Path-Q Solar
What financial obligations remain under a solar lease if the system stops producing?
Answer
Lease payments often continue unless the contract provides a production-based adjustment, outage remedy, suspension right, or termination right. The controlling answer is the lease's payment, performance-guarantee, maintenance, and force-majeure language.
Key points
- Separate the obligation to make lease payments from the provider's obligation to repair the system.
- Check response times, repair deadlines, production guarantees, credits, and maximum remedies.
- Determine who pays for monitoring, insurance, roof work, equipment replacement, and removal.
- Document the outage and follow the contract's notice and claim procedures.
What it depends on
- Lease payment and performance-guarantee clauses
- Repair, replacement, outage, and force-majeure provisions
- System ownership and maintenance responsibilities
- Applicable contract and consumer-protection rules
Risks and trade-offs
- A production guarantee may provide only credits rather than suspension of payments.
- Stopping payments without following the contract can create default risk.
- A long repair process can produce utility costs in addition to ongoing lease payments.
Information you may need
- Complete lease agreement and warranty documents
- Production guarantee and remedy schedule
- Provider outage-reporting procedure
- Records of production, outages, notices, and repairs
Your next step
What to do next
Review the lease's outage and remedy clauses, then obtain written confirmation from the provider of payment treatment and repair obligations for the specific failure.
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Some details may depend on your location, installer, utility, incentives, regulations, or specific property.
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