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Contract terms · 2 min read

Solar contract red flags before signing

A non-legal checklist of solar contract terms homeowners should understand: equipment swaps, payments, cancellation, and end-of-term options.

This is not legal advice

A contract is the commitment. BidProof can report what a document says and whether it matches the proposal. We are not a law firm. If you need a lawyer, hire a lawyer. Use this list to know what to look at — and what to ask — before you sign.

Does the contract match the proposal?

Same system size, same equipment, same price, same payment. Unexplained changes between the sales packet and the signature packet are the first thing to catch. If the contract allows “or equivalent” equipment, ask who decides equivalent, and whether you are notified.

Payment timing

Note when deposits are due and whether the last payment waits until the system is on and approved. Change orders and site surprises (permits, interconnection, hidden roof work) should say who pays.

Cancellation

Look for a cancellation notice and the period the contract itself states. If you have already signed, that clock is the first question. Do not rely on a salesperson’s summary of your rights.

Leases and power purchase agreements

End-of-term options matter as much as year-one payment: transfer to a buyer, early buyout, removal. If those are vague, the contract is incomplete for a 20-year decision.

Turn a red flag into a written question

Illustrative example: your proposal names a particular inverter, but the contract allows an unspecified replacement. Ask which performance and warranty requirements the substitute must meet and how changes will be approved. A missing answer is a question to resolve, not proof of wrongdoing.

FTC guidance recommends checking that contract terms agree with the sales proposal. Use the actual agreement to establish payment and maintenance obligations. FTC: Solar Power for Your Home (U.S. consumer guidance, April 2022)

  1. Compare names, equipment, prices, and scope across both documents.
  2. Mark any clause that lets costs or equipment change.
  3. Ask for the cancellation notice and the procedure and deadline that apply to your transaction.
  4. Request written clarification or qualified legal advice when an obligation is unclear.
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