Do You Need A Solar Installation Contract?

Do you really need a written solar installation contract if your quote already lists the panels, inverter and price? Yes, you do, especially if you're supplying equipment, arranging installation, dealing with grid connection steps and asking for milestone payments.

A good contract doesn't need to be full of legal jargon. Its job is to make sure you and your customer are clear on what you're installing, what depends on the site being suitable, when payments are due, and what happens if something outside your control slows the job down.

For solar and clean energy businesses, those details matter. A roof might need extra work, a distributor might delay approval, a customer might change their mind after equipment has been ordered, or a product warranty might sit with the manufacturer rather than your business.

Do I Need A Solar Installation Contract In New Zealand?

Yes, you should have a written solar installation contract in New Zealand if you're supplying and installing solar panels, batteries, inverters or related clean energy equipment for customers.

Your quote and customer contract should be read together. The quote may describe the system and price, but it often won't deal properly with site access, deposits, delays, warranties, grid connection, variations or what happens if the customer cancels.

Your contract should work alongside your quote. A practical setup usually looks like this:

• Quote or proposal: the system design, equipment list, assumptions, price and inclusions.
• Supply and install terms: the legal and commercial rules that apply once the customer accepts.
• Customer acceptance: a signature, online tick box or written confirmation that clearly accepts the quote and terms.

If you work with residential customers, the Fair Trading Act 1986 and Consumer Guarantees Act 1993 are especially relevant. You can't contract out of consumer guarantees for household customers. Your terms also need to avoid misleading claims about performance, savings, payback periods or warranties.

If you work with business customers, you may have more flexibility. In some business-to-business situations, you may be able to contract out of parts of the Consumer Guarantees Act and Fair Trading Act, but this needs careful drafting and it must be fair and reasonable.

Without written terms, you may struggle to recover unpaid invoices, charge for extra work, or explain why a delay caused by a network provider isn't your responsibility.

What Should A Supply And Install Agreement Cover?

A supply and install agreement should cover the full journey from quote acceptance to handover, including who is responsible for each step and when the customer has to pay.

Solar projects often involve several moving parts. You might be ordering panels, coordinating scaffolders, using subcontracted installers, lodging paperwork, and waiting on the customer's electricity retailer or lines company. Your customer may only see the final installation day, so the contract needs to spell out what sits behind that.

Solar Installation Contract Outline

A fill-in outline can be useful when you're planning your terms, but it shouldn't be treated as a finished legal document. A lawyer should tailor it before you use it with customers, because small drafting gaps can cause big headaches later.

1. Parties: record your business name, NZBN if you have one, and the customer's details.
2. Quote And Scope: attach the accepted quote and describe exactly what equipment and services are included.
3. Site Assumptions: list roof condition, access, shading, switchboard capacity and other assumptions your price depends on.
4. Customer Responsibilities: cover access, permissions, accurate information and keeping the site safe and ready.
5. Deposits And Milestones: set out when each payment is due and what happens if payment is late.
6. Variations: explain how changes are approved, priced and documented.
7. Delays: deal with weather, supply issues, grid approvals, customer delays and other events outside your control.
8. Warranties: separate your workmanship warranty from manufacturer product warranties.
9. Grid Connection: explain what you'll do, what others must approve, and what isn't guaranteed.
10. Cancellation: set out the customer's rights, your rights, and costs that may still be payable.
11. Liability: manage risk in a way that works with New Zealand consumer law.
12. Privacy: explain how you collect and use customer information under the Privacy Act 2020.

The most useful contracts are specific. If your business installs batteries, EV chargers, monitoring software or power purchase arrangements as part of the package, your terms should deal with those items too.

How Should My Contract Deal With Site Suitability?

Your contract should say that your price and installation timeline depend on the site being suitable, unless you've already completed all checks and priced the job on confirmed conditions.

Site issues are one of the biggest risk points for solar installers. A customer may accept a quote based on photos or a short visit, but you might later find problems such as:

• roof framing that can't safely support the proposed system
• fragile roofing or old fixings that need extra care
• unexpected shading from trees, neighbouring buildings or roof structures
• a switchboard that needs upgrading before connection
• limited access for scaffolding, lifting gear or installers
• asbestos or other hazardous materials

Your contract should give you a practical path if those issues come up. For example, you may need to pause work, revise the system design, issue a variation, or cancel the job if it can't be completed safely or legally.

Be careful with performance promises. If your proposal says the system will save a customer a certain amount each year, you need a reasonable basis for that claim. The Fair Trading Act 1986 applies to claims about pricing, savings, warranties and performance. If the estimate depends on sunlight hours, shading, electricity tariffs, customer usage or export rates, say so clearly.

A simple example: Maia accepts an $18,000 solar and battery quote based on photos of her roof. On the site inspection, you find the switchboard needs an upgrade and roof access requires extra scaffolding. If your contract says the quote is based on suitable access and electrical capacity, you can explain the extra work, give a written variation, and wait for approval before ordering equipment or booking installers.

Can I Ask For A Deposit And Progress Payments?

Yes, you can usually ask for a deposit and progress payments, as long as the amounts and timing are clearly disclosed and your payment terms are fair and lawful.

Solar installation businesses often need deposits because equipment is expensive and may be ordered specifically for the customer's system. Milestone payments can also help your cash flow, especially where a job takes weeks or involves several site visits.

Your payment clause should answer these questions:

• How much deposit is payable when the customer accepts the quote?
• Is the deposit refundable, partly refundable or non-refundable once equipment is ordered?
• When are progress payments due?
• What counts as practical completion or handover?
• Can you pause work if an invoice isn't paid?
• Do you charge interest or recovery costs for late payment?

For example, your payment schedule might say:

• 20% deposit on acceptance
• 50% when equipment is ordered or delivered to site
• 25% on installation completion
• 5% after commissioning documents are provided

The exact split depends on your business model, customer type and project size. If you're dealing with residential customers, avoid terms that let you keep large amounts without a genuine reason. Cancellation fees and non-refundable deposits should be tied to real costs, such as custom-ordered stock, supplier restocking fees or time already spent.

There's an important extra rule for many residential solar sales. If the sale follows an uninvited home visit, workplace visit or phone call, and the price is over $100 or can't be worked out at the time, the Fair Trading Act 1986 rules for uninvited direct sale agreements may apply. In that case, the contract must include required information, the customer must be told about their right to cancel, and the customer generally has 5 working days after receiving the agreement to cancel. Your cancellation fee and non-refundable deposit clauses need to be drafted around those statutory rights, because ordinary cancellation fees may not apply and work or services supplied during the cooling-off period can be at your risk.

If you use invoices, quotes and payment reminders through software, make sure the wording matches your contract. Inconsistent documents can make it harder to show what the customer actually agreed to.

What Happens If Grid Connection Or Installation Is Delayed?

If grid connection or installation is delayed, your contract should explain who is responsible for the delay and what happens next.

Some delays are within your control, such as ordering the wrong equipment or failing to book installers. Others aren't. Solar projects can be delayed by weather, product shortages, customer access issues, distributor approvals, retailer processes, inspector availability or grid connection requirements.

Your terms should separate these clearly. If a delay is outside your reasonable control, you may need extra time without being treated as if you've breached the contract. If the delay is caused by the customer, you may also need the right to charge extra costs, reschedule the job, or require payment for equipment already ordered.

A Worked Example

Daniel runs a solar installation business in Hamilton. He quotes $24,000 for a residential solar and battery system, with a $4,800 deposit, $14,400 due when the equipment is delivered, and the balance at completion.

The panels and battery arrive on time, but the local lines company takes longer than expected to approve the connection. Daniel's contract says grid connection approvals are handled by third parties and timeframes aren't guaranteed. It also says installation can be completed before final grid approval where legally and safely possible, but export or full operation may depend on approval.

Because the contract is clear, Daniel can invoice the delivery milestone, keep the customer updated, and avoid taking responsibility for the network delay. He still needs to do what he promised, such as lodging forms accurately and promptly, but he isn't guaranteeing the lines company's timing.

This kind of clause is especially useful where the customer expects the system to be operating by a particular date, such as before a power price change or before summer. If timing is critical, deal with it in writing before the customer signs.

How Do Warranties Work For Solar Panels And Installation?

Solar warranties usually involve both manufacturer warranties and your own workmanship obligations, so your contract should explain the difference clearly.

Customers often hear long warranty periods, such as 10, 15 or 25 years, and assume your business is responsible for everything during that time. That may not be right. A panel product warranty may sit with the manufacturer. A performance warranty may relate to output over time. An inverter warranty may have different rules again. Your workmanship warranty covers the work you performed, not every product issue forever.

Your contract should cover:

• which product warranties are provided by manufacturers or suppliers
• how the customer can make a warranty claim
• whether you help coordinate claims and whether call-out fees apply
• what your workmanship warranty covers and for how long
• what voids or limits a warranty, such as unauthorised repairs, damage, misuse or lack of maintenance
• what the customer must do if they notice a problem

The Consumer Guarantees Act 1993 may also apply when you supply goods or services to consumers. That means your services must be carried out with reasonable care and skill, and goods must be of acceptable quality and fit for purpose. You can't remove these rights for residential consumers by writing a warranty clause.

If you give extra warranties, make sure they're accurate and consistent with supplier documents. The Fair Trading Act 1986 also prohibits misleading warranty statements, including suggesting a customer has fewer rights than they actually have.

For business customers, your ability to limit warranty obligations may depend on the contract and whether any contracting-out wording is fair and reasonable. Get tailored advice if you want to limit liability for commercial projects.

Can I Use Subcontracted Installers?

Yes, you can use subcontracted installers, but your customer contract and subcontractor arrangements need to line up.

Many solar businesses use a mix of employees, contractors and specialist subcontractors. That's common, but it creates risk if your customer contract promises one thing and your subcontractor agreement says another.

Your customer terms should say whether you can use subcontractors and make clear that your business remains responsible to the customer for the contracted work. Separately, your subcontractor agreement should deal with licensing, competence, health and safety, insurance, confidentiality, defects, timing and who fixes mistakes.

For electrical work, you should also be across the relevant electrical worker registration and practising licence requirements, as well as safety obligations. WorkSafe New Zealand expectations may also be relevant for working at heights, electrical safety and site hazards.

If you're treating installers as independent contractors, employment law also matters. The Employment Relations Act 2000 focuses on the real nature of the working relationship, not just the label in the contract.

That doesn't mean every installer can safely be called a contractor. If you control their hours, supply all tools, require personal service, and make them look like part of your team, the relationship may still need careful review. A well-drafted subcontractor agreement helps, but your day-to-day practices need to match it.

How Much Does A Solar Installation Contract Cost?

The cost depends on how tailored the contract is, how complex your projects are, and whether you need related documents like subcontractor agreements, website terms or privacy wording.

You have a few common options:

• Free template: this can help you see the basic structure, but it may miss New Zealand law, grid connection issues, deposits, variations, consumer guarantees or solar-specific warranty wording.
• Online fixed-fee legal service: this can suit you if you want a tailored document, a clear process and certainty on cost before work starts.
• Traditional hourly billing: this may suit more complex projects, but the final cost can be harder to predict if the scope changes.

Whatever option you choose, your contract should reflect how your business actually operates. If you take deposits, use subcontractors, install batteries, make performance estimates, or rely on third-party approvals, those points should be written into your terms.

Also think about how the contract will be used. A beautifully drafted document won't help much if your sales team sends it after the customer has already accepted the quote. Ideally, your process should make the terms available before acceptance and record the customer's agreement clearly.

You may also want your terms to match your Companies Office details, NZBN, trading name and website checkout or quote process. If you trade under a brand name but contract through a company, make that clear so the right legal entity is paid and protected.

Key Takeaways

• A solar installation contract should sit alongside your quote and cover scope, site assumptions, payment milestones, delays, warranties and cancellation.
• Site suitability clauses are essential because roof condition, access, shading and switchboard capacity can change the price or design.
• Cancellation fee and non-refundable deposit wording needs extra care for residential customers, especially where uninvited direct sale rules may apply.
• Your warranty wording should separate manufacturer product warranties from your own workmanship obligations.
• Grid connection delays should be dealt with clearly, especially where approvals depend on lines companies, retailers or other third parties.
• If you use subcontracted installers, your customer terms and subcontractor agreements need to work together.

If you'd like help with your solar installation terms, customer quotes, warranty wording or subcontractor arrangements, you can reach us at 0800 002 184 or team@sprintlaw.co.nz for a free, no-obligations chat.