Reading a solar contract before you sign
What the FTC says a lease or PPA contract should spell out, and questions for selling a home.
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Match it to what you were told
The FTC says to "check that the terms match what the company's ads, proposals, and salespeople told you about," including "how long the contract lasts" and "whether you must pay any other costs or fees."
What the contract should say
The FTC says it should say "who will get the tax credits, other incentives, and any RECs related to the system," "whether there are early termination fees or other charges if you want to end the contract early," and "if you can renew your lease or PPA, buy the system, or have the system removed when the contract ends, and how much those options cost."
Maintenance and repairs
The FTC lists "who'll do maintenance and repairs, and whether you have to pay for them."
Selling your home
The FTC asks: "Are you allowed to transfer the contract to the buyer? Do you have to send the company written notice before you transfer the contract?" and "Will the buyer have to meet credit requirements or pay any fees before taking over the contract?"
Take your time
The FTC says: "Never deal with a power or home repair company that pressures you for a quick decision, tells you to sign a contract without time to review, or asks you to pay in cash."
This is general information, not tax, financial, legal, or engineering advice.
Sources: FTC, Solar Power for Your Home.
FAQ
General information only. We are not a contractor, installer, lender, or tax adviser. We do not refer, match, vet, rate, or check contractors, and we do not collect your information. Before you hire anyone, verify their license or registration with your state (in Washington, use the Department of Labor & Industries' Verify tool), get written bids, and read every contract and financing document. For tax questions, see IRS.gov or ask a tax professional.
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The rule, in its own words.
