When Can You Cancel a Solar Contract?
Timing is the first thing to establish when you want to cancel a solar contract. The cancellation window depends far more on how and when the agreement was signed than on how unhappy the homeowner is with the system. A contract signed last week and a contract signed five years ago follow completely different paths.
Three Business Day Cancellation Window
The FTC Cooling-Off Rule generally gives buyers three business days to cancel a covered sale made in person at their home or at a temporary location away from the seller's normal place of business. Many states have their own home solicitation laws, and some of those laws provide longer rescission periods.
The federal rule does not cover sales made entirely online, by mail, or by telephone. The rule also requires the seller to give the buyer written notice of the cancellation right, so a missing or incomplete notice of cancellation can be an important detail.
After the Rescission Period Ends
Once the rescission period has passed, the question shifts from cancellation to the exit terms written into the agreement. The termination clause, buyout schedule, transfer and assignment provisions, and any solar early termination fee determine what is realistically available. These terms vary from provider to provider and from one contract version to the next.
Agreement type
Who owns the system
Where exit terms usually sit
Commonly overlooked clause
Solar lease
Third party owner
Termination clause and buyout schedule
Transfer conditions when selling the home
Power purchase agreement
Third party owner
Term length, escalator, and buyout terms
Annual escalator percentage
Solar loan
Homeowner
Loan note and security agreement
UCC-1 fixture filing on the property
Cash purchase
Homeowner
Installation contract and warranty terms
Workmanship warranty length
General information only. Your actual agreement, your state, and how the sale was conducted all change the answer.
What to Gather Before Taking Action
Homeowners who collect their paperwork first get clearer answers faster. These documents together show what was actually agreed:
- The signed solar agreement, including every page and addendum
- Any notice of cancellation the salesperson provided
- The installer's contract, if it is separate from the financing
- Loan or financing documents, including the amount financed
- Any recorded UCC-1 filing or lien notice
- Emails, texts, or proposals showing the promised savings and production