What should I check before signing a solar contract in Virginia?

Before you sign, confirm the company's Virginia contractor licence and who will do the electrical work, then read the contract itself: price, system size, estimated production, payment schedule, permits, warranties, ownership and your right to cancel. A solar contract often runs alongside a loan, a lease or a power purchase agreement, so check that paperwork with the same care.

The licence, and who does the wiring

Virginia licenses contractors by contract size: a Class C licence covers a single contract over $1,000 and under $30,000, Class B covers $30,000 up to $150,000, and Class A covers $150,000 or more.^[1]

Look at the specialties on the licence too. The alternative energy system contracting (AES) specialty covers installing, repairing or improving solar and other alternative energy generation systems from the customer's meter, but it does not provide for electrical work.^[2] The Board for Contractors requires a master tradesman licence as a condition of licensing an electrical contractor.^[1] So the company needs an electrical contractor licence itself, or a named, licensed electrical subcontractor.

Verify it yourself. DPOR's guide warns: "A license number in an advertisement or on a business card does not necessarily mean the contractor’s license is valid."^[4] Our answer on checking a contractor's licence in Virginia walks through the lookup.

What the contract must say

Virginia's Board for Contractors requires a written contract for residential work that includes, among other terms:^[3]

• when work begins and the estimated completion date
• the total cost, the amounts and schedule of progress payments, and the exact amount of the down payment
• a list of the materials and work you specifically requested
• a statement that the contractor will comply with all local requirements for building permits, inspections and zoning
• disclosure of both sides' cancellation rights
• the contractor's name, address, licence number, licence class, and classifications or specialty services
• a statement that any change to cost, materials, work or completion date must be in writing and signed by all parties
• notice of the Virginia Contractor Transaction Recovery Fund and how to contact the board about a claim
• your signed acknowledgment that you received and read DPOR's statement of consumer protections

For solar, make sure "materials" means named products: panel and inverter brand, model and quantity, the system's DC and AC size, any battery, and the monitoring system. A vague "premium panels" line leaves room for substitution.

Price, size and production

The U.S. Treasury's consumer advisory suggests asking: "How many kilowatt-hours per month would this system produce on average? How does this compare to my current energy usage?"^[5] Get the estimated annual production in writing, with the shade and roof assumptions behind it, and compare it with your last 12 months of bills. Our answer on what solar costs in Virginia covers cost per watt and what belongs in a quote.

On payments, DPOR's guide gives a rule of thumb of an initial deposit of no more than 10% of the total price or $1,000, whichever is less.^[4] Tie later payments to milestones you can see: equipment delivered, final inspection passed, permission to operate from the utility.

Financing, liens and who owns the system

If the deal includes a loan, the Treasury advisory reminds buyers: "You are not required to use the financing offered by the salesperson."^[5] It also warns that UCC-1 liens filed against solar systems can affect whether a buyer will want your house, and the lender may require the loan to be repaid or taken over when you sell.^[5]

With a lease or power purchase agreement (PPA), someone else owns the panels. The Treasury PPA advisory notes: "At the end of your PPA contract you will not automatically own the system."^[6] It suggests asking what happens if the company goes out of business or sells the system, who pays for repairs, removal or storm damage, and what it costs to leave the contract or sell the house.^[6]

Virginia restricts third-party PPAs. In an investor-owned utility's territory, such as Dominion Energy's, a third-party power purchase agreement is prohibited unless it is made under the State Corporation Commission's pilot program, or with a licensed supplier serving all of the customer's load.^[7] A pilot agreement is not valid unless the Commission and the utility receive written notice at least 30 days before its proposed effective date.^[7] Ask the seller to show you that notice.

Tax credit promises

The federal Residential Clean Energy Credit is not available for property placed in service after December 31, 2025.^[12] A 2026 contract or loan sized around a federal credit refund is a serious warning sign. The Treasury advisory says: "Be wary of anyone who says you can use tax credits to reduce the cost of the panels without confirming your eligibility."^[5]

Permits, utility approval and your HOA

DPOR's guide is clear: "Licensed contractors should apply for and obtain all building permits, not the consumer."^[4] It adds: "Do not allow work to start until the contractor gives you copies of the officially issued permit(s), as required."^[4] Under Virginia law you must notify the utility and receive approval to interconnect before the system is installed,^[8] so the contract should say who files that application. Our answer on how net metering works explains that process.

If you live in a community with a property owners' association, Code of Virginia § 55.1-1820.1 says a property owners' association cannot ban solar on your lot unless its recorded declaration does, though it can set reasonable rules on size, place and manner of placement.^[11] Under that law, a restriction is not reasonable if it raises the installation cost by five percent over the original proposal or cuts its projected production by 10 percent.^[11] Get any approval in writing before you sign.

Your right to cancel

If a salesperson solicits you in person and you sign the agreement at your home, it is a home solicitation sale under Virginia law, with exceptions such as sales made on prior negotiations between you and the seller.^[9] In that case the Virginia Home Solicitation Sales Act says you can cancel until midnight of the third business day after the day you sign, by written notice to the seller at the address in the agreement.^[10] Keep a copy of whatever you send, and check your contract for any other cancellation terms it discloses.

Red flags

The Treasury advisory lists warning signs: "High-pressure sales tactics, exaggerated promises of savings, and claims of “free” products and services are some major red flags."^[5] It also says: "Don’t believe anyone who says the federal government pays for your solar power. That’s a scam."^[5] And: "Be careful when you sign anything on the seller’s computer or tablet."^[5] Ask for paper or downloadable copies of everything before you sign.

When to call a licensed pro

Get at least three quotes from licensed contractors, each from a site visit, and compare them on the same terms. If a job goes wrong, put the problem to the contractor in writing first. DPOR's guide explains that the Contractor Transaction Recovery Fund may pay claims up to $20,000 to consumers who win a court judgment against a licensed contractor for improper or dishonest conduct,^[4] which is one more reason to hire only licensed firms.

Browse solar installers on Loclis, look up electricians in Blacksburg, or read more electrical answers.

Describe your solar project and licensed local installers quote it.