Solar Lattice

Concept

Availability guarantee

ID
concept:availability-guarantee
IRI
https://solarlattice.org/kb/concept/availability-guarantee
Status
active
Also known as
liquidated damages, performance guarantee, Guaranteed Plant Availability, GAV, Minimum Guaranteed Availability, Minimum Guaranteed Contractual Availability
Category
Market
Concept kind
finance

An availability guarantee is a promise in an O&M contract that the PV plant will be available for at least a minimum share of the time, or of the energy it could produce. After the guaranteed performance ratio, guaranteed plant availability is the most common guarantee in solar O&M contracts, and best practice is to use both together. SolarPower Europe recommends a minimum guaranteed contractual availability of 98% over a year, measured at least at the inverter level. Where full-time staff must be on site, as in Mexico, 99% can be offered. The IEA PVPS guidance says most guidelines set guaranteed plant availability at 99% or higher, because the grid side is outside the operator's control. Contractual availability excludes downtime the O&M provider is not responsible for, such as force majeure, grid operator curtailment and grid instability. Failure time starts only when the provider receives the error message. Availability can be measured by time, using inverter data above an irradiance threshold, or by energy. The energy-based method counts the lost energy, so an outage in strong sun weighs more. If measured availability falls below the guarantee, the provider repays the lost revenue as liquidated damages. If it exceeds the guarantee, a bonus scheme splits the extra revenue between owner and provider. Yearly liquidated damages should be capped at 100% of the annual O&M fee. Reaching the cap usually gives the right to terminate the contract.

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Claims

part_of

c1 verified · fact O&M contract

The O&M service provider gives the availability guarantee as part of the O&M contract.

verified by: review-workflowverified on: 2026-10-24

related_to

c2 drafted · lead Availability

The guarantee is checked against contractual availability, which is calculated per inverter on an annual basis.

c3 drafted · lead Energy-based availability

Energy-based availability is often used in the availability guarantee chapter of an O&M contract.

c4 drafted · lead Performance ratio

Best practice is to use a guaranteed performance ratio and a guaranteed availability together in O&M contracts.

c5 drafted · lead SolarPower Europe O&M Best Practice Guidelines proposed

Section 11.5 of these guidelines covers availability guarantees.

c6 drafted · lead Sandia National Laboratories

Sandia published a best-practice report on writing availability guarantee language for PV O&M agreements.

degradation_rate

c7 drafted · lead nominal 0.5 PERCENT-PER-YR

Conditions: Assumed module degradation from the previous year in an example table of expected performance ratio and availability for a commercial system performance guarantee

Data