Path-Q Solar
What should the contract say about who bears the cost if an assumed solar tax credit is unavailable to me?
Answer
The contract should state whether the price depends on the credit, who bears the risk of denial or reduced eligibility, and what happens if the credit is unavailable. It should avoid treating an unverified credit as guaranteed and should specify any price adjustment, cancellation right, deadline, documentation duty, and responsibility for tax advice.
Key points
- Identify whether the quoted price is before or after the assumed incentive.
- State whether the customer owes the full price if the credit is denied, reduced, delayed, or unavailable because of personal circumstances.
- Require a written change procedure rather than allowing an informal or retroactive price increase.
What it depends on
- Current incentive rules
- Contract price and incentive assumptions
- Cause of ineligibility
- Cancellation, financing, and deposit terms
Risks and trade-offs
- A broad disclaimer can leave the homeowner responsible for a large unexpected amount.
- A contractor guarantee may have exclusions, caps, or financial limits.
- Contract language cannot override tax law or guarantee personal eligibility.
Information you may need
- Complete contract and all incentive-related addenda
- Itemized pre-incentive price
- Written description of the assumed credit and eligibility conditions
- Independent tax advice
Your next step
What to do next
Ask for a contract revision that states the pre-incentive price and allocates denial, reduction, delay, and cancellation risks explicitly; obtain legal or tax review where appropriate.
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Some details may depend on your location, installer, utility, incentives, regulations, or specific property.
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