We’ll review the Solar FTC Next week
Topic One: Homeowners and Contracts for Solar: What to look for when reviewing a solar construction contract
How to begin this first entry, I guess, we will jump right into the thick of things with a brief introduction and quick review of what should be in your solar installation contract. Good reading everyone, my name is Piotr Uchman, and I have worked in the solar industry for a little over three years with a range of experiences. My main role when I started working in the solar industry was to help manage the applications and applicants for the San Francisco Go Solar Program, and the Self Generation Incentive Program, as a program coordinator in this role I gained a lot of valuable information in the position. After a year of managing permits and grant applications, I moved to being our firms full-time South Bay representative. However, I discovered that I much preferred doing the individual consultations and education portion and transitioned to Peroon Consulting. That’s it about me and let’s start with your quick questions about what needs to be included in-what I consider to be the main portions of your solar contract, and those portions are: description of work, change orders, and cancellation. These contact components will define how your project moves forward or does not.
Let us start with the description of work section in your solar construction contract. What should this be in section? Everything that the proposal that you accepted, and just to we start from the basics, it should clearly spell out what the size of the intended project is going to be and what the components are as well. For example, if you were purchasing a 6kW, then in this section it should say the exact size of the system in either DC or AC depending on what was in your proposal and the name of the manufacturers for the panels and inverter(s). After the products are detailed the timeline for the work should be described. Usually, the wording will state the work will commence after a certain date or within a specific timeframe, and there can be stipulations for potential delays. In the past, my firm has negotiated in dates for certain portions of the project, and when reviewing bids, I highly recommend including a stated timeline in your contract. Now, that we have ironed out the work description section, let us talk about change orders because sometimes things can go sideways.
Change-orders, the section of the agreement, that states how, change orders are treated and created. I highly recommend reviewing this section on your own, and with your contractor because with solar and any construction project things can go sideways. For the solar industry, and specifically residential solar, a lot of projects are retrofit projects. A retrofit project means, that solar photovoltaic system is being installed on an existing structure, and when you are retrofitting a roof, or a ground mounted system new hurdles can be discovered during the process. For solar the hurdles for completing projects are initial roofing conditions for the building, and main service panel connections to the grid. For commercial properties and multi-unit residential buildings, I highly recommend having a licensed electrician to review your properties connection because this might be the most expensive portion of your project. For home-owners, roofs and main service panels, are the most frequent causes for change orders due to lacking information. The outward appearance of a roof may belie hidden issues that can be discovered down the road, so make sure that such eventualities are considered. Please make sure to discuss with your contractor what would happen if you roof is found to be in need of replacing before the start of construction and during the installation process, as there may be additional charges. When it comes to main-service panels, firms should have a setup process for handling main-service panels upgrades or modifications as a good portion of projects involve an upgrade or sub-panel addition. Change orders for projects should be avoided as much as possible and please try to include as much, if not all of the work to be done in the description of work section of the contract as it will make your life a lot easier. Now you ask, what if, my project cannot move forward due to a limit on my main service panel, or a change in ordinance how do I deal with this? This would fall in the least popular, but one of the most important sections, the cancellation section of the contract.
Your project has reached the end (or at least of now), and you would like to cancel your contract, how should you do that? Well the answer is, to talk to your contractor about cancelling your contract because your contract should have a section details when a contract can be cancelled with no cost and when additional costs can come in. For the State of California, a purchaser of solar photovoltaic system, has a three day (3 Day), cancellation period after signing an installation contract, and if you want to cancel you must provide written notice to your contracting firm, however, please refer to your contract. This section of the contract needs to be well reviewed by you, because for some firms they will allow for you to cancel and get a full refund of your deposit if there are any required change orders not described in proposal/contract. The cancellation of projects does happen, but in general it happens if the change-orders or full the project description and wants are not conveyed.
Well, that was a lot for the first post, for the next ones I will try to touch on design, and new components, and in the meantime, please let me know if you have any questions or any topics that you would like for me to review, and have a great one!
Sending my Best,
Piotr
To help you get started, what type of solar information are you looking for?
- Information for Homeowners or Business, or Architects?
- Are you interested in Consulting Services that are offered?
- For Solar Permitting and General Information ?