Photovoltaic panel installation contract explanation

What is a solar power contract?

A solar contract is a signed agreement between a person and a solar power installation company that clearly outlines every part of the solar panel installation process, including the steps before, during, and after the actual installation, and who is responsible for each.

What is a solar power purchase agreement?

With a solar power purchase agreement (solar PPA), you contract with a solar developer that pays for, installs, and maintains a solar system on your property.

How does a solar energy contract work?

The details of the solar energy contract will differ depending upon how you intend to pay for your solar panel installation. Homeowners who pay for their panels upfront with cash, or through a solar loan, will see something different than someone who signs a solar lease or solar power purchase agreement (PPA).

What should a solar installation contract include?

Your solar installation contract should include crucial details about what happens and who is responsible for each, such as: Before your solar panel installation company can begin work on your roof, they have to get construction and/or electrical work permits from the city or county where you live.

Should homeowners pay for solar panels upfront?

Homeowners who pay for their panels upfront with cash, or through a solar loan, will see something different than someone who signs a solar lease or solar power purchase agreement (PPA). While solar contracts will differ by provider and project, most of them contain a certain amount of shared verbiage and content.

What happens when a solar PV contract ends?

When the contracts come to an end the customer can choose to remove the system, extend the PPA or purchase the energy system. On-site solar PV generation can take the form of either a large-scale rooftop installation on a commercial or industrial (C&I) site, or a ground-mount installation on adjacent land.