Contracts Lawyers for Indiana

While there are many standard terms in a RSA, each one can be drafted uniquely. As such, while a competent attorney can review your agreement and explain the terms in plain english, it would be impossible for any of us to answer your questions without a detailed look at the document itself.

Because every type of situation needs to be covered to protect you. That cannot be done in a paragraph or two.

Hello. Before entering into a lease agreement for solar panels, it’s essential to weigh both business and legal considerations to avoid long-term risks and ensure the agreement aligns with your financial goals and property plans. LEGAL CONSIDERATIONS 1. Ownership Who owns the panels? Under a lease, the installer (lessor) typically retains ownership. This typically means you can’t claim tax credits or depreciation (the lessor can). 2. Property Access Rights Does the agreement allow the company to access your roof or property for installation, maintenance, and inspection? Are there limits on timing, frequency, and notice? 3. Term and Termination How long is the lease? (Often 15–25 years) Can you terminate early, and if so, under what conditions? Are there early termination penalties? 4. Transferability What happens if you sell your home? Can the lease be transferred to the buyer? Must the lease be bought out first? Will the lease create issues with real estate financing or title? 5. Liability and Insurance Who is responsible if the panels damage your roof or cause injury or fire? Does the installer carry liability insurance? Does your homeowner’s insurance need to change? 6. Performance and Maintenance Is there a guaranteed energy output? Who handles monitoring, repairs, and replacements? What happens if the panels malfunction or don’t meet performance metrics? 7. Default and Remedies What happens if you or the lessor breach the agreement? Are there cure periods, mediation requirements, or repossessions? BUSINESS & FINANCIAL CONSIDERATIONS 1. Monthly Cost vs. Savings Is your monthly lease payment fixed or escalating (e.g., 2.9% annual increase)? Do the savings on your electricity bill outweigh the lease cost? 2. Tax Incentives With a lease, you typically do not receive federal or state tax credits—those go to the installer. You may lose out on significant financial incentives available to system owners. 3. Buyout Option Does the agreement offer an option to buy the panels during or at the end of the lease? At what cost? Is the price fair or based on a predetermined formula? 4. Impact on Home Value Some buyers see leased solar as a benefit, others see it as a burden. Some lenders may be reluctant to finance homes with solar leases. Ensure the lease allows easy assumption by a future buyer. 5. Escalation Clauses Many leases include annual price escalators—review the rate carefully. Over time, these increases may offset utility savings. PRACTICAL STEPS BEFORE SIGNING You should consider having an attorney review the lease—especially if you’re concerned about property value, liability, or long-term flexibility. Compare leasing with other options, like: - Power Purchase Agreements (PPAs) - Solar loans - Outright purchase Ask the company for: - Sample utility bill comparisons - Performance guarantee language - Clarification of who pays for repairs and monitoring Disclaimer: This response is provided for general informational purposes only and does not constitute legal advice or create an attorney-client relationship. You should consult a qualified attorney licensed in your jurisdiction for advice specific to your situation.

Agreements often have clauses that survive termination. It would be hard to advise you without seeing the contract. How broad/reasonable the clause is, is there a liquidated damages clause, are they asking for equitable relief, etc. And of course, all these likely involve litigation. And also what is information is confidential as it relates to your new business

Like any other contract, if one party is not doing what they promised, that can be a valid reason for terminating a contract. I suggest that you first send a certified, return receipt letter and express your concerns. Use a polite, collaborative approach - don't make any threats.