A letter of intent for a commercial solar project is the document that converts a good conversation into a defined deal shape. It records what the parties have agreed in principle, what they still have to negotiate, and which of its own provisions are meant to bind them while they do. This checklist walks through what a commercial solar LOI typically addresses, organized by the part of the document it belongs to.
The LOI sits between an accepted proposal and definitive documents such as a power purchase agreement, lease, or engineering and construction contract. It gets used at the point where both sides are willing to stop shopping and start spending: the developer is about to fund studies, applications, and legal drafting, and the customer is about to grant access and share information. Use this checklist when drafting or reviewing one, and expect the drafting itself to be done with counsel.
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Letter of Intent Checklist for Commercial Solar
Check that a commercial solar letter of intent covers the parties, the commercial terms and the path to definitive documents. Tick items as they are addressed, mark what does not apply, and print or export your list.
An LOI that does not clearly identify who is agreeing and what they are agreeing about creates ambiguity that carries into every later document. Get the legal identities and the project description right at the top.
The defining feature of an LOI is that parts of it are intended to create obligations and parts are not. That split has to be stated explicitly, because a document that is silent about it invites a later dispute over what was actually agreed.
The commercial section is the reason the document exists. It does not have to resolve every term, but it should resolve the ones that would cause a party to walk away, so that neither side spends money discovering a gap that was always there.
Commercial terms in an LOI rest on technical assumptions that have not been verified yet. Writing those assumptions down converts a later surprise into a defined adjustment rather than an argument about what was promised.
The period after an LOI is signed is mostly an information exchange. Setting out what each side will provide, and what access is granted, prevents diligence from stalling on requests nobody agreed to in advance.
Exclusivity is usually the most negotiated binding provision, because it is the one that constrains the customer's freedom while the developer spends money. Its scope, duration, and exit conditions all matter.
Both parties are exposing information they would rather not see circulate: the customer's consumption and financials, the developer's pricing and approach. Public entities may face disclosure obligations that a standard confidentiality provision does not override.
An LOI is most useful when it makes the remaining path explicit. Listing the conditions and the intended sequence lets both sides see how far the deal actually is from a signature.
The last set of items is procedural, and it is the set most often handled carelessly. A document signed by someone without authority, or a version nobody can identify later, undermines everything above it.
Adapt the items to your project and use them alongside the governing documents and your advisors. Ticks and notes stay on this device only.
How to Use This Checklist
Treat it as a completeness review rather than a template. Its value is in catching the item that was discussed verbally and never written down, or the assumption that everyone held differently. Work through it before an LOI is circulated, and again when marking up one you received, noting which items are addressed, which are deliberately left open, and which are missing.
An LOI does not replace definitive documents, and a thorough LOI is not a substitute for thorough diligence. Its job is to align expectations and to justify the spending that follows, not to resolve the deal.
This article is educational and is not legal advice. Letters of intent create real obligations in some of their provisions, and their drafting, interpretation, and enforceability vary by jurisdiction and by project. Have counsel prepare or review any document you intend to sign.