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Solar Lease Agreement Template
Lease property for solar installation with clear access, maintenance, and removal terms using this Solar Lease Agreement Template.
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Solar Lease Agreement Template
This Solar Lease Agreement (the “Agreement”) is entered into as of [Effective Date] by and between:
Lessor (Property Owner): [Full Legal Name], with an address at [Address] (“Lessor”).
Lessee (Solar Company/Tenant): [Full Legal Name], with an address at [Address] (“Lessee”).
Lessor and Lessee may be referred to individually as a “Party” and collectively as the “Parties.”
1. Leased Area and Property Description
1.1 Property. The property is located at: [Property Address] (the “Property”).
1.2 Leased Area. Lessor leases to Lessee the following area for solar equipment:
☐ Rooftop area: [Describe roof sections, square footage]
☐ Ground area: [Describe boundaries, acreage]
☐ Other: [Describe]
1.3 Site Plan (Optional). ☐ Attached as Exhibit A ☐ Not attached.
1.4 Access and Easements. Lessee may use reasonable access routes and equipment/utility areas: [Describe], for installation, maintenance, and removal.
2. Term and Renewals
2.1 Initial Term. The initial term is [] years starting on [Start Date].
2.2 Renewal Options. Lessee may renew for [] additional terms of [] years each by providing notice [] days before expiration.
2.3 Commercial Operation Date (Optional). Rent begins: ☐ On Start Date ☐ On commercial operation date ☐ Other: [Rule].
3. Rent and Payments
3.1 Base Rent. Lessee will pay Lessor $[Amount] per: ☐ month ☐ year, starting [Date].
3.2 Escalation (Optional). Rent increases by: ☐ []% annually ☐ CPI adjustment ☐ Other: [Method].
3.3 Payment Method. ☐ ACH/bank transfer ☐ Check ☐ Other: [Method].
3.4 Late Fees (Optional). Late payments may incur: $[] or []% after [] days, if permitted by law.
4. Permitted Use and Restrictions
4.1 System. Lessee may install, operate, maintain, repair, replace, and upgrade the solar system and related equipment (the “System”).
4.2 No Interference. Lessor will not materially interfere with System operation, including preventing shading or obstruction caused by Lessor-controlled structures or landscaping, except for safety or required property repairs.
4.3 Use Limitations. Lessee will use the Property only for System purposes and will not store hazardous materials except in ordinary quantities used for maintenance, in compliance with law.
5. Installation and Construction
5.1 Permits. Lessee is responsible for permits and approvals, unless stated otherwise: [Allocation].
5.2 Contractors and Safety. Lessee will use qualified contractors and follow safety rules on the Property.
5.3 Construction Schedule. Expected installation window: [Dates].
5.4 Restoration. Lessee will restore disturbed areas after installation and maintenance, reasonable wear excepted.
6. Access, Maintenance, and Repairs
6.1 Access Rights. Lessee may access the Property: ☐ During business hours with [__] days’ notice ☐ Any time for emergencies.
6.2 Maintenance. Lessee is responsible for maintaining the System in good working order.
6.3 Damage Repair. Lessee will repair damage caused by Lessee’s activities, excluding pre-existing conditions or ordinary wear.
6.4 Roof Repairs (Rooftop Systems Only) (Optional). Roof responsibility: ☐ Lessor ☐ Lessee ☐ Shared as follows: [Terms].
7. Utilities and Interconnection
7.1 Interconnection. Lessee may connect to the utility grid and install meters/interconnection equipment.
7.2 Cooperation. Lessor will reasonably cooperate with interconnection paperwork if required.
7.3 Utility Costs. Utility costs related to System operation are paid by: ☐ Lessee ☐ Lessor ☐ As allocated: [Rule].
8. Insurance and Liability
8.1 Insurance. Lessee will maintain commercial general liability insurance with limits of $[__] per occurrence and workers’ compensation as required by law.
8.2 Equipment Insurance (Optional). Lessee will maintain insurance for the System/equipment: ☐ Yes ☐ No.
8.3 Indemnification (Optional). Lessee will indemnify Lessor for claims arising from Lessee’s negligence, willful misconduct, or breach, to the extent permitted by law.
9. Taxes
9.1 Property Taxes. Property taxes on the land/building are paid by: ☐ Lessor ☐ Lessee ☐ As allocated: [Rule].
9.2 System Taxes. Taxes on the System and related equipment are paid by: ☐ Lessee ☐ Lessor ☐ As allocated: [Rule].
10. Default and Remedies
10.1 Default. A Party is in default if it materially breaches this Agreement and fails to cure within [__] days after written notice.
10.2 Remedies. Remedies include termination, damages, and other lawful remedies.
10.3 No Waiver. Failure to enforce a right is not a waiver.
11. Decommissioning and Removal
11.1 Removal. At the end of the lease (or earlier termination), Lessee will remove the System and restore the Property to substantially its prior condition, reasonable wear excepted.
11.2 Timeline. Removal and restoration must be completed within [] days after termination.
11.3 Security (Optional). ☐ Not required ☐ Required: bond/escrow of $[] to ensure removal.
11.4 Abandonment (Optional). If Lessee fails to remove the System, Lessor may remove it and recover reasonable costs as permitted by law.
12. Assignment (Optional)
12.1 Assignment by Lessee. Lessee may assign this Agreement to: ☐ An affiliate ☐ A purchaser/financier of the System ☐ Other: [Permitted assignee], with: ☐ Notice only ☐ Lessor consent required (not unreasonably withheld).
12.2 Assignment by Lessor. Lessor may assign this Agreement upon sale/transfer of the Property, provided the new owner assumes Lessor’s obligations.
13. Termination
13.1 Termination for Cause. Either Party may terminate for material breach not cured within [__] days after notice.
13.2 Early Termination (Optional). Early termination allowed: ☐ Yes ☐ No. If yes: [Fees, notice, conditions].
13.3 Survival. Sections that should survive include: insurance/liability, confidentiality (if included), and decommissioning/removal.
14. Miscellaneous
14.1 Governing Law. This Agreement is governed by the laws of [State/Country].
14.2 Notices. Notices must be delivered to the addresses above (or updated in writing).
14.3 Entire Agreement. This Agreement and exhibits are the entire agreement about the solar lease.
14.4 Amendments. Amendments must be in writing and signed by both Parties.
14.5 Severability. If any provision is unenforceable, the remainder remains effective.
14.6 Electronic Signatures. Electronic signatures are effective.
Signatures
By signing below, the Parties agree to this Solar Lease Agreement as of the Effective Date.
Lessor: [Full Legal Name]
Date: [Date]
Signature: ___________________________
Lessee: [Full Legal Name]
Title/Role: [Title]
Date: [Date]
Signature: ___________________________
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Solar Lease Agreement Template
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For quick answers, scroll below to see the FAQ.
Click below for detailed info on the template.
For quick answers, scroll below to see the FAQ.
SOLAR LEASE AGREEMENT TEMPLATE FAQ
What is a solar lease agreement?
A Solar Lease Agreement is a contract where a property owner (the “Lessor”) grants a solar company or tenant (the “Lessee”) the right to install, operate, and maintain solar equipment on the property (often a rooftop or land). It outlines rent, term length, access rights, and who is responsible for maintenance, insurance, and removal.
When should you use a solar lease agreement?
Use it when a solar developer or operator will place panels, racking, wiring, inverters, meters, batteries (if applicable), or related equipment on private property for a defined term.
What should be included in a solar lease?
Key terms include the leased area description, installation rights, access/easement rights, term and renewals, rent and escalation, utility interconnection, maintenance and repairs, insurance, compliance, default remedies, and decommissioning/removal obligations.
What is decommissioning and why is it important?
Decommissioning describes how the solar equipment will be removed at the end of the lease and how the site will be restored. It protects the property owner and reduces the risk of abandoned equipment or restoration disputes.
Who pays for property repairs if something is damaged?
Many leases require the solar company to repair damage caused by installation or maintenance, while the property owner remains responsible for pre-existing issues and normal wear. This template includes a clear responsibility clause you can customize.
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