Law.com Subscribers SAVE 30%
Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.
Does a Roof's Warranty Remain Effective Under Solar Panels?
Editor's Note: The growing interest in alternative fuel sources may be a boon for property owners seeking new ways to generate profits and savings. A landowner might install solar panels on a warehouse roof and operate them to produce free energy, selling any excess electricity to the local electric company. But other money-making arrangements can also be made. For example, a landowner might lease roof space (or a parking lot or adjacent unused empty lot) to a solar power producer who would install its own solar panels, manage their production of energy, and reap any profits therefrom. A third arrangement is a sort of hybrid of the two, called a Power Purchase Agreement (PPA). Under a PPA, the landlord leases roof space to another party, which installs and runs the operation but then sells some of the electricity that is generated back to the landlord, at an agreed-upon rate that is lower than what the local utility company would charge. All of these options may look like win-win situations, but, as the author of the following article explains, care should be taken when a roof is the proposed site of a solar-panel installation, whether managed by a property owner or by a lessee.
As commercial and residential property owners respond to the demands for clean energy motivated by carbon emissions concerns and the budgetary prerogatives of energy cost and governmental enactments creating financial incentives, solar installations are becoming more common both nationally and on a state-specific basis. For instance, as of 2018, despite its relatively small land area, New Jersey ranked sixth among the states in total installed solar capacity, and has seen a dramatic increase in solar coverage over the last 10 years. See, http://bit.ly/2WFGPNo.
Solar panels and related infrastructure are often constructed as rooftop-mounted facilities, and the advantages of solar power installation should be weighed against the preservation of the structural integrity and the useful life of the rooftop structures themselves. In particular, property owners should ensure that the warranty covering the roof itself remains effective in the context of the additional roof penetrations, weight, and wind loads the installation and continued presence of solar panels create. Legal practitioners should be mindful of the concerns of warranty coverage or preservation in the draft of solar power purchase agreements (PPA) and engineering, procurement and construction (EPC) agreements.
Two Stages Where Problems May Occur
At the outset, it is important to distinguish two essential types of conditions or issues with respect to solar roof installations with different implications for warranty and liability issues: 1) the fundamental warrantability or insurability of the roof following the installation work; and 2) whether and to what extent a warranty will cover the condition of the roof based on events subsequent to installation.
This premium content is locked for Entertainment Law & Finance subscribers only
ENJOY UNLIMITED ACCESS TO THE SINGLE SOURCE OF OBJECTIVE LEGAL ANALYSIS, PRACTICAL INSIGHTS, AND NEWS IN ENTERTAINMENT LAW.
- Stay current on the latest information, rulings, regulations, and trends
- Includes practical, must-have information on copyrights, royalties, AI, and more
- Tap into expert guidance from top entertainment lawyers and experts
Already a have an account? Sign In Now Log In Now
For enterprise-wide or corporate acess, please contact Customer Service at [email protected] or 877-256-2473
Major Differences In UK, U.S. Copyright Laws
This article highlights how copyright law in the United Kingdom differs from U.S. copyright law, and points out differences that may be crucial to entertainment and media businesses familiar with U.S law that are interested in operating in the United Kingdom or under UK law. The article also briefly addresses contrasts in UK and U.S. trademark law.
Strategy vs. Tactics: Two Sides of a Difficult Coin
With each successive large-scale cyber attack, it is slowly becoming clear that ransomware attacks are targeting the critical infrastructure of the most powerful country on the planet. Understanding the strategy, and tactics of our opponents, as well as the strategy and the tactics we implement as a response are vital to victory.
The Article 8 Opt In
The Article 8 opt-in election adds an additional layer of complexity to the already labyrinthine rules governing perfection of security interests under the UCC. A lender that is unaware of the nuances created by the opt in (may find its security interest vulnerable to being primed by another party that has taken steps to perfect in a superior manner under the circumstances.
Removing Restrictive Covenants In New York
In Rockwell v. Despart, the New York Supreme Court, Third Department, recently revisited a recurring question: When may a landowner seek judicial removal of a covenant restricting use of her land?