sunMAX - Close Sale: Home Installation Contract

Overview 

Here is a sample Home Solar System Installation Agreement provided by CleanTech Docs, Inc. Regardless of the contract used, it is highly recommended that you consult with a legal professional to ensure that the terms of sale meet the agreement between Installer, Contractor, and Homeowner.

The home installation contract is the key legal document used in the sale of a solar system installation and covers the price and terms of the sale. This contract is used whether the customer pays cash or finances their purchase with a loan. Generally, the following terms are included in the contract:

  • Homeowner information - name, address, contact information
  • Salesperson information - salesperson's name, salesperson's state registration number (home improvement salespersons are required in most states to register under a licensed contractor's license)
  • Contractor information - contractor company name, contractor's license number
  • Solar system size and specifications  - number of panels, system size in kilowatts DC (kWdc), list of other key equipment (e.g., microinverters)Estimated installation schedule
  • Schedule of payments - typically, the homeowner would pay the entire price at the completion of installation. Most states limit the amount of up-front payments made before any goods and services have been delivered to the customer. For example, California limits up front payments for home improvement projects to the lesser of $1000 or 10% of the contract value.
  • Extra charges, rebates & incentives - pricing for any additional services that are not included in the base price; these may include, for example, the cost of obtaining permits, upgrading the home electrical panel, repairing roof leaks, etc. In addition, this section specifies whether the homeowner is managing the collection of any state/local rebates and incentives or is assigning those to the solar installer in return for an equivalent reduction in the purchase price.
  • Property access - this section provides the homeowner's permission to access the property, roof, electrical panel, and if needed, the home's attic space or garage.
  • Right of cancellation - typically states require that homeowners have a certain number of hours after signing the contract during which they can cancel the sale.
  • Workmanship warranty and equipment warranty - specifies the terms of the installer's workmanship warranty and the manufacturer's equipment warranty. 

    - Some states require that home contractors provide a warranty against defective installation; for example, CA requires a 4-year warranty. This warranty is included in the sample home installation contract.
    - Some states also require that contractors maintain a bond in case of large warranty claims. Establishing this bond is part of the licensing process.

  • Monitoring and service plan - specifies the number of years during which the installer will provide monitoring and service to support and maintain the system.