EPC Contract

An EPC contract is a formal agreement between a solar customer and an EPC (Engineering, Procurement, and Construction) contractor that defines the scope of work, timeline, cost, equipment specifications, warranties, and responsibilities for a complete solar installation project.

In the residential market, the EPC contract is typically called a “solar installation agreement” or “solar purchase contract.” It should clearly specify: the system size (kW), exact panel and inverter models and quantities, mounting type, estimated annual production, total price and payment schedule, financing terms (if applicable), warranty coverage (product, performance, and workmanship), project timeline with key milestones, the installer’s obligations for permitting and interconnection, and conditions for changes or cancellations. A well-written contract protects both parties and sets clear expectations. Key clauses to review include: what happens if the project is delayed, how change orders are handled, what triggers a warranty claim, and whether production estimates are guaranteed. In the commercial market, EPC contracts are more detailed and may include liquidated damages for delays, performance testing protocols, and detailed commissioning procedures.