When choosing a home solar company, the last thing you want is to be promised a certain level of energy production that rarely, or never, comes to fruition.
That’s why some providers and plans offer a solar production guarantee.
But what, exactly, is a production guarantee, and is having one worth it? Let’s explore.
Understanding Solar Production Guarantees
A solar production guarantee is a promise from a solar company that your solar panel system will produce a certain amount of electricity over a specified period. This guarantee ensures the system will generate the expected amount of energy, measured in kilowatt-hours (kWh), based on:
- Local weather trends
- The size of your home
- Your geographical location
- Expected sunlight exposure
- The size of your solar system
Suppose the system fails to meet the production outlined in your solar energy agreement. In that case, you’ll be reimbursed the difference between its actual production and guaranteed production.*
How Do Solar Production Guarantees Work?
Solar production guarantees vary depending on the provider. It specifies the expected energy production over a given period — such as annually. Here’s how it generally works:
- Initial assessment. The installer reviews your home’s location, roof orientation, shading and other factors to estimate the system’s potential energy production.
- Performance estimate. Based on the assessment, the installer estimates how much electricity the system should produce annually, which becomes the basis for the production guarantee.
- Monitoring and verification. Most solar production guarantees include monitoring services to track the system’s performance. This is how the solar service provider can verify whether the system meets the guaranteed production levels.
- Compensation. If the system fails to meet the guaranteed production, the solar company compensates the homeowner as outlined in their agreement.
Factors Affecting Solar Production
Several factors can influence the actual energy production of a solar system, including:
- Weather conditions. Variations in weather — like extended cloudy periods or unexpected storms — can affect solar energy output. While these are often baked into the production estimate, significant deviations can impact performance.
- Shading. Changes in shading, such as tree growth or new construction nearby, can reduce the amount of sunlight reaching the panels, lowering energy production.
- System maintenance. Occasional maintenance may be needed for optimal performance. Dirty panels, damaged components or system malfunctions can hinder energy production.
- Degradation. Over time, solar panels naturally degrade and lose efficiency. This is almost always baked into the production estimate, however.
Is a Solar Production Guarantee Worth It?
Now that you understand what a solar production guarantee is and how it works, the question remains — is it worth having one? Here are some factors that might influence your answer.
Peace of Mind
If you’re getting solar panels on your home – or combining solar with battery storage – you want to be sure your investment will yield the expected returns. A solar production guarantee can provide peace of mind that your system will perform as promised.
Financial Security
If financial predictability is a priority for you, a production guarantee can be valuable. It ensures that the anticipated energy savings will be realized and protects against unexpected utility bill increases due to system underperformance.
Quality Assurance
Companies offering solar production guarantees have high confidence in the quality and durability of their panels, which can translate to better performance and reliability for you.
Considerations Before Opting for a Guarantee
While there are clear benefits, it’s essential to consider a few factors before you opt for a company offering a solar production guarantee:
- Cost. Some companies may charge a premium for systems with production guarantees, so weigh the additional cost against the potential benefits.
- Terms & conditions. Carefully review the terms and conditions of the guarantee — understanding what constitutes underperformance and how compensation is calculated.
- Installer reputation. Choose a reputable solar service provider with a track record of fulfilling their guarantees.
- System monitoring. Be sure the system includes robust monitoring capabilities to track performance accurately. With reliable monitoring, verifying production levels and claiming compensation can be easy.
Exploring Sunnova Energy Guarantees
Sunnova commits that our customers’ systems will produce the amount of energy outlined in their agreement, or we’ll refund or credit them for the difference. We have different types of solar energy guarantees:
- Solar energy guarantee for residential loan, lease and Power Purchase Agreement (PPA) with Balance Billing
- Solar energy guarantee for a new construction home purchased via lease or cash
Article Recap
A solar production guarantee can be a valuable addition to your investment — providing peace of mind, financial security and quality assurance. It can be a worthwhile consideration if you’re looking to mitigate risks and ensure long-term value.
However, it’s essential to carefully evaluate the installer’s cost, terms and reputation before deciding. By doing so, you can make an informed choice that maximizes the benefits of your home’s solar system.
Sunnova customers can benefit from a solar production guarantee with all our solar services through our Sunnova Protect® platinum plan.
If available in your state* and with your chosen energy plan, your solar system is guaranteed to produce a set amount of energy for the lifetime of your agreement. And if your system fails to meet the mark, you’ll be credited the difference annually.
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