Solar contracts can be confusing, but they don’t have to be. This guide breaks down the key elements of solar agreements for Plano homeowners considering making the switch to solar energy.
Solar contracts are legal agreements between homeowners and solar companies that spell out the terms of installing and using a solar energy system. These contracts cover important details like system specifications, costs, warranties, and ongoing responsibilities for both parties.
For Plano homeowners thinking about going solar, understanding these contracts is a must before making any commitments. Let’s look at the main types of solar contracts and what to watch for in each.
There are three primary ways Plano residents can go solar: purchasing a system outright, leasing panels, or entering a power purchase agreement (PPA). Each option comes with its type of contract.
When you buy a solar system, you’ll sign a purchase agreement. This contract outlines the total cost, payment terms, and details about the equipment you’re buying. It’s similar to other big purchases, like buying a car.
Leasing is another popular option. With a solar lease, you don’t own the panels – you’re essentially renting them from the solar company. Lease contracts specify your monthly payments and the lease term, usually 20-25 years.
PPAs are a bit different. Instead of paying for the equipment, you agree to buy the power the solar panels produce at a set rate. PPA contracts detail the per-kilowatt-hour price and any rate increases over time.
No matter which type of contract you’re considering, there are some common elements to look for:
This section describes the solar equipment being installed, including:
Make sure these match what you’ve discussed with the solar company. The contract should also specify the system’s size in kilowatts (kW) and estimated annual energy production.
For purchases, this section lists the total system cost and payment schedule. For leases and PPAs, it outlines your monthly payments or per-kWh rates. Watch for any escalator clauses that increase your rates over time.
The contract should give you a rough idea of when installation will happen and how long it will take. Keep in mind that permitting and inspections can sometimes cause delays.
Look for details on equipment warranties and any performance guarantees. Most solar panels come with 25-year warranties, but inverters often have shorter coverage periods.
This part outlines who’s responsible for maintenance, repairs, and monitoring of the system. In leases and PPAs, the solar company usually handles this. For purchases, you may be responsible for some upkeep.
Many solar contracts include estimates of how much you’ll save on electricity over time. While these can be helpful, it’s important to understand the assumptions behind them.
Several variables impact how much you’ll save with solar:
Be wary of savings estimates that seem too good to be true. Ask the solar company to explain their calculations and what assumptions they’re making about future electricity rates.
Net metering is a policy that allows solar owners to sell excess energy back to the grid. Texas doesn’t have a statewide net metering requirement, so policies vary by utility.
In Plano, most residents get their electricity from Oncor. Oncor doesn’t offer true net metering, but they do have a program called Distributed Generation that provides some credit for excess solar energy.
Make sure your solar contract explains how excess energy will be handled and credited. This can significantly impact your overall savings.
While most solar companies are reputable, it’s important to watch for potential issues in contracts. Some red flags to look out for include:
If you spot any of these issues, ask for clarification or consider getting a second opinion.
It’s always a good idea to get multiple quotes before signing a solar contract. Here’s a table comparing some key elements to look at when reviewing different offers:
| Contract Element | Company A | Company B | Company C |
|---|---|---|---|
| System Size (kW) | |||
| Total Cost | |||
| Cost per Watt | |||
| Equipment Brands | |||
| Warranty Length | |||
| Estimated Savings | |||
| Contract Type |
Fill in this table with information from each quote to make comparisons easier.
Before you put pen to paper, Understanding Solar Contract all aspects of the agreement. Here are some important questions to ask:
Getting clear answers to these questions can help you avoid surprises down the road.
Solar contracts can be complex legal documents. While this guide gives you a good starting point, it’s often wise to have a lawyer or solar expert review the contract before you sign.
Many local solar advocacy groups offer contract review services. The Texas Solar Energy Society might be able to point you towards resources in the Plano area.
Remember, solar contracts aren’t set in stone. If there are terms you’re not comfortable with, don’t be afraid to negotiate. Solar companies want your business and may be willing to adjust certain aspects of the contract.
Some areas you might be able to negotiate include:
Be respectful but firm in asking for changes that are important to you.
Once you’ve signed a solar contract, the process of going solar begins. Here’s a general timeline of what happens next:
The whole process typically takes 2-3 months from contract signing to system activation, though this can vary.
After your system is up and running, it’s important to keep an eye on its performance. Most modern solar systems come with monitoring apps that let you track energy production in real-time.
Here’s a table showing what you might expect in terms of monthly energy production in Plano:
| Month | Estimated kWh Production |
|---|---|
| January | |
| February | |
| March | |
| April | |
| May | |
| June | |
| July | |
| August | |
| September | |
| October | |
| November | |
| December |
Your solar installer should be able to provide estimates for your specific system. Compare actual production to these estimates and reach out if you notice significant discrepancies.
Even with the best contracts and installers, issues can sometimes arise after your solar system is installed. Common problems include:
Your solar contract should outline the process for addressing these issues. Don’t hesitate to contact your installer if you’re experiencing problems – that’s what warranties are for.
As solar technology evolves and policies change, solar contracts are likely to change too. Some trends to watch for in the coming years:
Staying informed about these trends can help you make better decisions about your solar investment.
Understanding your solar contract is key to a positive solar experience. By knowing what to look for, asking the right questions, and being willing to negotiate, you can ensure that your solar agreement meets your needs and expectations.
Remember, going solar is a long-term commitment. Take the time to review and understand your contract thoroughly. With the right agreement in place, you’ll be well-positioned to enjoy the benefits of clean, renewable energy for years to come. For more information, you can visit our website or contact us.
