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In this example, the cumulative production degradation over a 20-year lifetime would be 19 x 0.7% = 13.3% meaning that in Year 20, the production would be degraded by this amount on a year-to-year basis.
Production degradation impacts
Solar energy system annual production degradation affects quotes, proposals, and contracts in the following ways in Sighten:
- Annual energy production (as described above)
- Financial impacts in solver and quoting process - lower production in future years due to solar energy system degradation will affect financial model accordingly, including:
- Payments over time (e.g., future year's estimates)
- Solar bill cash flows
- Solar savings, return on investment, and payback calculations
Contractor degradation configurability
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To configure the production degradation rate for your cash purchase quotes, please contact Sighten support and submit a request. To configure the production degradation rate for solar loans and PPAs, please contact the Financier's representative and submit a request.
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Since production degradation rates are configured by financial product, a Financier can designate a fixed degradation rate for the lifetime of their financial product. The default value is set to 0.7% per year but can be revised to a different value. Please contact your Sighten Account Manager and/or submit a request to Sighten support.
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Production degradation rates are static for all years of the financial product's lifetime. That is, Year 2 degradation rate is the same as all subsequent years. |
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