Path-Q Solar
What contract terms should address who pays for utility-required design changes?
Answer
The contract should assign responsibility for utility-required redesign, engineering, equipment changes, application revisions, inspections, and resulting delays. It should distinguish changes caused by the installer's incomplete or inaccurate design from changes imposed by the utility despite a compliant design, and require written approval before the homeowner incurs additional cost.
Key points
- Define whether the quoted price includes utility review, revisions, and resubmission.
- State who pays for changes caused by installer error or failure to disclose known requirements.
- Set a cap, allowance, or customer approval process for genuinely unforeseeable utility changes.
- Address cancellation or refund rights if the required design is no longer acceptable.
What it depends on
- The utility's interconnection requirements and review process
- The completeness of the initial electrical and system design
- The contract's change-order, delay, and termination provisions
Risks and trade-offs
- An unlimited change-order clause can shift nearly all uncertainty to the homeowner.
- A firm-price commitment may cause an installer to add contingency pricing.
- Ambiguous responsibility can delay approval while the parties dispute payment.
Information you may need
- The utility application and any preliminary technical requirements
- A detailed scope of design and engineering services
- The proposed change-order and termination language
Your next step
What to do next
Request a contract clause that assigns cause-based responsibility and requires written customer approval for any utility-related price increase.
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