4 Solar Contract Terms You Need to Know
Estimated Production – Your solar system is going to produce an estimated kWh for the year based on a number of factors, including the size of the system (kW), orientation, shading conditions, etc. The actual production may be slightly higher or lower than the estimated production.
Guaranteed Production – This is the amount of energy that your system is guaranteed to produce. If your system produces any less than this you will likely be eligible for compensation. This compensation is often at an agreed upon rate per kWh.
Performance Guarantee – This is a guarantee of the production of the panels from the panel manufacturer. Panels have a natural degradation over time due to light, age, etc. In perfect conditions, this is based on a percentage of the nameplate wattage rating, usually 95-97%. In real conditions, this will be based on the first year production. Starting at the second year, the warranty will decline annually by the degradation factor, usually 0.7%. If the panel does not meet this requirement, you will be eligible for either a repair/replacement of the panel or a refund of the difference between expected production and actual output.
Workmanship Warranty – This warranty is from the installer of your solar system. It can vary from installer to installer. Pick my Solar has standardized the workmanship warranty. Your workmanship warranty will cover roofing penetration, water damage, electrical work, and anything related to the installation. Warranty periods range from 10 to 25 years.
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