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To cancel a solar contract, first determine your timeline: if you signed within the last 3 business days, you can cancel for free under the federal Cooling-Off Rule (16 CFR Part 429) by sending a written cancellation notice. If you're past the cooling-off period, your options include: legal rescission (if the company violated consumer protection laws), contract buyout (paying the early termination fee), negotiated settlement, exit company assistance, or DIY cancellation using document packages. The right approach depends on your contract type, how long ago you signed, and whether sales misconduct occurred.
Cooling-Off Period Cancellation
If you signed your solar contract within the last 3 business days and the sale occurred at your home (door-to-door or in-home presentation), you can cancel for free under the FTC's Cooling-Off Rule. See the FTC's consumer guide on the Cooling-Off Rule for the full procedural requirements. This is the simplest and most straightforward cancellation method.
How to Cancel During the Cooling-Off Period
- Send written cancellation notice: don't just call. Send a written cancellation via certified mail, return receipt requested.
- Use the cancellation form: if the contract included a "Notice of Cancellation" form, fill it out and send it. If not, write a letter stating you are cancelling the contract under the FTC Cooling-Off Rule.
- Keep copies of everything: save a copy of your cancellation letter and the certified mail receipt.
- Send it before midnight of the third business day: the cancellation must be postmarked by midnight of the third business day after signing. Weekends and federal holidays don't count.
No cancellation form provided? If the solar company failed to give you a notice of your right to cancel (required by the FTC for door-to-door sales), this is itself a violation. The cooling-off period may not have started, meaning you could still cancel even if more than 3 days have passed. Consult an attorney if this applies to you. Detailed cooling-off guide →
All Cancellation Methods Compared
| Method | Cost | Timeline | Best For | Success Rate |
|---|---|---|---|---|
| Cooling-off cancellation | Free | Immediate | Within 3 business days of signing | Very High |
| Legal rescission | $200-$15,000+ | 2-18 months | Fraud, misrepresentation, violations | High (strong cases) |
| Contract buyout | $10,000-$40,000+ | 1-2 months | When you just want out fast | Very High |
| Exit company | $450-$5,000 | 1-6 months | Standard disputes, guided process | Moderate |
| DIY negotiation | $0-$450 | 1-6 months | Straightforward situations | Varies |
| Attorney negotiation | $2,500-$7,500 | 1-4 months | Clear violations, want leverage | High |
Legal Cancellation (Rescission)
If the solar company violated consumer protection laws, failed to make required disclosures, or engaged in deceptive sales practices, you may have legal grounds for contract rescission. Complete cancellation and return of all payments. This is the most powerful cancellation option but requires evidence of violations.
Grounds for Legal Rescission
- Misrepresentation: salesperson made false claims about savings, costs, government programs, or system performance
- Failure to provide cooling-off notice: for door-to-door sales, failure to provide the required cancellation notice may extend your cancellation rights indefinitely
- TILA violations: if your solar was financed, failure to properly disclose loan terms may give you rescission rights for up to 3 years under 15 U.S.C. § 1635
- Unauthorized contract changes: terms that differ from what was presented during the sale
- Forged signatures: documents with signatures that aren't yours
- State consumer protection violations: each state has specific requirements that, if violated, may make the contract voidable
How to find a solar panel lawyer → | When to sue →
Contract Buyout
If you don't have legal grounds for rescission but want out, a buyout is the most straightforward option. You pay the early termination fee specified in your contract, and the agreement ends.
How Buyouts Typically Work
- Solar lease: Buyout usually equals the remaining lease payments or a declining schedule based on time remaining
- PPA: Buyout often equals the fair market value of the system or remaining payment obligations
- Solar loan: Pay off the remaining loan balance. The system becomes yours.
Negotiate the buyout: The initial buyout quote is often negotiable. Solar companies may prefer to settle for a reduced amount rather than deal with a dispute. Start by requesting a buyout quote, then negotiate from there. Document any communications in writing.
Not sure which cancellation method is right? Get matched with a solar exit company to talk it through.
Using a Solar Exit Company
Solar exit companies specialize in helping homeowners navigate the cancellation process. They typically provide document preparation, negotiation guidance, and step-by-step support. Costs range from a few hundred dollars for DIY document packages to $5,000+ for full-service representation.
What Exit Companies Can Do
- Review your contract and identify exit strategies
- Prepare cancellation documents and demand letters
- Guide you through the negotiation process
- Help you file regulatory complaints
- Provide templates and instructions for DIY approaches
What Exit Companies Cannot Do
- Provide legal advice (unless they're a law firm)
- File lawsuits on your behalf
- Represent you in court
- Guarantee specific outcomes
Compare the best solar cancellation companies →
Disclosure: We may earn compensation when you contact companies through our site. This does not change our ratings. Full disclosure →
DIY Cancellation
If your situation is relatively straightforward, you may be able to handle the cancellation process yourself:
- Review your contract thoroughly: understand termination provisions, buyout calculations, and required notice periods
- Document the problem: gather evidence of any misrepresentation, underperformance, or contract violations
- File regulatory complaints: your state attorney general, the CFPB consumer complaint portal, the FTC at reportfraud.ftc.gov, and the BBB. These are free and create an official record.
- Send a written demand: clearly state what happened, what laws were violated (if applicable), and what you want (cancellation, refund, etc.)
- Negotiate: if the company responds with a counteroffer, evaluate whether it's acceptable
- Escalate if needed: if DIY isn't working, consider hiring an attorney or exit company
Cancellation by Contract Type
Cancel a Solar Lease
Solar leases are typically the hardest to cancel because you're locked into a long-term agreement for equipment you don't own. Options: cooling-off cancellation, legal rescission (if violations occurred), buyout (often the remaining lease payments), transfer to another person, or waiting until the lease expires. Escalator clauses make the total cost increase over time.
Cancel a Solar PPA
PPAs are similar to leases but you pay for electricity produced rather than equipment rental. Cancellation options are nearly identical: cooling-off, legal rescission, buyout, transfer, or expiration. The buyout amount is typically the fair market value of the system or the remaining contract value. PPA exit guide →
Cancel a Solar Loan
With a solar loan, you own the equipment. You just owe on the financing. "Cancelling" means paying off the loan. If there were TILA violations (improper disclosures, hidden dealer fees), you may have rescission rights for up to 3 years. If the loan has been paid off, there's nothing to cancel. You own the system.
Cancel Before Installation
If panels haven't been installed yet, cancellation is generally much easier. You may still be within the cooling-off period, and even if you're not, the company has less leverage when they haven't invested in installation costs. Pre-installation cancellation guide →
State-Specific Cancellation Rights
Your cancellation rights depend heavily on your state's consumer protection laws. Some states offer stronger protections than others:
| State | Cooling-Off | Key Consumer Protection | Solar-Specific Rules |
|---|---|---|---|
| California | 3 business days | CLRA. Strong protections, fee shifting | Solar Consumer Protection Act |
| Texas | 3 business days | DTPA. Treble damages possible | 60-day pre-suit notice required |
| Florida | 3 business days | FDUTPA. Fee shifting | Growing regulatory attention |
| New Jersey | 3 business days | CFA. Automatic treble damages | BPU disclosure requirements |
| New York | 3 business days | GBL §349/350 | DPS solar complaint process |
| Arizona | 3 business days | Consumer Fraud Act | ACC solar regulations |
Share a few details and we will connect you with solar contract exit companies that may be able to help. Free, no obligation.
Frequently Asked Questions
Can I cancel my solar contract after signing?
Yes, but your options depend on timing and circumstances. Within 3 business days of a door-to-door sale, you can cancel for free. After that, options include legal rescission (if violations occurred), contract buyout, exit company assistance, or attorney representation. The sooner you act, the more options you typically have.
How much does it cost to cancel a solar contract?
Costs range from free (cooling-off period) to $40,000+ (full buyout of remaining payments). Legal rescission may cost $200-$15,000 in attorney fees but could result in full cancellation at no net cost if you win and fee-shifting applies. Exit companies charge $450-$5,000. The most cost-effective approach depends on your specific situation and the strength of any legal claims.
Can I cancel a solar contract after installation?
Yes, but it's more complex than cancelling before installation. Post-installation cancellation typically involves a buyout, legal rescission, or negotiated settlement. The installed system adds a complication: the solar company may need to remove the panels, which can cost $5,000-$15,000. If you have legal grounds for cancellation, the company may be required to bear the removal costs. Full exit guide →
What is the solar cancellation cooling-off period?
The FTC's Cooling-Off Rule gives you 3 business days to cancel any contract for goods or services over $25 that was signed at your home (door-to-door sales). This includes solar contracts signed during in-home presentations. Some states extend this period. To cancel, send written notice via certified mail before midnight of the third business day. Cooling-off guide →
Can I cancel a solar lease or PPA?
Cancelling a solar lease or PPA is possible but may be expensive. Options include the cooling-off period (if recent), legal rescission (if violations occurred), buyout (paying the remaining contract value or fair market value), transfer to someone else, or waiting for the contract to expire. The buyout amount for leases and PPAs can range from $10,000 to $40,000+ depending on the remaining term and contract terms. PPA exit guide →
Will cancelling my solar contract affect my credit?
It depends on how you cancel. A proper cancellation during the cooling-off period should not affect credit. A negotiated buyout or settlement should also be credit-neutral. However, stopping payments or defaulting on your contract can significantly damage your credit score. Never stop making payments without specific legal advice. Some cancellation methods, like legal rescission, may involve a period of disputed payments, which your attorney can help manage.
Should I hire a lawyer or use an exit company to cancel?
If you have evidence of fraud, misrepresentation, or clear consumer protection violations, a lawyer is typically the better choice. They can pursue legal remedies and may recover more than their fees through fee-shifting provisions. For more straightforward situations without strong legal claims, an exit company may be more cost-effective. Start with a free attorney consultation to evaluate the strength of any legal claims before deciding. Compare options →
How long does solar contract cancellation take?
Cooling-off cancellation is immediate (within 3 days). Buyouts typically take 1-2 months to process. Exit company-assisted cancellations take 1-6 months. Attorney-negotiated cancellations take 1-4 months for settlement, or 6-18 months if litigation is necessary. The timeline depends on the solar company's responsiveness, the complexity of your situation, and the approach you choose.
Share a few details and we will connect you with solar contract exit companies that may be able to help. Free, no obligation.
Disclaimer: This guide provides general information about cancelling solar contracts. It is not legal advice, and SolarPanelExit.com is not a law firm. Results vary by individual situation. We do not advise homeowners to stop making payments or breach contractual obligations. See our Ownership Disclosure, Advertiser Disclosure, and Methodology.
Sources & Further Reading
Editorial commentary on this page is based in part on the following public sources. Linking does not imply endorsement by the cited agency or organization.
- Federal Trade Commission. "Buyer's Remorse: When the FTC's Cooling-Off Rule May Help." consumer.ftc.gov
- Federal Trade Commission. "Cooling-Off Rule (16 CFR Part 429)." ftc.gov
- Consumer Financial Protection Bureau. "Submit a Complaint." consumerfinance.gov/complaint
- National Association of Attorneys General. "Find My AG." naag.org/find-my-ag
- Federal Trade Commission. "Report Fraud." reportfraud.ftc.gov
- Legal Information Institute, Cornell Law School. "15 U.S.C. § 1635. Right of rescission as to certain transactions." law.cornell.edu
- Consumer Financial Protection Bureau. "Regulation Z (Truth in Lending), 12 CFR Part 1026." consumerfinance.gov