Guide

How to Cancel a Solar Contract: Your Options in 2026

By the SolarUnbound Editorial Team · Updated October 12, 2026

Feeling stuck in a 20- or 25-year solar agreement is common. The good news is that you may have more options than the salesperson let on. Here's how homeowners get out of solar contracts, from the easiest path to the hardest.

1. Check whether you're still in a cancellation window

If you signed at your home, the Federal Trade Commission's Cooling-Off Rule generally gives you until midnight of the third business day after the sale to cancel for any reason. Many states have their own home-solicitation laws, and some give longer periods, such as for older homeowners. The seller is supposed to give you a written cancellation notice. If you never got one, your right to cancel may not have expired under your state's law. Our guide to your right to cancel explains the details.

To cancel in the window, follow the instructions on the notice exactly. Send it in writing, keep a copy, and use a method that proves delivery.

2. Read your contract for exit terms

Most solar agreements say what happens if you want out. Look for sections called termination, early buyout, prepayment, transfer, or sale of home. Note:

Buyout or prepayment price: leases and PPAs often let you buy the system at set points. Loans can usually be paid off early, sometimes with fees.
Escalator: whether your payment rises every year. See solar escalator clauses.
Arbitration clause: many solar contracts require disputes to go to arbitration instead of court.
Lien or UCC filing: whether the company or lender filed a notice on your property records.

Not sure which agreement you have? Read lease vs. loan vs. PPA.

3. Ask the company for a release or buyout

Write to the solar company (and the lender, if you financed) explaining what's wrong: the system underperforms, it was installed badly, or it's not what you were sold. Ask for a specific fix, such as repairs, a payment reduction, removal of the system, or release from the contract. Keep records of every call and email. Companies sometimes agree to adjustments when there's a documented problem.

4. Transfer the contract

If you're selling your home, most leases and PPAs allow the buyer to take over the agreement if they qualify. Loans usually need to be paid off at closing, though some lenders allow assumption. Transfers can complicate a sale, so involve your real estate agent early.

5. If you were misled

If a salesperson misrepresented your savings, costs, tax credit eligibility, or contract terms, you may have claims under state consumer protection laws, and in some cases federal lending laws. Possible outcomes include contract cancellation, a reduced balance, or money back, but nothing is guaranteed. These cases depend heavily on evidence, so gather:

Your contract, loan documents and any disclosure forms
Utility bills from before and after installation
Savings proposals, texts, emails and brochures from the salesperson
Notes on what you were told and when, written down as soon as possible

An attorney who handles consumer or solar cases can tell you whether you have a claim and what deadlines apply.

6. File complaints

Complaints create a record and sometimes prompt a company to resolve things. Consider your state attorney general's consumer protection office, your state contractor licensing board, the Consumer Financial Protection Bureau (for solar loans) at consumerfinance.gov, and the FTC at ReportFraud.ftc.gov.

What not to do

Don't simply stop paying. Missed payments can hurt your credit and lead to collections, even if the company did something wrong. Get advice first.
Don't remove or disable the system yourself. It may belong to the company, and tampering can breach your contract.
Don't pay anyone upfront who guarantees a result. No one can promise your contract will be cancelled.

Related guides

This guide is general information, not legal advice. Laws change and vary by state. Talk to a licensed attorney in your state about your situation.