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Performance Guarantees for PPAs

Performance Guarantees for PPAs

Owned by Rafael Gonzalez
Nov 04, 2024
2 min read

Background: The purpose of this article is to keep everyone informed about PPA’s performance guarantees This article covers common questions about guaranteed output, over-generation, and credits.

This specific information is currently included in the PPA 2.0 contracts, however it applies to all PPAs

 

Overview:

Performance Guarantees are an important part of the Power Purchase Agreements (PPA’s) that we offer. These guarantees provide assurances regarding the expected energy output from the solar system over a specified period.

Guaranteed Output

  • System will generate no less than 85% of the expected energy output over a 24 month period

 

  • If the system fails to meet this guaranteed output, a Credit will be issued. However, there are specific conditions under which credits will not be provided

  • Non-Compliance with contractual obligations by the customer

  • Shading Conditions that differ from those present at the start of installation (Excluding Weather-related factors)

  • System under performance due to grid failures

  • Customer requested shutdowns or reduced energy generation

  • Damage cause by external factors (Hail, or Foreign Objects)

 

Over Generation

  • If the Solar System produces more energy than the guaranteed output during the contract term, The excess energy is retained by the customer at no additional cost

 

This over generation can be beneficial, as it can offset any future under performance in subsequent periods, helping to stabilize energy availability.

Actual Output and Credits

  • The performance guarantee includes a review process every 24 months, referred to as a "Guarantee Date" At this point, we will calculate the “Actual Output” of the system based on the energy generated over the preceding 24 months