Texas Residential Solar Cash Purchase and Installation Contract

Texas Residential Solar Cash Purchase and Installation Contract

This agreement is for an existing Texas home, negotiated and signed at Solar Retailer's regular business office, and a system purchased for household use with cash payments. It does not cover a lease, power purchase agreement, seller credit, or a loan from a lender affiliated with or referred by the Solar Retailer or Salesperson. Complete the separate TDLR Consumer Disclosure Statement accurately and have Consumer and Salesperson sign it before this agreement. Give the form in the Consumer's preferred language if the agency supplies that version. Its terms are part of this agreement. Give the TDLR consumer brochure at least 24 hours before signing. Use the agency instructions to complete the disclosure. Deliver Exhibit B, the residential construction disclosure, before Consumer signs.

Contract signing location: [RETAILER OFFICE ADDRESS] Date: [__/__/____]

Consumer legal name: [NAME] Address: [STREET, CITY, TX ZIP]

Consumer email and phone: [EMAIL; PHONE]

Solar Retailer legal name: [NAME] TDLR registration number: [NUMBER]

Retailer business address: [ADDRESS] Business email: [EMAIL] Business phone: [PHONE]

Solar Salesperson legal name: [NAME] TDLR registration number: [NUMBER]

Salesperson business address: [ADDRESS] Business email: [EMAIL] Business phone: [PHONE]

Texas licensed electrical contractor installing system: [NAME] TECL number: [NUMBER]

Installer contact: [ADDRESS; PHONE; EMAIL]

Brochure delivered: [DATE AND TIME] Method: [PAPER / ELECTRONIC]

TDLR disclosure signed by both parties: [DATE AND TIME] Language: [ENGLISH / SPANISH]

Signed disclosure attached: ☐ yes Consumer age 65 or older, or not fluent in English: ☐ yes ☐ no. If yes, Salesperson delivered a printed completed disclosure before signing: ☐ yes.

1. System and installation

Solar Retailer shall sell and arrange installation of the system described in Exhibit A, which identifies every module, inverter, battery or other storage device, racking and major component by make, model, quantity, capacity and installed location. The system's estimated peak power is [____] kW and estimated average monthly generation is [____] kWh under the assumptions in Exhibit A. Energy production guarantee: [EXACT METRIC, TERM, TEST AND REMEDY / NONE]. No utility bill savings or tax benefit is guaranteed unless an express promise appears in Exhibit A.

The named Texas licensed electrical contractor shall perform the electrical installation. Solar Retailer shall cause the Retailer or that contractor to obtain every installation permit required by a government entity and, when applicable, approval to interconnect from the serving electric utility, electric cooperative or municipally owned utility. Serving provider: [NAME]. Interconnection application and expected approval process: [DETAILS]. No operation before required inspections and approval. Approximate start date: [DATE]. Approximate completion date: [DATE]. Excluded work and roof repairs: [DETAILS / NONE].

2. Cash price and payment

The total cash purchase price is $[____]. Exhibit A separately states the cost of each equipment item, installation labor, permits and every other fee associated with installation or operation. The parties agree that all charges not listed in Exhibit A are $0 under this agreement. Retailer shall give Consumer a written change order stating any price or scope change before performing the changed work; both parties must sign it.

This sale does not include a lender affiliated with or referred by the Retailer or Salesperson. Consumer may separately arrange financing without a referral by either of them; this agreement does not state loan terms. If the parties change that arrangement, they must use a revised contract and disclosure that address the lender and cancellation of its accompanying loan.

3. Performance, warranties and maintenance

Exhibit A states any written representation about expected energy production and financial performance, including its period, utility rate, degradation, shading, and other assumptions. Warranties are: [EQUIPMENT / WORKMANSHIP / ROOF; PROVIDER, SCOPE, TERM, CLAIM CONTACT, EXCLUSIONS]. Maintenance included in the price: [DETAILS / NONE]. Maintenance offered for an additional fee: [DETAILS / NONE]. Responsibility and cost if the system must be removed and reinstalled for roof repair or replacement: [NAME, CONTACT, COST RULE].

If Consumer defaults by failing to pay an amount due after [____] days' written notice, Retailer may [SPECIFIC CONTRACT REMEDY SUBJECT TO LAW]. If Retailer defaults by failing to perform after [____] days' written notice, Consumer may [SPECIFIC CONTRACT REMEDY SUBJECT TO LAW]. Neither clause limits the cancellation right below. Arbitration: ☐ none ☐ agreed under the attached arbitration clause, with opt-out terms [DETAILS].

4. Five-business-day cancellation right

YOU MAY CANCEL THIS SOLAR PURCHASE AGREEMENT WITHOUT PENALTY OR FURTHER OBLIGATION BY SENDING WRITTEN NOTICE TO THE SOLAR RETAILER ON OR BEFORE THE FIFTH BUSINESS DAY AFTER YOU SIGN. TO CANCEL, SEND YOUR NOTICE BY MAIL TO [RETAILER MAILING ADDRESS] OR BY EMAIL TO [RETAILER CANCELLATION EMAIL]. THE LAST CALENDAR DATE TO CANCEL IS [MONTH DAY, YEAR].

Business days exclude Saturdays, Sundays and Texas legal holidays. If this agreement permits cancellation by mail only, a mailed notice is effective when placed in the mail. Retailer shall return amounts paid under the canceled agreement within [____] days. Cancellation notice may state: “I cancel the solar purchase agreement signed on [DATE] for [PROPERTY ADDRESS].” Consumer may sign and send that statement by the method above.

5. Texas construction notices

This contract is subject to Chapter 27 of the Texas Property Code. The provisions of that chapter may affect your right to recover damages arising from a construction defect. If you have a complaint concerning a construction defect and that defect has not been corrected as may be required by law or by contract, you must provide the notice required by Chapter 27 of the Texas Property Code to the contractor by certified mail, return receipt requested, not later than the 60th day before the date you file suit to recover damages in a court of law or initiate arbitration. The notice must refer to Chapter 27 of the Texas Property Code and must describe the construction defect. If requested by the contractor, you must provide the contractor an opportunity to inspect and cure the defect as provided by Section 27.004 of the Texas Property Code.

IMPORTANT NOTICE: You and your contractor are responsible for meeting the terms and conditions of this contract. If you sign this contract and you fail to meet the terms and conditions of this contract, you may lose your legal ownership rights in your home. KNOW YOUR RIGHTS AND DUTIES UNDER THE LAW.

6. Copies and signatures

The signed TDLR disclosure, Exhibit A and any signed change order are part of this agreement. Retailer shall retain a copy of the signed agency disclosure for TDLR inspection. Salesperson gives Consumer a printed signed copy at signing. If Consumer expressly consents to electronic delivery and waives the printed copy at signing, Salesperson may instead give a PDF to the verified email address [EMAIL], subject to 16 TAC § 71.40(b). Consumer may later request a printed copy from Retailer.

If this is a residential construction contract, Retailer shall give Consumer a written list of intended subcontractors and suppliers before work begins, with the statutory notice in Exhibit C, and update that list within 15 days after an addition or deletion. At each payment request, Retailer shall provide the disbursement statement required by Tex. Prop. Code § 53.258. At final payment, Retailer shall give the bills-paid affidavit required by § 53.259. This agreement does not itself grant a consensual lien on Consumer's homestead or waive statutory retainage or claim-notice rights.

Exhibit A: Equipment, itemized costs and fees; design and performance assumptions; all warranties; any energy production or financial representation; permit and interconnection details.

Exhibit B: Separate Texas residential construction disclosure; delivery acknowledged before signing: Consumer ____________________ Date [__/__/____].

Exhibit C: Contractor's intended subcontractor and supplier list, including name, address and telephone number for each, with the statutory notice below; deliver before work begins.

Exhibit A — System, costs, assumptions and warranties

Design and performance assumptions: Roof orientation [____]; shading [____]; estimated peak output [____] kW; estimated average monthly output [____] kWh; expected annual output change [____]%; utility rate and buyback assumption [DETAILS]; measurement period and method [DETAILS].

Every energy production or financial performance representation made in this sale: [EXACT STATEMENT, UNDERLYING ASSUMPTIONS, PERIOD, GUARANTEE OR NONE].

Warranties: Equipment [PROVIDER, TERMS, CLAIM ADDRESS]; workmanship [PROVIDER, TERMS, CLAIM ADDRESS]; roof [PROVIDER, TERMS, CLAIM ADDRESS / NONE]. Attach any separate written warranty as part of this exhibit.

Exhibit B — Texas residential construction disclosure

Deliver this disclosure to Consumer before Consumer signs the agreement.

KNOW YOUR RIGHTS AND RESPONSIBILITIES UNDER THE LAW. You are about to enter into a transaction to build a new home or remodel existing residential property. Texas law requires your contractor to provide you with this brief overview of some of your rights, responsibilities, and risks in this transaction.

CONVEYANCE TO CONTRACTOR NOT REQUIRED. Your contractor may not require you to convey your real property to your contractor as a condition to the agreement for the construction of improvements on your property.

KNOW YOUR CONTRACTOR. Before you enter into your agreement for the construction of improvements to your real property, make sure that you have investigated your contractor. Obtain and verify references from other people who have used the contractor for the type and size of construction project on your property.

GET IT IN WRITING. Make sure that you have a written agreement with your contractor that includes: (1) a description of the work the contractor is to perform; (2) the required or estimated time for completion of the work; (3) the cost of the work or how the cost will be determined; and (4) the procedure and method of payment, including provisions for statutory reservation of funds and conditions for final payment. If your contractor made a promise, warranty, or representation to you concerning the work the contractor is to perform, make sure that promise, warranty, or representation is specified in the written agreement. An oral promise that is not included in the written agreement may not be enforceable under Texas law.

READ BEFORE YOU SIGN. Do not sign any document before you have read and understood it. NEVER SIGN A DOCUMENT THAT INCLUDES AN UNTRUE STATEMENT. Take your time in reviewing documents. If you borrow money from a lender to pay for the improvements, you are entitled to have the loan closing documents furnished to you for review at least one business day before the closing. Do not waive this requirement unless a bona fide emergency or another good cause exists, and make sure you understand the documents before you sign them. If you fail to comply with the terms of the documents, you could lose your property. You are entitled to have your own attorney review any documents. If you have any question about the meaning of a document, consult an attorney.

GET A LIST OF SUBCONTRACTORS AND SUPPLIERS. Before construction commences, your contractor is required to provide you with a list of the subcontractors and suppliers the contractor intends to use on your project. Your contractor is required to supply updated information on any subcontractors and suppliers added after the list is provided. Your contractor is not required to supply this information if you sign a written waiver of your rights to receive this information.

MONITOR THE WORK. Lenders and governmental authorities may inspect the work in progress from time to time for their own purposes. These inspections are not intended as quality control inspections. Quality control is a matter for you and your contractor. To ensure that your home is being constructed in accordance with your wishes and specifications, you should inspect the work yourself or have your own independent inspector review the work in progress.

MONITOR PAYMENTS. If you use a lender, your lender is required to provide you with a periodic statement showing the money disbursed by the lender from the proceeds of your loan. Each time your contractor requests payment from you or your lender for work performed, your contractor is also required to furnish you with a disbursement statement that lists the name and address of each subcontractor or supplier that the contractor intends to pay from the requested funds. Review these statements and make sure that the money is being properly disbursed.

CLAIMS BY SUBCONTRACTORS AND SUPPLIERS. Under Texas law, if a subcontractor or supplier who furnishes labor or materials for the construction of improvements on your property is not paid, you may become liable and your property may be subject to a lien for the unpaid amount, even if you have not contracted directly with the subcontractor or supplier. To avoid liability, you should take the following actions:

(1) If you receive a written notice from a subcontractor or supplier, you should withhold payment from your contractor for the amount of the claim stated in the notice until the dispute between your contractor and the subcontractor or supplier is resolved. If your lender is disbursing money directly to your contractor, you should immediately provide a copy of the notice to your lender and instruct the lender to withhold payment in the amount of the claim stated in the notice. If you continue to pay the contractor after receiving the written notice without withholding the amount of the claim, you may be liable and your property may be subject to a lien for the amount you failed to withhold.

(2) During construction and for 30 days after final completion, termination, or abandonment of the contract by the contractor, you should reserve or cause your lender to reserve 10 percent of the amount of payments made for the work performed by your contractor. If you choose not to reserve the 10 percent for at least 30 days after final completion, termination, or abandonment of the contract by the contractor and if a valid claim is timely made by a claimant and your contractor fails to pay the claim, you may be personally liable and your property may be subject to a lien up to the amount that you failed to reserve.

If a claim is not paid within a certain time period, the claimant is required to file a mechanic's lien affidavit in the real property records in the county where the property is located. A mechanic's lien affidavit is not a lien on your property, but the filing of the affidavit could result in a court imposing a lien on your property if the claimant is successful in litigation to enforce the lien claim.

SOME CLAIMS MAY NOT BE VALID. When you receive a written notice of a claim or when a mechanic's lien affidavit is filed on your property, you should know your legal rights and responsibilities regarding the claim. Not all claims are valid. A notice of a claim by a subcontractor or supplier is required to be sent, and the mechanic's lien affidavit is required to be filed, within strict time periods. The notice and the affidavit must contain certain information. All claimants may not fully comply with the legal requirements to collect on a claim. If you have paid the contractor in full before receiving a notice of a claim and have withheld the 10 percent of the contract price or value of work, you may not be liable for that claim. Accordingly, you should consult your attorney when you receive a written notice of a claim to determine the true extent of your liability or potential liability for that claim.

OBTAIN A LIEN RELEASE AND A BILLS-PAID AFFIDAVIT. When you receive a notice of claim, do not release withheld funds without obtaining a signed and notarized release of lien and claim from the claimant. You can also reduce the risk of having a claim filed by a subcontractor or supplier by requiring as a condition of each payment made by you or your lender that your contractor furnish you with an affidavit stating that all bills have been paid. Under Texas law, on final completion of the work and before final payment, the contractor is required to furnish you with an affidavit stating that all bills have been paid. If the contractor discloses any unpaid bill in the affidavit, you should withhold payment in the amount of the unpaid bill until you receive a waiver of lien or release from that subcontractor or supplier.

OBTAIN TITLE INSURANCE PROTECTION. You may be able to obtain a title insurance policy to insure that the title to your property and the existing improvements on your property are free from liens claimed by subcontractors and suppliers. If your policy is issued before the improvements are completed and covers the value of the improvements to be completed, you should obtain, on the completion of the improvements and as a condition of your final payment, a 'completion of improvements' policy endorsement. This endorsement will protect your property from liens claimed by subcontractors and suppliers that may arise from the date the original title policy is issued to the date of the endorsement.

Exhibit C — Intended subcontractor and supplier list

NOTICE: THIS LIST OF SUBCONTRACTORS AND SUPPLIERS MAY NOT BE A FINAL LISTING. UNLESS YOU SIGN A WAIVER OF YOUR RIGHT TO RECEIVE UPDATED INFORMATION, THE CONTRACTOR IS REQUIRED BY LAW TO SUPPLY UPDATED INFORMATION, AS THE INFORMATION BECOMES AVAILABLE, FOR EACH SUBCONTRACTOR OR SUPPLIER USED IN THE WORK PERFORMED ON YOUR RESIDENCE.

Sources and references

• Texas Occupations Code ch. 1806 and Business and Commerce Code ch. 115.
• Texas Property Code ch. 27, ch. 41, and ch. 53 — residential construction notices and payment records.
• TDLR solar rules and forms; the Chapter 71 rules were adopted without changes to the published proposed text.