Your Daylight Energy Subscription PPA includes a Production Guarantee based on the solar production forecast for your system.
Daylight guarantees 90% of the applicable Forecasted Production stated in your PPA.
Every three years, Daylight reviews your system’s Actual Production against its Guaranteed Production for that period.
If your system produced at least the guaranteed amount, no adjustment is necessary.
If your system produced less than the guaranteed amount, Daylight makes a payment to you for the applicable production shortfall according to the terms of your PPA.
We refer to this as your Production Guarantee Review, or three-year production true-up.
What’s the difference between Forecasted, Guaranteed, and Actual Production?
Forecasted Production is the modeled amount of electricity your system is expected to produce. It is included in your PPA and used to establish your PPA pricing.
Guaranteed Production is 90% of the applicable Forecasted Production. This is the system performance level Daylight financially guarantees.
Actual Production is the electricity your system actually produces.
Every three years, Actual Production is compared against Guaranteed Production.
Why does Daylight review production every three years?
Solar production naturally varies from year to year because of weather and other environmental conditions.
Evaluating performance over three years provides a more meaningful measure of system performance than evaluating a single month or year in isolation.