Path-Q Solar
What protections should a contract provide if the installer cannot obtain required approvals?
Answer
The contract should make required approvals a condition to construction or final payment, assign responsibility for obtaining them, provide a right to cancel if approval is denied or materially changed, and state how deposits and equipment costs are handled.
Key points
- List building, electrical, structural, utility, zoning, preservation, fire, and other applicable approvals.
- Define what counts as a material change, such as a major price increase, system reduction, export limit, or schedule extension.
- Require delivery of approval documents and a clear process for revisions or cancellation.
What it depends on
- Required approvals and authority processes
- Contract payment and cancellation terms
- Installer responsibility and exclusions
- Equipment procurement status
Risks and trade-offs
- Without express terms, deposits or custom-ordered equipment may become disputed costs.
- Approval may be granted only with conditions that reduce expected performance.
- Cancellation rights and refund rules may be controlled by local law or contract requirements.
Information you may need
- Approval checklist
- Contract conditions and refund language
- Material-change threshold
- Responsibility for redesign and reapplication
Your next step
What to do next
Have the installer add an approval contingency and written denial or material-change remedy, then verify any mandatory cancellation or deposit rules locally.
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