7 Questions to Ask Before Signing a Solar Contract
Solar has earned some skepticism. Between installers going bankrupt, homeowners discovering unexpected liens, and savings promises that never quite match reality, it makes sense to ask tougher questions before signing anything.
If you were advising a friend on what to ask a solar company, you'd want the questions that cut through the sales pitch and get to the real terms. Below are seven questions every homeowner should ask before signing a solar agreement — and how Terra Energy answers each one.
1. Is there any money due upfront?
Down payments and deposits shift risk onto the homeowner before a single panel is on the roof. It's the first place to find out whether a company is asking you to fund their project or the other way around.
How Terra answers it: Terra doesn't require a down payment, a deposit, or any upfront cost. In fact, you don't pay anything at all until the system is installed and actually generating electricity.
2. Am I taking on debt or a lien for this — and will it affect my credit?
This is the question the fine print doesn't want you to ask. A lot of solar is sold as a "$0-down" deal that's actually a 20–25 year loan, complete with a hard credit pull and a lien filed against your home's title. Ask it directly: Is this debt? Is there a lien? Will it hit my credit?
How Terra answers it: None of the above. Terra's subscription model puts no loan and no lien on your home, and you're never taking on debt for the equipment. Terra runs a soft credit check only — enough to confirm eligibility, with no impact on your credit score.
3. How long am I locked in, and how do I get out if I need to?
Most solar agreements run 20 to 25 years. That's longer than most people keep a car, a job, or sometimes a house. Before you sign, know exactly how long you're committed and what your exit actually looks like.
How Terra answers it: Terra's agreement locks your savings for 10 years, however after year 3 it converts to month-to-month — cancel anytime after that with written notice, no penalty. If you need to leave within the first three years, an exit fee may apply, and it's disclosed to you upfront so there are no surprises.
4. Who pays if something breaks in year 7?
Panels tend to outlast inverters, and equipment can fail over a 20-year span. The question isn't if something needs attention — it's who's on the hook when it does, and whether anyone is even watching the system to catch problems early.
How Terra answers it: Terra owns the equipment, so maintenance and repairs stay with Terra — at no cost to you. The system is monitored remotely around the clock, which helps catch issues before they turn into bigger ones. You're never left sorting out a repair bill on your own.
5. Is my cost locked in, or does it climb every year no matter what?
Here's the thing worth sitting with: your electricity cost is going up either way. Utilities have raised rates 4–8% a year, with no ceiling and no vote from you. Many leases and power purchase agreements include rate escalators, which raise your payment every year whether the system is outperforming, underperforming, or just working as expected. Those increases are often buried in the fine print, so it's important to ask before you sign.
How Terra answers it: Terra's increase is a fixed 1.9% a year, disclosed upfront, and locked in for the life of your term. While the utility keeps climbing at its own pace, your rate stays predictable — and the gap between the two only widens in your favor over time. In the solar market, annual escalators typically fall in the 1% to 3% range, with 2.9% being common among major providers. Knowing the exact increase ahead of time makes it easier to compare offers and understand the long-term cost.
6. If I ever need a new roof, who handles the panels — and what does it cost me?
Almost nobody thinks to ask this, and it's exactly the kind of thing that turns into a five-figure headache down the road. If your roof needs work mid-term, someone has to remove the panels, store them, and reinstall them — and with most companies, that someone is you, at $3,000–$10,000 out of pocket.
How Terra answers it: Because Terra owns the system, Terra removes, stores, and reinstalls your panels at no cost when you need roof work — you simply continue your service afterward. What's a major expense with traditional solar is just part of your subscription with Terra.
7. What happens to the agreement if I sell my house?
Some contracts transfer smoothly; others become a sticking point in the middle of a home sale. Better to understand that now than to discover it when you've already got a buyer at the table.
How Terra answers it: Terra gives you two clean paths: transfer the subscription to the next homeowner, or cancel the agreement. If you cancel within the first three years, an exit fee may apply — but you're not stuck untangling a lien or a loan payoff to close the sale.
Frequently Asked Questions
Does Terra Energy require a down payment for solar? No. Terra requires no down payment, deposit, or upfront cost, and payment doesn't begin until the system is installed and producing electricity.
Does Terra Energy put a lien on your home? No. Terra's agreement is a subscription, not a loan, so there is no lien filed against the home and no debt taken on for the equipment.
How much does Terra Energy's payment increase each year? Terra's agreement includes a fixed 1.9% annual increase, disclosed upfront — lower than the 2.9% common among major solar providers.
Who pays for solar panel repairs with Terra Energy? Terra owns the equipment, so all maintenance and repair costs are covered by Terra, with remote system monitoring included at no extra cost.
Can you cancel a Terra Energy solar subscription? Yes. After year 3, the agreement converts to month-to-month and can be canceled anytime with written notice. Canceling within the first 3 years may involve an exit fee.
