Break Up With Your Solar Contract

Solar energy systems are growing in popularity with each passing year. Unfortunately, there are numerous issues that all consumers should be aware of before deciding to purchase solar panels. This article will discuss voidable contracts and how you can potentially get freedom from your costly solar contract. 

Solar Contracts

Check Your Contract For These 4 Things

It is essential that the law requires certain things to be included within a contract. Arizona law regulates the sale of solar power systems and you can find most of these laws in Title 44, Chapter 11 of the Arizona Revised Statutes. If you are wanting to review your contract here are just a few requirements to check for: 

  1. The contract itself must include a written statement of the warranty and a written statement of the performance data of the system
  2. The written contract must be signed by the person buying the system
  3. Any contract that contains blank material spaces is “voidable” by the buyer 
  4. The contract must state and set forth every tax incentive and obligation for which the buyer may be eligible. 

If you suspect that your contract is missing an essential requirement then it’s possible that it can be voided.  

Can You Get Out Of Your Solar Contract?

Voidable contracts occur when the party who has the voidable power may elect, at their discretion, to cancel the contract without penalty. If the voidable power holder does not cancel the contract, the contract becomes valid and binding. This is contrasted with a “void” contract which is a contract that is unenforceable from the get-go. So, when the law says that the contract is voidable by the buyer if material spaces are blank, the buyer can choose to cancel the contract if the contract includes blank spaces on material terms. If those terms are blank, the buyer can choose to cancel the contract or make it real by abiding by it.

Are You Bound To Your Solar Contract?

It is obviously important that the law requires a solar contract to include a variety of things, and it is equally important that the contract include those things that the law requires. It is a necessary moving target, however, of how many of the things the law requires need to be absent for the contract to be unenforceable completely. Unless such an event is defined by the law, as was above with the lack of a material term. 

For example, one of the things the law requires is that a solar contract is in, at least, 10-point font. Let’s consider a contract that includes every element the law requires but is written in a 9.5-point font. Is that contract void? Such a question is ultimately one for the court, however, it will likely be termed to be in “substantial compliance” with the law and valid. 

“Substantial compliance” is a legal term that really means that something is “close enough” and the court will not have a problem with it.

Let’s say that in addition to being in 9.5 font and missing a description of components, it is now missing the disclosures of the tax rebates and obligations that the system entitles the buyer to, is it unenforceable now? What if the contract doesn’t include language that the mandate of the statute must be in the contract verbatim, that is, exactly as the legislature stated the language should say? What if it doesn’t include an estimate of the total costs of maintenance? 

We are certainly getting closer to unenforceable with every legally required clause that is missing. 

Fight Your Solar Contract

If you have purchased a solar power system and you are wanting freedom from your contract we recommend working with an experienced attorney. At Counxel Legal Firm we have successfully helped homeowners get out of their solar contracts. Please contact our legal team to review your contract and help you discover your legal options. 

Note: This article was written with Arizona residents in mind, however, we offer legal counsel in additional states. If you do not live in Arizona but would like to discuss your solar contract we would be happy to assist you. 

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