Solar Installation Agreement

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Multi-State
Control #:
US-13062BG
Format:
Word; 
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FAQ

The Solar Installation Agreement is a contract used to hire a solar installer to install a solar system on a property, outlining the parties’ relationship and the project’s basic terms. It typically covers who performs the work, the expected schedule, and the general expectations for quality and completion, helping reduce disputes during and after installation.

Termination rights in a Solar Installation Agreement vary, but many contracts allow either party to terminate with proper notice if the project cannot proceed. Returning deposits or paying for work performed and materials ordered are common implications. To avoid disputes, review any termination notice requirements, obligations for work already done, and whether refunds or credits are available before ending the contract.

A Power Purchase Agreement (PPA) is a contract where a third party owns the solar system and sells the electricity to the property owner. Downsides include less ownership control, potential long-term price obligations, and possible impact on resale or financing. The Solar Installation Agreement, by contrast, covers installing a system you own or directly contract for.

Disclosures or active contracts tied to the solar installation can affect a home sale. Buyers often review who owns the system, maintenance responsibilities, and any warranties or guarantees. If the Solar Installation Agreement creates ongoing obligations or restricts transfer, it may complicate financing or closing; consult with a real estate attorney and ensure clear transfer terms.

Even with solar, bills depend on actual production, energy use, and billing arrangements. The Solar Installation Agreement may not guarantee instant savings; if production falls short due to weather, shading, or aging equipment, bills may stay high. Review any performance expectations and ensure monitoring or warranty provisions address underperformance.

The 120% rule is a general electrical guideline used in solar interconnections: the sum of the main panel rating and the solar backfeed cannot exceed 120% of the busbar rating without upgrading service. This affects how the installation is sized and integrated; the Solar Installation Agreement should reflect any needed electrical work and compliance considerations.

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Solar Installation Agreement