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SolarPanelExit Editorial Team
Reviewed by licensed consumer protection attorneys · Updated March 2026

COMPANY CANCELLATION GUIDE

How to Cancel a Tesla Solar Contract

Tesla offers solar through purchases, loans, and a subscription model. If you have a Tesla Solar or legacy SolarCity agreement you want to exit, this guide covers your options based on our independent research.

Updated March 2026 · Not legal advice · Our methodology

Review Your Tesla Solar Contract (Free) →

Tesla's solar offerings have evolved significantly over the years, from the original SolarCity leases and PPAs to Tesla's current purchase, loan, and subscription models. Your cancellation options depend entirely on which type of agreement you have and when you signed. This guide covers what we've learned through our research -- always verify current policies directly with Tesla.

Important note: This guide is based on our independent research into publicly available information and consumer reports as of March 2026. Tesla's policies, pricing, and processes change frequently. We recommend contacting Tesla directly to verify any information in this guide. This page is not affiliated with, endorsed by, or sponsored by Tesla, Inc.

Tesla Solar vs. SolarCity: A Brief History

Understanding the history helps clarify which contract you may have:

  • SolarCity (pre-2016): SolarCity was a major residential solar installer that primarily offered leases and PPAs. Tesla acquired SolarCity in 2016 for approximately $2.6 billion
  • Post-acquisition transition: After the acquisition, existing SolarCity contracts were gradually transitioned to Tesla Energy. If you signed with SolarCity, your contract is now managed by Tesla
  • Tesla Solar (current): Tesla's current solar offerings reportedly focus on outright purchases, loans, and in some markets, a subscription model. Tesla has generally moved away from the traditional lease/PPA model that SolarCity used

Tesla Solar Contract Types

Purchase / Loan

You own the panels. If financed, you're repaying a loan. This is reportedly Tesla's primary current offering.

  • You own the system
  • Pay off loan to exit (if financed)
  • You're responsible for maintenance
  • No escalator (loan has fixed interest)

Subscription (where available)

Tesla has reportedly offered a solar subscription in some markets, allowing cancellation with panel removal.

  • Monthly fee, no long-term commitment
  • Tesla owns and maintains the panels
  • Reportedly cancellable with notice
  • Tesla removes panels upon cancellation

Legacy SolarCity Lease/PPA

If you signed a lease or PPA with SolarCity before or shortly after the Tesla acquisition, you may still be under a long-term agreement (typically 20-25 years) with an escalator clause.

  • Tesla/SolarCity owns the panels
  • Fixed monthly (lease) or per-kWh (PPA) payments with escalator
  • Buyout option typically available
  • Transfer possible when selling home

Cancelling a Tesla Solar Purchase or Loan

Before Installation

If you've ordered Tesla Solar panels but installation hasn't occurred, based on our research you may be able to cancel the order. Tesla's ordering process typically involves an online order with a deposit.

  • Contact Tesla Energy support as soon as possible to request cancellation
  • Based on consumer reports, Tesla's pre-installation cancellation process may involve contacting them through their app, website, or phone
  • Check your order agreement for cancellation terms and any potential deposit forfeiture
  • The cooling-off period applies if a contract was signed in your home (though many Tesla orders are placed online)
  • Put your cancellation request in writing and keep records

After Installation (Loan)

If you purchased Tesla Solar with a loan and the system is installed, you own the panels. Your "exit" options are:

  • Pay off the loan: Check your loan terms for prepayment options and any penalties
  • Sell the home: Owned solar panels generally transfer with the home and may add value
  • Remove the panels: You can have the panels removed, but you still owe the loan balance. Solar panel removal costs →

Cancelling a Tesla Solar Subscription

Tesla's solar subscription model, where available, is reportedly one of the more flexible solar agreements on the market. Based on our research:

  • The subscription is reportedly cancellable without long-term commitment obligations
  • Tesla reportedly handles panel removal at their expense upon cancellation
  • A cancellation fee may apply -- check your specific subscription agreement
  • There may be a minimum subscription period before cancellation is allowed
  • Contact Tesla to initiate the cancellation process

Note: Tesla's subscription availability and terms have reportedly changed over time and may not be available in all markets. If you have a subscription, review your specific agreement for cancellation terms, as they may differ from general information available online.

Exiting a Legacy SolarCity Lease or PPA

If you have a legacy SolarCity lease or PPA (now managed by Tesla), your exit options are similar to other solar leases and PPAs:

System Buyout

  • Check your contract for buyout terms -- SolarCity contracts typically included a purchase option
  • Lease buyouts may follow a predetermined schedule in the contract
  • PPA buyouts are typically based on fair market value
  • Contact Tesla Energy to request a current buyout quote
  • The buyout price may be negotiable, especially with an independent appraisal

Agreement Transfer

  • If selling your home, the lease/PPA can typically be transferred to the buyer
  • The buyer must meet Tesla's credit requirements
  • Start the transfer process early -- it can take several weeks
  • Contact Tesla Energy's transfer department to initiate

Guide to selling a home with solar →

Legal Cancellation

If you were misled during the original SolarCity sales process, you may have legal grounds for cancellation. SolarCity was the subject of various consumer complaints and regulatory scrutiny over its sales practices. Common issues reportedly included:

  • Door-to-door sales representatives making inflated savings promises
  • Failure to clearly disclose escalator clauses and their long-term impact
  • Confusion between lease/PPA and purchase agreements
  • Performance projections that didn't materialize

Find a solar panel lawyer →

Have a Tesla Solar or SolarCity contract you want reviewed? Get a free preliminary assessment.

Powerwall Considerations

Many Tesla Solar installations include a Tesla Powerwall battery system. If you're exiting your solar contract, consider these Powerwall-related factors:

  • Bundled contracts: If the Powerwall was included in your solar lease/PPA/subscription, it's typically covered by the same agreement and the same exit process
  • Purchased Powerwall: If you purchased the Powerwall separately, you own it regardless of your solar contract status
  • Removal: If panels are being removed, the Powerwall may also need to be disconnected or removed, adding to costs
  • Standalone value: A Powerwall has value independent of the solar panels -- if you own it, you may choose to keep it even if removing the panels

How to Contact Tesla About Solar Cancellation

Based on our research, Tesla Energy can be contacted through the following channels. Verify current information on Tesla's website.

  • Tesla App: The Tesla app reportedly includes customer service and account management features
  • Phone: Tesla's energy support line (check tesla.com for current number)
  • Online: Tesla's website customer support portal
  • Written notice: Send certified mail to Tesla's corporate address (verify on tesla.com)

Note: Based on consumer reports, reaching Tesla customer service can sometimes be challenging. Be persistent, document all attempts to contact them, and follow up in writing.

Filing Complaints About Tesla Solar

If you're unable to resolve your issue directly with Tesla:

  • Better Business Bureau (BBB): File a complaint at bbb.org -- search for "Tesla Energy" or "Tesla Inc."
  • State Attorney General: Consumer complaint with your state's AG office
  • Consumer Financial Protection Bureau (CFPB): For financing complaints, file at consumerfinance.gov
  • State Contractor Licensing Board: For installation quality issues
  • Federal Trade Commission (FTC): For deceptive practices at ReportFraud.ftc.gov

Important: We do not advise homeowners to stop making payments or breach contractual obligations. Missed payments can damage your credit and weaken your legal position. Continue making payments while exploring exit options. Consult a qualified attorney for advice specific to your situation.

Frequently Asked Questions

Based on our research, pre-installation cancellation is generally possible but may involve forfeiture of any deposit depending on your agreement terms and how far along the process is. Contact Tesla Energy support as soon as possible and put your cancellation in writing. If a contract was signed in your home, the FTC cooling-off period may apply. Pre-installation guide →

Tesla's solar subscription, where available, is reportedly cancellable without a long-term commitment. Contact Tesla through their app or customer service to initiate cancellation. Tesla reportedly handles panel removal. A cancellation fee may apply depending on your subscription terms and how long you've had the service. Check your specific agreement for details.

Yes. Tesla acquired SolarCity in 2016, and existing SolarCity contracts were transitioned to Tesla Energy. Your original contract terms should generally remain the same, but your account is now managed by Tesla. Contact Tesla's energy support team for any questions about your legacy SolarCity agreement.

For legacy SolarCity leases, check your contract's buyout schedule for predetermined year-by-year prices. For PPAs, buyout is typically based on fair market value. For Tesla purchases with a loan, your "buyout" is simply the remaining loan balance. Contact Tesla Energy for a current quote. Buyout prices may be negotiable with an independent appraisal.

Based on our research, legacy SolarCity/Tesla leases and PPAs can typically be transferred to creditworthy buyers. Contact Tesla Energy's transfer team early in the selling process. The buyer must meet Tesla's credit requirements. The process can take several weeks. Selling with solar guide →

If the Powerwall was bundled with your solar agreement, it's typically part of the same contract and would be included in the exit process (buyout, removal, or transfer). If you purchased the Powerwall separately, you own it regardless of your solar contract status. A Powerwall can function independently as a home battery backup even without solar panels.

Ready to Explore Your Tesla Solar Exit Options?

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Disclaimer: This guide is for informational purposes only and is not legal advice. This page is not affiliated with, endorsed by, or sponsored by Tesla, Inc. Information is based on our independent research and may not reflect current Tesla policies. 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. See our Ownership Disclosure and Advertiser Disclosure.

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