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Understanding your solar contract

Written by Lisa Iscrupe /

Edited by Hannah Hillson

Last updated 07/27/2023

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Key Points

  • A solar contract is a binding agreement that explains all terms and conditions of the installation, products, and services between the solar installer and the homeowner.
  • It’s important to get everything in writing, understand all terms and solar incentives, and ask questions of the installer for anything not clear.
  • Read your contract carefully and have another person review it as well.

Solar contract FAQs

  • According to Quora, some words and phrases to be aware of include anything that is vague or words that cannot be specifically defined, such as “reasonable,” “under ideal conditions,” and “deemed.” Beware of any “fine print” or additions to the contract that can modify the terms, such as an appendix or annexure.

  • An attorney should review your contract if you are not accustomed to reading contracts or familiar with the technical terms.

  • Getting out of the solar contract depends on how long it has been since you signed it. Most contracts have a 3 to 5-day cooling-off period, which is in the contract. After the contract is signed and the cooling-off period has passed, getting out of the contract can be more complicated. The solar contract should outline terms for contract dissolution.

  • A contract adjustment, also called a change order, occurs when a modification needs to be made to the contract after it is signed. Modifications may arise due to unexpected rises in material costs or unexpected issues with the installation, roofing, or design. Change orders can affect the overall price that was initially agreed on. The initial contract should outline the contract adjustment process.

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