What happens when you need roof work during a solar lease? Understanding lost energy revenue

For commercial real estate owners considering rooftop solar leasing, one practical question often comes up: What happens if I need to maintain or repair my roof while a solar system is operating? Here's everything you need to know about coordinating roof work and understanding lost energy revenue.

The short answer

Roof maintenance and repairs during a solar lease are normal, expected, and manageable. Solar lease agreements include provisions that give you the right to access and maintain your roof—you're never locked out of caring for your building. Most developers provide grace periods that allow for routine roof work without financial penalty.

Understanding grace periods

Solar developers build flexibility into lease agreements specifically for this scenario. Here's how it typically works:

Annual grace periods

Most solar leases include an annual grace period—a set amount of time each year when the system can be offline for roof or tenant work at no cost to you. Common structures include:

• 48 solar production hours per year (roughly 4-6 calendar days, depending on season and weather)
• 5 calendar days per year
• Percentage-based thresholds (for example, you can take offline up to 5-10% of total system capacity 1, or a set number of times, without penalty)

These grace periods reset annually and are designed to accommodate:

• Routine roof inspections
• Minor repairs and maintenance
• HVAC equipment servicing
• Tenant improvements requiring roof access
• Property management activities

Roof replacement provisions

Beyond annual grace periods, some solar leases include one-time roof replacement options. If your roof needs replacement during the solar lease term:

• The solar developer removes and reinstalls the panels
• You coordinate timing with adequate advance notice (typically 60-180 days)
• The lease may include cost-sharing structures or lease rate adjustments depending on when the work occurs.
• The most common roof replacement provisions we see are the following:
  • Building owner may replace the roof during the solar term, and the building owner is responsible to cover the solar developer's costs for removing and replacing the system and for compensating the developer for lost energy revenue beyond the grace period
  • The building owner may fully replace the roof once during the solar term after a specified year (usually at least Year 5 of the term to avoid tax benefit recapture), and the developer is responsible for all removal and replacement costs and for lost energy revenue. The solar lease rate remains on the original schedule
  • The building owner may fully replace the roof once during the solar term after a specified year (usually at least Year 5 of the term to avoid tax benefit recapture), where the developer is responsible for all removal and replacement costs and for lost energy revenue. The lease rate the solar developer pays the building owner then changes to a predetermined amount based on the year the roof is replaced

When you work with Lumen Energy as your modern solar broker, your Lumen Advisor takes the terms that are most important to you and includes them in the bid specification—ensuring you have appropriate flexibility before contracts are signed.

What is lost energy revenue?

Lost Energy Revenue (LER) is the compensation you would owe to a solar developer if the system is offline beyond the grace period provisions in your lease.

How LER is calculated

LER represents the revenue the developer would have earned if the system had remained operational. It includes:

• Electricity sales: The value of solar energy that would have been sold to the grid or to subscribers
• Renewable Energy Certificates (RECs): Environmental credits generated by clean energy production
• Tax credits and incentives: Any federal or state incentives that may be reduced due to system downtime

Calculation methods vary by developer but typically use one of these approaches:

• Historical production: Based on actual system performance in prior months or years during the same time period
• Modeled production: Based on engineering projections adjusted for weather and operating conditions
• Capped daily rates: A maximum per-panel or per-day rate (for example, $0.75/panel/day) that limits your exposure

Real-world context

Here's a practical example to understand the order of magnitude:

A 1,440 kW system in Maryland generating approximately $0.24/kWh in combined electricity and REC revenue would produce roughly $1,100 per day in revenue when the system is operational. This is the amount of money the solar developer loses if the entire system were down.

However, as the solar Host (Landlord), your actual LER exposure would only apply after:

1. You've used your annual grace period days
2. You've used any roof replacement provisions in the leaseMajor, unexpected roof repairs require shutting down significant portions of the system

In practice, building owners rarely encounter substantial LER charges. Most routine maintenance falls well within grace period provisions.

Building owners retain roof rights

You always control your building

Solar lease agreements explicitly preserve your rights as the building owner:

• Full roof access: You retain  access to your rooftop
• Maintenance coordination: Solar developers must accommodate your maintenance schedule with reasonable notice
• Tenant needs: You can perform tenant improvements and building upgrades as needed
• Emergency repairs: Developers acknowledge your right to perform emergency roof work immediately

Developer responsibilities

The solar developer, not you, bears responsibility for:

• All solar equipment maintenance and repairs
• Coordinating their maintenance activities around your schedule
• Keeping the system in good working order
• Minimizing disruption for their own repairs (they lose revenue when the system is offline)

How Lumen Energy protects your interests

As your solar broker, we sit on your side of the table throughout the process. Here's how we ensure favorable terms:

Competitive bidding surfaces better terms

When multiple developers compete for your project, they often offer:

• More generous grace periods
• Clearer LER calculation methods
• Better roof replacement provisions
• Capped LER rates that limit your exposure

Our competitive developer marketplace ensures you're comparing multiple proposals—and we help you understand the implications of each term.

White-glove service through every step

Your Lumen Advisor reviews contract terms with you before you're locked in, including:

• Grace period structures and whether they align with your property management practices
• LER calculation methods and rate caps
• Roof replacement timing and cost allocation
• Access rights and coordination procedures

We translate complex lease language into clear financial and operational implications for your portfolio.

Investment-grade analysis surfaces the best solar opportunities accounting for roof condition

Before you even enter our competitive bid process, our Lux Engine evaluates roof condition across your portfolio. We identify:

• Properties with roofs ready for immediate solar deployment (10-15+ years of remaining useful life)
• Buildings that may need roof work first
• Opportunities to coordinate roof replacement with solar installation for optimal financial returns

This upfront analysis means you're making informed decisions about which properties to prioritize—and avoiding surprises down the line.

Best practices for managing roof work

Plan ahead

If you know you'll need significant roof work:

• Provide advance notice to the developer (60-180 days is typical)
• Coordinate roof work to occur during lower solar production seasons when possible
• Batch multiple maintenance activities to minimize total downtime
• Use your annual grace periods strategically

Document everything

Maintain records of:

• Roof inspection reports
• Maintenance schedules
• Developer notifications
• Any system downtime and reasons

Clear documentation protects both parties and simplifies any LER discussions.

Communicate early

If unexpected roof issues arise:

• Notify the developer immediately
• Coordinate on sequencing and access
• Discuss whether the issue is solar-related (developer's responsibility) or pre-existing (your responsibility)
• Work together on minimizing downtime

Solar developers have no incentive to make roof work difficult—they want the system back online generating revenue as quickly as you do.

Roof work shouldn't stop you from pursuing solar

The financial benefits of rooftop solar leasing—turning underutilized rooftops into predictable revenue streams with zero CapEx—far outweigh the manageable complexity of coordinating occasional roof work.

With properly negotiated lease terms, you have:

• Adequate grace periods for routine maintenance
• Clear processes for roof replacement if needed
• Defined and capped LER exposure
• Full control over your building operations

Ready to explore solar for your portfolio?

Lumen Energy provides investment-grade financial analysis across your entire portfolio, runs competitive bid processes with vetted developers, and delivers white-glove service throughout. We ensure you understand every lease term—including grace periods and LER provisions—before you commit.

As your modern solar broker, we maximize long-term value and reliable income while protecting your operational flexibility.

Learn more about how we help commercial real estate owners scale solar deployment without scaling headaches.

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