Re-Roofing a Home With Solar? What Contractors Need in Their Remove-and-Reinstall Contract

Millions of rooftop solar systems were installed over the last two decades, and many of the roofs under them are now due for replacement. That's creating steady demand for solar remove-and-reinstall (R&R) work: taking a system off the roof so the roofer can do their job, then putting it back and getting it running again.

R&R can be a profitable line of business for solar contractors, but it carries risks that a new installation doesn't. You're working on equipment you didn't install, on a roof someone else is replacing, often under a warranty you didn't write. And in California, the contract for that work is subject to strict home improvement rules.

Why R&R is riskier than it looks

• Pre-existing equipment. Panels, racking, wiring and inverters may already be damaged, worn or out of code. If something fails after reinstallation, the homeowner may blame you.
• Warranties. Removing and reinstalling a system can affect the manufacturer's warranty or the original installer's workmanship warranty. The homeowner needs to understand what you are, and aren't, warranting.
• Coordination with the roofer. Delays in the roofing work can leave a system in storage for weeks, and the homeowner's schedule depends on two contractors instead of one.
• Licensing. The solar contractor and the roofer each need to hold the appropriate license classification for the work they perform.

California home improvement contract rules apply

R&R work for a homeowner is home improvement work. In California, that means the contract generally must meet the detailed content, formatting and disclosure requirements for home improvement contracts in Business and Professions Code § 7159. Among the rules that most often trip up contractors:

• Down payment limits. The down payment can't exceed the lesser of $1,000 or 10 percent of the contract price (B&P Code § 7159.5).
• Payment schedule. If you will collect payments before completion beyond the down payment, the contract must include a schedule of payments in dollars and cents tied to the work and materials each covers.
• No payment ahead of the work. Apart from the down payment, you generally can't request or accept payment that exceeds the value of the work performed or materials delivered, unless you've provided one of the bonds or alternatives the statute allows.

What about small jobs? The $750 service and repair exception

California allows a simpler service and repair contract for smaller jobs, but only within narrow limits (B&P Code § 7159.10). The total price, including labor, parts and fees, must be $750 or less. The customer must have initiated the call, and the contractor can sell only what's needed to fix the problem the customer called about.

Most R&R projects cost more than $750, so they need a full home improvement contract. We explain the difference in more detail in What Type of Agreements Should Solar Contractors Use for Service and Repair Work for Homeowners in California?

What your R&R contract should cover

• A clear scope of work: removal, storage, reinstallation, recommissioning and any upgrades or replacement parts
• Payment terms that comply with the down payment and progress payment rules
• Permissible delays, especially delays caused by the roofing contractor or the homeowner
• Owner responsibilities, such as providing access and coordinating with the roofer
• Change orders for damaged components or code upgrades discovered during the work
• A workmanship warranty limited to your own work, with clear disclaimers for pre-existing equipment and conditions
• Dispute resolution and other protections for both parties

It's also good practice to document the system's condition before removal with photos and production data, so you have a baseline if questions arise later.

Templates for R&R and service work

Our Solar System Remove-Reinstall Services Agreement (CA) is drafted for California's home improvement regulations, and our generic Remove-Reinstall Services Agreement is available for contractors in other states. Both cover the scope of work, payment terms, permissible delays, owner responsibilities, change orders, workmanship warranty and dispute resolution.

For repair calls, see our Service and Repair Contract - $750 Cap (CA) and, for larger jobs, the Service and Repair Contract - HIC Long Version (CA).

This post is general information about California law and is not legal advice. Check current CSLB requirements or consult an attorney about your specific contracts.

Are you seeing more R&R requests from homeowners and roofers? How are you handling the coordination?