In most jurisdictions, a permit is required for solar installations to ensure compliance with safety and building codes. However, some Authorities Having Jurisdiction (AHJs) either do not issue solar permits for certain system types (for example, small battery-only systems, ground mounts, or rural projects) or do not require them at all.
This creates a challenge for loan funding, as lenders typically require a copy of the solar permit and passed inspection as part of their project verification process.
To avoid delays, alternative documentation may be submitted when no solar permit is issued. These alternatives are designed to give lenders confidence that the system is installed correctly, safely, and in accordance with applicable standards.
Why Permits Matter in Funding
Permits and inspections are normally required to:
Verify the system meets electrical and building codes.
Protect the homeowner and lender against liability.
Provide proof of a completed, compliant project.
When a solar permit is not issued, other documents must serve as verification.
Acceptable Alternatives to a Solar Permit
To move forward with funding when no solar permit is required the following should be provided:
Official Letter or Email from AHJ
A signed letter or email from the local building department or permitting office confirming that a solar permit is not required for the project scope.
Should include the AHJ’s name, project address, and reference to the exemption.
Screenshot or Copy of AHJ Guidelines
Website excerpt, permit checklist, or policy document from the AHJ stating that solar permits are not required in that jurisdiction or for that specific system type.
PTO Requirement for Final Funding
If a permit and inspection are not conducted, the Permission to Operate (PTO) from the utility must be obtained and submitted before the final funding payment will be released. This ensures that the system is safely interconnected and approved for operation by the utility provider.