A Complete Guide to Legally Canceling Your Solar Contract
- Scott Lawless
- 6 hours ago
- 3 min read
Going solar is a big decision — but what happens when your solar contract no longer works in your favor? Maybe your system isn’t performing as promised, your utility savings disappeared, or your lease or PPA feels impossible to escape. The good news is that you do have legal options. At Solar Exit Pros, we specialize in helping homeowners legally cancel their solar contracts — protecting your home, credit, and peace of mind.
Understanding Your Solar Contract
Most homeowners are surprised to learn how complex their solar agreements are. Whether you signed a lease, PPA (Power Purchase Agreement), or loan, each contract type has unique terms that affect your rights.
Solar Lease: You pay a fixed monthly rate for equipment owned by the solar company.
PPA: You pay for the power your panels generate, often with rate escalations over time.
Loan or Purchase: You own the system outright, but your financing agreement can include performance guarantees or warranties that impact cancellation rights.
👉 Tip: Review your contract for sections labeled “Termination,” “Cancellation,” “Breach,” or “Early Exit.” These outline what’s possible — and what’s not — under your specific agreement.
Common Reasons Homeowners Want to Cancel
You’re not alone if your solar experience hasn’t gone as planned. The most common reasons homeowners seek cancellation include:
Underperforming systems or misleading production estimates
Unexpected maintenance costs or equipment failures
High utility bills even after installation
Relocation or home sale complications
Deceptive sales tactics or undisclosed terms
In many of these cases, you may have legal grounds to cancel or renegotiate your solar agreement.
Legal Options for Cancelling Your Solar Contract
Cancelling a solar contract isn’t as simple as stopping payments — doing so can lead to serious financial or credit issues. However, there are legitimate legal avenues to end your agreement:
a. Cooling-Off or Rescission Periods
If you signed your solar contract recently (often within 3–10 days, depending on state law), you may have the right to cancel without penalty under federal or state “cooling-off” laws.
b. Breach of Contract
If the solar provider failed to meet contractual obligations — such as system performance guarantees or timely installation — you may be able to terminate based on breach.
c. Misrepresentation or Fraud
If you were misled by false promises about cost savings, maintenance, or ownership, you may have a strong case for contract cancellation or rescission.
d. Negotiated Settlements
Even if legal grounds are unclear, Solar Exit Pros can often negotiate a fair buyout or release from your contract — saving you money, stress, and potential damage to your credit.
Steps to Take Before You Cancel
Before taking action, follow these essential steps:
Gather your documents: Contract, loan or lease paperwork, utility bills, and communication records.
Identify the provider: Many homeowners assume they’re dealing with a single solar company — but most solar contracts actually involve multiple entities working together. It’s important to identify each one before pursuing cancellation or renegotiation:
The Sales Company: The company that originally sold you the system or arranged the agreement.
The Installation Company: The contractor that performed the physical installation of your panels and equipment.
The Lender or Financing Company: The entity that owns your solar loan, lease, or PPA and collects payments.