Community Solar Contract Review Checklist

Key Clauses & Questions to Review

1. Project Scope & Timeline

• Clause: Project Scope, Timeline, and Milestones

- Questions:

- Is the project scope explicitly defined (e.g., system size, installation locations, energy output guarantees)?

- Are key milestones (e.g., permitting, interconnection, commissioning) clearly outlined with deadlines?

- Is there a process for managing scope changes or delays?

2. Financial Terms

• Clause: Pricing Structure, Payment Terms, and Escalation Clauses

- Questions:

- Are energy rates fixed, variable, or indexed, and are they transparent?

- Are there penalties for late payments or underperformance?

- How are costs for maintenance, upgrades, or disputes allocated?

3. Performance Obligations

• Clause: Energy Production Guarantees, Maintenance, and Monitoring

- Questions:

- What are the minimum energy production targets, and what happens if they are not met?

- Who is responsible for system maintenance, repairs, and performance monitoring?

- Are there penalties for failing to meet contractual performance metrics?

4. Termination & Exit Strategy

• Clause: Termination Conditions, Notice Periods, and Exit Clauses

- Questions:

- What are the grounds for termination (e.g., default, bankruptcy, force majeure)?

- What notice period is required for termination, and are there penalties for early exit?

- Is there a process for transferring the contract or exiting the project?

5. Dispute Resolution

• Clause: Mediation, Arbitration, and Governing Law

- Questions:

- Is there a mandatory mediation/arbitration process before litigation?

- Which jurisdiction’s laws govern the contract?

- Are there clauses for resolving disputes related to performance, payments, or compliance?

6. Compliance & Regulatory Requirements

• Clause: Regulatory Compliance, Permits, and Insurance

- Questions:

- Does the provider hold all necessary permits and licenses?

- Is the contract compliant with local, state, and federal regulations?

- Does the provider carry adequate insurance (e.g., liability, property)?

7. Additional Clauses

• Clause: Data Privacy, Force Majeure, and Confidentiality

- Questions:

- How is customer data (e.g., energy usage) protected and shared?

- Are force majeure clauses reasonable and aligned with industry standards?

- Are confidentiality and non-disclosure obligations clearly defined?