Path-Q Solar

What should a landlord include in a lease when solar affects tenant electricity costs?

Answer

The lease should clearly state system ownership, how electricity is supplied or credited, how charges are calculated, who receives savings, maintenance and repair duties, access rights, outages, equipment damage, tenant turnover, and what happens when the lease ends. Local legal review is important before imposing or changing electricity charges.

Key points

  • Define whether the tenant pays the utility directly, pays the landlord, or receives a credit.
  • State the calculation method, billing records, payment timing, dispute process, and any limits or adjustments.
  • Assign responsibility for equipment access, maintenance, damage, insurance, and restoration.
  • Address sale, refinancing, lease renewal, early termination, and transfer of the solar arrangement.

What it depends on

  • Local landlord-tenant and utility rules
  • System ownership and financing documents
  • Property metering and billing design
  • Lease duration and tenant turnover

Risks and trade-offs

  • Ambiguous billing terms can cause disputes or regulatory problems.
  • A lease term may not match the system's ownership or financing term.
  • Passing through costs or selling electricity may require specific disclosures, approvals, or restrictions.

Information you may need

  • Proposed solar ownership and billing model
  • Metering and account arrangement
  • Maintenance, insurance, and access responsibilities
  • Applicable legal and utility requirements

Your next step

What to do next

Have a qualified local attorney or housing adviser review a written solar lease addendum before presenting it to a tenant.

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Some details may depend on your location, installer, utility, incentives, regulations, or specific property.

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