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6 FAQs about [Legal solar power generation]
What is a solar energy agreement?
For this guide, “solar energy agreement” will refer to the document or documents that work together to govern the relationship between the landowner and the party (or parties) constructing and operating the solar power project. These agreements are sometimes called “solar leases,” “solar easements,” or “solar power contracts.”
What is a solar power purchase agreement (SPPA)?
A Solar Power Purchase Agreement (SPPA) is a financial arrangement in which a third-party developer owns, operates, and maintains the photovoltaic (PV) system, and a host customer agrees to site the system on its property and purchases the system's electric output from the solar services provider for a predetermined period.
What if a developer offers a solar energy agreement?
When offered a solar energy agreement, remember attorneys working for the solar energy developer drafted the agreement. The attorneys’ professional obligation was to prepare an agreement that was as favorable as possible for their client – the developer, not you.
Can a landowner enter into a solar energy agreement?
Almost every solar energy agreement that contains an option will make the option “exclusive” which means the landowner cannot enter into any other agreement for solar development on the land (and perhaps any other form of energy development) during the option period.
Can a mortgage be a solar energy project?
As a result, creditors’ consent may be needed prior to execution of a solar energy agreement. If the land sought for a solar energy project is subject to a mortgage, consult with the lender to ensure the mortgage will not violate the solar energy agreement or to see if the mortgage can be modified to allow the agreement.
Are solar access laws illegal?
With that being said, unpermitted systems are illegal to operate in many American jurisdictions, even in states with solar access laws. What is the difference between solar access laws and solar easement laws?