Understanding Solar Panel Energy Contracts
Are you considering making the switch to solar energy? If so, you’re likely wondering about solar panel energy contracts. What do they entail? What should you be looking for? When it comes to solar panel energy contracts, there is a lot of misinformation out there.
Poulin Solar Pro in New Mexico is here to set the record straight. This article will walk you through the basics of solar contracts, what you need to know, and why it’s important. With our help, you’ll be able to make an informed decision about your solar panel needs. So let’s get started.
What Is a Solar Power Contract?
A solar power contract is between a homeowner and a solar panel company. The contract outlines the terms of the agreement, including the amount of money the homeowner will pay for the solar panels, the agreement’s length, and each party’s responsibilities.
This document is essential because it protects both you and the solar company. It outlines the expectations and responsibilities of both parties, and it gives you a way to resolve any disputes that may arise. It might also help you get financing options for your solar panel installation. Many banks and lenders will require a copy of the contract before they’ll approve a loan.
There are many benefits to signing a solar power contract. For one, it can help you save money on your electric Bill. Solar panels can provide a significant renewable energy source, which can help offset the cost of your monthly electric bill. In addition, solar power contracts can help you take advantage of state and federal solar incentives, like the solar investment tax credit.
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Common Parts of a Solar Contract
While solar contracts may vary depending on the service provider and the project’s specifics, certain commonalities can be found in most agreements. We’ve laid out the fundamentals of a solar panel installation agreement for you.
- System Overview
The System Overview includes the following specs for your solar energy system:
- Solar panel quantity and make
- Solar inverters information
- Design of your solar installation on your roof
- Solar system size and wattage and estimated production
- Energy storage batteries (if applicable)
2. Financial Summary
The financial summary is the part of the solar power contract that outlines the price of the panels and installation, the warranty length, and the financing terms, if applicable. An excellent solar contract will also incorporate current local and federal tax incentives. In the state of New Mexico, there is a 10% tax credit and $0 sales tax charged to the system.
Understanding the financial summary is essential because it will help you understand the project’s total cost. It will also help you understand your obligations under the contract.
3. Electric Bill Savings
The electric bill savings part of a solar power contract is pretty straightforward. It outlines how much money you can expect to save on your electric Bill each month after your solar panel installation is complete.
The amount you save will depend on a few factors, like the size of your solar panel array and the amount of sunlight your area gets. But in general, you can expect a significant reduction in your electric Bill.
4. Next Steps
Once you agree to the solar system, it’s good to know the steps you and the company will accomplish to get your home using renewable energy. Once the agreement is signed, the company will perform final inspections, order permits, and complete installation, and once the city green tags your system, you’ll be plugged into the sun!
5. Billing Overview
The Billing Overview part of the solar power contract explains how you will be billed for the electricity your solar panels produce. It will outline how much you will be charged per kilowatt-hour (kWh) of electricity and explain any rebates or incentives you may be eligible for.
6. Warranty and Maintenance Information
This part of a solar power contract is essential because it outlines the warranty terms. It will tell you how long the warranty is good for, what is covered, and what is not covered. It’s essential to read the Warranty and Maintenance Information carefully to know what is covered and what is not. That way, you can be sure to get the most out of your warranty.
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The Importance of Understanding Your Solar Contract
The key thing to remember about solar contracts is that they are essential for protecting both you and the solar company. They outline the expectations and responsibilities of both parties, and they give you a way to resolve any disputes that may arise.
Understanding your solar contract is also important because it can help you get financing for your solar panel installation. Many banks and lenders will require a copy of the contract before they’ll approve a loan.
So if you’re considering making the switch to solar energy, be sure to read up on solar contracts. It could save you time and money in the long run.
Solar PPA vs. Solar lease
You have three main options when considering solar: using a power purchase agreement (PPA), a solar lease, or owning the system. These options have their benefits and drawbacks, so it’s crucial to weigh your options carefully before making a decision.
A solar PPA is a contract where you agree to purchase the electricity your solar panels produce. With a solar PPA, you don’t have to pay for the panels or the installation.
A solar lease is a contract where you agree to pay a monthly fee to lease the solar panels. With a solar lease, you don’t have to pay for the panels or the installation.
The downside of a PPA or solar lease is that you will not be able to take advantage of all the tax breaks and incentives available for solar panel owners. That’s because the solar company usually claims those incentives.
When homeowners own their solar system, they will take full advantage of the current tax incentives to go solar and will benefit from the long-term savings of solar energy. They will exchange their current electric bill for a solar loan, and once it’s paid off, they won’t have an energy bill!
We highly suggest that our customers OWN their solar and do NOT do a PPA or a lease. In fact, we don’t even offer PPA’s or leases since we have experienced first-hand the headaches they can cause and do not want this experience for any of our customers.
Go Solar with Poulin Solar Pro
Solar contracts are a great way to save money on your electric bill and take advantage of renewable energy. However, it’s essential to understand the terms of the contract before you sign it. Be sure to read the fine print and understand the upfront cost, financial benefits, and long-term contract before switching to solar energy.
If you’re interested in making the switch to solar energy in New Mexico, get started with Poulin Solar Pro.
We can help you understand your solar contract and take advantage of all the financial benefits of solar energy.
Contact us today to learn more.
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