5 Questions You Must Ask Before Signing Any Solar Installation Contract

You’ve made the decision to switch to solar power. A wise choice.

Someone has slid a contract over the table or into your email, requesting a signature, after you’ve compared a few quotes and spoken with a few installers.

Quit.

Every solar buyer should ask these five questions before signing any paperwork. Not because most installers are dishonest.

However, because solar is a 25-year infrastructure choice, the specifics of that contract will be significantly more important than the price listed on the front page.

Make these inquiries. Obtain precise responses. Next, sign.

Question 1: What Exactly Is the Warranty — and Who Backs It?

The majority of consumers never ask the most crucial question on this list.

Usually, a solar system is covered by three different warranties:

• The panels come with a 10- to 12-year product warranty that covers manufacturing flaws.
  
• The panels’ performance warranty, which typically lasts 25 years, ensures that output doesn’t drop below a predetermined %.
  
• The installer’s workmanship warranty, which usually lasts between one and five years, covers the installation itself.

The panel manufacturer, not your installer, is the one who backs the panel warranty, which is where customers get trapped. Your warranty is useless paper if the maker is a tiny foreign business that dissolves after five years.

Inquire with your installer: What is the track record of the manufacturer supporting the panel warranty in India?

Choose panels from producers who have a track record of success and a service network in India. A cheap panel with a warranty that no one would uphold is significantly less valuable than a somewhat more costly panel from a reputable manufacturer.

Question 2: Is the equipment ALMM-listed?

If you are unfamiliar with the Approved List of Models and Manufacturers, or ALMM, you are not alone.

Most solar purchasers haven’t. But it could be one of the most important things to make sure of before committing.

The solar modules and cells produced by the Indian government’s ALMM meet the manufacturing and quality standards of the Ministry of New and Renewable Energy (MNRE). The equipment on this list has been reviewed and approved, but the equipment not on it has not.

Why does this matter to you?

There are two reasons.

First, if you’re applying for any government subsidy—PM Surya Ghar, state-level incentives, or any other scheme—your system almost certainly needs to use ALMM-listed equipment to qualify. Install non-ALMM panels, and you may lose your subsidy eligibility entirely.

Second, the ALMM listing is a quality signal. It doesn’t guarantee perfection, but it does mean the product has passed through a government verification process. In a market where cheap, mislabeled imports have been quietly circulating, that matters.

Ask your installer: Are all panels and cells in this proposal on the current ALMM list?

If they can’t answer this confidently, that is a red flag.

Question 3: What Happens If My System Underperforms?

Every solar proposal comes with a promised generation estimate — something like “your 10 kW system will generate approximately X units per month.”

But what happens if it generates significantly less than that?

This is where many buyers discover an uncomfortable gap. The installer made projections. The contract, however, may contain no performance guarantee whatsoever—leaving you with a system that generates 20% less than promised and no legal recourse.

Before signing, look for this in the contract:

• Is there a performance guarantee specifying minimum expected output?
• What is the process for raising a performance complaint?
• Who is responsible for resolving underperformance — the installer, the manufacturer, or neither?
• Is there a monitoring system included that tracks your actual generation data?

A reputable installer will have clear answers to all of these. They will also typically include a monitoring app or portal where you can track your system’s daily output — so you can see immediately if something is off.

If the contract is vague on performance accountability, negotiate clarity before you sign. Not after.

Question 4: Who Handles the Net Metering Application — and What Are the Timelines?

Net metering is one of the most valuable financial benefits of going solar in India. It allows you to export surplus electricity back to the grid and receive credit on your electricity bill—effectively making your meter run backwards when your panels produce more than you consume.

But net metering doesn’t happen automatically. It requires an application to your local electricity distribution company (DISCOM), approval, inspection, and installation of a bidirectional meter. This process can take anywhere from a few weeks to several months, depending on your state and DISCOM.

Here’s the problem: until net metering is approved, your surplus solar electricity simply goes to the grid — for free, with no credit to you.

Before signing, ask:

• Does your installation price include filing the net metering application on my behalf?
• What is the typical approval timeline in my area?
• What happens to my exported electricity during the waiting period?
• Have you successfully completed net metering applications with my specific DISCOM before?

An experienced local installer will know the process well and will handle it as part of the package. An inexperienced one may leave the entire application burden with you—after they’ve been paid and moved on.

Question 5: What Does the After-Sales Service Actually Look Like?

Solar panels are remarkably low-maintenance. But they are not zero-maintenance.

Over 25 years, you will need periodic cleaning, at least one or two inverter replacements, possible panel inspections after extreme weather, and occasional troubleshooting. The company you choose today is the company you will be calling for all of that.

So before you sign, find out exactly what post-installation support looks like:

• Is there a dedicated service team, or do you rely on third-party technicians?
• What is your guaranteed response time for a service call?
• Do you charge for service visits during the workmanship warranty period?
• What is your process if I need a panel or an inverter replaced?
• How long has your company been operating, and do you have references I can speak to?

That last question is important. A company that has been operating in your city for five or more years — with verifiable customer references — is a fundamentally different proposition from a new entrant with attractive pricing and no track record.

Solar is a long game. The cheapest installer today may not exist tomorrow. Choose a partner, not just a price.

One Bonus Thing to Check: The Payment Terms

This isn’t a question exactly—but it’s worth flagging before you put pen to paper.

Watch out for contracts that ask for 80% or 100% of payment upfront before installation begins. A standard and fair payment structure typically looks like:

• 30–40% on contract signing
• 40–50% on completion of installation
• 10–20% after net metering is approved and the system is fully operational

The final payment tranche is held back until net metering approval is obtained as your leverage. It gives your installer genuine motivation to see the process through to completion — not just show up, install, collect, and disappear.

The Bottom Line

Going solar is one of the smartest financial decisions a homeowner or business owner can make in India right now. The economics are genuinely compelling—and they’re getting better every year.

But a good solar investment starts with a good contract. And a good contract starts with asking the right questions before you sign.

The five questions above won’t make you an industry expert. But they will make you a much harder buyer to shortchange — and they will dramatically increase the chances that your solar system performs the way it was promised, for as long as it was promised.

Ask them. Every single time.

Planning to go solar and want a second opinion on a quote or contract? Our team reviews solar proposals for homeowners and businesses across India — and we’ll tell you exactly what to look for, what to push back on, and what a fair deal actually looks like. Get in touch.

Tags: Solar buying guide India · Solar installation contract · ALMM solar panels · Net metering India · Solar warranty · Rooftop solar tips · Solar for business India 2025

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