oProduction 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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Production degradation rates are configured by organization. Some of our integrated PPAs and leases have a specified degradation rate that superceeds supersedes the organization's degradation. The default degradation rate is set to 0.7% per year and functions as follows:
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There are 4 ways production degradation is set on the platform. The degradation can be set by: a the financier, module, organization, or Sighten default. We'll discuss them according to their level of hierarchy and how they are configured:
1 Financier degradation configurability
This is a specific degradation rate required for select integrated financing options within our portal. This will not actually modify the system production, but will be a factor in TPO products / cash flows when applicable. There is currently only one financier in our portal utilizing this functionality.
A financier can designate a fixed degradation rate for the lifetime of their financial product. If a financier has elected to configure a specific degradation rate for their product, that rate will supersede the degradation rate set by the organization. Financing product degradation rates may vary from one financial product to the next, depending on the financier's configuration. For example, the default degradation rate for cash purchase quotes is set to 0.7% per year but a financier may have set it to a different value for their solar financing product. This only impacts our integrated financing products. All other products will use the organization's degradation rate unless a module-specific degradation rate is set for the modules used.
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2 Module-specific degradation configurability
We can configure the degradation rate based on what is stated on a module's spec sheet. This is a fixed value provided by a spec sheet or a manufacturer that we have added to specific models. Thus, when this model is used on a job, degradation will use the module-specific value instead of the organization level. This is somewhat new functionality for us so we are still building out the database and your input here is very helpful.
To revise this value, please submit a request to Sighten support or your account Manager with the spec sheet where the said degradation value is indicated. Note that this configuration will override any set degradation for your organization and Sighten's default 0.7%, with the exception of financing products with a set degradation value.
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Production degradation rates can also be configured per organization. Note . This degradation will be used automatically whenever a module does not have a specific degradation. Again, it is importan to note that an organization's set degradation rate will only be applied to jobs without module or financing product-specific degradation rates.
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4 Sighten-default degradation rate
By defaultIf an organization did not set a degradation %, all degradation rates on Sighten are equal to will be 0.7% (Sighten default). This is, provided that no financier-specific, or module-specific degradation% is applicable to the job.
Production degradation impacts
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