How to Cancel a Solar Contract: What Homeowners Should Know Before It’s Too Late
Installing solar panels is a major financial decision. For many homeowners, the process begins with an exciting promise: lower electricity bills, energy independence, and long-term savings.
But what happens when the solar agreement you signed no longer feels right?
Maybe the monthly payment is higher than expected. Maybe the projected savings were different from what you were promised. Perhaps the installation has been delayed, the system has already been installed, or you simply have concerns about the agreement after signing.
In these situations, understanding your contract and exploring your available options can be important.
Can You Change or Challenge a Solar Contract?
The answer depends on several factors, including the type of solar agreement you signed, when and how you signed it, whether installation has started, the terms of your contract, and the laws that apply in your state.
Solar arrangements can take several forms, including:
- Solar system purchases
- Solar loans
- Solar leases
- Power Purchase Agreements (PPAs)
- Other financing arrangements
Each agreement can have different provisions relating to changes, disputes, early termination, transfers, or other forms of resolution.
The Federal Trade Commission (FTC) advises consumers to carefully review solar contracts for the contract length, payment obligations, potential increases, additional fees, performance terms, maintenance responsibilities, and early termination provisions.
That means the first step is simple:
Find your contract and review the provisions that explain your rights, obligations, and available options before taking action.
What If You Just Signed the Solar Contract?
If you recently signed a solar agreement, time may be particularly important.
The FTC’s Cooling-Off Rule provides a three-business-day cancellation period for certain covered sales made at a consumer’s home or certain temporary locations. The rule does not apply to every transaction, so homeowners should not assume that every solar contract automatically qualifies.
For covered transactions, the seller generally must provide information about the right to cancel and cancellation forms.
If you believe the transaction qualifies and you want to exercise that right, act quickly and follow the instructions provided with your contract.
Do not wait until the installation date to review your agreement and understand your options.
What If the Three-Day Period Has Passed?
The expiration of a three-business-day federal cooling-off period does not necessarily mean you have no options whatsoever.
Your contract may contain additional provisions relating to changes, termination, disputes, or other resolutions. State laws may also provide consumer protections that differ from federal rules.
Your circumstances can also matter.
For example, you may want to review the situation carefully if:
- The sales representative made claims that do not match the written agreement.
- Important costs were not clearly explained.
- The system specifications differ from what you were promised.
- Installation has been substantially delayed.
- Financing terms are different from what you understood.
- You believe you were pressured into signing.
- The company failed to meet an important contractual obligation.
- You were not given documents you expected to receive.
The Consumer Financial Protection Bureau notes that, in some cases involving problematic solar transactions or loans, consumers may have rights or potential avenues for relief.
Because these situations can become complicated, review the actual contract and applicable state law before assuming what options are or are not available.
How to Review and Address a Solar Contract
If you have concerns about your solar agreement, consider the following steps.
1. Get a Complete Copy of Your Contract
Start with the paperwork.
Look for:
- Cancellation provisions
- Termination provisions
- Early termination fees
- Notice requirements
- Installation milestones
- Financing documents
- Lease or PPA terms
- Equipment specifications
- Payment schedules
- Performance guarantees
- Dispute-resolution provisions
Don’t rely solely on what a salesperson told you.
The written agreement is often the most important document when determining your obligations and the options that may be available.
2. Identify What Type of Solar Agreement You Have
Your options can depend heavily on the structure of your solar arrangement.
Solar Purchase
You may have purchased the solar system outright or financed the purchase.
Review the purchase agreement and any separate financing documents to understand your rights and obligations.
Solar Loan
A solar loan can involve obligations separate from the installation contract.
If you are unhappy with the installation company, that does not automatically mean the financing obligation disappears.
Review both agreements carefully.
Solar Lease
With a lease, you generally pay to use a solar system owned by another company.
Solar leases can be long-term, and the FTC notes that some may last around 20 years. Changing or ending a lease early can potentially be difficult or expensive depending on the agreement.
Power Purchase Agreement (PPA)
Under a PPA, the provider generally owns the system and you agree to purchase the electricity it generates under the terms of the agreement.
PPAs can also be long-term contracts, so review the provisions concerning early changes, termination, transfer, and other resolution options carefully.
3. Check Whether Installation Has Started
Your situation can change significantly depending on the stage of the project.
Ask:
Has the equipment been ordered?
Have permits been submitted or approved?
Has installation started?
Has the system been installed?
Has the system been inspected or interconnected?
Has financing already been funded?
These details can affect what options may be available under your agreement.
If installation has already occurred, do not assume that you can simply tell the company you no longer want the system and walk away from all obligations.
4. Document Everything
If you have concerns about your solar agreement or are considering a dispute, preserve your records.
Keep copies of:
- The original contract
- Solar proposals
- Emails
- Text messages
- Invoices
- Financing documents
- Payment records
- Installation documents
- System specifications
- Advertisements
- Screenshots
- Notes from conversations
- Any promises made by the salesperson
If you believe you were misled, these records can become particularly important.
The FTC also recommends keeping documentation when dealing with consumer disputes.
5. Put Your Request in Writing
If your contract provides a procedure for requesting changes, disputing an issue, or exercising a contractual right, follow that procedure carefully.
Depending on the agreement, you may need to provide written notice through a particular method or to a specific address.
Do not rely exclusively on a phone call.
A written record can help establish:
- When you made the request
- What you requested
- Who received your request
- Whether the company responded
- What the company told you afterward
If a specific form is provided, use it when appropriate and keep a copy for your records.
What If the Solar Company Refuses Your Request?
Don’t immediately assume that the company is correct—or that you are automatically entitled to a particular outcome.
Instead, ask for the company’s position in writing.
Request:
- The specific contract provision they are relying on.
- Any claimed cancellation, termination, or other applicable fee.
- A copy of the relevant agreement.
- An explanation of any work or costs already incurred.
- The procedure for disputing the decision.
Then compare the company’s response with your contract and applicable consumer-protection rules.
If you believe the company engaged in deceptive or unfair conduct, you may also consider contacting the appropriate consumer-protection authorities. The FTC and CFPB provide complaint resources for certain consumer and financial issues.
What If You Were Misled by a Solar Salesperson?
This is one of the most important situations to document.
For example, a homeowner might have concerns if a salesperson allegedly:
- Promised savings that were not supported by the contract
- Misrepresented the monthly payment
- Failed to explain financing terms
- Claimed the system would eliminate the electric bill
- Made misleading claims about incentives or tax benefits
- Pressured the homeowner to sign immediately
- Provided information that conflicts with the final agreement
The FTC specifically advises consumers to compare the contract with what advertisements, proposals, and salespeople represented.
If something does not match, preserve the evidence.
Can You Resolve a Solar Contract Issue After Installation?
This is a common question—and it requires extra care.
Once a solar system has been installed, addressing the agreement may be more complicated than before work begins.
Depending on the agreement, there may be issues involving:
- Equipment ownership
- Financing
- Liens or security interests
- Installation costs
- Permits
- Interconnection
- Warranties
- Roof work
- Removal costs
- Early termination charges
- Lease or PPA obligations
The correct approach depends on the specific contract and circumstances.
Do not stop making contractual payments simply because you have raised a dispute or requested a change unless you have confirmed that doing so is legally or contractually appropriate.
A payment default can create additional problems.
What About Solar Leases and PPAs?
Solar leases and PPAs deserve special attention because they can be long-term commitments.
Before signing—or before seeking to change or resolve the agreement—review:
- Contract length
- Monthly payment
- Annual payment increases
- Early termination provisions
- Buyout provisions
- System removal requirements
- Home-sale requirements
- Transfer provisions
- Maintenance responsibilities
The FTC warns that changing or ending a solar lease early can be difficult and expensive depending on the contract. It also notes that solar agreements may affect the process of selling a home.
Does a Solar Company Have to Let You Cancel?
Not necessarily.
A solar company may have contractual rights after an agreement is signed, particularly once work has begun or financing has been arranged.
At the same time, a contract does not automatically eliminate every consumer protection available under federal or state law.
That’s why it is important to distinguish between:
“I want to cancel.”
and
“I have a legal or contractual right to cancel.”
Those are not always the same thing.
The important question is what the contract and applicable law provide in your specific circumstances.
How Much Does Resolving a Solar Contract Issue Cost?
There is no universal fee for every solar contract situation.
Potential costs can depend on:
- The contract itself
- The type of solar agreement
- How far the project has progressed
- Financing arrangements
- Equipment orders
- Installation work
- State law
- Contractual termination provisions
Some agreements may contain early termination charges or other costs.
Before paying a fee, ask for the contractual provision that authorizes the charge and review whether it applies to your circumstances.
What Should You Do Before Signing a Solar Contract?
The best time to understand your rights and options is before you sign.
The FTC recommends comparing multiple solar proposals and reviewing important contract terms, including costs, payment increases, performance expectations, maintenance, warranties, and early termination provisions.
Before signing, ask:
- What is the total cost?
- What will I pay each month?
- Can the payment increase?
- How long is the agreement?
- What happens if I sell my home?
- Can the contract be transferred?
- What happens if the system underperforms?
- Who handles repairs?
- What happens if my roof needs work?
- What happens if I want to make changes or end the agreement early?
- Are there cancellation or termination fees?
- Who receives applicable incentives or credits?
Get the answers in writing.
Already Signed a Solar Contract? Don’t Panic.
Signing a solar contract does not necessarily mean you have no options.
But the sooner you review the agreement, the better.
Your next steps should be based on the actual documents, the current status of your solar project, and the laws that apply to your situation.
If you are unsure about your rights, consider having your contract reviewed by a qualified professional who understands solar agreements and consumer-contract issues in your state.
Get Your Solar Contract Reviewed
If you’re concerned about your solar agreement, you don’t have to guess what your next step should be.
Get your solar contract reviewed and understand your potential options before taking action.
A contract review can help identify important provisions related to:
- Cancellation
- Early termination
- Financing
- Solar leases
- PPAs
- Installation obligations
- Payment requirements
- Potential fees
- Consumer-protection concerns
- Dispute and resolution options
Ready to Find Out What Options May Be Available?
Request a Solar Contract Review Today.
Have your agreement available so the relevant terms can be reviewed based on your specific situation.
Don’t wait until the project is completed or another payment is due. Review your options as early as possible.
Important Disclaimer
This article is for general informational and educational purposes only. It is not legal advice and does not create an attorney-client relationship. Solar contract rights and obligations vary depending on the agreement, transaction, location, and applicable federal and state law.
If you are considering changing, disputing, or ending a solar contract, consider consulting a qualified attorney or consumer-protection professional in your state.
Attribution / Resource Center Copy
Solar Cancellation Resource Center (SCRC) is an educational and intake resource for homeowners seeking information about solar agreements and potential options.
Consumer Advocacy Law Group (CALG) provides legal analysis, contract reviews, and representation where appropriate. Outcomes vary by individual circumstances, contract terms, and applicable law.
