Office of the Maine Attorney General

Solar Power Systems

Thinking of installing a solar electric (photovoltaic) system? 

Installing a solar electric system in your home is a long-term financial commitment and the marketplace for solar products is complex. Before you enter into a contact for a solar system, do a lot of homework. Be wary of generic and misleading claims like, "Start saving money immediately!" While the Maine Unfair Trade Practices Act prohibits deceptive or misleading claims, it does not specifically address potential solar misrepresentations. When comparing contractors, ask for detailed information and make sure the estimates are in terms comparable to each other, so that you have a meaningful comparison. Ask for references from each solar installer and if they are certified in Maine. Ask if the installer is a member of the Solar Energy Industries Association (SEIA) and if the installer agrees to abide by SEIA's code of ethics. A reputable solar company will be able to give you a great deal of information specific to your home in language you can understand. There are many online resources available to help determine whether a solar system is right for you, including:

Here are some points you may want included in any proposal or contract:

Total Purchase Price for the life of the equipment, including interest and fees

  1. Costs vary depending on whether you purchase or lease a system
    1. Purchase -- Once the system is purchased and installed, there is no ongoing relationship with the solar company, except for any repair, maintenance, or warranty issues that should be clearly defined in the contract. Typically, you are responsible for system maintenance, although some solar providers offer maintenance plans.
    2. Lease -- Monthly pre-determined payments (including interest and fees) are made to the solar company, and include an escalation schedule. Payments are not tied to the system's output. The solar company installs and owns the solar system, and is responsible for system maintenance.
    3. A plain language explanation of how the pricing is calculated over the life of the contract
  2. Expected payback period

Federal, State, and local subsidies may be available, including tax incentives and rebates.

  1. Your contractor should be familiar with what is available, and explain how those savings will be passed on to you.
  2. check the Database of State Incentives for Renewables and Efficiency.

Cost of Electricity

  • the system capacity in AC watts
  • guarantee of the kw hours that the system will deliver annually
  • good faith estimate of the price per kw hour
  • estimated increase in customer's cost of electricity
  • details of how any cost saving estimates are calculated
  • if leasing, the projected monthly payments throughout the life of the contract

Other Costs

  • cost of any additional metering equipment needed
  • cost of replacing equipment, such as the inverter
  • costs for temporary removal in the event that roof repair/replacement is needed
  • if leasing, cost of removal of the system at the end of the contract
  • monitoring system hardware and software
  • impact on property taxes and insurance rates
  • any tax obligations
  • built-in escalation rates
  • insurance required

Feeding Energy Back into the Grid

"Distributed Generation" refers to generation of electricity that can be distributed throughout the utility's distribution system. Net Metering means the method by which the utility compensates the customer for generating surplus electricity over a billing period, which then feeds back into the main grid operated by the utility.

  • expected compensation for surplus electricity that is generated and fed back to the main grid
  • contact your utility to discuss how to participate in net metering (interconnection agreement)

Other contract terms

  • operation and maintenance responsibilities (cleaning, snow removal, loose wires, cracked panels, etc)
  • obligation if roof needs repair or replacement
  • warranty (who is responsible, the dealer, installer, or manufacturer)
  • responsibility in the event of loss or damage
  • what happens to the contract if the house is sold or ownership is transferred
  • what happens at the end of the contract, including cost of removal of the equipment
  • what permits are required, and which party is responsible for obtaining any permits
  • description (make and model) of the system
  • fire and other safety risks

Community Solar Project

This refers to a centralized, shared solar power installation that is owned by multiple community members and provides power and/or financial benefit to the members. For detailed information, visit Solar Energy Industries Association: Community Solar.

Complaints

If you have a complaint about a solar contractor, submit a complaint to us using our File a Complaint About a Business service.

Applicable Maine Laws