Contracts Lawyers for New Mexico

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.

Escrow means that a neutral, trusted third party will hold funds or assets and only release them when the Escrow Holder judges that the terms of the deal have been met. The Escrow Holder provides legal protection to both sides by ensuring that funds or assets are only released when all contractual obligations are fulfilled, thereby minimizing risk and ensuring trust in transactions.

I have drafted hundreds of non-competes and non-solicitiations (usually for the employer - always better to hire the other side when hiring lawyers). Thus I can provide you a review of the agreement in light of your career, and suggestions for improvement.

Given the recent legal developments around non-competes, here's exactly where things stand for your situation: Where Things Stand: The FTC Ban Isn’t Active The Federal Trade Commission did try to ban most non-compete agreements across the country, but that rule was blocked by a federal court in Texas on August 20, 2024. The ruling included a nationwide injunction, which means the FTC can't enforce the rule at this time. They’ve already appealed, but for now, nothing has changed legally. So, we’re still in a state-by-state landscape when it comes to whether your non-compete is actually enforceable. So Can Your Employer Enforce It? That depends on where you live and the details of your agreement. Courts usually look at whether the restrictions are reasonable, and they focus on three main areas: 1. Timeframe: Most courts consider anything from six months to two years fair, depending on your role and industry. Anything longer tends to raise red flags. 2. Location: The restriction has to make sense based on where your employer actually does business. If it tries to block you from working anywhere in the country, but your employer only operates regionally, that could be a problem for them. 3. What You’re Being Blocked From Doing: The agreement has to be targeted. It should protect real business interests like client relationships, proprietary methods, or sensitive information. It can’t just exist to shut you out of the market. Why Your State Matters The enforceability of non-competes can vary a lot depending on where you are. A few states have almost completely banned them—California, North Dakota, and Oklahoma, for example. Others still allow them but have been tightening the rules, especially for lower-income employees. Many have added salary thresholds or narrowed which industries can use them at all. What Happens If You Break It? If your non-compete is enforceable and you go against it, your former employer might: • Ask the court to stop you from working at your new job immediately • Sue for money if they can prove you caused financial harm • Make you pay legal fees, depending on what your contract says Even if the clause wouldn't hold up in court, it can still create problems. Just the threat of legal action can be expensive and stressful. Plus, some potential employers may steer clear of hiring someone with a non-compete, even if it’s questionable. What You Should Do Next • Read your agreement closely. Pay attention to how long it lasts, where it applies, and what it actually prohibits. • Look up your state’s laws. That’s the key to figuring out whether the agreement holds water. • Talk to an employment attorney. A short consultation can give you clarity and protect you from missteps. • Think about your new role. If the new job is different enough or doesn’t involve the same clients or confidential information, that can help your case. So, yes, the national situation is in flux, but the practical reality is that non-compete law is still very much a state-by-state issue. Don't assume you’re stuck, but don't make any moves without legal advice either. Since every non-compete is different, it can really help to have a lawyer review yours and explain what it means. Attorneys here on Contracts Counsel would be happy to help.

Thank you for your question. From the facts you presented, this would not be duress. You could argue undue influence since they were pressuring you, but it lacks the duress element since you could have just not participated. Kansas is also very generous in favoring the enforceability of liability waivers, so the specific facts of the incident and the terms of the waiver would have to be taken into consideration. Please let us know if you have any further questions!