[RE-wrenches] kWh performance warranties (was volcanos)

[Joel Davidson]

kW and/or kWh performance warranties are what some customers want and are willing to pay for and what some PV companies provide successfully. Many wrenches guarantee their systems' DC and even AC nameplate rating. For several years PowerLight, now owned by SunPower, entered into kWh contracts with its customers. Their success was based on good system design, performance modeling, installation, monitoring, and service. I observed (not insider information) their systems performing 4% to 6% better than PVWatts estimates. Basically, they did what all smart contractors do: under-promise and over-deliver.

Here's the latest news about performance guarantees. See http://globalsolartechnology.com/index.php?option=com_content&task=view&id=5388&Itemid=9

Small companies can provide the same customer confidence without performance warranties. Give your prospective customer a list of satisfied customers who have been monitoring their systems. Let your customers tell your prospects that your systems deliver what you promised (estimated). Then tell your prospect that they can save money by not buying a performance warranty.

Joel Davidson
  ----- Original Message ----- 
  From: Jeff Yago 
  To: RE-wrenches 
  Sent: Monday, April 26, 2010 7:02 PM
  Subject: Re: [RE-wrenches] Volcanos, reduced solar production and kWh performance warranties


  I would never contract for a guarantee minimum performance for a very simple reason - weather!

  I think the only reasonable guarantee is to state the "nameplate" output of the array provided under test conditions, and make it clear that  air temperature, clearness factor, dust, cloud cover, and out of tolerance utility grid events will all reduce system performance from this perfect lab value.  Since you cannot control any of these affects on system performance, there has to be a reasonable expectation of system performance for you and your client. 

  Why do doctors and hospitals have you sign a disclaimer before they render service?  How about accountants, mechanics, engineers, stock brokers, and dentists,   Yes, you can sue for gross negelence, but how many will sign a statement that guarantees their work will have a specific outcome.  Odds are, the small print in the document you sign will point out that there are too many unknowns beyond their control that could reduce the hoped for outcome and if you want a guarantee, -  buy life insurance - you die - they pay -guaranteed.

  Jeff Yago



   

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