YOUR LEGAL RIGHTS
You may have more time to cancel your solar contract than you think. This guide covers the federal cooling-off rule, state-specific cancellation windows, and exactly how to exercise your right to cancel.
Published March 28, 2026 · Not legal advice · Our methodology
The "cooling-off period" is a legally mandated window during which you can cancel a contract without penalty. For solar contracts signed at your home (including door-to-door sales), federal law generally provides a minimum of 3 business days. Some states offer longer windows. If you're reading this within days of signing your solar contract, act quickly — time is critical.
In This Guide
The Federal Trade Commission's (FTC) Cooling-Off Rule (16 CFR Part 429) provides consumers with a minimum 3-business-day right to cancel certain sales contracts. This rule has been in effect since 1972 and applies to many solar contracts.
Under the federal rule:
Key point: The cancellation is effective when sent, not when received. If you mail your cancellation letter on the third business day (with a postmark as proof), it generally counts even if the company doesn't receive it for several more days. This is why certified mail with a return receipt is so important.
The FTC rule generally applies when you sign a solar contract:
The cooling-off rule generally does not apply when:
However, even when the federal rule doesn't apply, your state may provide additional cooling-off protections. Always check your state's specific laws.
Many states have their own cooling-off or right-to-cancel laws that may provide additional protections beyond the federal 3-day rule. The following table summarizes key states where solar contract disputes are most common. Note: State laws change frequently. This table reflects our research as of March 2026 and should not be relied upon as legal advice. Consult an attorney for current laws in your state.
| State | Cooling-Off Period | Key Notes |
|---|---|---|
| California | 3 business days (may be longer for certain contracts) | Home solicitation contracts over $25; some solar-specific protections under the Solar Bill of Rights. Contracts must include a "Notice of Cancellation" in the same language the contract was negotiated in. |
| Texas | 3 business days | Applies to home solicitation transactions. The seller must provide oral and written notice of cancellation rights in the buyer's primary language. |
| Florida | 3 business days | Follows federal standard for door-to-door sales. Florida's Home Solicitation Sales Act provides additional protections. |
| New York | 3 business days | Door-to-door sales and home improvement contracts. Some localities may provide additional protections. |
| Arizona | 3 business days | Door-to-door sales. Arizona has pursued enforcement actions against solar companies for deceptive practices. |
| New Jersey | 3 business days | Home repair and door-to-door sales. New Jersey Consumer Fraud Act provides additional protections against misrepresentation. |
| Nevada | 3 business days | Home solicitation sales. Nevada has specific solar consumer protection provisions. |
| North Carolina | 3 business days | Door-to-door sales. The NC Attorney General has been active in solar complaint investigations. |
| Georgia | 3 business days | Home solicitation transactions. Georgia's Fair Business Practices Act provides additional consumer protections. |
| Massachusetts | 3 business days | Home solicitation sales. Massachusetts has strong consumer protection laws (Chapter 93A) that may provide additional remedies. |
| Colorado | 3 business days | Home solicitation sales. Colorado has pursued enforcement against solar companies for deceptive trade practices. |
| Illinois | 3 business days (5 business days for some home repair contracts) | Home solicitation and certain home repair contracts may have extended windows. |
| Pennsylvania | 3 business days | Home solicitation sales. Unfair Trade Practices and Consumer Protection Law may provide additional remedies. |
| Ohio | 3 business days | Home solicitation sales. Ohio Consumer Sales Practices Act provides broad protections. |
| Maryland | 3 business days | Door-to-door sales. Maryland has specific home solicitation sales laws and active consumer protection enforcement. |
Important: This table is for informational purposes only and may not reflect the most current laws. State cooling-off periods, applicability, and exceptions vary significantly. Some states have solar-specific legislation that provides additional protections. Always verify your rights under current state law or consult a qualified attorney. Find a solar panel lawyer →
Counting the cooling-off period correctly is critical — getting it wrong by even one day could mean the difference between a clean cancellation and a binding contract.
A business day is generally any day except Saturday, Sunday, and federal holidays. This means:
You sign a solar contract on Wednesday, March 25, 2026:
Not sure if you're still within your cancellation window? Get a free contract review — we'll help you figure out your timeline.
If you've determined that you're within your cooling-off period, here's exactly how to cancel:
Your contract should include a "Notice of Cancellation" form — typically a tear-off section or a separate page. Under the FTC rule, the seller is required to provide two copies. If you can't find it, you can write your own cancellation letter (see the template below).
Fill out the cancellation form or write a cancellation letter and send it via two methods simultaneously:
After sending your cancellation, the company should acknowledge it within a few days. If they don't respond within a week, follow up in writing. The company is generally required to:
Sample Cancellation Letter
[Your Full Name]
[Your Address]
[City, State, ZIP]
[Date]
[Solar Company Name]
[Company Address]
[City, State, ZIP]
Re: Notice of Cancellation — Contract #[Your Contract Number]
Dear [Solar Company Name],
I am writing to exercise my right to cancel the solar [purchase/lease/PPA] contract I signed on [date of signing], contract number [contract number], pursuant to the FTC Cooling-Off Rule (16 CFR Part 429) and [your state]'s consumer protection laws.
I hereby cancel this contract effective immediately. Please confirm cancellation in writing within 10 business days and return any payments I have made.
Please do not proceed with any installation, permitting, or other work related to this contract.
Sincerely,
[Your Signature]
[Your Printed Name]
Adapt this template to your situation. Include your specific contract details and reference the specific cancellation provision in your contract if there is one. This is a general template — not legal advice. Consult an attorney if you're unsure about the proper format for your situation.
This is an important legal point that many homeowners overlook. Under the FTC Cooling-Off Rule, the seller is required to provide you with:
If the seller failed to provide any of these, the cooling-off period may not have started running. In practical terms, this means:
If you believe the company failed to provide proper cancellation notice, this is a situation where consulting an attorney is particularly valuable. The failure to provide notice is both a procedural violation that may extend your cancellation rights and evidence of potentially improper sales practices.
Document the absence of notice. If you did not receive a cancellation form or notice of your right to cancel, write down what you do and don't remember receiving at the time of sale. Check your contract for any cancellation-related pages or forms. The absence of proper notice can be a powerful legal tool in your favor.
If the cooling-off period has definitively passed, cancellation is still possible but typically requires different approaches:
Some solar companies will agree to cancel or modify contracts outside the cooling-off period, particularly if you have documented complaints about the sales process, system performance, or customer service. The key is presenting a well-documented case and escalating to someone with authority.
Full guide: What to do when your solar company won't let you cancel →
If there was fraud, misrepresentation, or failure to provide required disclosures, you may have legal grounds for rescission regardless of the cooling-off period. Common legal theories include:
Find a qualified solar panel lawyer →
If legal cancellation isn't viable, you may be able to exit the contract through a negotiated buyout (paying to terminate early) or by transferring the contract to another party (such as a home buyer if you're selling). See our complete guide to getting out of a solar contract →
Some companies specialize in helping homeowners navigate solar contract exits. These range from attorney-led services to document preparation companies. Research any company thoroughly before engaging them. See our review of solar cancellation companies →
Ownership Disclosure: SolarPanelExit.com and TRU Solar Cancellation share common ownership. TRU Solar Cancellation offers a Solar Exit Document Package for a one-time $450 fee. TRU is not a law firm and does not provide legal advice. See our full ownership disclosure for details.
Under the federal FTC Cooling-Off Rule, you generally have 3 business days to cancel a contract signed anywhere other than the seller's permanent place of business (such as your home or a trade show). Some states provide longer windows. The countdown typically begins the day after you sign the contract, and weekends and federal holidays generally do not count as business days.
The FTC Cooling-Off Rule primarily applies to sales made at your home, workplace, or temporary locations. Contracts signed online at your own initiative (not during a virtual sales presentation at your home) may not be covered by the federal rule. However, some state laws provide cancellation rights for online transactions as well. Check your specific state's consumer protection statutes or consult an attorney.
While some companies may attempt to begin work quickly, starting installation during the cooling-off period does not typically waive your right to cancel. If you cancel within the legal window, the company is generally required to return any payments and undo any work performed. Some industry best practices suggest companies should not begin installation until the cooling-off period has expired.
Under the FTC rule, sellers are generally required to inform you of your cancellation rights and provide a Notice of Cancellation form at the time of sale. If they failed to do this, your cooling-off period may be extended — in some cases indefinitely until proper notice is given. This is a significant legal issue that could give you grounds for cancellation even months after signing. Consult an attorney if this applies to your situation. Find a solar panel lawyer →
Send your cancellation in writing via certified mail with return receipt requested AND via email. Include your name, contract date, contract or account number, and a clear statement that you are exercising your right to cancel. Use the cancellation form provided in your contract if one was included. The cancellation is generally effective as of the date it is sent (postmarked), not the date it is received.
Cancellation after the cooling-off period is more difficult but may still be possible. Grounds can include fraud or misrepresentation by the solar company, failure to provide required disclosures, breach of contract by the company, or unconscionable contract terms. You may also be able to negotiate a buyout or early termination. Consult a qualified attorney to evaluate your specific options. See our full guide →
Whether you're inside or outside the cooling-off period, get a free contract review to understand your next steps.
Disclaimer: This article is for informational purposes only and is not legal advice. Cooling-off periods and consumer protection laws vary by state and are subject to change. Results vary by individual situation. We do not advise homeowners to stop making payments or breach contractual obligations. SolarPanelExit.com and TRU Solar Cancellation share common ownership. Consult a qualified attorney before taking action regarding your solar contract. See our Ownership Disclosure, Advertiser Disclosure, and Methodology.