PPA Underproduction

If you have a leased solar system, PPA, or Power Purchase Agreement, you do not own the system. You are simply buying power generated from the system.

If the system breaks, your damages are the lost power production that the system would generate, generally represented by the monthly payment. The monthly payment is usually intended to represent the average power production over the entire year.

If you suspect your system is underproducing, the first step is to obtain production records from the lessor, and compare them with the promised power production contained in your contract. The difference between what was promised, and what was produced, is your damages. Most PPAs contain a production guarantee or similar provision that promises an annual or semi-annual credit for any underproduction.

If the lessor does not pay a credit, or does not repair your system in a timely manner, you may have a claim for underproduction.

Usually, underproduction claims are brought in Small Claims Court. Small Claims Court handles all claims that are less than $12,500. Attorneys are not allowed or necessary in Small Claims Court. It is inexpensive to file ($50-100), and is designed for people to sue without a lawyer. You can contact the Superior Court in the county where the transaction occurred. You can call and ask for the Small Claims Advisor, who can walk you through the process. Or, you can obtain information on the Superior Court website.

If you have an underproduction claim that exceeds the Small Claims Court limit, or if your leased system has been completely non-functional for a substantial period of time (e.g. 1 year or more), we may be able to assist. Please fill out a contact form with detailed information, including the name of the lessor, the amount of time the system has been non-functional or underproducing, and an estimate of the amount of your lost production damages.