Path-Q Solar
What should happen to my deposit if the solar project cannot obtain approval?
Answer
The contract should state whether the deposit is refundable, partially refundable, or forfeited if required permits or interconnection approval cannot be obtained. A well-defined approval contingency should identify the approvals covered, deadlines, permitted causes for cancellation, and the refund timing.
Key points
- Separate permitting, interconnection, financing, equipment availability, and inspection contingencies.
- State whether the installer may change the design or price after a utility or authority response.
- Specify who receives the deposit, how it is held, and when it must be returned.
- Do not assume a refund right exists unless the contract or applicable law provides it.
What it depends on
- Deposit and cancellation clauses
- Reason approval was denied or delayed
- Applicable contract and consumer-protection law
- Whether the installer incurred authorized nonrefundable costs
Risks and trade-offs
- A nonrefundable deposit can expose you to loss if approval fails.
- A broad installer cancellation right may allow retention of funds even when the project cannot proceed.
Information you may need
- Signed contract and deposit receipt
- Permit and interconnection contingency language
- Approval status and written reason for denial
- Applicable local cancellation or consumer rules
Your next step
What to do next
Before paying, negotiate a written refund trigger for denied or unavailable approvals and confirm the clause with the relevant consumer or legal authority if needed.
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Some details may depend on your location, installer, utility, incentives, regulations, or specific property.
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