Frequently asked questions about lease production guarantee

What is the monitoring requirement for my lease or PPA system?

In order for your system to be eligible for the Production Guarantee and to be in compliance with the lease or PPA terms, SunPower must monitor the amount of energy your system is generating. To track your system's production, your SunPower monitoring system will need to be activated and connected to the web. If your system is disconnected from the SunPower Monitoring System or a working Internet connection for a period of more than one month during the term of your lease or PPA agreement, the production guarantee will be placed on hold. When the monitoring service and your internet connection are restored, a new guarantee period will begin.

What is the production guarantee rate per kWh calculation?

The energy production guarantee kWh is based on the contract payments and the estimated production provided in your agreement. Depending on the type of agreement you have, the production guarantee rate is calculated as follows:

• Monthly Lease and PPA: Sum of the monthly payments during the guarantee period divided by the estimated production in the guarantee period = the rate per kWh.
• Prepaid Lease: Total amount prepaid divided by the expected production over the term of your agreement = the rate per kWh.
• Partial Prepaid Lease: The partial pre-payment amount divided by the expected production over the term of your agreement + the 12 monthly payments in a year divided by the expected production that year = the rate per kWh.

What is the annual estimate range?

The amount of energy a solar system is capable of producing varies by several factors: the size of the system, the roof pitch, the specific geographic location of your home, the direction the system faces and the weather. The amount will vary from year to year, just as the amount of sunlight falling on the system varies with the weather.

How does the production guarantee work?

Per the terms of your lease or PPA agreement, SunPower guarantees that your system will produce a range of kilowatt-hours (kWh) of electric energy in each guarantee period. The total kWh produced by the system in a given period is measured by the SunPower Monitoring System installed with your system. You will receive a personalized statement outlining your system's energy generation from the previous guarantee period, including any credits applicable to your account. If the system produces below your estimated range, SunPower will reimburse you after such amount is equal to or greater than $5.00 for the calculated shortfall after accounting for any unused credits remaining from previous periods. Your statement will include any energy credits being carried over to future guarantee periods. (See the Production Guarantee section of your agreement for details.)