Reading your solar contract: a 7-section checklist

Featured guide · 12 min read · Updated May 5, 2026

Solar agreements are written by lawyers who work for the installer, not for you. Most homeowners sign without reading more than a handful of pages. Here are the seven sections that actually decide whether the deal is fair.

1. The parties & the system specs

Find the page that names the seller, the installer, and (if different) the finance company. They are often three separate entities. Confirm:

• Your name and address are spelled correctly.
• System size in kW DC matches the proposal.
• Panel and inverter make and model are listed.
• Year-1 estimated production in kWh is stated.

If any of these are blank or “TBD,” that is a red flag — the contract should not have been signed in that state.

2. Term & the escalator

Solar leases and PPAs typically run 20–25 years. The single most consequential number is the annual escalator — the percentage your monthly payment increases every year. Industry-standard escalators are 1.9–3.5%. Anything above 3% deserves close scrutiny.

3. The performance guarantee

What does the installer promise the system will produce? Look for:

• Year-1 guaranteed kWh (not “estimated”).
• Annual degradation assumption (typically 0.5%/yr).
• Remedy if the system underproduces — a credit, a refund, or just an “investigation.”

Many guarantees promise nothing useful. “We will use commercially reasonable efforts” is not a remedy.

4. Payment, late fees & default

Read the default clause. It typically says: miss two consecutive payments and the installer can accelerate the entire balance — meaning all 25 years of payments become due immediately, plus fees and a removal cost.

5. Transfer / assumption

What happens when you sell the house? Almost every solar lease/PPA requires the new buyer to assume the agreement. Some allow a buyout at “fair market value” — a number the installer calculates and that often exceeds the actual remaining lease cost. More on liens and home sales →

6. UCC-1 / fixture filings

The financing company often files a UCC-1 against your home. This is a public lien on the panels (or, in some filings, on the house). Title companies will flag it during a sale.

7. The consumer-protection rights you didn’t see

Buried near the back: arbitration clauses, class-action waivers, choice of law, and notice provisions. These do not override your rights under federal consumer-protection statutes (FTC Cooling-Off Rule, Truth in Lending Act, state UDAP laws), but they shape how a dispute would be resolved.

What to do if any of these are wrong

Contract terms that don’t match what you were told verbally — promised savings, a different escalator, missing performance guarantee — may be evidence of a deceptive sale. Check eligibility for a free attorney review.