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Solar Lease Agreement

Image 1

Created by:

​[PowerProvider.FirstName][PowerProvider.LastName]​

​[PowerProvider.Company]​

Prepared for:

​[Client.FirstName][Client.LastName]

​[Client.Company]​

A solar lease agreement is a document you use to lease out solar power and equipment to another party. This template lets you create a residential or commercial solar lease agreement for either the buyer/client or the Power Provider/developer. However, generally, the developer provides it, and it helps ensure financial certainty for both parties.

Installation Property: (Property.Name)

Installation Address: (Property.Street) (Property.City) (Property.Street) (Property.Street)

The Agreement and Its Term

You can use this commercial or residential solar lease agreement as is and only fill out the required sections. Our free template helps you to define the relationship between the leasing party and the lessee. As such, it helps ensure you can safely lease solar energy and equipment.

This solar lease agreement, dated at (Begin.Date) (“Effective Date”), is between [Client.FirstName][Client.LastName] (“Client”) and [PowerProvider.FirstName][PowerProvider.LastName] (“Power Provider”). It is effective until (End.Date) (“Date of Termination”) or until such a time both parties agree to terminate the agreement. Hereafter, the Client and Power Provider may be collectively referred to as “Parties” in this document.

WHEREAS:

  1. The Power Provider will install (Solar.Equipment) (“Solar Equipment”) at [Client.StreetAddress][Client.City][Client.State][Client.PostalCode] (“Property”), to be completed before (Number) days from the Effective Date has passed.

  2. The Client is the Owner of the Property or has the right to affect changes on the Property.

  3. The Power Provider ensures to install and maintain the Solar Equipment as required by the laws of [Client.State].

  4. The Client confirms that they will pay the lease amount for the use of the Solar Equipment as per the terms of this agreement.

Defined Terms and Interpretation

  1. “Operation” refers to an event occurring while the Power Provider (i) completes the physical installation, maintenance, and repairs of the Solar Equipment and (ii) delivers energy through the affected meter to the Client.

  2. “Operation Date” is when the Operation services and installation are complete, with fully functioning Solar Equipment.

  3. “Energy Delivery Point” refers to the delivery point of solar energy within the Property.

  4. “Energy Output” means the total net energy output delivered through the meter to the Client.

  5. “Solar Equipment” refers to all of the power generation equipment, switches, controls, meters, conduits, wires, connections, and other equipment which connects to the Energy Delivery Point to provide solar power to the Client.

  6. “kWp” is the kilowatt rated power.

  7. “kWac” is the kilowatt alternating current.

  8. “kWhac” is the kilowatt-hour alternating current.

Leasing Solar Equipment

A commercial solar lease agreement differs from a Solar Power Purchase agreement (PPA). In a PPA, you buy the net amount of solar power you use from the meter at a fixed rate per kWh. However, with a solar lease agreement, you generally pay a fixed monthly amount. That monthly amount allows you to use all the output energy the solar equipment generates.

Per the terms and conditions of this agreement, the Client will pay the Power Provider a monthly lease amount to lease the equipment. The Power Provider understands that this lease amount enables the Client to use the net Energy Output the Solar Equipment generates without additional fees on the kWh.

The Client will pay $(Lease.Amount) to the Power Provider by the 1st of each month. If the Power Provider doesn’t receive the monthly lease fee by the 5th or by (Number) days after the payment due date, then an additional late fee of $(Late.Fee) may apply.

All payments will be made in United States Dollars (USD) using (Payment.Method1) or (Payment.Method2). If the Client mails the payment, they must ensure it reaches the Power Provider before or on the 1st of each month to avoid additional charges.

Maintenance and Repairs

The Power Provider leases the Solar Equipment to the Client, maintaining their ownership over it, with the understanding that the Client will report any damages or problems to the Power Provider in no less than (Number) hours.

The Power Provider will undertake annual/bi-annual maintenance services on the Solar Equipment and Energy Delivery Point. The Power Provider is also responsible for repairing damages that are not the direct result of negligence or actions taken by the Client.

Pre-Installation Obligations

Here, you list all the actions and duties of both parties before installing the equipment. It includes obtaining licenses, permissions to alter the Property, and more.

The Power Provider is obliged to complete and finish the Operations in a timely manner once this contract has been signed. Obtaining and maintaining performance licenses, approvals, and permits for Solar Equipment and its maintenance is also the duty of the Power Provider.

The Client must obtain any written permissions required to allow the requested installation lawfully and has it present upon arrival or the installation team. Should the Client not have these permissions, any additional charges, cancellation fees, or other reasonable expenses will be the responsibility of the Client.

The Power Provider is responsible for all costs and the performance of the Operations tasks. However, at no additional cost to the Power Provider, the Client will obtain government approval, permits, licenses, or certificates to ensure the legality of installing Solar Equipment on the Property. Both parties agree to maintain any Operations and Solar Equipment insurance.

Notices and Resolution of Disputes

This section explains notice terms and how to handle disputes. This explanation helps ensure there’s a set process for both. It prevents lawsuits from being levied against you with no warning.

All notices must be written and delivered in person or through a post mailing system. These notices only go into effect with receipt of the delivery or in-person delivery. No matter whether a party posts or delivers the notice in person, the notice should have the full name, company, address, fax number, and telephone number of the affected Party listed.

If there is any dispute regarding the solar lease agreement, the parties agree to resolve the dispute within 30 days using mutual discussion. Should the parties not achieve a satisfactory resolution, it will be settled through arbitration.

Miscellaneous Provisions

Add information about the case and your company or situation. If something isn’t discussed in the rest of the contract, you can add it here. However, you can remove this section if you have nothing to add.

Should the Solar Equipment need to be moved during the term of this agreement, the Party requiring the move or replacement must obtain permission from the Power Provider and any other written approvals required by law. This Party must also cover the costs of the movement or replacement of the Solar Equipment.

Each Party should receive and keep related confidential documents regarding this agreement. Both Parties agree not to publish the documents publicly.

Warranties and Covenant of Both Parties

Both parties warrant to the other Party that they are duly organized, validly existing, and in good standing with the laws of [Client.State]. The parties warrant that they are qualified to conduct business as they comply with all [Client.State] laws, rules, and regulations.

The Client acknowledges they are responsible for providing reasonable security of the Solar Equipment. This includes commercially reasonable monitoring of the Property alarms and Solar Equipment. The Client shall not knowingly, indirectly, or directly create, cause, assume, incur, or suffer to make a liens, pledge, mortgage, security interest, charge, or claim with respect to the Solar Equipment or any interest therein.

Event of Default

Any of the below actions are considered “Events of Default,” wherein one Party has the right to terminate the lease agreement due to the other event of default the other Party committed.

  • If the Client doesn’t pay the monthly lease amount within (Number) days of the due date.

  • If a Party breaches any of the terms and conditions of this agreement

  • If the Client provides a written notice of their inability to pay their debts

  • If one of the parties files a petition or reorganization under the federal bankruptcy laws

Should one of the parties experience an event of default, the other Party has the right to suspend or terminate the agreement before the effective End Date.

Agreement

Below, you must add the governing State. This term prevents any lawsuits in another state with different laws. Further, add that this document is the only one binding your agreement. It helps prevent verbal concessions from being taken as part of the contract.

Both parties acknowledge that they fully understand the terms of this agreement. By signing this document, both Power Provider and Client will be held accountable to its terms and conditions.

This solar lease agreement is the only document valid in the court of law that governs this agreement. Any concessions to this agreement must be made in writing and signed by both parties.

All rights and obligations of this agreement are construed and governed by the laws of (State). In Witness Whereof, this agreement is executed on the date, month, and year mentioned below.

​[Client.Company]​

​

Signature
MM / DD / YYYY

​[Client.FirstName][Client.LastName]​

​[PowerProvider.Company]​

​

Signature
MM / DD / YYYY

​[PowerProvider.FirstName][PowerProvider.LastName]​

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FAQ: Solar Lease Agreement

  • This solar lease agreement template must contain key terms to be a valid contract. Find a list of the critical details below:

    • Both parties’ names and addresses

    • The Property where you install the Solar Equipment

    • The date/term of installation and the contract term

    • Responsibilities and duties of both parties

    • The monthly lease amount

    • The State governing this agreement

    While it’s not key terms, adding any specific terms and conditions to the particular case or situation is still vital.

  • The Party who uses the solar energy, namely the Client, is responsible for informing the Power Provider of any damages or problems with the system. They also pay the monthly lease amount and obtain approvals for the installation. On the other hand, the Power Provider has the following responsibilities:

    • Installation of the generating system in a timely manner

    • Maintenance and repair of the system

    • Invoicing a fixed monthly amount to the Client

    • Maintaining licenses and permits on the equipment

  • Yes, if you’re selling your Property, you can transfer the residential solar lease agreement to the new owners. However, this can sometimes be a complicated option, as you must coordinate with the other Party to the agreement, the new owner, the property sales agent, etc. The other option is to buy the installed solar panels, but this can be more costly, though it can increase the Property’s value.

Disclaimer

Materials (e.g. templates, educational articles, blog posts and informational content), made available through PandaDoc, including via any integrations, connectors, extensions, plugins, or third-party AI platforms (e.g. ChatGPT, Claude, or similar tools) are for general information purposes only and are provided "as is." These materials do not constitute legal, regulatory, or compliance advice and should not be construed as such. It is your responsibility to ensure materials meet your specific legal requirements. Consult a qualified attorney licensed in your jurisdiction before relying on these materials. PandaDoc disclaims all warranties, express or implied, including fitness for a particular purpose or non-infringement.

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