In this final video in the 6-part series on why nonprofits and their installers go solar with CollectiveSun, Nicole Withrow of CollectiveSun and Kerim Baran of SolarAcademy talk about the ins and outs of the CollectiveSun production guarantee and how it helps to ensure that the nonprofit gets maximum value. The video is below.
Here is the transcript of the video:
Kerim Baran of SolarAcademy: Does the question of guaranteeing a certain amount of production come into play at any time in the process?
Nicole Withrow of CollectiveSun: It does. It does. So we actually have a production guarantee that is set at 85% of the lowest value PV watts. So we have one true-up, it’s based on the accumulated production of the system and those first six years.
So at the end of the sixth year, there’s a true-up. If the performance is over 85% of that lowest value PV Watts then there are no damages due. But if that system does not produce at 85% of lowest value PV watts, then the installer would be paying damages for that under production. And we can walk through that. But we do use PV watts to set that production guarantee.
Kerim: And I think 85% is a pretty fair number.
Nicole: Extremely reasonable, correct. Not not trying to be punitive towards installers, just trying to set a bar that’s consistent.
Kerim: Great. Well, thank you very much for this level of information, Nicole. I hope to dig in deeper as you guys grow and add new services and products to your offerings.
Nicole: Looking forward to that. Thank you, Kerim.