Key Questions to Ask Before Entering into an Agreement
For all solar systems:
- What is the total cost of the solar system?
- How much is the total cost of the solar system if I add storage?
- What is your timeline for this investment?
- How do my options differ if I want a short-term arrangement or a long-term asset?
- How much do I pay up front, and how much over time, for how long?
- What is the system size?
- How much electricity will the system generate each year? Do you guarantee a minimum amount (a production guarantee)? Are there any other guarantees?
- Will my system be net-metered? How will I be compensated for excess electricity generated by the system?
- If there is a blackout, what will happen to my system?
- If I need storage in case of a blackout, what size system and system attributes do I need?
- Do system output calculations consider actual installation details of the system?
- Can I expect to save money with this system? If so, how much? Based on what assumptions?
- Does installing storage change how much I can save with this system? If so, how much?
- Is the installation company licensed and insured?
- What will the system look like once installed?
- Will I receive a system design for my review and approval before installation?
- Will I be required to make any changes to my home (e.g., roofing upgrades)?
- Do you use the SEIA residential disclosure form? Can you provide a completed copy of the form?
- Are there separate warranties for parts and labor?
- What do the warranties cover and what are their durations?
- What type of maintenance or cleaning is required? Are any maintenance services included? If not, who should I contact?
- Who deals with the utility and arranges for interconnection, inspections, and permission to operate?
- Is performance of the system monitored and, if so, by whom? How can I monitor system performance?
- Who should I contact if I have a question about the system following the installation? Who should I contact if my system stops working?
- Who will keep the RECs generated by the system? Will you retire the RECs on my behalf?
- Can you explain how RECs work in my situation? If I don’t keep the RECs, is there an option to purchase the RECs? If not, what can I say about my home?
- If I want to sell my home and don’t own the RECs, how can I describe my home to potential buyers?
- Can my HOA stop me from installing solar?
- What are my rights under state law?
- Does your company follow the SEIA Solar Business Code? Do you agree to abide by SEIA’s Complaint Resolution Process?
- Is residential Property Assessed Clean Energy (PACE) financing available in my state and locality?
- If the company fails, who should I contact regarding panel and inverter warranties and replacement?
For leases and PPAs only:
- What is the length of the lease or PPA?
- Who receives solar tax incentives and how are they factored into the cost?
- Will my payments increase over time? How much will they increase?
- What happens if I wish to end the lease or PPA early?
- Can I purchase the system, either during the agreement or once it ends?
- What are my options when I sell my home?
- Am I free to sell my home or do I need the system owner’s permission?
- Do I have to pay off the lease when my home is sold?
- Can you explain the UCC-1 filing to me? What happens if I want to refinance my mortgage?
- Are there fees to transfer the PPA or lease agreement to the new homeowner?
- What are the conditions for a new homeowner to take over the lease or PPA?
- Who is responsible for repairs and maintenance on the system?
Source: Solar Energy Industries Association. SEIA. June 2018. Residential Consumer Guide to Solar Power, www.seia.org
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