Production degradation values account accounts for the decrease in solar energy system output over time due to factors such as solar cell degradation, increased connections and wire resistance, mechanical deformation due to weather cycling, and electrical component failure. The amount of degradation depends on the PV technology, local climate, and other application-dependent properties.
...
Solar energy system annual production degradation affects quotes, proposals, and contracts in the following ways in Sighten:
- Annual Reduces the annual estimated energy production (as described above)in future years, as displayed in Sighten proposals
- 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)
- Post-Solar Utility bill
- Future year's cash flows
- Solar savings, return on investment, and payback calculations
...
To configure the production degradation rate for your cash purchase quotes, please contact Sighten support and at support@sighten.io 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.
...
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.
| Info |
|---|
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. |
...