®Advanced Shipping Notice
A notification sent by the seller before a shipment arrives, listing its contents, quantities, and expected delivery details.
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The solar trade, defined.
Wholesale, Incoterms and negotiable phrases in plain English. Search 142 terms or browse by category.
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142 terms found
A
4 TERMSAllocation
Inventory reserved for a specific buyer, project, account, sales channel, or geographic market.
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Why it mattersAllocated inventory may appear available but cannot be sold to another buyer without approval.
Asking Price
The price initially requested by the seller.
Available Inventory
Equipment that is currently available for purchase and is not reserved, sold, committed, or awaiting payment.
B
7 TERMSBackorder
An order for equipment that is temporarily out of stock and will be fulfilled once inventory becomes available.
Best and Final Offer
The buyer's or seller's final proposed terms before a decision is made.
Bill of Lading
A transport document issued by a carrier that acknowledges receipt of cargo and serves as a shipment contract and title document.
Bill of Materials
A detailed list of the equipment, components, quantities, and specifications required for a solar project.
Bulk Pricing
A pricing structure in which the unit price decreases when a buyer purchases a larger quantity.
Buyer
An installer, EPC, distributor, developer, reseller, contractor, business, or other organization purchasing solar equipment.
Buyer Verification
The process of reviewing a buyer's business details, purchasing authority, payment capability, certifications, or resale information.
C
16 TERMSCash on Delivery
A payment arrangement in which the buyer pays for equipment at the time of delivery rather than in advance.
CEC Listed
Equipment included on an approved equipment list maintained by the California Energy Commission.
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Buyers should confirm the specific equipment model and the current eligibility requirements for their project, since list status and program rules can change.
Certificate of Conformance
A document confirming that a product meets stated specifications, standards, or contractual requirements.
CFRCost and Freight
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.
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Transport modeSea or inland waterway
Seller responsibilitiesCost and freight to the destination port · Export clearance
Buyer responsibilitiesInsurance · Import clearance · Onward transport from the destination port
Risk transferWhen 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.
Chargeback
A deduction or reversal applied against a seller, often for issues such as noncompliance, shortages, damaged goods, or payment disputes.
CIFCost, Insurance and Freight
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.
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Transport modeSea or inland waterway
Seller responsibilitiesFreight to the destination port · Minimum insurance coverage · Export clearance
Buyer responsibilitiesImport clearance · Onward transport from the destination port
Risk transferWhen 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.
CIPCarriage and Insurance Paid To
The seller pays transportation and insurance to the named destination. Risk transfers when the goods are handed to the first carrier.
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Transport modeAny mode of transport
Seller responsibilitiesCarriage to the named destination · Insurance to the named destination · Export clearance
Buyer responsibilitiesImport clearance · Unloading at destination
Risk transferWhen 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.
Commercial Invoice
A document showing the seller, buyer, product description, quantity, price, payment terms, and shipment information.
Consignment
An arrangement in which a seller places equipment with a buyer or partner who pays only after the equipment is sold or used.
Container Load
A shipment large enough to fill or substantially use a shipping container.
Container Quantity
The number of units, pallets, or total wattage that can be loaded into a standard shipping container.
Cost of Goods Sold
The direct cost of the equipment a business sells, used to calculate gross margin.
Cost per Watt
The equipment price divided by its rated wattage.
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ExampleA 500-watt solar panel priced at $125 has a cost of $0.25 per watt.
Counteroffer
A revised proposal made in response to an original offer.
CPTCarriage Paid To
The seller pays transportation costs to the named destination. Risk transfers when the goods are handed to the first carrier.
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Transport modeAny mode of transport
Seller responsibilitiesCarriage to the named destination · Export clearance
Buyer responsibilitiesInsurance · Import clearance · Unloading at destination
Risk transferWhen 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.
Credit Terms
The payment period and conditions offered to a qualified buyer. Common examples include Net 15, Net 30, and Net 60.
D
11 TERMSDAPDelivered at Place
The seller delivers the goods to the named destination ready for unloading. The buyer is responsible for unloading and import clearance.
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Transport modeAny mode of transport
Seller responsibilitiesDeliver to the named destination · Export clearance · Transport to destination
Buyer responsibilitiesUnloading · Import clearance · Duties and taxes
Risk transferWhen goods are ready for unloading at the named destination
ExampleThe 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.
Data Sheet
A technical document containing product specifications, electrical ratings, dimensions, certifications, operating conditions, and performance data.
DDPDelivered Duty Paid
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.
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Transport modeAny mode of transport
Seller responsibilitiesTransport to destination · Export clearance · Import clearance · Duties and applicable taxes
Buyer responsibilitiesUnloading, unless otherwise agreed · Receiving the goods
Risk transferWhen goods are ready for unloading at the named destination
ExampleThe 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.
Deal Expiration
The date or time after which an offer, quote, or negotiated price is no longer valid.
Delivery Window
The expected date or time range during which an order will be delivered.
Deposit
An initial payment required to reserve inventory or begin processing an order.
Discount
A reduction from the original listed or quoted price.
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Discounts may be based on quantity, payment speed, repeat business, pickup arrangements, inventory age, bundle size, or delivery flexibility.
Distributor
A business that purchases equipment from manufacturers or suppliers and resells it to installers, EPCs, retailers, or other buyers.
Domestic Content
The portion of a project or product that satisfies applicable U.S. domestic manufacturing or sourcing requirements.
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Eligibility can depend on current tax, legal, project, and documentation requirements. Requirements may change and should be independently verified with qualified advisors.
DPUDelivered at Place Unloaded
The seller delivers and unloads the goods at the named destination. The buyer handles import clearance when applicable.
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Transport modeAny mode of transport
Seller responsibilitiesDeliver to the named destination · Unload the goods · Export clearance · Transport to destination
Buyer responsibilitiesImport clearance · Duties and taxes
Risk transferWhen 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.
Drop Shipping
A fulfillment method in which the seller ships equipment directly to the buyer or project site without the listing party physically handling the inventory.
E
9 TERMSEarly Payment Discount
A reduction offered when a buyer pays an invoice before its standard due date.
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ExampleA 2% discount when an invoice is paid within 10 days on Net 30 terms.
EPCEngineering, Procurement and Construction
A company responsible for designing, sourcing, and building a solar project.
Equipment Condition
The stated physical and commercial condition of equipment.
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Common conditions include: New, Unused, Factory sealed, Open box, Surplus, Refurbished, Used, and B-grade.
Escalation Clause
A contract term allowing pricing to change when specified costs or market conditions change.
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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.
Estimated Time of Arrival
The expected date or time a shipment is projected to reach its destination.
Excess Inventory
Equipment a seller no longer needs because of project changes, forecasting differences, canceled orders, model transitions, or over-purchasing.
Exclusivity
An arrangement granting one party sole rights to sell, distribute, or represent a product within a defined territory, channel, or market.
Exporter
The party responsible for sending equipment from one country to a buyer or destination in another country.
EXWEx Works
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.
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Transport modeAny mode of transport
Seller responsibilitiesMake goods available at the named location
Buyer responsibilitiesLoading · Transportation · Export clearance · Import clearance · Most risks and costs
Risk transferWhen goods are placed at the buyer's disposal at the seller's location
ExampleSolar 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.
F
15 TERMSFactory Warranty
Warranty coverage provided directly by the equipment manufacturer, subject to the manufacturer's terms and eligibility requirements.
FASFree Alongside Ship
The seller delivers the goods alongside the nominated vessel at the named port of shipment. The buyer assumes responsibility from that point.
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This term is generally intended for sea or inland waterway transport.
Transport modeSea or inland waterway
Seller responsibilitiesDeliver goods alongside the vessel · Export clearance
Buyer responsibilitiesLoading on board · Main carriage · Insurance · Import clearance
Risk transferWhen 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.
FCAFree Carrier
The seller delivers the goods to the carrier or location named by the buyer and completes export clearance when applicable.
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Transport modeAny mode of transport
Seller responsibilitiesDeliver to the named carrier or place · Export clearance when applicable
Buyer responsibilitiesMain carriage · Insurance · Import clearance
Risk transferWhen goods are delivered to the buyer's nominated carrier or place
ExampleThe 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.
FEOC CompliantForeign Entity of Concern
Equipment represented as meeting applicable Foreign Entity of Concern requirements.
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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.
Fill Rate
The percentage of an order a seller ships complete from available stock, without shortages or backorders.
Final Sale
A sale that cannot be returned or canceled after purchase, except where required by contract or law.
Firm Offer
An offer that remains open under stated conditions until its expiration date.
Firm Price
A price the seller is not currently offering for negotiation.
FOBFree On Board
The seller delivers the goods on board the nominated vessel at the named port of shipment. Risk transfers when the goods are on board.
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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 modeSea or inland waterway
Seller responsibilitiesDeliver goods on board the vessel · Export clearance
Buyer responsibilitiesMain carriage · Insurance · Import clearance
Risk transferWhen 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.
Freight
The transportation cost associated with moving equipment from the shipping location to the delivery destination.
Freight Class
A shipping classification used for certain less-than-truckload shipments based on density, handling, stowability, and liability.
Freight Included
A pricing term indicating that transportation is included in the quoted amount.
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The quote should clearly identify the delivery location and any exclusions so both parties know what freight is covered.
Freight Negotiable
A transaction in which the buyer and seller may negotiate who arranges freight, selects the carrier, pays transportation costs, or manages delivery.
Full Container Load
A shipment using an entire container for one buyer or shipment.
Full Truckload
A shipment that uses most or all of a truck trailer.
G
2 TERMSGray Market Equipment
Authentic equipment sold outside the manufacturer's authorized distribution channel.
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Warranty coverage, software access, commissioning support, and manufacturer service may differ for equipment sold outside authorized channels.
Gross Margin
The difference between the selling price and the cost of goods sold, usually expressed as a percentage of the selling price.
H
1 TERMHold Period
The amount of time inventory will be reserved while the buyer completes payment, documentation, credit approval, or internal authorization.
I
4 TERMSImporter
The party responsible for bringing equipment into a country, including customs clearance and applicable duties.
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Import duties, tariffs, and clearance requirements can change and should be independently verified for each shipment.
In Stock
Inventory physically available at the stated warehouse or shipping location.
Inspection Rights
The buyer's contractual right to inspect equipment or supporting documentation before acceptance.
Inventory Turnover
A measure of how many times inventory is sold and replaced over a period, indicating how quickly stock moves.
J
1 TERMJust-in-Time Inventory
An approach in which equipment is ordered to arrive close to when it is needed, reducing the amount of stock held.
L
7 TERMSLanded Cost
The total cost of purchasing and receiving equipment.
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It may include: product price, freight, insurance, duties, taxes, port fees, customs fees, handling, and last-mile delivery.
Lead Time
The expected amount of time between order confirmation and shipment or delivery.
Less Than Container Load
A shipment that shares container space with goods from other shippers.
Less Than Truckload
A freight shipment that does not require a full trailer.
Letter of Credit
A bank-backed payment instrument used to reduce payment risk in certain commercial or international transactions.
Listing
A product or inventory offer published by a seller for buyers to review and purchase.
Lot
A specified group of equipment offered together under one listing, price, or transaction.
M
7 TERMSManufacturer
The company that produces or brands the solar equipment.
Manufacturer Authorization
Confirmation that a seller or distributor is authorized to sell products from a manufacturer.
Manufacturer's Suggested Retail Price
The price a manufacturer recommends for retail sale.
Markup
The amount added to the cost of equipment to set its selling price, often expressed as a percentage of cost.
Minimum Advertised Price
The lowest price an authorized seller may publicly advertise under a manufacturer's policy.
Minimum Order Quantity
The smallest quantity a seller will accept for an order.
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Examples include one unit, one pallet, one container, 500 kW, or 1 MW.
Model Number
The unique product identifier assigned by the manufacturer.
N
4 TERMSNameplate Capacity
The rated output or capacity listed by the manufacturer.
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Examples include a 450 W solar panel, a 10 kW inverter, or a 15 kWh battery.
Negotiable Price
A listed or quoted price that may be adjusted through discussion between the buyer and seller.
New Old Stock
Unused equipment manufactured in an earlier production period or belonging to a discontinued model generation.
Non-Binding Quote
A preliminary price estimate that may change until the parties sign an agreement or issue an accepted purchase order.
O
3 TERMSOffer
A proposed price and set of commercial terms presented by a buyer or seller.
Offer Validity
The period during which a quote or offer remains available for acceptance.
Original Equipment Manufacturer
A company that manufactures products or components that may be sold under its own brand or another company's brand.
P
13 TERMSPacking List
A shipping document showing the contents, quantities, packaging, dimensions, and weights included in a shipment.
Pallet Quantity
The number of units packaged on one pallet.
Partial Shipment
An arrangement allowing an order to be delivered in more than one shipment.
Payment Schedule
The timing and percentage of payments required during the transaction.
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Example20% deposit, 60% before shipment, and 20% after delivery.
Payment Terms
The agreed conditions governing when, how, and in what form payment must be made.
Pre-Order
An order placed for equipment before it is available or in stock, often to reserve future supply.
Price List
A published schedule of prices for a seller's products, sometimes varying by quantity, customer tier, or region.
Price Match
An agreement by a seller to meet or improve a competing verified offer.
Price per Unit
The price assigned to one panel, inverter, battery, charger, accessory, pallet, or other defined unit.
Price per Watt
The purchase price divided by the total rated wattage.
Pro Forma Invoice
A preliminary invoice provided before the final commercial invoice.
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It commonly includes product, quantity, pricing, freight, payment terms, delivery terms, and offer validity.
Proof of Funds
Documentation showing that a buyer has sufficient funds or financing to complete a transaction.
Purchase Order
A formal document issued by the buyer confirming the products, quantities, prices, delivery requirements, and purchasing terms.
Q
1 TERMQuantity Break
A lower unit price applied when the purchase reaches a specified volume.
R
6 TERMSReady to Ship
Inventory that has been prepared and can be released for shipping once payment, documentation, and freight arrangements are completed.
Resale Certificate
Documentation allowing a qualified buyer to purchase equipment for resale without paying sales tax at the point of purchase.
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Resale and tax-exemption rules vary by jurisdiction and change over time. Buyers should confirm current requirements with a qualified tax advisor.
Reseller
A company that purchases equipment for resale to another buyer rather than for direct project installation.
Reservation Deposit
A payment used to hold inventory for a defined period.
Return Merchandise Authorization
An approval issued by a seller that authorizes a buyer to return equipment, usually with a tracking number and instructions.
Return Terms
The negotiated conditions under which goods may be returned.
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Return terms commonly cover eligible conditions, time limits, restocking fees, freight responsibility, inspection requirements, and exclusions.
S
14 TERMSSales Representative
A person who sells equipment on behalf of a manufacturer, distributor, or seller, often managing accounts within a territory.
Sales Tax
A tax applied to certain sales, which may or may not apply to a wholesale or resale transaction.
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Sales-tax treatment depends on jurisdiction, buyer status, and current law, and should be confirmed with a qualified tax advisor.
Samples
Individual units of equipment provided for evaluation, testing, or verification before a larger order.
Seller
A manufacturer, distributor, supplier, reseller, contractor, asset owner, or other organization offering solar equipment for sale.
Seller Verification
The process of reviewing a seller's identity, business information, inventory ownership, product documentation, and transaction history.
Serial Number
A unique identifier assigned to an individual piece of equipment.
Shipping Origin
The warehouse, city, state, port, country, or other location from which the equipment will ship.
Split Delivery
A delivery arrangement in which different portions of an order are delivered to different destinations or on different dates.
Spot Inventory
Equipment available for immediate or near-term purchase outside a long-term supply agreement.
Standing Order
A recurring order placed on a fixed schedule or trigger so equipment is delivered automatically over time.
Stock Keeping Unit
A unique internal identifier used to manage a specific product, model, configuration, or variation.
Supplier
A company or individual that provides equipment to a buyer, distributor, seller, contractor, or project.
Supply Agreement
A contract defining the terms under which a supplier will provide equipment over a specified period.
Surplus Equipment
Unused equipment that is no longer required by the original buyer, installer, EPC, distributor, or project owner.
T
4 TERMSTarget Price
The price a buyer is seeking to achieve during negotiation.
Tier 1 Solar Module Manufacturer
A commonly used commercial classification associated with manufacturer bankability and project financing history.
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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.
Title Transfer
The point at which legal ownership of the equipment passes from the seller to the buyer.
Trade Credit
An arrangement allowing an approved buyer to receive goods and pay at a later date.
U
2 TERMSUnit Price
The price of one defined unit of equipment.
Universal Product Code
A standardized barcode used to identify a product for scanning, tracking, and inventory management.
V
5 TERMSValue-Added Tax
A consumption tax applied at stages of production and distribution, common in international transactions.
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VAT rules and rates vary by country and change over time, and should be confirmed with a qualified tax advisor.
Vendor
A company or individual that sells equipment to a buyer, often used interchangeably with supplier or seller.
Vendor Compliance
A set of requirements a buyer expects a seller to meet, covering areas such as labeling, packaging, documentation, and delivery.
Volume Commitment
An agreement by the buyer to purchase a specified quantity over a defined period.
Volume Discount
A price reduction provided for purchasing a larger quantity.
W
6 TERMSWarehouse Release
Authorization allowing inventory to leave the warehouse after required payment, documentation, and shipping conditions have been satisfied.
Warranty Terms
The negotiated or confirmed conditions governing warranty coverage.
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Warranty terms commonly cover warranty duration, covered defects, labor coverage, shipping responsibility, transferability, manufacturer support, and seller-provided support.
Warranty Transferability
Whether warranty rights can move from the original purchaser to a subsequent owner.
Wattage
The rated power output of a solar panel or other electrical device.
Wholesale
The sale of equipment in commercial quantities, typically to installers, EPCs, distributors, developers, resellers, or other businesses.
Wire Transfer
A bank-to-bank payment method commonly used in wholesale transactions.
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Payment instructions should be independently verified before funds are sent, since wire fraud and altered banking details are a known risk.
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