A "source cache" in Pacman is basically a URL or location in your file system containing Pacman source code (files ending in ".pacman"). A typical example is the BU cache. If you do
% pacman -registryYou will see that the symbolic name BU is mapped to a URL and you'll see information about who manages this cache. If you open this URL in your web browser, you'll see that it's just a directory tree containing Pacman source code files.
The main difference in source caches in Pacman 3 are: