Legal Term
Production Guarantee
Legal Definition
A contractual provision in a solar panel installation agreement where the installer warrants a minimum level of electrical energy output from the system over a defined period, typically measured in kilowatt-hours (kWh), with specified remedies such as system enhancements, refunds, or free repairs if production falls below the guaranteed threshold.
In Plain English
A promise from the solar company that your panels will generate a set amount of electricity, and if they don't, the company must fix the issue or compensate you.
Example in a Contract
Installer guarantees that the solar photovoltaic system will produce an average of at least 1,500 kWh per month during the first 24 months following installation, based on historical weather data and system design specifications. If monthly production averages less than 1,500 kWh over any consecutive 12-month period, Installer shall, at its expense, either augment the system with additional panels to meet the guarantee or refund to Owner an amount equal to the value of the deficient energy at the utility's retail rate, calculated monthly.
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