What happens with a solar contract when a house burns down?

Cal Fire said in an update on Monday, January 13, that a total of 40,300 acres have burned across multiple blazes including the Pacific Palisades fire west of Los Angeles, the Eaton Fire near Altadena and the Hurst fire near Sylmar. At least 24 people have died and more than 100,000 have been forced to flee their homes.
We are sincerely saddened to learn how this tragedy has affected so many people. At Telesis Solar we are committed to being a resource to help those affected recover and move forward.
Here are some frequently asked questions regarding solar homes affected by loss.
Q. I own my solar system free and clear. What should I do?
A. Most solar systems are covered by your existing homeowners insurance policy. Others may have requirements that the system be added to your policy in order for it to be covered. In either case, you will want to contact your insurance carrier and be sure to include the solar system with your claim. Be aware that they may require a copy of your solar purchase agreement as well as proof that the system was installed. If you no longer have a copy of the agreement then you may be able to obtain it from your original solar installer. They likely have pictures of the installed system which may help with your claim.
Q. I was in the process of paying off a solar loan. What should I do?
A. Contact your financier right away. There may be provisions to cover the loss. However, you may also may be found to be in default if you discontinue your loan payments which could affect your credit and result in a collections debt. Your financier may provide a grace period per the terms of your contract while you settle the claim with your homeowners insurance.
Q. I lease my system. What should I do?
A. Contact your lessor immediately to review the terms of your contract to see what obligations you are under and if there are any remedies. Lessors might provide a grace period for payments or provide a buyout price to end your lease. Be prepared to provide proof of loss to them. Most Lessors are required to insure the solar system themselves from damage or theft. They will also have provisions for Force Majeure. See the two screenshots from a real lease agreement below.


Q. My home and solar system is only partially damaged by fire. Is my solar system safe to operate?
A. Do NOT operate your solar system without first having it inspected by a licensed solar electrician and inspected by your city fire inspector. If there is any damage to the system you should contact your lessor (if leased) prior to performing any maintenance or repairs. Otherwise, you may contact a licensed electrician to perform the repairs. We always suggest trying to work with your original installer first, if possible.
Conclusion
Losing a home is a serious tragedy that can affect a person for decades. If you had a solar system attached to your home you don't have to navigate this trial alone. Feel free to contact us for a consultation where we might be able to assist you with your next steps.
Comments