Path-Q Solar
What protections should I seek if an installer requests full payment before commissioning?
Answer
Seek to retain a meaningful final payment until installation, inspection, commissioning, required approvals, documentation, and agreed acceptance tests are complete. If full prepayment is unavoidable, request stronger protections such as milestone evidence, a completion deadline, written refund obligations, and financial or escrow safeguards where available.
Key points
- Define commissioning and acceptance objectively.
- Tie payments to completed, documented milestones.
- Require delivery of warranties, manuals, monitoring access, inspection records, and approval documents.
- Confirm who bears the cost of correcting failed inspections or defective work.
- Avoid signing acceptance merely because equipment is physically installed.
What it depends on
- Contract payment provisions
- Project financing structure
- Inspection and commissioning requirements
- Installer financial strength and available security
Risks and trade-offs
- Full prepayment reduces leverage over unfinished or defective work.
- A retained balance may be disputed if acceptance criteria are vague.
- Escrow, bonds, or other protections may have costs or availability limitations.
Information you may need
- Payment schedule
- Definition of commissioning and acceptance
- Outstanding inspections and approvals
- Warranty and correction obligations
Your next step
What to do next
Ask the installer to revise the payment schedule so final payment follows documented commissioning and acceptance, and obtain independent review if the installer refuses.
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