Guide OverviewChapter 7 · PPA / Lease ("Free Install") Contract Traps
Chapter 7 · PPA / Lease ("Free Install") Contract Traps

7.6 The auto-renewal clause

Many contracts include language like:

"If Customer fails to provide written notice of termination at least 30 days prior to the end of the Initial Term, this Agreement shall automatically renew for additional 5-year terms at then-current market rates."

Plain English: 30 days before year 25 ends, you must send a written termination notice. Otherwise the contract auto-renews for another 5 years at then-current market rates (which will likely be much higher than your contracted rate today).

Who remembers a calendar item from 25 years earlier? Over 90% of PPA customers end up passively renewed — this is the industry's unspoken "second harvest."

Next Step

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