Start Smart: Top Questions to Ask Before Signing a Solar Lease
Payment Model, Escalator, and Total Cost Over Time
Ask whether payments are fixed or escalate annually, and request a lifetime cost illustration. A 2–3% escalator can compound dramatically, making year-twenty payments about 75% higher. Confirm caps, start dates, bill timing, and any seasonal minimums before signing a solar lease and planning your household budget.
Performance Guarantees and What Counts as Underperformance
Insist on a clear production guarantee measured in kWh, not vague percentages. What triggers a remedy, and is it a bill credit, cash refund, or extra panels? Clarify true-up schedules, exclusions for shading or snow, and acceptable variance so you know exactly how underperformance is handled.
Net Metering or Export Credits, Explained
Ask how exported energy is credited: full retail, a value-of-solar tariff, or a reduced export rate. On time-of-use plans, midday exports might be worth less than evening imports. Request a seasonal breakdown of expected credits so projected savings reflect your actual utility rules and usage patterns.
Interconnection, Meter Upgrades, and Who Pays
Clarify who handles interconnection paperwork, fees, and meter swaps, and whether a main panel upgrade could be required. Ask for a written timeline from installation to permission-to-operate. If delays occur, understand who bears extra costs and what protections you have while waiting to activate your leased system.
What Happens If Utility Policies Change
Policies evolve. Ask how change-of-law or tariff adjustments affect your payments and savings under the solar lease. Some agreements explicitly disclaim utility risk. Seek language describing remedies, reconfiguration options, or bill credits, and decide whether you’re comfortable with that risk allocation over a multi-decade term.
Your Roof, Your Rules: Site Readiness and Design
Roof Age, Condition, and Remove-and-Reinstall (R&R) Costs
Ask for a roof assessment and written R&R policy. If you need roof work mid-term, who pays to remove and reinstall panels—flat fee, capped cost, or market rate? These jobs can cost thousands. Get conditions, timelines, and workmanship responsibilities documented before you sign a solar lease.
HOA Approvals, Aesthetic Rules, and Permits
Even in states with solar rights protections, HOAs may influence placement and conduit visibility. Ask who obtains approvals, how long it usually takes, and whether design revisions affect your production guarantee. Confirm municipal permit fees, inspection scheduling, and whether delays alter your lease start or payment timing.
Layout, Shading, and Future Projects
Request a shade analysis with photosimulation and annual kWh estimates by roof plane. Ask how nearby trees, vents, or planned additions might change production. If you add a dormer or skylight later, can the array be reconfigured under the lease, and will that impact your performance guarantee?
Maintenance, Repairs, and Inverter/Optimizer Coverage
Who replaces failed inverters or optimizers, and how quickly? Get service-level commitments: notification windows, technician dispatch times, and remedies if delays drag on. Ask whether pest guards, critter-proofing, or snow guards are included. Ensure you understand what maintenance is covered and what counts as homeowner responsibility.
Monitoring Access and Production Transparency
Demand full access to a monitoring app with hourly kWh data, alert settings, and historical reports. If production dips, how do you open a ticket, and when does the clock start for guaranteed fixes? Ask how underperformance is verified and credited so your lease delivers the promised energy.
Insurance, Liability, and Taxes
Confirm whether the lessor insures the equipment and whether your homeowner’s policy must list them as additional insured. Ask about liability for roof penetrations and leaks. Clarify any personal property tax responsibilities, and require proof of coverage before activation to protect your home and financial expectations.
Home Sale Transfers and Buyer Qualification
Ask how buyer qualification works: credit score thresholds, income verification, and transfer fees. What if the buyer fails qualifying—can you prepay, buyout, or reduce the payment to close? Request a sample transfer timeline and contacts, and include the lease in your listing to avoid last-minute surprises.
Buyout Options and Fair Market Value (FMV)
Some leases allow buyouts at year milestones or at FMV determined by an appraiser or formula. Ask for the schedule upfront and request examples. Understand how depreciation, production history, and remaining term affect price so you’re not cornered by an unworkable buyout later.
Incentives, Ownership, and the Legal Fine Print
Leases typically assign federal tax credits and many incentives to the lessor. Ask who claims them and how those benefits are reflected in your price. Clarify ownership of renewable energy credits and whether they’re sold, retired, or kept, so you understand the environmental and financial accounting.