What is a Solar Energy Agreement Review?
A solar energy agreement is a contract between a solar power provider and a customer. It outlines all the duties and tasks related to installing and maintaining the solar panels or system.
This agreement ensures that both parties know exactly what to expect and how to avoid disputes, such as by committing to payment provisions outlined in the agreement.
If you need to review a solar energy agreement, it’s essential to do this before signing it.
Read the rest of this article to explore solar energy agreements, what they include, how to review them, and when to consult with a lawyer for help.
What Does a Solar Energy Agreement Contain?
A solar energy agreement usually contains some key terms. These include the following:
- Installation. The installation process must be detailed, with all solar energy system specifications, such as solar panels, and the timeline for installing it.
- Pricing. The price to generate electricity needs to be specified. This is usually lower than utility rates to benefit the landowner.
- Performance. The provider needs to meet their duties, such as regarding output and maintenance.
- Term. How long the term lasts must be specified. It can be renewed after the contract comes to an end.
- Ownership. It’s common for the developer to own the system and receive tax incentives.
- Site access. It’s the customer’s duty to provide access to the site for the provider for maintenance and repair purposes.
What are Tips for Reviewing a Solar Energy Agreement?
When reviewing a solar energy agreement, there are some important things to bear in mind.
Take Your Time
Read the entire solar energy agreement slowly so you can ensure you understand all the terms. If you rush, you could miss something important. Solar energy agreements can be complex and lengthy, so you want to flag or note anything that is vague or confusing.
Refer to Termination Clauses
It’s important for landowners to know exactly how they can end the agreement should this be required, especially since these agreements can run for 20 or more years. If the developer terminates the agreement early, landowners should request the payment of all sums owing to them.
Understand What’s Required
Solar energy agreements might require the developer to study the property and conduct various studies on it so that construction is deemed suitable for your site. It’s crucial to know what’s involved before you sign the contract. If anything is unclear in the agreement, you should discuss it with the provider.
As a landowner, you’ll also have to review all your duties and roles under the agreement. For example, you’ll have to ensure you provide property access when required by the developer.
Be Careful with the Confidentiality Clause
It might sound surprising that a solar energy agreement could contain a confidentiality clause. This can make it impossible for the landowner to talk about the agreement with others. It’s essential to reserve the right to be able to speak to an attorney, as they can provide you with assistance with this agreement.
Research Other Offers
Before you agree to the terms in the agreement, such as the compensation offered, you should conduct some research to find out what other landowners are earning for similar agreements. This will help you to assess if the offer is fair and reasonable.
Get Everything in Writing
The solar energy agreement needs to be put in writing. Never sign it when it’s on the provider’s device, such as a tablet or computer, as this could prevent you from accessing all the details in the document in your own time, potentially putting you at risk.
If there are any changes made to the agreement, this should also be put down in writing to keep all parties accountable and on the same page.
Ask About Repairs
It’s worth thinking about ‘worst-case’ scenarios and how they will be handled to protect your interests. A big concern for landowners is what happens should the solar energy system need to be repaired, removed, or replaced.
If this information isn’t provided in the solar energy agreement, you should discuss it with the other party or a lawyer.
Get a Legal Review
Hiring a lawyer to review your solar energy agreement can help you in various ways, such as the following:
- They’ll unpack any legal jargon so that you understand everything in the agreement.
- They’ll clarify your rights, duties, and any potential risks of entering into the agreement.
- They’ll identify vague language, hidden fees, and one-sided terms in the agreement that can put you at a disadvantage.
- They’ll check pricing structures so that you’re fairly compensated.
- They'll check all local regulations so that the solar energy agreement is legally compliant.
- They’ll negotiate any terms in the agreement you wish to change, using their skills to make suitable offers and counteroffers.
- They’ll scrutinize the entire agreement to save you money and avoid legal disputes in the future.
Where Can You Get a Legal Review of a Solar Energy Agreement?
Solar energy agreements can be complex and challenging to understand, which is why it’s in your best interests to consult with a professional lawyer for a legal review. But where do you find a lawyer?
On ContractsCounsel, an online legal marketplace that connects clients with lawyers who have been vetted on the platform, finding a reputable lawyer is simple. All you have to do is follow these steps:
- Go to the ContractsCounsel marketplace page.
- Choose “One-time project” and “Review contract.”
- Post your request (it’s free) for a review of the solar energy agreement.
- Mention a few details about what you require so lawyers on the platform know how to help you.
- You’ll receive multiple bids from vetted lawyers on the platform, without having to go out of your way to find the right lawyer.
- Review the lawyers’ profiles based on criteria such as their location, credentials, and previous client ratings.
- Once you’ve gone through the data, you can select the best lawyer to work with based on your requirements.
