How to Cancel a Tesla Solar Contract

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.

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

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

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 →

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

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

Frequently Asked Questions