Path-Q Solar

What site-control risks should a small business assess before installing solar on a leased building?

Answer

Confirm that the lease grants durable rights to use the roof and related areas for the full project term, install and maintain equipment, access the site, connect to utilities, and remove the system. Address ownership, roof work, damage, insurance, assignment, default, sale, and end-of-lease rights before committing.

Key points

  • Define the equipment footprint, conduits, inverters, meters, access routes, structural work, and any ground or parking areas involved.
  • Obtain landlord consent and document roof condition, structural responsibility, leak response, and repair or replacement procedures.
  • Set rights and obligations if the lease ends early, the building is sold, the tenant defaults, or the roof must be replaced.
  • Confirm who owns incentives, renewable attributes, energy savings, equipment, and removal materials.

What it depends on

  • Lease term, renewal options, and termination rights
  • Landlord consent and property ownership
  • Roof condition and future capital plans
  • Financing, utility, insurance, and permit requirements

Risks and trade-offs

  • A project may become stranded if the lease ends before the system pays for itself.
  • Roof replacement or landlord access can interrupt production and create removal costs.
  • Unclear ownership or default rights can complicate financing, sale, or removal.

Information you may need

  • Current lease and amendments
  • Landlord's roof, redevelopment, and sale plans
  • Site plan and structural assessment
  • Proposed solar ownership and financing documents

Your next step

What to do next

Have counsel negotiate a solar-specific lease amendment covering access, term, roof work, insurance, assignment, default, sale, and removal before ordering equipment.

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