Production degradation 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.   

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How production degradation works in Sighten

Sighten accounts for production degradation on an annual basis by applying a percentage degradation, or rate, for each year of the solar energy system's lifetime, beginning in year Year 2. No production degradation factor is applied to year 1 production estimates in Sighten.

Production degradation rates are configured by financial product, meaning that the same degradation rates applies to all solar energy systems within a financial product. The default degradation rate is set to 0.7% per year and functions as follows:

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To configure the production degradation rate for your cash purchase quotes at your company, please contact Sighten support at support@sighten.io and submit a request. To configure the production degradation rate for other solar financing products, 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 to revise this value.

Note that 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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