Full Production Year CREF Minimum Production Requirement Sample Clauses
The Full Production Year CREF Minimum Production Requirement clause sets a baseline level of energy output that a facility must achieve over a full production year, as measured for the purposes of a Commercial Real Estate Finance (CREF) agreement. Typically, this clause specifies the minimum amount of electricity (often in kilowatt-hours) that a solar or renewable energy system must generate annually to remain in compliance with financing or lease terms. By establishing this production threshold, the clause ensures that the financed asset performs as expected, protecting lenders and investors from underperformance and helping to allocate risk between the parties.
Full Production Year CREF Minimum Production Requirement. (kWh) for each Full Production Year (i.e., January 1 – December 31) shall be determined by multiplying the Annual Expected Electricity Output by the 90% minimum level of required electricity output.
Full Production Year CREF Minimum Production Requirement. (kWh), for each CREF, for each Full Production Year (i.e., January 1 – December 31), will be determined according to the process outlined in Section II.2. above, but is only referenced here for the purpose of determining the Minimum CREF Commercial Operation Period Production Requirement.