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)
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.
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.
The Client is the Owner of the Property or has the right to affect changes on the Property.The Power Provider ensures to install and maintain the Solar Equipment as required by the laws of [Client.State] .
The Client confirms that they will pay the lease amount for the use of the Solar Equipment as per the terms of this agreement.
“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.
“Operation Date” is when the Operation services and installation are complete, with fully functioning Solar Equipment.
“Energy Delivery Point” refers to the delivery point of solar energy within the Property. “Energy Output” means the total net energy output delivered through the meter to the Client.“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.
“kWp” is the kilowatt rated power. “kWac” is the kilowatt alternating current. “kWhac” is the kilowatt-hour alternating current.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.
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.
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.
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.