fraud and altered banking details are a known risk.