Drafting General Terms and Conditions for Solar Panel Companies

The installation of solar panels is a field with specific risks: you work on someone else's roof, connect installations to the electricity grid, and make statements about yield that customers can hold accountable for years to come. Without proper general terms and conditions, you will be liable for damages beyond your control, such as a roof structure that cannot support the panels or disappointing returns due to shading or weather conditions.

General terms and conditions form the legal backbone of every quotation and order. They determine delivery times, the warranty you provide, the maximum amount of your liability, and what happens if the customer fails to pay. For a solar panel company serving both private and business customers, a set of terms and conditions tailored to the industry is not a luxury but a necessity to protect your business and margins.

General terms and conditions are only binding if you have offered the other party a reasonable opportunity to take notice of them. This follows from Articles 6:233 and 6:234 of the Dutch Civil Code. In practice, this means that you must provide the terms and conditions before or at the time of concluding the agreement: by sending them along with the quotation, as an attachment to the order confirmation, or, in the case of digital sales, by offering them in such a way that the customer can save and print them.

If you fail to do this, the customer may invalidate a clause pursuant to Article 6:233 of the Dutch Civil Code. The very provisions that concern you, such as limitation of liability and warranty exclusions, will be the first to be invalidated. As a rule, a reference on your website is not sufficient for consumers. Therefore, document the provision of the terms and conditions in a verifiable manner so that you can later prove that the customer received them.

The core risk for a solar panel company is liability. During installation, roof tiles can break, leaks can occur, and the installation's yield can be disappointing. Good general terms and conditions exclude consequential damages and loss of income, and link your maximum liability to the contract sum or the amount paid out by your insurer. Insurers often require such limitations before they are willing to cover the risks of a solar panel installation.

For consumers, however, there is a limit. An exclusion that is too broad can be unreasonably burdensome (Article 6:233 of the Dutch Civil Code), and certain clauses are presumed or deemed to be unreasonably burdensome pursuant to the grey and black lists of Articles 6:237 and 6:236 of the Dutch Civil Code. A complete exclusion of all liability rarely holds up against a private individual. Therefore, a balanced clause that limits your risk without disregarding consumer protection works better than an untenable total exclusion.

Three risks are specific to your industry and should be explicitly addressed. First, the supporting structure: have the client declare that the roof is strong enough and in good condition, so that you are not liable if an unsuitable structure leads to damage. Second, the yield: stipulate that you do not guarantee the actual yield, unless otherwise agreed in writing, and that deviations due to shading, weather, or grid management are not at your expense.

Thirdly, the handover. Clearly define when the work is considered handed over, for example after commissioning, and within what period the customer must report visible defects in writing. Also stipulate that agreed installation dates are target dates and not strict deadlines, so that a delay due to weather or delivery does not automatically put you in default.

Customers often confuse the manufacturer's warranty on panels and inverters with your installation warranty on the work performed. Make this distinction clear in your terms and conditions: for products, refer to the manufacturer's warranty; for the installation, provide your own time-limited warranty against defects in the work. State the duration, what is covered by the warranty, and which exclusions apply, such as damage caused by the customer's own modifications, insufficient maintenance, or work performed by third parties.

Please note that, in addition to your warranty, a consumer always retains statutory rights of conformity. Experience from the Disputes Committee shows that an installer may also be required to carry out free repairs in the event of storm damage if there is an underlying installation defect and the customer lodges a complaint within the warranty period. A realistic, well-defined warranty clause prevents disputes and provides clarity for both parties.

A solar panel installation is a substantial investment, meaning that non-payment directly impacts your cash flow. Therefore, arrange for clear payment terms, possibly a down payment before installation, and the consequences of late payment: statutory (commercial) interest and collection costs. Stipulate that you may suspend work as long as a due invoice remains outstanding.

Also include a retention of title clause so that the delivered panels and materials remain your property until the customer has paid in full. With business customers, you can negotiate more extensive securities and shorter terms than with consumers, for whom stricter protection rules apply. A clear payment and security clause increases the likelihood that you will actually receive your money.

Filing your general terms and conditions with the Chamber of Commerce or the court is not legally required and does not in itself make the terms binding. What counts legally is the provision of the terms: that the customer received the terms before or at the time of concluding the agreement. Filing can, however, be useful as additional evidence of which version applied at which time, especially if you periodically amend your terms.

The advice for most solar panel companies is practical: always actively include the terms and conditions with the quotation and order confirmation, and keep proof thereof. If you work with a webshop or online request form, ensure that the customer checks a box to agree to the terms and conditions and can download them. This way, the validity of your most important clauses is not open to dispute.

Standard terms and conditions found on the internet rarely align with the risks of solar panel installation and often do not hold up in the event of a dispute. MKB Juristen drafts your general terms and conditions to measure, tailored to your working methods, customer groups, and the specific risks of your industry, such as roof damage, return on investment, and warranties. We ensure that the limitation of liability and warranty clauses are legally sound and that the provision of the terms and conditions is properly arranged.

You know exactly what to expect beforehand: we work with a fixed price in advance, without surprises afterwards. This provides a solid legal foundation for every assignment and protects your business against unnecessary claims. Contact us to draft terms and conditions that truly suit your solar panel company.