Subcontractor Agreements For Solar Installers

Yes, if your solar business engages installers, electricians or other trades to do work for your customers, you should have a written solar installer subcontractor agreement in place before they attend site.

The more nuanced part is that solar work sits at the intersection of electrical licensing, clean energy accreditation, consumer warranties, construction laws and site safety. If you promise your customer a compliant installation, workmanship warranty or rebate-ready paperwork, those promises need to flow down to the subcontractor doing the work.

A good agreement doesn't need to be complicated. It should make it clear who is responsible for what, what standard the work must meet, and what happens if something goes wrong.

Do You Need A Written Solar Installer Subcontractor Agreement?

Yes, you should use a written subcontractor agreement whenever another business or contractor is installing, wiring, inspecting or helping deliver solar work for your customers.

Verbal arrangements can feel easy when you're busy and the subcontractor is someone you know. The problem is that solar jobs often involve several moving parts, including customer expectations, retailer obligations, electrical compliance, product warranties, Small-scale Technology Certificate paperwork, safety requirements and site access issues.

Your agreement should set out:

• Scope of work: exactly what the subcontractor is doing, such as panel installation, inverter installation, battery work, switchboard upgrades, testing or commissioning.
• Standards: the laws, standards, manufacturer instructions and network requirements they must follow.
• Licences and accreditation: what they must hold and maintain.
• Payment terms: how and when they're paid, and what documents are needed before payment is released.
• Defects and rework: who pays for fixing poor workmanship or non-compliant work.
• Site safety: who is managing safety risks, equipment, inductions and incidents.
• Insurance: the cover the subcontractor must have before starting work.
• Customer obligations: the customer promises that must be matched by the subcontractor.

If you're using a standard template, be careful. Generic subcontractor documents often miss the clean energy details that matter most, such as accreditation, STC documents, grid connection requirements and manufacturer warranty conditions.

You should also make sure your agreement is fair and commercially balanced. Since 9 November 2023, unfair contract term laws under the Australian Consumer Law can attract penalties where standard form small business contracts contain unfair terms. Very one-sided terms, such as broad termination rights with no fair process, can create legal risk.

What Licences And Accreditations Should Your Subcontractor Have?

It depends on the state or territory, the type of work and whether the system will claim clean energy incentives, but your subcontractor will usually need the right electrical licence and, for STC-eligible work, the right solar accreditation.

Electrical work is regulated at a state and territory level in Australia. This means the licence rules aren't identical across NSW, Victoria, Queensland, WA, SA, Tasmania, the ACT and the NT. For example, a subcontractor doing electrical wiring will generally need to be licensed or registered under the relevant electrical safety laws in that jurisdiction.

Solar installations that create Small-scale Technology Certificates under the Small-scale Renewable Energy Scheme also need to meet Clean Energy Regulator requirements. Since 2024, Solar Accreditation Australia has managed accreditation for solar designers and installers under the scheme, replacing the previous Clean Energy Council accreditation pathway.

Your agreement should require the subcontractor to:

• hold all licences, registrations and accreditations needed for the work;
• give you current copies before attending site;
• tell you immediately if a licence, registration or accreditation is suspended, cancelled, restricted or expires;
• only use workers who are properly licensed, supervised and trained;
• comply with state electrical safety rules, network service provider requirements and relevant Australian Standards;
• complete all required compliance certificates, test records and handover documents; and
• avoid doing any work outside the scope of their licence or competence.

You may also need extra checks depending on the job. Roof plumbing, structural work, battery installations, asbestos risk, switchboard upgrades and commercial projects can trigger additional licensing, safety or building requirements.

How Do Your Customer Promises Flow Down To The Subcontractor?

Your customer promises should flow down through back-to-back clauses, so the subcontractor is required to perform in a way that lets you meet your customer contract.

This is a common issue for solar retailers. You might sign the customer contract, take payment, arrange products and book the installation, but the subcontractor is the one on the roof doing the work. If their work is late, unsafe, incomplete or non-compliant, your customer will usually come back to you first.

Say SunnyPeak Solar sells a residential solar and battery package to a customer in Newcastle. The customer contract promises installation within 30 days, a workmanship warranty, compliant STC paperwork and a neat handover pack. SunnyPeak then engages an electrical subcontractor to complete the installation. If the subcontractor misses the date, damages roof tiles and forgets to lodge key documents, SunnyPeak may still be the business dealing with the customer complaint, warranty claim and rectification work.

Back-to-back clauses can help you recover losses from the subcontractor where the issue was caused by their breach. These clauses can cover:

• installation deadlines and customer appointment windows;
• workmanship standards and defect rectification periods;
• manufacturer instructions and warranty requirements;
• network connection and compliance obligations;
• STC eligibility documents, declarations and photos;
• customer care standards, including site cleanliness and communication;
• damage to the customer's property; and
• costs you incur because of the subcontractor's delay, error or non-compliance.

The Australian Consumer Law also matters here. If your customer is a consumer or small business customer protected by consumer guarantees, you generally can't avoid responsibility by saying the installer was a subcontractor. If the services aren't provided with due care and skill, or aren't fit for the purpose discussed, the customer may have remedies against your business.

That doesn't mean you're stuck carrying every risk. It means your subcontractor agreement should give you a clear contractual path to require rectification, withhold payment where appropriate, or recover reasonable costs where the subcontractor caused the problem.

What Solar Installation Contract Clauses Should You Include?

You should include clauses that cover the full job lifecycle, from quoting and site inspection through to installation, testing, handover, defects and warranty support.

Scope And Work Orders

Your master subcontractor agreement can set the main legal terms, with separate work orders for each job. A work order might cover the site address, system size, products, installation date, access details, customer notes and pricing.

This keeps the agreement flexible while still giving you a consistent set of rules across all projects.

Technical Standards

Your agreement should require compliance with all applicable laws, electrical safety requirements, distribution network rules, manufacturer instructions and Australian Standards. Depending on the work, this may include standards such as AS/NZS 3000 for wiring and AS/NZS 5033 for photovoltaic arrays.

Don't just say the work must be good quality. Spell out the sources of compliance that matter to your business and your customers.

Defects, Rework And Warranties

Your agreement should say what happens if the work is defective, incomplete, unsafe or non-compliant. For example, you may require the subcontractor to return within a set timeframe to fix defects at their own cost.

You should also deal with workmanship warranties. If you give your customer a workmanship warranty, your subcontractor should stand behind their work for at least the same period, unless you've agreed otherwise.

If you offer a written warranty against defects to consumers, the Australian Consumer Law has specific requirements about what that warranty document must say. Your customer documents and subcontractor obligations should be consistent, so you aren't promising something you can't pass through.

Payment And Security Of Payment

Your payment clause should set out the rate, invoicing process, required supporting documents, GST treatment and when payment is due.

Solar installation work can fall within building and construction industry security of payment laws, depending on the state or territory and the nature of the project. These laws can give contractors rights to progress payments and adjudication, and some rights can't simply be contracted out of. Your payment process should be clear and workable, rather than relying on vague approval wording.

Subcontracting And Labour

If you don't want your subcontractor sending unknown workers to your customer sites, say so. Your agreement can require your written approval before any further subcontracting, and it can require all workers to meet your licence, safety and conduct standards.

Who Is Responsible For Site Safety And Property Damage?

You and the subcontractor can both have safety duties, so your contract should allocate practical responsibilities while recognising that work health and safety obligations can't simply be contracted away.

Most Australian jurisdictions have work health and safety laws based on the model Work Health and Safety Act. Victoria has its own Occupational Health and Safety Act 2004. Across Australia, if your business is a person conducting a business or undertaking, you need to manage health and safety risks so far as reasonably practicable.

For solar work, safety risks often include:

• working at heights;
• live electrical work and isolation procedures;
• roof access and fragile surfaces;
• manual handling of panels and equipment;
• fall prevention systems;
• weather conditions;
• asbestos or older roof materials;
• public safety at the site; and
• battery storage and fire risks.

Your agreement should require the subcontractor to comply with your safety policies, site rules, safe work method statements where required, and all applicable WHS or OHS laws. For high risk construction work, a safe work method statement may be needed before the work starts.

Property damage should also be clearly covered. Solar installations can involve broken tiles, ceiling damage, water leaks, scratched walls, damaged switchboards and issues caused by poor cable management. Your agreement should say when the subcontractor is responsible for repair costs, customer complaints, excess payments under insurance policies and related losses.

Insurance clauses are part of this. At a minimum, you'll usually want public liability insurance, workers compensation where required, vehicle insurance and any trade-specific cover that suits the work. Ask for certificates of currency and diarise renewal dates.

Are Solar Subcontractors Employees Or Independent Contractors?

It depends on the real substance of the relationship, not just the label in your agreement.

A subcontractor agreement isn't a magic shield if the arrangement looks more like employment. From 26 August 2024, the Fair Work Act 2009 uses a broader approach for deciding whether someone is an employee or an independent contractor, looking at the real substance, practical reality and true nature of the relationship.

Factors that may support a genuine contractor relationship include:

• the contractor runs their own business with an ABN or ACN;
• they provide their own tools, equipment and vehicle;
• they control how the work is performed, subject to safety and compliance requirements;
• they can work for other clients;
• they invoice for work completed;
• they carry their own insurance;
• they're paid for a result rather than simply for time worked; and
• they can delegate or use approved workers, if your agreement allows it.

Factors that may create risk include requiring one person to work fixed full-time hours, controlling every part of how they do the work, giving them no real business independence, providing all tools and equipment, and stopping them from working elsewhere.

Sham contracting is also prohibited under the Fair Work Act. This can become an issue if you represent an employment relationship as contracting to avoid employee entitlements. If your arrangement is close to the line, get tailored advice before relying on a contractor agreement.

You should also speak with your accountant about superannuation, payroll tax and contractor reporting, because those rules can apply differently from employment law tests.

What Should You Check Before Letting A Subcontractor On Site?

You should complete an onboarding check before the subcontractor attends any customer site, even if you've worked with them before.

A practical onboarding checklist might include:

• signed subcontractor agreement;
• ABN or ACN details checked against the contracting entity;
• electrical licence details for the relevant state or territory;
• Solar Accreditation Australia details, where required for the work;
• evidence of training for working at heights and other relevant safety risks;
• certificates of currency for required insurance policies;
• workers compensation details, where applicable;
• safe work method statements and safety procedures;
• copies of any required trade licences for specialist work;
• confirmation of who may attend site on the subcontractor's behalf;
• customer communication rules and escalation contacts;
• photo, testing and handover document requirements; and
• process for reporting incidents, defects, delays and variations.

Your agreement should also deal with variations. Solar jobs often change once someone inspects the roof, switchboard or access conditions. If extra work is needed, the subcontractor shouldn't promise pricing or scope changes directly to the customer unless you have authorised it.

This protects your margins and keeps the customer relationship clear. It also helps you avoid disputes where the subcontractor says the customer approved extra work, but the customer says they thought it was included.

Key Takeaways

• A written solar installer subcontractor agreement helps your customer promises flow down to the people doing the work on site.
• Your agreement should cover licences, Solar Accreditation Australia requirements, electrical safety, workmanship standards, warranties and STC documents.
• You may still be responsible to your customer under the Australian Consumer Law, even if a subcontractor caused the issue.
• Site safety needs careful handling because WHS and OHS duties can't simply be pushed onto another business by contract.
• Make sure the relationship is genuinely a contractor arrangement, especially after the 2024 Fair Work Act contractor changes.
• Onboarding checks, insurance certificates and clear work orders can prevent many common solar installation disputes.

If you'd like help with your subcontractor agreements, customer installation terms, licence and warranty clauses, or contractor onboarding process, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.