By Romario Lela, Lela Homelife · Last updated: November 6, 2026
The short answer: Ask seven things before you sign: how stable the installer is, who owns and services the system (or holds the loan), what happens if the installer fails, what the warranties really cover, whether they're registered and local, what the contract says about your payment, and how long it takes to turn on. If the answers are vague, slow down. A solar contract lasts up to 25 years, so an hour of questions now is cheap.
Want these questions answered for your house? Call 774-228-5351. We're open weekdays 8 AM–6 PM and Sundays 8 AM–3 PM. Or get a free estimate online.
Why this is in the news
In October, Boston 25 News told the story of a Mendon family. They signed a 25-year solar power purchase agreement (PPA) worth more than $206,000. Their installer, Freedom Forever, filed for bankruptcy in April, just days before the job was due to be finished. The system sat unfinished for five months. According to the report, the family got moving again after the finance company that owns the system, EnFin, stepped in and finished the project. (Boston 25 News, Oct. 26, 2026)
The report says higher interest rates and changing markets have made life hard for installers nationwide, and several have filed for bankruptcy in recent years. The lesson is simple: find out who is behind your project before you sign.
Who this is for
Use it if you're comparing solar quotes, about to sign a PPA, loan, or cash contract, or were told "sign today." If your system is already installed and working, you can skip it.
The seven questions
1. How stable is this company?
Ask how long they've been in business, who does the work (their crews or subcontractors), and what happens to your job if they stop. No installer can promise they'll never struggle. A good one answers honestly.
2. Who owns the system, and who finances and services it?
With a PPA, a finance company owns the panels and you pay for the power. Get its name, and ask who you call for repairs and billing. Ask what happens if the contract is sold to another company, which happens often in solar. With a loan, ask who the lender is.
3. What if the installer goes out of business?
This is where the FTC's Holder Rule comes in. Here's what the rule actually says, using the FTC and the federal rule text:
- It covers certain consumer credit contracts, meaning loans or financed sales tied to a purchase from a seller.
- Those contracts must carry a notice in bold type that says whoever holds the contract is subject to the claims and defenses you'd have against the seller.
- That can help if the seller never finishes the job. Recovery is generally limited to what you paid under the contract.
Loans and PPAs are different. A solar loan is a credit contract, so the rule is written for it. A PPA is a contract to buy power, not a loan, so whether the rule applies is less clear. In the Mendon story, the attorney quoted said it applies to that family's situation. Other legal sources say a PPA generally isn't covered. We're not lawyers, so we won't tell you either way. Do this instead: ask the installer in writing what happens to your project if they fail, and look for that notice in any loan. If the contract is big and the answer is fuzzy, ask an attorney to read it.
4. What do the warranties cover, and who honors them?
Ask for each warranty in writing:
- Panels and equipment. Many panels carry 25-year performance warranties. Ask who pays for labor to fix or swap them.
- Workmanship. This covers the install itself, like leaks around roof penetrations. Ask how many years, and who stands behind it if the installer is gone.
- Roof. If a new roof is included, ask for the shingle brand and warranty. Ours are GAF-certified architectural shingles with a 30-year warranty.
5. Are they registered, and are they local?
In Massachusetts, solar installers working on owner-occupied homes of one to four units generally need a Home Improvement Contractor (HIC) registration. You can check it on Mass.gov. Mass.gov also says that if you hire an unregistered contractor, you can't use the state arbitration program or the Guaranty Fund (Mass.gov). Then ask where the office is and who answers the phone after the job.
6. What does the contract say about my payment?
Read these lines before anything else:
- Term and payment. Our PPAs run 25 years.
- Escalator. How much does your rate rise each year? We offer two options: a 2.9% escalator (rises 2.9% once a year, never more) or 0% (the payment stays flat for 25 years). Your estimate should show both against your current bill.
- Savings claims. If a salesperson promises a savings number, make sure it's in writing. Savings are estimates and vary by home.
- Fees and moving. Ask about early-exit fees and what happens if you sell. Often the buyer takes over the contract or you buy out the system.
- Right to cancel. Treasury's PPA guide says you should have at least three days to cancel. Ask how.
7. How long until it's on, and how will I know?
Signing to turn-on averages 3 to 6 months for us (permits, utility approval, scheduling). Ask for the steps and who updates you. Long silence is a warning sign.
How we answer these questions
Lela Homelife has been in business for three years, and I have five years of experience. We work with partner installers and financiers that have been in business for decades. Here's what we can say today:
- Registration: [PLACEHOLDER: Lela HIC registration number]
- Workmanship warranty: [PLACEHOLDER: number of years and who backs it]
- PPA owner and servicer: [PLACEHOLDER: name of financing partner and who handles service calls]
- Roof: GAF-certified architectural shingles with a 30-year warranty.
- Where we are: Webster, MA. Call 774-228-5351, including Sundays 8 AM–3 PM.
For a cash purchase, our clean-roof price is about $3.60–$3.70 per watt, subject to change. Ask every installer for price per watt to compare like for like.
FAQ
Does the FTC Holder Rule apply to my solar PPA?
It's written for credit contracts, so it may not apply to a PPA the same way. Ask an attorney if you're unsure.
What if my installer goes bankrupt after the system is on?
Your equipment and warranties still exist, but who honors them depends on the contract. That's why question 4 asks who stands behind each one.
Is there a federal tax credit I can use?
No. The 30% federal solar credit for homeowners is gone. With a PPA, you pay for the power, not the panels.
Who can get a Lela PPA?
Homeowners with Eversource, National Grid, or Unitil, with a 600+ credit score (650+ preferred).
Get a straight answer for your house
Bring us any quote you have, from us or anyone else. We'll go through these questions with you, show you both the 2.9% and 0% PPA options next to your current electric bill, and tell you honestly if solar isn't a fit. Call 774-228-5351, open weekdays 8 AM–6 PM and Sundays 8 AM–3 PM, or get your free estimate. You can also read how a PPA can cover a new roof and solar together.
This article is general information, not legal or financial advice. Savings vary by home and are never guaranteed.
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