Due Diligence Checklist When Buying from a Newly Converted or Acquired Installer Group

Hook: You paid for certainty — don’t accept the unknown

Buying solar or battery systems from an installer that has recently converted a franchise or changed ownership can save time and preserve continuity — but it also amplifies risk. High energy costs and unpredictable bills are the reasons you invested in onsite generation in the first place. The last thing you need is disputed warranties, missing commissioning records, or unexpected liabilities after a franchise conversion. This checklist gives procurement, facilities and operations leaders a legal and operational roadmap to close safe deals in 2026.

Why this matters in 2026: industry context and recent trends

Consolidation and franchise conversions accelerated through late 2024 and 2025 as larger groups expanded their footprint and specialist installers merged to reach scale. That trend continued into 2026, driven by investors seeking asset-backed revenues and businesses seeking resilience against rising energy prices. At the same time, regulatory scrutiny on installer accreditation and product traceability tightened, and end-customers are demanding stronger performance guarantees and transparent data.

As a buyer, you now face three simultaneous shifts:

• More conversions and acquisitions: local brands rebranded or absorbed into national groups, which can create gaps in records or continuity.
• Higher expectations for post-installation data: owners expect minute-level generation and degradation data for asset management and finance.
• Greater legal clarity required: financiers and insurers increasingly demand documented evidence of warranty transfer, training and compliance.

Top-line due diligence: what to verify first (inverted pyramid)

Start with the items that immediately affect your cashflow, operations and risk profile. If any of these are missing or contested, halt procurement until they are resolved.

1. Warranty transferability and OEM consent — Are panel, inverter, battery and workmanship warranties transferable? Do OEMs require registration under the new corporate entity?
2. Service contracts and SLAs — Who will deliver maintenance going forward and under what terms? Confirm response times, KPIs and pricing.
3. Performance data and monitoring access — Obtain historical generation logs, remote-monitoring credentials and performance baselines.
4. Insurances and liabilities — Confirm current public/product liability and professional indemnity; ensure continuity or obtain a run-off policy.
5. Legal title and obligations — Who legally owns the assets? Identify encumbrances, customer claims or pending disputes.

Legal checklist: documents and clauses to secure

Work with legal counsel to obtain and, where appropriate, contractually enforce these items. Use holdbacks, escrow and indemnities to shift residual risk.

1. Assignment and title

• Obtain a certified asset register listing each system by site, serial numbers, installation date and GPS coordinates.
• Get a written assignment of title or sale agreement showing the installer (or its successor) transferring ownership of equipment and IP rights for monitoring/telemetry.
• Acquire a search for charges or security interests registered against the installer’s assets.

2. Warranties and OEM approvals

• Obtain copies of original manufacturer warranties for modules, inverters, batteries and mountings.
• Request written confirmation (email or letter) from the manufacturer that warranties remain valid and are transferable to you or your nominated owner after the franchise conversion.
• Where OEM consent is required, secure a signed OEM acknowledgement or re-registration for coverage under the new ownership structure.

3. Contractual indemnities and holdbacks

• Negotiate a repurchase / remediation clause for latent defects or warranty disputes discovered in a defined period (commonly 12–24 months).
• Use a retention / escrow (e.g., 5–15% of purchase price) until key documents are validated and systems pass an operational test.
• Secure express indemnities for outstanding claims, tax liabilities, or customer disputes arising before conversion.

4. Records and regulatory compliance

• Request MCS (Microgeneration Certification Scheme) certificates or equivalent; for 2026, confirm the installer’s accreditation status and any recent renewals or changes post-conversion.
• Obtain copies of electrical compliance (BS 7671) sign-off and building-control approvals where required.
• Ask for environmental compliance records, such as battery disposal and EPR obligations if the installer managed end-of-life logistics.

5. Service contracts and ongoing obligations

• Collect executed maintenance agreements, emergency response plans and any performance guarantees with defined SLA metrics.
• Demand confirmation of who will honour existing service contracts — the seller, the acquiring group or a third party — and secure a novation where necessary.
• Check frequency and cost of scheduled maintenance, spare parts policy and escalation routes.

Operational checklist: what to inspect and test on-site

Operational verification closes the loop between documents and reality. Engage an independent technical assessor to perform a transfer acceptance test (TAT).

1. Systems and commissioning records

• Collect commissioning reports, as-built drawings, network connection agreements and test certificates.
• Verify inverter serial numbers and firmware versions; outdated firmware can be a performance and warranty issue.
• Confirm protection devices, earthing and surge protection are installed per spec.

2. Data integrity and monitoring

• Obtain historical production data (ideally 12–24 months) and raw inverter logs.
• Secure login credentials or a formal API integration with the monitoring portal. Ensure no vendor lock-in that prevents migration.
• Ask for evidence of SCADA/EMS integration if systems were enrolled in demand-side or export management schemes.

3. Performance baseline and degradation analysis

• Request a performance ratio (PR) analysis and an independent energy yield assessment against local Insolation or P30 models.
• Run a quick check for module soiling, shading and early signs of degradation or PID (potential induced degradation).
• For batteries, review cycle counts, state-of-health (SoH) reports and BMS logs.

4. Spare parts and inventory

• Get an inventory of spare inverters, fuses, connectors and critical spare modules. Confirm where spares are stored.
• Confirm lead times with key suppliers and whether the acquiring group has continuity agreements with OEMs. Consider micro-subscription approaches for spares and consumables to smooth cashflow and supply continuity.

5. Personnel and training

• Obtain training records and competency certificates (e.g., MCS, PAS, manufacturer-specific courses) for technicians who serviced your site.
• Confirm whether those technicians remain employed or whether the new owner will supply equivalent coverage. If staff left during conversion, require transitional support.

Performance data: what to ask for and how to validate it

Performance data is central to valuation, contracting and warranty claims. Treat it as a primary asset.

• Raw inverter logs — minute-level or 5-minute resolution logs for the last 12–24 months where possible.
• PR and yield reports — ideally performed by an independent third party using recognized models.
• Alarm and fault history — list of repeated faults and rectification dates; unresolved alarms are a red flag.
• Export/import meter reconciliation — reconcile site meters and billing data to detect under- or over-reported generation.

Warranty transfer essentials: avoid surprises

Manufacturers often stipulate conditions for warranty transfer — including registration timelines, approved installers and evidence of proper commissioning. Post-conversion, these conditions can be overlooked.

• Ask the seller to provide proof of original warranty registration.
• Obtain a signed letter from each OEM explicitly confirming continued warranty coverage under the new ownership or naming you as the new beneficiary.
• For workmanship guarantees issued by the installer, secure a novation or new workmanship warranty from the acquiring group.
• Where transfer is impossible, require a warranty-top-up from the seller or an insurer-backed warranty product.

Service contracts and SLA negotiation points

Service continuity is often the most operationally critical issue. If the converting installer intends to scale back service, get certainty in contract.

• Define SLA metrics: response time, fix time, availability percentage, escalation process and penalties for missed SLAs.
• Confirm who pays for call-outs caused by pre-existing defects versus new damage.
• Negotiate an interim transition service agreement (TSA) if support will be delivered by the seller for a defined period.

Insurance and liabilities: plug legal gaps

Conversions may create lapses in insurance or expose buyers to prior claims. Insist on clarity.

• Ask for certificates of insurance covering public liability, product liability and professional indemnity, with policy periods covering the conversion date.
• Check for run-off cover for past projects in case the installer ceases trading.
• Get disclosure of any outstanding or threatened litigation, defect claims or warranty disputes involving the systems you plan to buy.

Red flags that should stop the deal

Walk away or insist on urgent remediation if you encounter these issues.

• OEM refuses warranty transfer or requires unaffordable re-registration fees.
• Missing or falsified commissioning certificates and MCS accreditation.
• Unresolved safety issues or repeated inverter faults without professionally documented remediation.
• Service provider refuses to novate maintenance contracts or produce trained staff records.
• Evidence of encumbrances, undisclosed liens, or pending insolvency proceedings against the seller.

Negotiation levers and remedial measures

If you find gaps, use these practical levers to protect your position.

• Escrow funds or staged payments tied to verification milestones.
• Retention: hold a percentage until warranties are validated and systems pass acceptance tests.
• Require seller-funded remediation or a third-party insurance policy for latent defects.
• Contractually obligate the acquiring group to provide transition technicians and spare parts for a defined timeframe.

Case study: a practical example (hypothetical, based on common patterns)

In December 2025, SolarNorth Ltd — a regional installer — was taken over by NationalSolar Group. A medium-sized retailer bought the rooftop PV and storage from SolarNorth two months later. Post-conversion the retailer discovered:

• OEM inverter warranty omitted registering under the new company name.
• Two years of monitoring data were hosted on a platform owned by NationalSolar Group with no transfer process in place.
• Technicians who maintained the site had left; response times slipped.

Outcome: the buyer invoked a 10% escrow holdback, required NationalSolar to sign a six-month TSA with guaranteed SLAs, and obtained OEM-written warranty confirmations. The buyer also required an independent performance audit, which unveiled a firmware issue fixed at the seller’s expense. This sequence avoided a costly retrofit and preserved production levels.

Procurement checklist (actionable template)

Use this checklist when engaging with sellers post-conversion. Copy into your procurement system and require each item as a pre-condition for final payment.

1. Certified asset register with serial numbers and site coordinates.
2. Signed assignment of title and disclosure of encumbrances.
3. OEM warranty documents and written OEM confirmations for transfer.
4. Original commissioning certificates and MCS or equivalent accreditations.
5. 12–24 months of raw performance data and fault logs.
6. Proof of insurance covering the conversion date and run-off cover if applicable.
7. Signed novation or TSA for service contracts and technician availability.
8. Independent technical acceptance test report (TAT).
9. Escrow / retention agreement and remediation obligations.
10. List of spare parts, spare inventory and supplier lead times.

Advanced strategies for 2026 buyers

Beyond standard checks, these advanced steps protect asset value and futureproof operations.

• Data escrow: insist that monitoring data and API keys go into a data escrow accessible to you if the provider fails to comply.
• Third-party performance warranty: obtain an insurer-backed performance warranty for critical systems.
• Firmware and cybersecurity review: ask for a report on firmware versions, update history and any known cybersecurity risks; consider secure-workflow patterns from reviews such as TitanVault & SeedVault to protect handover artefacts.
• ESG and supply-chain traceability: request supplier due diligence demonstrating module provenance and battery chemistry disclosures to satisfy corporate ESG rules.

Checklist for procurement teams — quick template

Copy this one-page summary into your RFP or purchase order.

• Asset list & serials — obtained
• Warranty transfer confirmed by OEM — obtained
• MCS & compliance certificates — obtained
• Monitoring access & raw data — obtained
• Service contract novation or TSA — agreed
• Insurance certificates including run-off — obtained
• Escrow or retention & remedial obligations — agreed
• Independent TAT report — passed

Final considerations: practical next steps

Practical immediate actions you can take this week:

1. Request a due diligence pack from the seller using the procurement checklist above.
2. Engage an independent technical assessor and legal counsel with renewable-energy transaction experience.
3. Set up a data escrow or API handover plan before final payment.
4. Negotiate a staged payment and ask for written OEM warranty confirmations.

“In the post-conversion market of 2026, data and warranty traceability are as valuable as the panels themselves.” — Industry technical adviser

Summary: the pragmatic rulebook

When buying systems from an installer that recently converted a franchise or was acquired, treat the transaction as both an asset purchase and a risk mitigation exercise. Prioritise warranty transfer, continuous service, raw performance data and legal title. Use escrow, novation, and independent testing to convert uncertainty into contractual certainty. If you follow this checklist, you’ll protect operations, preserve asset value and keep energy costs predictable.

Call to action

Need a trusted assessor or verified installer after a franchise conversion? Visit powersuppliers' field guide to search our verified supplier and installer directory, compare reviews, and request a tailored due diligence pack template. If you’re about to sign, contact our procurement advisors for a fast review of warranties, contracts and monitoring access — we’ll help you close the deal with confidence.

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