What Is a Solar Panel Subcontractor Agreement?
A solar panel subcontractor agreement is a written contract between a contractor and a subcontractor hired to complete a part of a solar panel installation project. It explains:
- What work the subcontractor will perform
- How they will be paid
- What each party will be responsible for
Typically, the contractor already has a contract with the client, such as a homeowner or a business. The contractor then hires a subcontractor to handle parts of the job, such as installing panels and wiring.
Usually, subcontractors are hired by:
- Solar installation companies
- General contractors managing construction projects
- EPC (engineering, procurement, and construction) firms
This agreement clearly defines the roles of the contractor and subcontractor. It also confirms that the subcontractor is not an employee but rather an independent worker hired for a specific project.
Use an independent contractor agreement if you need a broader agreement that is not tied to a larger project.
When to Use a Solar Panel Subcontractor Agreement
You may use this document whenever you want to hire a solar panel installation subcontractor. It allows both parties to be on the same page before the project begins. You can use this agreement when:
- You need extra solar panel installers to keep up with the project workload or tight deadlines
- You want to hire solar panel subcontractors for a specific task, like wiring, mounting panels, or setting up the system
- You manage a large solar project and need multiple crews to complete it
Without a clear written agreement, you may face payment disputes, an unclear scope of work, and liability issues if something goes wrong during installation. Using a clear subcontractor agreement keeps your project organized and reduces misunderstandings.
What to Include in a Solar Panel Subcontractor Agreement
A strong subcontractor agreement for solar panels should clearly define each party’s role in the project. Since the subcontractor is usually only responsible for a part of the project, the agreement should focus on their specific responsibilities and risks.
Party Information
List the full legal names and contact details of both the contractor and the subcontractor. Your agreement should clearly state that the subcontractor is hired by the contractor and not the property owner. It should also mention that the subcontractor does not have a direct contract with the client. This can help avoid confusion over who is responsible for the full project.
Solar Installation Services
Describe all the services the subcontractor will provide. Make sure this information is clear and specific to the project the subcontractor is working on. Your agreement should clarify that the subcontractor is only responsible for their assigned portion of the work.
Services may include things like:
- Mounting solar panels
- Installing racking systems
- Completing electrical wiring or connections
- Setting up inverters or other system components
Use Legal Templates’s remodeling contract template for any related home remodeling projects.
Materials and Expenses
Explain who will provide the materials and tools to complete the job. For example, the contractor may supply solar panels and major equipment. The subcontractor may be responsible for bringing their own tools and materials. You can clarify costs and responsibilities in this section for both parties.
Payment Terms
State how and when the subcontractor will be paid. Payment should be tied to the subcontractor’s scope of work, not to the full solar installation project. Include details about the payment structure (hourly, fixed, or per project) and when it is due.
Subcontractors may submit an invoice to bill for any completed work.
Timeline and Termination
Set the subcontractor’s project schedule and the expected project completion date. Note that the subcontractor’s schedule will depend on the overall project’s timeline. Include terms for early termination, such as due to performance issues or delays.
Insurance Requirements
Require the subcontractor to carry proper insurance coverage, such as:
- General liability insurance
- Worker’s compensation
The subcontractor is usually responsible for their own coverage. This insurance coverage usually only applies to the subcontractor’s assigned portion of the work, not the entire project. Make sure to check your state or local laws for licensing requirements. Many states require specific licenses for electrical or solar work.
Additional Legal Terms
Include details about how risks will be handled, specifically those tied to the subcontractor’s work. You can include the following clauses within your solar panel subcontractor agreement:
- Indemnification, which requires the subcontractor to cover certain risks tied to their work
- Dispute resolution, such as mediation or arbitration
- Compliance with laws and permits so that the subcontractor follows all required rules for their portion of the job
Signatures
Make sure both the contractor and the solar panel subcontractor sign the agreement. A signed agreement shows that both parties accept the terms. It can also be enforced if a dispute arises.
Sample Solar Panel Subcontractor Agreement
Take a look at the sample solar panel subcontract agreement template below to see all the information you’d need to include in yours, such as services provided and compensation. Once you’re ready, use our step-by-step questionnaire to complete and download yours in PDF or Word format.
