Arbitration Regarding Rooftop Solar, Energy-Efficiency, And Battery-Storage Defects
Arbitration Regarding Rooftop Solar, Energy-Efficiency, and Battery-Storage Defects
1. Nature of the Disputes
Rooftop solar PV systems, energy-efficiency retrofitting, and battery-storage solutions are increasingly integrated in commercial, industrial, and residential buildings. Defects in these systems can lead to:
Reduced energy generation or failure to meet guaranteed energy savings.
Safety hazards such as electrical faults, fire risks, or battery leaks.
Operational inefficiency and increased electricity costs.
Breach of contractual obligations, performance guarantees, or ESCO agreements.
Arbitration claims for repair, replacement, and financial compensation.
Key parties involved include building owners, ESCOs, solar EPC contractors, battery and inverter suppliers, system integrators, and design/consulting engineers.
2. Common Causes of Disputes
Substandard PV panels, inverters, or battery cells.
Improper design or sizing of solar and storage systems.
Faulty installation, wiring, or commissioning.
Failure to achieve contractual performance guarantees or energy savings.
Premature degradation of PV modules or batteries.
Coordination failures between multiple contractors and suppliers.
Illustrative Case Laws
Case 1: Commercial Building Owner vs Solar EPC Contractor
Facts: Rooftop solar system produced only 55–60% of the guaranteed energy due to shading issues and defective panels.
Dispute: Breach of EPC contract and performance guarantees.
Outcome: Contractor required to replace defective panels, optimize system layout, and compensate for lost energy revenue.
Case 2: Industrial Facility vs Battery-Storage Supplier
Facts: Lithium-ion battery packs degraded prematurely, reducing storage capacity and causing frequent outages.
Dispute: Breach of warranty and contractual performance obligations.
Outcome: Supplier required to replace defective batteries and compensate for operational downtime.
Case 3: Office Complex vs Energy-Efficiency Retrofitting Contractor
Facts: HVAC and lighting retrofits failed to achieve the promised energy savings.
Dispute: Breach of ESCO contract and energy-performance guarantees.
Outcome: Contractor required to redesign systems, optimize operations, and compensate for the shortfall in savings.
Case 4: Multi-Vendor Solar + Battery Integration Project
Facts: Integration issues between solar PV, inverters, and battery-storage systems caused repeated failures and inefficient energy distribution.
Dispute: Liability for defective integration and commissioning.
Outcome: Tribunal apportioned responsibility among contractors; corrective works mandated and partial damages awarded.
Case 5: Residential Rooftop Solar Owner vs Module Supplier
Facts: PV modules degraded faster than guaranteed, violating warranty terms.
Dispute: Breach of product warranty and contractual obligations.
Outcome: Supplier required to replace defective modules and compensate for lost electricity generation.
Case 6: Commercial Rooftop Solar Owner vs System Integrator
Facts: Improper installation and wiring of PV and battery-storage system caused system trips and fire risk.
Dispute: Breach of safety and performance standards.
Outcome: Integrator required to rectify installation, replace faulty components, and compensate for downtime and safety mitigation costs.
Key Takeaways
Defective rooftop solar, energy-efficiency retrofits, and battery-storage systems lead to operational, financial, and safety risks.
Contracts often include warranties, performance guarantees, and ESCO agreements, defining responsibilities and remedies.
Liability may be shared among EPC contractors, suppliers, and system integrators in multi-vendor projects.
Proper commissioning, monitoring, and maintenance documentation is critical for arbitration.
Remedies typically include repair, replacement, recalibration, and financial compensation for lost energy and downtime.
Preventive measures include quality verification, rigorous testing, and coordination between all contractors and vendors.
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