Force Majeure in solar contracts refers to unexpected, uncontrollable events that prevent a developer, EPC contractor, manufacturer, or project owner from meeting contractual obligations. These events—such as natural disasters, extreme weather, government actions, pandemics, supply-chain disruptions, and grid emergencies—are legally recognized as circumstances where delays, cost overruns, or performance failures are not considered breaches of contract.

In the solar industry, Force Majeure clauses protect all parties involved in complex project development and installation workflows. Because solar projects rely heavily on global supply chains, permitting timelines, grid interconnection schedules, and weather-dependent construction conditions, the Force Majeure clause is a foundational component of EPC agreements, PPAs, O&M contracts, module supply contracts, and financing agreements.

• Force Majeure protects solar project participants from penalties when unexpected, uncontrollable events delay performance.
• It is essential in EPC contracts, PPAs, module supply agreements, and interconnection contracts.
• Events may include natural disasters, supply chain disruptions, regulatory changes, or grid emergencies.
• Relief typically includes deadline extensions, not cancellation of obligations.
• Proper documentation, notice, and mitigation efforts are required for valid claims.

What Is Force Majeure in Solar Contracts?

In solar project contracting, Force Majeure is a legal mechanism that excuses performance obligations when an unpredictable, uncontrollable event prevents a party from fulfilling its responsibilities.

Examples include:

• Natural disasters (storms, floods, hurricanes, wildfires)
• Labor strikes, civil unrest, or political instability
• Government shutdowns or sudden regulatory changes
• Grid emergencies or utility interconnection delays unrelated to the contractor
• Global supply chain disruptions
• Pandemics or health crises
• Acts of war or terrorism

If a Force Majeure event occurs, the affected party must typically notify the other party, document the impact, and take reasonable steps to mitigate delays.

Relevant concepts include Contract for Difference (CfD), PPA (Power Purchase Agreement), and Production Guarantee.

How Force Majeure Works

While specific language varies across contract types, Force Majeure follows a standard workflow:

1. Event Occurs Outside of Control

A qualifying event happens, such as a storm delaying construction or a government moratorium halting interconnection.

2. Impact Is Documented

The impacted party must demonstrate that the event truly prevents performance—not simply increases difficulty.

3. Formal Notice Is Submitted

The contract usually requires immediate written notice identifying the event, impact, and expected delay duration.

4. Obligations Are Suspended (Not Canceled)

Performance deadlines are paused until conditions return to normal.

5. Parties Attempt to Mitigate

Efforts must be made to reduce project delays or added costs.

6. Deadlines May Be Extended

New timelines are mutually agreed upon for EPC, commissioning, or delivery obligations.

7. Cost Implications Are Negotiated

Some contracts allow cost recovery; others only provide time relief.

This mechanism protects both developers and buyers from legal disputes over conditions they cannot control.

Types / Variants of Force Majeure in Solar

1. Natural Force Majeure

Events caused by nature: hurricanes, hailstorms, droughts, wildfires, flooding.

2. Political or Regulatory Force Majeure

New laws, permitting freezes, tariff changes, utility moratoriums, government shutdowns.

3. Supply Chain or Logistics Force Majeure

Port congestion, rare-earth shortages, transportation strikes, shipping delays.

4. Grid-Related Force Majeure

Utility-side failures, unplanned outages, interconnection backlogs unrelated to the developer.

5. Pandemic or Health-Related Force Majeure

COVID-style shutdowns, workforce unavailability, restricted movement.

6. Security-Related Force Majeure

War, terrorism, cyberattacks affecting procurement or construction.

How It’s Measured in Contracts

Although Force Majeure isn't “measured” in a numerical sense, contracts define its applicability through:

1. Defined Events List

Specific events that qualify as Force Majeure.

2. Material Impact Thresholds

The event must materially prevent obligations—not just inconvenience the contractor.

3. Notification Window

Typical requirement: 5–10 business days to submit notice.

4. Delay Duration

How long obligations are suspended.

5. Recovery Steps

The requirement to mitigate delays and resume once possible.

6. Documentation Standards

Evidence such as weather reports, government directives, or supply chain notices.

Typical Values / Ranges

These are typical patterns found in real solar contracts:

Practical Guidance for Solar Developers, EPCs & Installers

1. Clearly define qualifying events

Avoid vague language—ensure natural, political, grid, and supply chain events are all addressed.

2. Avoid overly broad Force Majeure definitions

Unclear language can cause disputes during project delays.

3. Require documentation for every claimed event

Weather reports, government notices, supply-chain delays, etc.

4. Set notification requirements and deadlines

Contract clarity reduces conflict and protects both parties legally.

5. Use project planning tools to track delays

Using software such as the Solar Project Planning Hub helps document impacts.

6. Ensure AHJ-related delays are addressed

Fire code changes or inspection backlogs can be included as qualifying events.

7. Link Force Majeure with Production Guarantees

See Production Guarantee to understand how these interact.

8. Involve legal counsel early

Especially in PPA or utility-scale agreements where financial stakes are high.

Real-World Examples

1. Hurricane Delays Construction

A rooftop commercial solar project in Florida experiences damage from a Category 4 storm.

Force Majeure suspends EPC milestones until site access is safe and materials can be delivered.

2. Government Interconnection Freeze

A utility announces a temporary hold on interconnection approvals for transformer upgrades.

The developer invokes Force Majeure to extend the COD date in the PPA.

3. Global Supply Chain Disruption

A module shipment is delayed due to port congestion and international shipping restrictions.

Force Majeure allows deadline extensions without penalties for late delivery.

• Power Purchase Agreement (PPA)
• Contract for Difference (CfD)
• Production Guarantee
• Operational Expenditure (OpEx)
• Resource Adequacy (RA)