How to Write a Solar Installation Contract – Sample 50-40-10 Payment Agreement

DATE

Dear ___________________,

We are excited that you have chosen to partner with Vision Solar for your energy needs and we look forward to creating a greener planet with your help. It is not only an environmentally sustainable decision, but it is one of the best financial investments you can make. We have designed a custom solar system solution that is optimized to meet your financial, environmental, and aesthetic goals.

The following contract represents the terms and conditions of our installation agreement as well as all your warranties and guarantees. Please sign the contract and return it to your sales representative. We will countersign and return a fully executed copy to you.

Vision Solar is committed to providing you with impeccable service throughout the entire installation process and for the life of your system. Please contact us anytime using the contact information below.

Thank you for giving us the opportunity to work with you and for joining our solar community!

Vision Solar Contractor, Inc.

1-888-781-7074

Support@VisionSolar.com

CONTRACTOR All Installations completed by a Licensed Electrical Contractor in each state   Vision Solar Contractor, Inc. Nevada Master Electrician #79868 Utah Master Electrician #9386852-5501 Texas Master Electrician #30990 California Electrical Contractor #853582 South Carolina Mechanical Contractor #112959OWNER  

SOLAR PURCHASE AND INSTALLATION AGREEMENT

This agreement, dated as of the “Effective Date” (being defined as the date that the last party signed this Agreement as shown by the date set forth next to said party’s signature below), is between Vision Solar Contractor, Inc., (“Contractor”) and _____________ (“Owner”). The parties hereby agree to the following terms and conditions:

  1. DETAILS OF SOLAR INSTALLATION:

(a) Contractor shall provide a ______________kW photovoltaic system shall be installed at the above address.

(b) This system will produce at least _____________ Kilowatt-hours of power in the first year.

(c) Major system components include:

            –  MODULE TYPE_____________

            –  INVERTER TYPE____________

– All disconnects as required by applicable code.

– Contractor will install a Monitoring Unit that will track the power production of the solar system and thereby allow Contractor to guarantee it. (Note: Owner must grant Contractor access to their monitoring account to activate this production guarantee. Contractor provides this monitoring service at no cost to Owner.)

– Other standard materials necessary for installation and use, including racking and mounting components, wiring, conduit, and over-current protections, roofing sealant and/or flashing, as needed.

(d) At Owners request, Contractor will present architectural renderings of the solar system and electrical run for Owner’s review and approval prior to installation.

(g) Any additional work (e.g. roof repair, tree removal, etc.) will be contracted separately from this agreement.

  • PRICE & PAYMENT SCHEDULE:

Owner hereby agrees to pay Contractor the sum of $_________ (“Contract Price”). The gross price of the system will be payable by Owner according to the following schedule:

A – Due upon signing agreement – $SYSTEM COST________  ______ (Owner’s initials) 


B – Due upon installation of solar modules on the roof or ground – $SYSTEM COST________  _____ (Owner’s initials)

C – Due upon permission to operate the system by the utility – $SYSTEM COST___________  ______ (Owner’s initials)

(Note: Permission to operate system will be given by the utility company generally within 30 business days after final inspection. Once permission to operate is obtained system will be turned on.) _____ (Owner’s initials)

By agreeing to the above terms, Owner agrees to authorize three payments (A, B, & C) by ACH when qualifications for each have been met.

Owner may also be eligible for a Federal Tax Credit depending on Owner’s tax liability and/or individual tax situation. Contractor will provide owner with appropriate documentation required to obtain this credit.

  • UTILITY INTERCONNECTION:

Contractor will handle all utility interconnection paperwork at no cost to the Owner.

  • COMMENCEMENT & COMPLETION OF WORK

Work will commence (“Commencement Date”) approximately 2 to 12 weeks from Effective Date. Contractor will work diligently to complete all work. Final inspection will take place shortly after the installation is completed. Utility company interconnection will generally take place within 30 business days after system has passed final inspection. (Note: The Commencement Date shall be adjusted as necessary if Owner has not secured financing to pay for the project, in which case the Commencement Date shall be 2 to 12 weeks from the date the Contractor receives adequate notice of final approval of financing. See FINANCING paragraph below.)

FINANCING:

Owner please initial appropriate line:

______ A) Owner is seeking other financing that has yet to be approved.

______ B) Owner is self-financing or has financing already in place.

If option ‘a’ is selected please initial one of the following:

_______ Owner authorizes Contractor to cash the deposit check and begin system design and planning, architectural drawings, equipment purchasing, etc. Owner or Contractor may terminate contract if suitable financing is not secured. In the event of a cancellation, deposit funds will be applied to work performed prior to cancellation.

_______ Owner DOES NOT authorize Contractor to cash deposit check NOR begin system design and planning, architectural drawings, equipment purchasing, etc. until final approval of suitable financing has been received by Owner. Owner or Contractor may terminate contract if suitable financing is not secured, in which case full deposit will be returned to Owner. Owner acknowledges delays in financing approval will delay commencement of the system installation.

CHANGE ORDERS:

(a) Contractor’s first responsibility will be to do a complete engineering review of the proposed solar system. As a result of this review, Contractor may need to alter the pricing, timing, and/or components specified in this contract. If such changes are minor and agreeable to both parties, there will be no need for a new contract. However, if significant changes need to be made for reasons including but not limited to changes in solar panel or inverter availability, changes to predicted system output, discovery of hazardous materials at job site, jurisdiction mandated engineering certification, the absence of a grounding mechanism, and /or site analyst error, Contractor will draft a revised contract and submit it to Owner for approval. If a new contract cannot be agreed upon, Contractor will refund the initial deposit to Owner and the original agreement will be cancelled. 


(b) The design and specifications of the proposed solar system shall also be submitted to the appropriate permitting authority/building department. Any changes in that design required by that authority, and any associated changes in cost, shall be discussed and agreed upon by Owner and Contractor. Engineering calculations and certifications are not included in this contract. If such an agreement cannot be reached, Contractor will refund the initial deposit to Owner and the original agreement will be cancelled.

(c) If at any point Owner requests changes in the design or specifications of the proposed solar system, said changes and any associated costs will be discussed and agreed upon by Owner and Contractor. If such an agreement cannot be reached, any work in progress shall be stopped and Owner shall pay only the costs incurred by Contractor up to that point, on a time and material basis. The balance of the initial deposit, if any, shall be refunded to Owner and the original agreement will be cancelled. If contractor’s costs are greater than the original deposited amount, customer will be billed for the difference.

INSURANCE AND BONDS:

Contractor carries General Liability Insurance and has a Contractor’s License Bond. Contractor also carries workers’ compensation insurance for all employees. All subcontractors used by Contractor will also carry liability insurance. Documents verifying this shall be made available to Homeowner upon written request to our Corporate Licensing Division by emailing licensing@visionsolar.com.

PAYMENT TERMS:

Unless otherwise agreed, invoices are payable upon presentation and in accordance with the schedule detailed in the “Price and Payment Schedule” section of this Agreement. If non-payment occurs before installation has been completed, Contractor shall be permitted to suspend work until payment issue is resolved. If non-payment exceeds 10 days, Contractor shall have the option of being released from all obligations to complete the installation and be due payment by Owner for Contractor costs up to that point on a time and material basis. If non-payment occurs after installation has begun, Contractor may charge a 2% late charge, plus 2% for each month thereafter until payment is made or other mutual settlement is reached. If Contractor ’s work is completed but does not pass final inspection through no fault of Contractor or due to actions or inactions of Owner, Owner agrees to make their final payment to Contractor upon presentation of the invoice.

WORK AREA ACCESS:

Owner shall assist Contractor by granting workmen and vehicles reasonably necessary to access work areas during the installation process. This may involve such things as keeping driveways & walkways clear, and gates unlocked or opened as needed. Owner shall also inform Contractor where materials may be stored if needed (temporarily). Owner agrees to make electricity and water reasonably available to Contractor and/or subcontractors.

DELAYS:

Owner understands and accepts that some delays are beyond Contractor’s control. The cause of such delays may include, but are not limited to, acts of God, civil unrest, labor disputes, adverse weather conditions, acts of a governmental or other public authority, acts of Owner or Owner’s agents, and delay in delivery of materials by suppliers. Owner shall hold Contractor harmless for such delays.

ROOF LEAKAGE/DAMAGE:

Contractor shall take great care to ensure Owner’s roof is left in a leak-free condition and will warranty that condition for ten (10) years. If any of Contractor’s penetrations of Owner’s roof should leak during that period of time, Contractor will (upon receiving written notice from the Owner) be responsible to promptly repair those leaks. Repair or replacement of any other damage (including mold) is not the responsibility of Contractor.

PRE-EXISTING ELECTRICAL/STRUCTURAL ISSUES.

Contractor will inspect roof rafters and other relevant structures in areas where the solar system will be installed. Contractor will also inspect Owner’s electrical panel and/or subpanel. If any problems or deficiencies are discovered, especially ones that would prevent Contractor from proceeding with the installation, Contractor will bring these to the Owner’s attention. Owner agrees to be responsible for any necessary repairs or remedial action necessary to substantially complete the system installation. If Owner is unable or unwilling to correct such problems or deficiencies, Owner shall compensate Contractor for work performed up to that point on a time and material basis, and this Agreement shall be cancelled.

POWER OUTAGES:

Owner understands and accepts that the solar system installed on their business/home will be tied to a public utility grid. Unless stated elsewhere in the contract, the system does not include a power back-up source. For safety reasons, whenever the grid is out of service, the solar system will automatically shut down until the grid is once again in service.

PERMITTING:

Contractor will file necessary permitting with associated jurisdictions prior to starting installation. If Owner requests to cancel contract prior to installation, Owner will pay Contractor $1200 for all fees associated with permitting, processing, and any labor up to that point. All cancellation requests after the three day standard cancellation policy must be made by emailing customerservice@visionsolar.com or my mailing a letter to Vision Solar Corporate 5255 Edgewood Dr #125 Provo, UT 84604.

ADDITIONAL PAPERWORK AND INSPECTIONS:

Owner agrees to cooperate with necessary paperwork and inspections after completion of the installation. This will include allowing inspectors the access they need to complete their work.

MEDIATION & ARBITRATION OF DISPUTES:

If disagreements arise between Owner and Contractor which are not able to be settled, the parties hereby agree to submit the unresolved issues first to mediation, and if unsuccessful there, to binding arbitration by a neutral 3rd party. The parties shall split costs incurred for these services equally. Each party shall pay their own attorneys’ fees, if any. Arbitrators shall arrive at a decision based on law in the state the system is located, and shall not have authority to award punitive or speculative damages, or authority to amend this agreement.

BOTH PARTIES ARE HEREBY AGREEING TO HAVE ANY DISPUTE ARISING FROM THIS SOLAR INSTALLATION AGREEMENT DECIDED IN THE MANNER DESCRIBED ABOVE AND ARE GIVING UP ANY RIGHTS THEY MAY OTHERWISE POSSESS TO HAVE SUCH DISPUTES LITIGATED IN A COURT OR JURY TRIAL. IF EITHER PARTY REFUSES TO SUBMIT TO MEDIATION OR ARBITRATION, THEY MAY BE COMPELLED TO DO SO UNDER THE AUTHORITY OF THE STATE IN THAT THE SYSTEM IS LOCATED ACCORDING TO THE CODE OF CIVIL PROCEDURE.

MECHANIC LIEN LAWS:

If the Contractor has not been paid in full for services rendered, the Contractor reserves the right to place a lien on the customer’s property where the work was performed. The Contractor may also sue the customer in court or use an arbitrator to collect funds owed to them. A mechanics’ lien is a claim, like a mortgage or home loan, made against a property and recorded with the county recorder. If a court finds the lien is valid, the customer could be forced to pay.

NOTICES, GOVERNING LAW & SEVERABILITY:

Any notices required by this agreement may be sent to either party at the addresses set forth on page one of this agreement. The laws of the State that the system is located shall govern this agreement. If any court finds any portion of this agreement invalid or unenforceable, the remaining provisions shall remain in force.

SOLAR SYSTEM ENVIROMENT:

Unless otherwise specified in this agreement, the solar system is designed to perform in the environment that existed at the time of the site analysis. If that environment changes, system performance may change and can no longer be guaranteed by Contractor. Changes in environment include but are not limited to such things as climatic change, growth of trees, shrubs, or other plant life that may shade parts of the array, and/or new structures built on the Owner’s property or a neighbor’s property that might shade parts of the array. Similarly, if Owner has agreed to remove or alter any trees or other obstructions that would affect the performance of the solar system and fails to do so, Contractor will no longer be required to guarantee the system’s performance. 


SEVERABILITY:

If any term or provision of this Agreement or the application thereof to any person or circumstance shall, to any extent, be held invalid or unenforceable, the remainder of this Agreement, or the application of such term or provision to persons or circumstances other than those as to which it is held invalid or unenforceable, shall not be affected thereby, and each such term and provision of this Agreement shall be valid and be enforced to the fullest extent permitted by law.

The undersigned parties acknowledge that they have read, understand, and agree to these terms and conditions. This document sets forth all the terms and conditions of this agreement, and supersedes all prior agreements, arrangements, and understandings. The undersigned parties acknowledge that they have read, understand, and agree to these terms and conditions.

OWNERS

Primary Signature: ____________________________________

Primary Print Name: ___________________________________

Date: _____________

Secondary Signature: ____________________________________

Secondary Print Name: ___________________________________

Date: _____________

CONTRACTOR

Contractor Signature: ____________________________________

Name: ________________________________________________

Title: _____________

Date: _____________

Payment Information:

ACH

Account Type:         Checking            Savings

Name on Acct.  ________________________

Bank Name       ________________________   

Acct Number     ________________________

Bank Routing # ________________________

Bank City/State ________________________

Billing Address: ________________________

City, State, Zip: ________________________

Phone #:           _____-___-_______________

Email:               ________________________