AIA G702/G703 Billing on Commercial Solar Projects: A Plain-English Guide

If you are financing or building a commercial solar array, you will almost certainly run into two short forms with long names: the AIA G702 and the AIA G703. In plain terms, AIA G702 G703 solar billing is the standard way contractors invoice for work as it gets done, rather than in one lump sum at the end. The G702 is the cover sheet that requests payment for a billing period, and the G703 is the line-item breakdown behind it. Together they let an owner, lender, or general contractor see exactly what has been completed, what has been paid, and what is still owed on a solar construction project.

At ProGreen Solar, we build commercial systems across Colorado, from Front Range warehouses to Western Slope facilities, and we use this billing structure on larger jobs because it keeps everyone honest and the project funded. Here is how it works and why it matters to you as an owner or developer.

What the AIA G702 and G703 actually are

The forms come from the American Institute of Architects (AIA), and they have become the default paperwork for commercial construction draws nationwide. They are not solar-specific, but they map cleanly onto a solar build.

• G702, Application and Certificate for Payment. This is the one-page summary. It states the original contract sum, any approved change orders, the total completed and stored to date, retainage held, previous payments, and the current amount due. It is signed by the contractor and certified by the architect or owner's representative.
• G703, Continuation Sheet. This is the detail behind the G702. It lists every line item in the project, the dollar value assigned to each, the percentage complete, and the amount billed this period. The G702 total is simply the sum of the G703 lines.

If you have ever seen a contractor invoice that says "35 percent complete on racking" or "100 percent complete on engineering," you have seen the logic of progress billing that these forms formalize.

The schedule of values: the backbone of solar progress billing

The G703 is built around a schedule of values, which is the list of cost categories the total contract price gets divided into. Getting this right at the start of a project prevents disputes later. On a commercial solar job, a typical schedule of values might break out:

• Engineering, design, and stamped drawings
• Permitting and interconnection application fees
• Solar modules (panels)
• Inverters and optimizers
• Racking and mounting hardware
• Electrical work, conduit, and wire
• Combiner panels, disconnects, and main service work
• Monitoring and commissioning
• Mobilization, project management, and general conditions

Each line gets a dollar value, and the sum equals the contract price. As work progresses, the contractor bills a percentage of each line. This gives an owner or lender a clear, auditable picture of where the money is going instead of a single vague invoice. For a deeper look at how these projects are scoped and priced in our market, see our overview of commercial solar in Colorado.

Progress billing: paying as the work gets done

Progress billing is the core idea. Instead of paying everything up front or everything at the end, the owner pays monthly (or at agreed milestones) for the work actually completed during that period.

The cycle usually looks like this:

1. The contractor completes work during the billing period.
2. The contractor fills out the G703, updating the percent complete on each line.
3. Those numbers roll up into the G702, which states the current payment due.
4. The architect or owner's representative reviews and certifies the application.
5. The owner or lender releases payment, less retainage.

This structure protects both sides. The contractor gets paid steadily and does not have to float the entire project cost. The owner only pays for verified progress and is not exposed to a contractor who collected a large deposit and disappeared. On lender-financed projects, the bank typically requires this paperwork before releasing each draw.

Retainage: the cushion held until the end

Retainage (sometimes called retention) is a percentage of each payment that the owner withholds until the project is substantially or fully complete. Five to ten percent is common in commercial construction. The G702 has a dedicated line for it.

The purpose of retainage is to give the owner leverage to ensure the contractor finishes punch-list items, completes commissioning, and delivers closeout documents. On a solar project, that closeout often includes the final inspection sign-off, the interconnection approval and permission to operate from the utility, as-built drawings, and warranty registrations. Retainage is usually released after these final steps are confirmed.

Stored materials and safe-harbored solar equipment

One feature of the G702 and G703 matters a great deal in solar right now: the ability to bill for stored materials. The forms distinguish between "work completed" and "materials presently stored." That means a contractor can invoice for equipment that has been purchased and delivered to a secure site or warehouse but not yet installed.

This is directly relevant to tax planning. Many commercial buyers are pre-purchasing panels, inverters, and racking to lock in equipment supply and to support a begin-construction position for the federal Investment Tax Credit. The schedule of values and the stored-materials line give you the documented paper trail showing what was bought, when, and for how much. If your strategy involves buying equipment ahead of installation, read our guide on safe harboring solar equipment in 2026 so the billing and the tax position line up.

A few practical notes on stored materials:

• Owners and lenders often require proof of off-site storage, insurance, and a bill of sale before paying for materials not yet on the roof.
• The stored amount moves to "work completed" once the equipment is installed, so it is not billed twice.
• Clean documentation here protects everyone if there is ever a question about title to the equipment.

Who uses these forms and why

You will see G702 and G703 paperwork on a solar project whenever there is a general contractor, a construction lender, a public or institutional owner, or a larger private commercial owner who wants formal cost controls. They show up on:

• GC-managed projects, where the solar scope is one trade among many and the GC needs uniform billing across all subcontractors.
• Bank-financed builds, where the lender releases construction draws only against certified applications for payment.
• Public and nonprofit work, such as schools, municipalities, and housing authorities, where standardized documentation is required for accountability.

If you own the project directly and are paying cash, you may use a simpler milestone schedule instead. The choice between owning the system outright and using third-party financing also shapes how billing is handled, which we cover in our comparison of commercial solar PPAs versus direct ownership.

What owners should watch for

You do not need to be an accountant to review a payment application well. A few habits go a long way:

• Vet the schedule of values up front. Make sure the line items are reasonable and not front-loaded, where early-phase items are overvalued so the contractor collects cash faster than work is delivered.
• Check percentages against reality. If a line says 80 percent complete, the work on site should look like it.
• Confirm change orders are documented before they appear in the contract sum.
• Hold retainage until true completion, including permission to operate from the utility.
• Require backup for stored materials so you are paying for equipment that actually exists and is insured.

A contractor who bills cleanly through this structure is usually a contractor who runs an organized job overall, which is exactly what you want on a six-figure or seven-figure energy asset.

Working with a contractor who knows the paperwork

AIA G702 G703 solar billing is not complicated once you see the logic: the G702 summarizes, the G703 itemizes, progress billing pays for completed work, retainage protects the finish, and stored-materials lines document equipment you bought ahead. For a commercial solar owner or developer, fluency in these forms means fewer payment disputes and a cleaner audit trail, which matters even more when tax credits and lender draws are riding on the documentation.

ProGreen Solar handles commercial solar across the Front Range and the Western Slope, and we are comfortable billing the way your lender, general contractor, or finance team needs us to. If you are planning a project and want a contractor who treats the paperwork as seriously as the panels, talk to our commercial solar team about your schedule of values and draw structure.

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