Performance Guarantee

1. Purpose

The purpose of this Guarantee is to validate the accuracy and quality of the system design provided to you by Xolar Inc., and not to serve as a warranty for workmanship or individual product components. If there is a problem with either the workmanship or a malfunctioning product which causes a drop in performance, those issues will be remedied via the workmanship or product manufacturer warranty. This performance guarantee is to protect the quality of your system design, assuming all products are working as intended.  Please be sure to read the full list of exclusions and user obligations below so that you understand how to operate your system in accordance with this Guarantee.

2. Guarantee And Minimum Performance Threshold

This Performance Guarantee (“Guarantee”) ensures that the photovoltaic (PV) solar energy system designed and installed by Xolar Inc. (the “Installer”) will generate not less than eighty percent (80%) of the projected energy yield (kWh/kW/year) in its first year of normal operation, based on Statistics Canada’s solar irradiance data for the geographic location where the system is installed (“Guaranteed Energy Yield”). For systems with rated power above a 1:1 DC:AC ratio, performance thresholds are adjusted per the DC:AC ratio table herein. For clarity, solar array capacity is measured in DC power, whereas inverter capacity is measured in AC power, the two together form a DC:AC power ratio.

During the first twelve (12) months of normal operation (the “Guarantee Period”), the system shall produce a total energy yield of at least:

80% of the expected annual output (kWh/kW/year) modeled using Statistics Canada irradiance data, factoring in system tilt, panel orientation, and location.

If the system’s production is measured to be below this minimum performance threshold, and none of the exclusions in Section 4 apply, Xolar Inc. will, at its sole discretion:

1. Repair, recalibrate, expand, or optimize the system design or configuration to restore performance; or
2. Exercise a one time option to extend the Guarantee period for another 12 months to validate performance metrics; or
3. Provide a one-time compensation to you. 

If Xolar Inc. opts to provide a one-time compensation, the amount will be calculated as the difference between real performance (%) and the 80% guaranteed minimum, applied as a percentage of the total system price.  

For example, if the system underperforms the Guaranteed Energy Yield by 5%, the customer will be reimbursed 5% of the system’s installed price as a one-time payment.

3. Performance Measurement

Performance evaluation shall be based on inverter-reported data verified through the system’s monitoring platform (e.g., SolarEdge, Enphase, etc.). 

Performance will be verified through:

1. Actual production data (kWh) recorded by the inverter or system monitoring portal over the first twelve months of operation;
2. Expected energy yield modeled from Statistics Canada regional solar irradiance data adjusted for local orientation and system parameters; and
3. Continuous grid connectivity and operational monitoring throughout the period.
4. Annual production is normalized to kWh per installed DC kilowatt (kWh/kW) for fair comparison across systems.

4. Exclusions and Limitations

This Guarantee applies only to the overall system design and configuration. It does not apply, and no remedy will be provided, in cases of underperformance resulting from any of the following:

1. Tree growth, shading, or environmental obstructions;
2. Customer negligence, misuse, or interference, including deactivation, power disconnection, or equipment tampering;
3. Alterations, modifications, or additions made by anyone other than Xolar Inc. or a person authorized by Xolar Inc.;
4. Failure to maintain internet connectivity or data monitoring access for the system, this guarantee is void if more than 5% of the year is unmonitored (18 days).
5. Excessive debris, dirt, or soiling on solar modules that materially reduces sunlight exposure;
6. Acts of God or force majeure, including fire, flood, hail, lightning, extreme weather, or animal damage;
7. Utility grid outages or curtailment beyond the installer’s control;
8. Product or component failures, including but not limited to panel defects, inverter failures, rapid-shutdown devices, batteries, optimizers, or balance of system components. Such failures are covered exclusively under each manufacturer’s product warranty and are not part of this performance guarantee.  If a product fails, that will be more appropriately remedied via the product warranty, not this performance warranty.
9. Installation error covered by the workmanship warranty.  If the installation is underperforming as a result of an error in workmanship, that will already be covered separately by the workmanship warranty. If the system has faulted due to workmanship, this performance guarantee will reset once the repairs are made and the system is performing normally.
10. Regulatory, governmental, or utility policy changes that affect energy export or measurement; or
11. Weather variability resulting in unusually low irradiance relative to Statistics Canada climate normals.
12. DC-to-AC Oversizing Adjustment: For systems designed with a DC-to-AC ratio greater than 1:1, the minimum Guaranteed Energy Yield threshold shall be adjusted proportionally to reflect expected inverter clipping.
    

Note: Oversizing the DC array relative to inverter’s AC capacity is an intentional design choice that improves the cost efficiency of the system and energy harvest per inverter in locations with lower sunlight-hours per day like Canada, but it results in a lower annual kWh per kW. Because this is a planned optimization and not a performance issue, expected performance needs to be adjusted for the planned clipping.  

Each 0.1 DC:AC ratio above 1:1 will have a sliding depreciation of expected kWh/kW/year, by 2%. System DC:AC ratio will round down to the nearest level.

DC : AC ratio	Guaranteed Energy Yield
Up to 1:1	80%
1.1:1	78%
1.2:1	76%
1.3:1	74%
1.4:1	72%
1.5:1	70%
1.6:1	68%
1.7:1	66%
1.8:1	64%
1.9:1	62%
2:1	60%

 

Example Calculation:

1. For the purpose of this example, let’s assume the Stats Canada expected kWh/KW/Year is  1133/kW/year for the given location.
2. Given a system that is 17 kW DC and 9.6 kW AC
   1. 17 divided by 9.6 = 1.77 DC:AC ratio, rounded down to 1.7
   2. DC:AC ratio above 1:1 will be calculated at 66% per the table
3. Calculate the protected kWh/kW/year for each kW up to 1:1 DC:AC ratio 
   1. Inverter size = 9.6 kW
   2. 9.6 kW * 1133 kWh = 10,876.8 kWh/year (per example Stats Canada data)
   3. 10,876.8 kWh * 80% minimum performance = 8,701.44 kWh guaranteed.
4. Calculate the protected kWh/kW/year for each kW beyond 1:1 DC ratio
   1. 17 kWDC – 9.6 kW = 7.4 kW
   2. 7.4 kW * 1133 kWh = 8384.2 kWh/year (per example Stats Canada data)
   3. 8384.2 kWh * 66% minimum performance = 5,533.57 kWh guaranteed
5. Calculate the combined, final protected annual guaranteed kWh
   1. Add 8701.44 kWh annually from DC capacity up to 1:1 DC:AC ratio
   2. Add 5533.57 kWh annually from DC capacity beyond 1:1 DC:AC ratio
   3. 8701.44 kWh + 5533.57 kWh = 14,235 kWh annually guaranteed.

For this example 17 kWdc system with a 9.6 kW inverter, based on an example Stats Canada geographic irradiance data of 1133 kWh/kW/ year, Xolar Inc would guarantee 14,235 kWh annually.

5. Owner Responsibilities

To remain eligible under this Guarantee, the Owner must:

1. Keep the system continuously connected to the internet and the utility grid;
2. Allow remote and on-site access for monitoring or verification by Xolar Inc.;
3. Promptly report any alerts, malfunctions, or communication loss; and
4. Avoid modifying, relocating, or disabling any part of the system or monitoring hardware.

6. Term and Expiration

This Guarantee is valid for twelve (12) months from the commissioning date and automatically expires thereafter. It is non-renewable, except if extended in writing by Xolar Inc. to resolve a verified performance shortfall.

7. Transferability

This Guarantee is non-transferable and applies only to the original property owner for the initial one-year guarantee period.

8. Disclaimer

This Guarantee covers system-level performance only. It is not a replacement or supplement to any manufacturers’ product warranty for individual components such as solar panels, inverters, batteries, optimizers, or communications devices. Actual production may vary due to uncontrollable weather and site conditions. Xolar Inc. shall not be liable for indirect, incidental, or consequential damages, including loss of income or utility credits.