STATE SOLAR LAWS
California leads the nation in solar installations — and in solar contract complaints. This guide covers your cooling-off rights under California law, CPUC regulations, the impact of NEM 3.0, and step-by-step exit options for California homeowners.
Updated March 2026 · Not legal advice · Our methodology
California homeowners who signed solar contracts through home solicitation generally have 3 business days to cancel under both state and federal law. Beyond that window, California's strong consumer protection laws — including the Consumer Legal Remedies Act (CLRA) and Unfair Competition Law (UCL) — may provide additional grounds for relief. The transition to NEM 3.0 (Net Billing Tariff) has also changed the economics of many solar agreements. We always recommend consulting a qualified California attorney before taking action.
California provides some of the strongest cooling-off protections in the nation for homeowners who signed solar contracts through home solicitation. Understanding these rights is critical, particularly given the high volume of door-to-door solar sales activity throughout the state.
Under California Civil Code Section 1689.7, if a solar contract was signed at your home or at a location other than the seller's permanent place of business, you generally have 3 business days to cancel the transaction. The seller is required to:
Critical California rule: Under California Civil Code Section 1689.7(e), the solar company generally cannot begin work or installation until the 3-business-day cancellation period has expired. If they began work before this period ended, you may have extended cancellation rights — and the company may be required to restore your property at their expense. This is a common violation. Pre-installation cancellation guide →
In addition to the general Home Solicitation Sales Act, California has enacted solar-specific consumer protections:
The federal FTC Cooling-Off Rule (16 CFR Part 429) also provides 3 business days to cancel home solicitation sales. While this overlaps with California's state law, the federal rule provides an additional layer of protection and may apply in situations where the state law's requirements aren't fully met.
Time-sensitive: If you're within the cooling-off period, send your cancellation notice via certified mail immediately. Under California law, the cancellation is generally effective when deposited in the mail. Do not wait for the solar company to acknowledge it. How to cancel a solar contract →
The California Consumer Legal Remedies Act is one of the most powerful consumer protection statutes in the country. Under the CLRA, homeowners may have grounds for legal action if the solar company engaged in any of 27 enumerated unfair or deceptive acts, including:
Under the CLRA, consumers may recover actual damages, punitive damages, attorney's fees, and injunctive relief. A 30-day demand letter is generally required before filing suit.
California's UCL prohibits any "unlawful, unfair, or fraudulent" business practice. This broad statute may apply to solar companies that engage in deceptive sales tactics, even if their conduct doesn't fit neatly into another specific statute. The UCL allows for restitution and injunctive relief.
If the solar company made false or misleading advertising claims — whether in door-to-door presentations, mailers, or online ads — California's False Advertising Law may provide additional remedies. This is particularly relevant when solar companies use misleading savings projections or "zero down" claims that don't reflect the true cost.
California requires solar installers to hold a valid C-46 (Solar Contractor) or C-10 (Electrical Contractor) license issued by the Contractors State License Board (CSLB). If your solar installer was unlicensed, improperly licensed, or used unlicensed subcontractors, the contract may be voidable under California Business & Professions Code Section 7031. Additionally, the CSLB can take disciplinary action against the contractor.
Check your installer's license: You can verify a contractor's license status on the CSLB website at cslb.ca.gov. If the license was inactive, expired, or the wrong classification at the time of your installation, this may strengthen your case for contract rescission.
Need help understanding your rights under California law? Get a free preliminary contract review.
California's net metering policy has undergone a major transformation that significantly affects the economics of solar contracts:
The NEM 3.0 transition is particularly important for solar contract disputes because:
The CPUC regulates the investor-owned utilities (PG&E, SCE, SDG&E) that serve most California homeowners. Key CPUC rules relevant to solar contracts include:
California's building code (Title 24, Part 6) generally requires new residential construction to include solar panels. If you purchased a new home with mandatory solar, your situation differs from a voluntary solar contract — the solar system is typically part of the home purchase, and exit options may be more limited. However, if the builder or solar company misrepresented the system's performance or costs, consumer protection claims may still apply.
Under California Revenue & Taxation Code Section 73, solar energy systems installed between January 1, 1999, and January 1, 2025, are generally excluded from property tax reassessment. This exclusion was extended multiple times and may apply to your system depending on the installation date. Misrepresentation of property tax benefits is a common complaint in California solar sales.
California receives more solar consumer complaints than any other state. Based on reports filed with the CPUC, CSLB, and California Attorney General's office, these are the most common issues:
Many California homeowners report that solar companies used NEM 2.0-era savings projections when selling systems that would actually interconnect under NEM 3.0. Under NEM 3.0, export credits are typically 75-80% lower, which can dramatically reduce the promised savings. If your system was sold with savings projections based on the wrong NEM tier, this may constitute a material misrepresentation under the CLRA or UCL.
California's large suburban communities — particularly in the Inland Empire, Central Valley, San Fernando Valley, and San Diego County — are heavily targeted by door-to-door solar sales operations. Common complaints include salespeople who misrepresent themselves as utility company representatives, claim urgent "expiring" incentives, or pressure homeowners to sign on the spot. These tactics may violate California's Home Solicitation Sales Act, CLRA, and local solicitation ordinances.
Many California solar loans include substantial "dealer fees" (sometimes 20-30% of the system cost) that are built into the loan amount but not clearly disclosed to the homeowner. The result is that the homeowner finances significantly more than the actual system cost. If these fees weren't clearly disclosed, this may violate TILA disclosure requirements and California's consumer protection laws.
California's CSLB receives numerous complaints about poor installation quality, including roof leaks, improper mounting, and electrical code violations. If your installation was defective, you may have claims against the installer under your contract warranty, the CSLB licensing requirements, and California's implied warranty of merchantability.
If you're a California homeowner looking to exit your solar contract, the approach depends on your specific circumstances. Below is a general framework — we always recommend consulting a qualified California attorney before taking action.
Important: We do not advise homeowners to stop making payments or breach contractual obligations. Missed payments can damage your credit and may result in additional legal liability. Continue making payments while exploring your exit options.
Collect the following before taking any action:
Verify the installer's license status on the CSLB website. If the installer was unlicensed, had an expired license, or used the wrong license classification, the contract may be voidable under Business & Professions Code Section 7031. An unlicensed contractor generally cannot enforce a contract or retain payment for work performed.
If you believe the solar company made misrepresentations, consult a California consumer protection attorney about potential claims under the CLRA and UCL. Common bases include:
If you have a CLRA claim, California law requires a 30-day demand letter before filing suit (Civil Code Section 1782). This letter must describe the specific violations and the relief you're seeking. Many cases settle during this pre-litigation phase, as solar companies often prefer to negotiate rather than face CLRA litigation with its potential for actual damages, punitive damages, and attorney's fees.
Professional solar contract exit services can help you navigate the process. These companies typically review your contract, identify potential claims, and assist with the exit strategy. Compare solar cancellation companies →
California-specific tip: California's combination of strong consumer protection laws (CLRA, UCL, False Advertising Law), contractor licensing requirements (CSLB), and solar-specific regulations (NEM, CPUC) provides multiple potential avenues for relief. An experienced California consumer protection attorney can help you identify the strongest claims for your specific situation. Find a solar panel lawyer →
Stuck in a solar contract in California? Get a free preliminary contract review to understand your options.
Phone: (800) 952-5225
Online complaint: File a complaint at oag.ca.gov
Mail: Office of the Attorney General, California Department of Justice, Attn: Public Inquiry Unit, P.O. Box 944255, Sacramento, CA 94244-2550
The California AG investigates patterns of consumer complaints and may take enforcement action against solar companies engaged in deceptive practices.
Phone: (800) 321-2752
Online: File a complaint at cslb.ca.gov
Jurisdiction: Licenses and regulates solar contractors. Can investigate installation quality issues, licensing violations, and contractor misconduct
Phone: (800) 649-7570
Online: File a complaint at cpuc.ca.gov
Jurisdiction: Oversees investor-owned utilities (PG&E, SCE, SDG&E), net metering, interconnection, and utility-related solar issues
Phone: (800) 952-5210
Online: dca.ca.gov
Jurisdiction: General consumer protection complaints and contractor licensing issues
Phone: (866) 442-2529
Online: California Bar Lawyer Referral
Note: Can connect you with a consumer protection attorney experienced in solar contract disputes and CLRA claims
Under California Civil Code Section 1689.7 (Home Solicitation Sales Act), you generally have 3 business days to cancel a solar contract if the sale occurred at your home or away from the seller's permanent place of business. The federal FTC Cooling-Off Rule provides the same 3-day window. If the solar company failed to provide required cancellation notices, your cancellation window may be extended. California law also prohibits the installer from beginning work until the 3-day period has expired. Full cancellation guide →
NEM 3.0 (Net Billing Tariff), effective April 2023, significantly reduced the credits homeowners receive for excess solar energy exported to the grid — typically 75-80% less than under NEM 2.0. If your system was sold with savings projections based on NEM 2.0 rates but you're actually on NEM 3.0, the projected savings may not materialize. This discrepancy could potentially constitute a misrepresentation under the CLRA or UCL. Homeowners on legacy NEM 1.0 or 2.0 are generally grandfathered for 20 years from their interconnection date.
If a solar company engaged in deceptive acts as defined under the Consumer Legal Remedies Act (Civil Code Section 1770) — such as misrepresenting energy savings, hiding fees, or using high-pressure sales tactics — you may have grounds for a CLRA claim. The CLRA allows for actual damages, punitive damages, attorney's fees, and injunctive relief. You must send a 30-day demand letter before filing suit. Consult a California consumer protection attorney. Find a solar panel lawyer →
California requires solar installers to hold a valid CSLB license (C-46 Solar or C-10 Electrical). Under Business & Professions Code Section 7031, an unlicensed contractor generally cannot enforce a contract or retain payment for work performed. If your installer was unlicensed at the time of installation, the contract may be voidable and you may be entitled to a refund. Verify the installer's license status at cslb.ca.gov.
Dealer fees are charges that solar companies pay to financing companies to offer low-interest or "zero-down" loans. These fees — often 20-30% of the system cost — are typically added to the loan amount, meaning you finance significantly more than the actual cost of the solar system. If dealer fees were not clearly disclosed, this may violate TILA disclosure requirements and California consumer protection laws. Review your loan documents carefully for the total financed amount versus the actual system price.
California's Title 24 building code requires new residential construction to include solar panels, but this mandate applies to the builder, not the homeowner's individual contract. If you purchased a new home with mandatory solar, your exit options may differ from voluntary solar contracts — the system is typically part of the home purchase. However, if the builder or solar company misrepresented the system's performance or costs, consumer protection claims may still apply.
Get a free preliminary contract review to understand your options under California law.
Disclaimer: This guide is for informational purposes only and is not legal advice. Laws and regulations may change, and this information may not reflect the most current legal developments. Results vary by individual situation, contract terms, and applicable laws. We do not advise homeowners to stop making payments or breach contractual obligations. SolarPanelExit.com and TRU Solar Cancellation share common ownership. Always consult a qualified California attorney before taking legal action. See our Ownership Disclosure, Advertiser Disclosure, and Methodology.