10 Questions to Ask Before Signing a Solar Contract

Why a checklist beats a good feeling

Solar sales lean on the monthly number and a warm pitch. The problems live in the details underneath — the term, the escalator, who owns what, what happens when you sell. These ten questions drag those details into the open. Ask them, get the answers in writing, and the deal either holds up or reveals itself.

The ten questions

1. Is this owned or leased?

Everything downstream depends on this. Owned (cash or loan) means you hold an asset. Leased or PPA means you're renting equipment a third party owns. If the salesperson is cagey about which one you're signing, stop there.

2. What is the exact term?

Leases typically run 20 or 25 years. Loans vary. Get the number in years, and understand that a long term multiplies every other factor below — escalators, transfer friction, and lifetime cost.

3. Is there an escalator?

An annual escalator raises your payment a set percentage every year and compounds. Get the exact percentage and the payment in year 1 versus the final year. A 2.9% escalator roughly doubles the payment over 25 years.

4. Who claims any tax credit?

This is where bad quotes mislead in 2026. The 30% federal residential credit (Section 25D) ended for owned systems placed in service after December 31, 2025, so a 2026 cash or loan purchase generally cannot claim it. On a lease or PPA, the third-party owner may claim a separate commercial credit (Section 48E, itself phasing out) — you never claim it directly, you'd only see it reflected in your payment. If a quote assumes a 30% credit you can personally claim on a 2026 owned install, that's a red flag.

5. Is the production number an estimate or a guarantee?

Proposals show projected annual kWh. Ask whether that's a marketing estimate or a contractual production guarantee with a remedy if the system underproduces. The two are very different, and the word 'guaranteed' has to be in the contract to mean anything.

6. How does a transfer work if I sell?

Owned systems generally convey with the house. Leased systems require the buyer to qualify and assume the contract, or a buyout. Ask for the transfer terms and the buyout schedule in writing before you sign, not when you list the house.

7. How stable is the installer?

A 25-year warranty is worthless if the company is gone in five years. Ask how long they've operated, whether they self-install or subcontract, and who honors the workmanship warranty if they close. Check licensing and reviews independently.

8. What do the warranties actually cover?

There are usually three: the panel performance warranty, the inverter warranty, and the installer's workmanship warranty. Get the length and the covered failures for each, and confirm who pays labor versus parts on a claim.

9. Can my roof support this?

Panels last 25+ years; an aging roof doesn't. If your roof needs replacement in a few years, you'll pay to remove and reinstall the array. Ask whether they assessed roof age and condition, and whether re-roofing is factored in.

10. What is the total lifetime cost?

Not the monthly — the sum of every payment across the full term, escalator included, plus any fees. Then compare that number to owning the same system and to your realistic utility-bill trajectory. This is the figure the pitch works hardest to keep you from calculating.

Get the answers in writing. A seller who won't put the term, escalator, transfer terms, and lifetime total on paper is telling you something — believe them.

Florida-specific things worth confirming

In Florida, solar equipment is exempt from state sales tax, the added home value is excluded from property tax under Statute 193.624, and an HOA cannot outright ban rooftop solar under Statute 163.04. Net-metering rules also differ by utility — FPL follows the state PSC rule, while cooperatives like LCEC set their own terms — so confirm how your specific utility credits exported power before you size a system.

Questions worth asking

• Is this owned or leased, and what is the exact term?
• What is the escalator percentage and the year-1 vs. final-year payment?
• Who claims any tax credit, and does the quote assume one I can actually claim in 2026?
• Is the production figure a contractual guarantee with a remedy, or an estimate?
• What are the transfer terms and buyout schedule if I sell?
• What is the total of every payment over the full term?