Path-Q Solar

What contract terms matter most if a solar installation is delayed?

Answer

The contract should define milestone dates, the events that justify extensions, notice requirements, remedies for delay, payment timing, and cancellation rights. It should also state whether permitting, utility approval, equipment shortages, weather, or customer-caused issues change the schedule.

Key points

  • Require a written target schedule covering design, permits, installation, inspection, interconnection, and operation.
  • Define acceptable delay causes and how much additional time each cause allows.
  • Tie payments to completed milestones rather than an uncertain completion date.
  • Address cancellation, refunds, storage of equipment, financing payments, and responsibility for resulting costs.

What it depends on

  • The project scope and permitting path
  • The contract's force-majeure and extension language
  • The financing agreement, if separate

Risks and trade-offs

  • A firm completion date may increase the installer's price or be difficult to promise when permits and utility approvals are outside its control.
  • Broad delay clauses can make an otherwise attractive schedule effectively nonbinding.
  • Starting payments before the system is operational can create financial exposure.

Information you may need

  • All proposed schedule and delay clauses
  • Which party controls each approval and project milestone
  • Any financing, cancellation, refund, or liquidated-damages terms

Your next step

What to do next

Mark every deadline and extension clause in the contract and ask the installer to state in writing what happens if each milestone is missed.

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SQ01476