Answer
Aug 11, 2020 - 01:20 PM
A power production guarantee is a statement written into the contract that specifies the minimum solar production (in kWh) expected per year for your solar system. The number will decrease slightly each year because solar panels become slightly less efficient as they age. If your solar production falls short of the amount specified in the production guarantee, the supplier will reimburse you for the production shortfall, at the rate per kWh that is written into the contract. Power production guarantees are not generally used with PPA systems because the PPA system provider is already motivated by the nature of the agreement to insure that the panels produce as much electricity as possible.
