SOLAR LEASE AGREEMENT

Agreement Number: [________________________________]

Effective Date: [__/__/____]

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PARTIES

LESSOR (Property Owner):

Name: [________________________________]

Address of Property: [________________________________]

City, State, ZIP: [________________________________]

Mailing Address (if different): [________________________________]

Phone: [________________________________]

Email: [________________________________]

Property Type: ☐ Residential ☐ Commercial ☐ Industrial ☐ Agricultural

LESSEE (Solar Provider):

Company Name: [________________________________]

Address: [________________________________]

City, State, ZIP: [________________________________]

Phone: [________________________________]

Email: [________________________________]

State Contractor License No.: [________________________________]

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RECITALS

WHEREAS, Lessor is the owner of certain real property located at the address set forth above (the "Property");

WHEREAS, Lessee is in the business of developing, installing, owning, operating, and maintaining solar photovoltaic energy systems;

WHEREAS, Lessor desires to lease a portion of the Property to Lessee for the installation and operation of a solar energy system;

NOW, THEREFORE, in consideration of the mutual covenants contained herein, the parties agree as follows:

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ARTICLE 1: DEFINITIONS

1.1 "Commercial Operation Date" means the date on which the System first produces electricity for use at the Property.

1.2 "Environmental Attributes" means all renewable energy credits, carbon credits, emissions reductions, and other environmental benefits associated with the System.

1.3 "Installation Date" means the date on which installation of the System commences.

1.4 "Interconnection Agreement" means the agreement between Lessee and the Utility governing the connection of the System to the electric grid.

1.5 "kW" means kilowatt.

1.6 "kWh" means kilowatt-hour.

1.7 "Leased Premises" means the portion of the Property described in Exhibit A where the System will be installed.

1.8 "Net Metering" means the practice of measuring electricity produced by the System against electricity consumed at the Property.

1.9 "Solar Renewable Energy Certificates" or "SRECs" means tradable certificates representing the environmental attributes of solar energy generation.

1.10 "System" means the solar photovoltaic energy system described in Exhibit B, including all panels, inverters, racking, wiring, meters, and associated equipment.

1.11 "Utility" means the electric utility company serving the Property.

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ARTICLE 2: LEASE OF PREMISES

2.1 Grant of Lease

Lessor hereby leases to Lessee, and Lessee hereby leases from Lessor, the Leased Premises for the purpose of installing, operating, maintaining, repairing, replacing, and removing the System.

2.2 Access Rights

Lessor grants Lessee and its agents, contractors, and assigns reasonable access to:

☐ The Leased Premises

☐ The roof of the Property (if applicable)

☐ Electrical panels and interconnection equipment

☐ Common areas necessary for access

☐ Utility meters

2.3 Exclusivity

☐ Lessee has the exclusive right to install solar energy systems on the Property.

☐ This lease is non-exclusive.

2.4 Permitted Uses

Lessee may use the Leased Premises only for:

☐ Installation of the System

☐ Operation and maintenance of the System

☐ Generation and sale of electricity

☐ Related activities reasonably necessary for the foregoing

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ARTICLE 3: TERM

3.1 Initial Term

The initial term of this Agreement shall be [________] years, commencing on the Effective Date.

3.2 Extension Options

☐ Lessee shall have [________] option(s) to extend this Agreement for additional term(s) of [________] years each.

☐ Lessor shall have [________] option(s) to extend this Agreement for additional term(s) of [________] years each.

☐ Extension by mutual agreement only.

3.3 Notice of Extension

The party exercising an extension option shall provide written notice at least [________] days prior to the expiration of the then-current term.

3.4 Early Termination

☐ Lessor may terminate after [________] years with [________] days notice and payment of: [________________________________]

☐ Lessee may terminate with [________] days notice.

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ARTICLE 4: SYSTEM DESCRIPTION

4.1 System Specifications

Component	Specification
System Size	[________] kW DC
Number of Panels	[________]
Panel Manufacturer/Model	[________________________________]
Inverter Type	☐ String ☐ Micro ☐ Central
Inverter Manufacturer/Model	[________________________________]
Mounting Type	☐ Roof-mounted ☐ Ground-mounted ☐ Carport
Estimated Annual Production	[________] kWh

4.2 System Location

☐ Rooftop (specify): [________________________________]

☐ Ground-mounted on [________] acres

☐ Carport/Parking structure

☐ Other: [________________________________]

4.3 Ownership

The System, including all components, shall at all times remain the personal property of Lessee and shall not become a fixture or part of the real property.

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ARTICLE 5: INSTALLATION

5.1 Installation Timeline

Milestone	Target Date
Site Assessment Complete	[__/__/____]
Permits Obtained	[__/__/____]
Installation Commencement	[__/__/____]
Installation Complete	[__/__/____]
Utility Inspection	[__/__/____]
Commercial Operation	[__/__/____]

5.2 Permits and Approvals

Lessee shall obtain all necessary permits and approvals, including:

☐ Building permits

☐ Electrical permits

☐ Utility interconnection approval

☐ HOA approval (if applicable)

☐ Zoning approvals

☐ Environmental permits (if required)

5.3 Installation Standards

Lessee shall perform all installation work in accordance with:

☐ National Electrical Code (NEC)

☐ Local building codes

☐ Manufacturer specifications

☐ Industry best practices

☐ OSHA safety standards

5.4 Roof Warranty

☐ Lessee warrants that installation will not void existing roof warranty.

☐ Lessee shall repair any damage to the roof caused by installation.

☐ Lessee shall provide a roof penetration warranty for [________] years.

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ARTICLE 6: RENT AND PAYMENT TERMS

6.1 Rent Structure

☐ Option A: Fixed Monthly Rent

Lessee shall pay Lessor fixed monthly rent of $[________] per month.

☐ Option B: Percentage of Savings

Lessee shall pay Lessor [________]% of the electricity savings generated by the System.

☐ Option C: Per kWh Payment

Lessee shall pay Lessor $[________] per kWh generated by the System.

☐ Option D: Escalating Rent

Year(s)	Monthly Rent
1-5	$[________]
6-10	$[________]
11-15	$[________]
16-20	$[________]

☐ Option E: No Rent (Lessor Receives Energy Benefits Only)

6.2 Payment Schedule

Rent payments shall be made:

☐ Monthly, on the [____] day of each month

☐ Quarterly, in advance

☐ Annually, in advance

6.3 Payment Method

☐ Check to: [________________________________]

☐ ACH/Direct deposit to account: [________________________________]

☐ Wire transfer

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ARTICLE 7: ELECTRICITY PRICING (IF LESSEE SELLS POWER TO LESSOR)

7.1 Energy Rate

☐ Lessor shall pay Lessee for electricity generated and consumed at the Property at:

☐ Fixed rate of $[________] per kWh

☐ [________]% below Utility retail rate

☐ Escalating rate: [________]% annual increase

☐ Other: [________________________________]

7.2 Minimum Purchase

☐ No minimum purchase requirement.

☐ Lessor agrees to purchase a minimum of [________] kWh per year.

7.3 Billing

Lessee shall provide Lessor with monthly invoices showing:

☐ Total electricity generated

☐ Electricity consumed on-site

☐ Electricity exported to grid

☐ Amount due

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ARTICLE 8: ENVIRONMENTAL ATTRIBUTES AND INCENTIVES

8.1 Ownership of Environmental Attributes

☐ Lessee retains all Environmental Attributes, including SRECs.

☐ Lessor retains all Environmental Attributes, including SRECs.

☐ Environmental Attributes are shared as follows: [________________________________]

8.2 Tax Credits and Incentives

☐ Lessee is entitled to all federal, state, and local tax credits and incentives.

☐ The parties agree to cooperate in claiming available incentives.

8.3 Renewable Energy Certificates

☐ Lessee retains all RECs generated by the System.

☐ Lessor may claim renewable energy usage based on RECs retained by Lessor.

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ARTICLE 9: OPERATION AND MAINTENANCE

9.1 Lessee's Obligations

Lessee shall:

☐ Operate the System in accordance with applicable laws and regulations

☐ Maintain the System in good working order

☐ Repair or replace defective components

☐ Maintain adequate insurance

☐ Keep the System free of liens and encumbrances

9.2 Maintenance Schedule

Lessee shall perform the following maintenance:

☐ Annual inspections

☐ Panel cleaning (frequency: [________________________________])

☐ Inverter monitoring and maintenance

☐ Electrical connection inspections

9.3 Performance Monitoring

☐ Lessee shall provide Lessor with online access to System performance data.

☐ Lessee shall provide [________] performance reports to Lessor.

9.4 Production Guarantee

☐ Lessee guarantees the System will produce at least [________]% of estimated annual production.

☐ If production falls below guarantee, Lessee shall: [________________________________]

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ARTICLE 10: LESSOR'S OBLIGATIONS

10.1 Property Maintenance

Lessor shall:

☐ Maintain the Property in good condition

☐ Not obstruct sunlight access to the System

☐ Provide reasonable notice before making changes that may affect the System

☐ Pay for electricity consumed from the Utility (in excess of System production)

10.2 Prohibited Actions

Lessor shall not:

☐ Damage, remove, or interfere with the System

☐ Plant trees or install structures that shade the System

☐ Grant liens that encumber the System

☐ Assign this Agreement without Lessee's consent

10.3 Utility Account

☐ Lessor shall maintain an active electric utility account for the Property.

☐ Lessor shall cooperate with interconnection requirements.

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ARTICLE 11: INSURANCE

11.1 Lessee's Insurance

Lessee shall maintain:

Type	Minimum Coverage
Commercial General Liability	$[________]
Property Insurance (System)	Full replacement cost
Workers' Compensation	Statutory limits

11.2 Lessor's Insurance

Lessor shall maintain:

☐ Property insurance covering the structure (excluding System)

☐ Liability insurance covering the Property

11.3 Additional Insured

☐ Lessor shall be named as additional insured on Lessee's liability policy.

☐ Lessee shall be named as additional insured on Lessor's liability policy.

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ARTICLE 12: INDEMNIFICATION

12.1 Lessee's Indemnification

Lessee shall indemnify Lessor against claims arising from:

☐ Installation, operation, or maintenance of the System

☐ Lessee's negligence or willful misconduct

☐ Lessee's breach of this Agreement

12.2 Lessor's Indemnification

Lessor shall indemnify Lessee against claims arising from:

☐ Lessor's negligence or willful misconduct

☐ Lessor's breach of this Agreement

☐ Conditions at the Property existing prior to installation

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ARTICLE 13: DEFAULT AND REMEDIES

13.1 Lessee Events of Default

☐ Failure to install the System within [________] months of the Effective Date

☐ Failure to maintain the System in good working order

☐ Failure to pay rent (if applicable)

☐ Abandonment of the System

☐ Bankruptcy or insolvency

13.2 Lessor Events of Default

☐ Failure to pay amounts due (if applicable)

☐ Interference with the System

☐ Breach of access rights

☐ Bankruptcy or insolvency

13.3 Cure Period

The defaulting party shall have [________] days to cure after written notice (or [________] days for monetary defaults).

13.4 Remedies

Upon uncured default:

☐ Non-defaulting party may terminate this Agreement

☐ Non-defaulting party may pursue damages

☐ Lessee may remove the System

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ARTICLE 14: REMOVAL OF SYSTEM

14.1 End of Term Removal

Upon termination or expiration:

☐ Lessee shall remove the System at Lessee's expense within [________] days.

☐ Lessee shall restore the Property to its original condition, ordinary wear excepted.

14.2 Purchase Option

☐ Lessor has the option to purchase the System at the end of the term at fair market value.

☐ Fair market value shall be determined by: [________________________________]

14.3 Abandonment

If Lessee fails to remove the System within [________] days after termination:

☐ System shall become property of Lessor.

☐ Lessor may remove and dispose of the System at Lessee's expense.

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ARTICLE 15: ASSIGNMENT AND FINANCING

15.1 Assignment by Lessee

☐ Lessee may assign this Agreement to affiliates without Lessor's consent.

☐ Lessee may assign this Agreement to a purchaser of the System with Lessor's consent (not to be unreasonably withheld).

15.2 Assignment by Lessor

☐ This Agreement shall run with the land and bind successors.

☐ Lessor shall notify purchasers of the Property of this Agreement.

15.3 Financing

☐ Lessor consents to Lessee's grant of a security interest in the System to lenders.

☐ Lessor agrees to execute a consent and subordination agreement upon request.

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ARTICLE 16: SALE OF PROPERTY

16.1 Notice of Sale

Lessor shall provide Lessee with [________] days advance notice of any intended sale of the Property.

16.2 Assumption

☐ Any purchaser of the Property shall assume this Agreement.

☐ This Agreement shall be recorded to provide notice to purchasers.

16.3 Estoppel Certificate

Upon request, each party shall provide an estoppel certificate confirming the terms of this Agreement.

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ARTICLE 17: DISPUTE RESOLUTION

17.1 Informal Resolution

The parties shall attempt to resolve disputes through good faith negotiations.

17.2 Mediation

If informal resolution fails, disputes shall be submitted to mediation.

17.3 Binding Resolution

☐ Binding arbitration in accordance with [________________________________] rules.

☐ Litigation in the courts of [________________________________].

17.4 Governing Law

This Agreement shall be governed by the laws of [________________________________].

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ARTICLE 18: MISCELLANEOUS

18.1 Notices

All notices shall be in writing and delivered to the addresses above.

18.2 Entire Agreement

This Agreement constitutes the entire agreement between the parties.

18.3 Amendments

Amendments must be in writing and signed by both parties.

18.4 Severability

Invalid provisions shall not affect the validity of remaining provisions.

18.5 Waiver

Waiver of any provision must be in writing.

18.6 Recording

☐ This Agreement (or a memorandum) shall be recorded in the real property records.

18.7 Counterparts

This Agreement may be executed in counterparts.

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EXHIBITS

☐ Exhibit A: Description of Leased Premises and Site Plan

☐ Exhibit B: System Specifications and Equipment List

☐ Exhibit C: Installation Schedule

☐ Exhibit D: Form of Subordination Agreement

☐ Exhibit E: Form of Estoppel Certificate

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SIGNATURES

LESSOR:

Signature: [________________________________]

Printed Name: [________________________________]

Date: [__/__/____]

CO-LESSOR (if applicable):

Signature: [________________________________]

Printed Name: [________________________________]

Date: [__/__/____]

LESSEE:

Signature: [________________________________]

Printed Name: [________________________________]

Title: [________________________________]

Date: [__/__/____]

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ACKNOWLEDGMENT

State of [________________________________]

County of [________________________________]

On this [____] day of [________________], 20[____], before me personally appeared [________________________________], known to me to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same.

Notary Public: [________________________________]

My Commission Expires: [__/__/____]

[NOTARY SEAL]

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This Solar Lease Agreement template is provided for informational purposes only. Solar installations involve complex considerations including tax implications, utility regulations, and property rights. Consult with qualified legal and tax professionals before execution.