Do Developers Need Contractor Licenses to Develop Renewable Energy Projects?

Each state has a different set of laws governing the licensing of contractors. Developers must navigate these laws to avoid liability under state law. For instance, in California, only licensed contractors can enter into contracts involving construction activities. In California the licensed contractor must "own" any contract with a property owner (“Owner”) to the extent that the contract includes construction activities, including renewable energy property improvements. (See Cal. Bus. & Prof. Code Section 7026) This rule also applies to using subcontractors. As a result, Developers of renewable energy projects in California cannot subcontract through licensed contractors to avoid the requirement that the licensed contractor must be the one entering into all contracts with the Owner for any labor, equipment, and materials on the renewable energy project. Since Developers in California are prohibited from contracting directly with Owners for…

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