If you already have solar panels installed and are now trying to figure out how to get out of your solar agreement, you may feel like your options are limited. Many homeowners sign long-term solar contracts believing they will save money, reduce or eliminate their electric bill, increase home value, and have no problems selling or refinancing later.
After installation, some homeowners discover unexpected issues involving long-term loans, leases, PPAs, payment increases, UCC filings, home-sale complications, underperformance, tax-credit representations, financing costs, installer shutdowns, or roof and installation problems.
- 20- or 25-year solar loans
- Solar lease obligations
- Power Purchase Agreements (PPAs)
- Unexpected payment increases
- Solar liens or UCC filings
- Problems selling or refinancing
- Lower-than-expected system production
- Misleading tax-credit representations
- High financing costs
- Solar companies that stop responding
- Installation or roof problems
Can You Cancel a Solar Contract After Installation?
Possibly. Solar contract cancellation becomes more complicated after the system has already been installed, but installation does not automatically mean every possible option has disappeared.
The first step is identifying exactly what type of agreement you have. Your solar system may involve a purchase contract, solar loan, lease, PPA, battery financing, installation agreements, equipment warranties, financing disclosures, or utility agreements.
Many homeowners believe they signed one solar agreement when they may actually have several separate contracts, each with different cancellation, transfer, payoff, dispute, and termination provisions.
Solar Contract Cancellation After the Rescission Period
Once a standard cancellation period expires, a homeowner may no longer have a simple no-questions-asked right to cancel. That does not necessarily mean the transaction can never be challenged or resolved.
Issues worth reviewing may include misrepresentation, misleading savings claims, tax-credit representations, unauthorized signatures, electronic-signature concerns, financing disclosures, dealer fees, installation defects, nonperformance, warranty violations, licensing issues, fraud concerns, and other financing problems.
What If the Solar Salesperson Promised My Electric Bill Would Disappear?
This is one of the most common concerns homeowners raise. Some homeowners report being told they would no longer have an electric bill, that solar would completely replace the utility payment, or that savings were guaranteed.
Actual results depend on electricity consumption, system size, production, utility rates, net-metering rules, weather, shading, equipment performance, battery storage, and household energy use.
If specific savings or production claims affected your decision, preserve sales proposals, emails, texts, ads, recorded calls, savings projections, and production estimates.
Can I Cancel a Solar Loan?
A solar loan is typically a separate financing obligation from the installation agreement. Cancelling or disputing the installation contract does not necessarily cancel the loan automatically.
Review the original loan amount, cash price, interest rate, loan term, dealer fees, finance charges, prepayment provisions, monthly-payment changes, tax-credit assumptions, security interests, and UCC filings.
What If My Solar Payment Increased?
Some financing programs assume a future lump-sum payment associated with a federal solar tax credit. If that payment is not made, the required monthly payment may increase.
Review financing terms for re-amortization, payment adjustment, promotional periods, required prepayment, tax-credit payment, step-up payment, or loan re-cast provisions.
Can I Get Out of a Solar Lease?
Solar lease cancellation depends heavily on the individual agreement. Possible provisions may include early termination, buyout, system purchase, transfer, removal, end-of-term purchase, and transfer fees.
Can I Cancel a Solar PPA?
A Power Purchase Agreement usually means a solar company owns the equipment while the homeowner agrees to purchase the electricity it generates. PPAs may last 20 years or longer and may contain annual escalators.
Review early-termination provisions, buyout options, system-purchase options, transfer requirements, escalators, removal terms, and home-sale requirements.
Solar Contract Problems When Selling Your Home
Solar can create unexpected complications during escrow. Potential issues include outstanding loan balances, lease or PPA transfer requirements, buyer qualification, UCC financing statements, liens, PACE assessments, required payoffs, and equipment-ownership questions.
If you plan to sell, request written payoff and transfer requirements before listing the property.
What Is a Solar UCC Filing?
Certain solar financing arrangements may involve a UCC-1 financing statement or fixture filing associated with the equipment. This is not always the same as a traditional mortgage lien against the entire home, but it may still become relevant during a sale, refinance, title review, or underwriting.
Determine who filed it, what it covers, whether it is still active, and what is required to terminate it.
What If the Solar Company Went Out of Business?
The installer going out of business does not necessarily eliminate a separate financing obligation. Identify the financing company, current servicer, equipment manufacturer, inverter manufacturer, battery manufacturer, warranty provider, and installation-warranty coverage.
What If My Solar System Is Not Producing Enough Power?
Document lower-than-promised production, inverter or battery failure, system shutdowns, monitoring problems, delayed activation, roof leaks, installation problems, electrical issues, and service requests.
Save utility bills, monitoring reports, production records, repair requests, emails, service records, and photos of installation problems.
Can I Remove Solar Panels From My Home?
Physical removal of the equipment and cancellation of the financial agreement are separate issues. Removing panels does not automatically eliminate a loan, lease, PPA, financing obligation, or UCC filing.
Before removing equipment, determine who owns it and what the contract requires.
Options for Getting Out of a Solar Contract
1. Exercise an Existing Cancellation Right
If a cancellation period still applies, follow the contract's instructions immediately.
2. Request a Solar Loan Payoff
A homeowner may choose to pay off the financing, especially when preparing to sell or refinance.
3. Request a Solar Lease or PPA Buyout
Some agreements allow the homeowner to purchase the equipment or buy out the remaining contract.
4. Transfer the Solar Agreement
Certain agreements can be transferred to a new homeowner, subject to the contract's conditions.
5. Negotiate With the Solar Company
In some situations, documented problems may support an attempt to negotiate a resolution.
6. Dispute Material Misrepresentations
If significant sales representations conflict with the actual contract or performance, the transaction may warrant further review.
7. File Consumer Complaints
Depending on the issue, consumers may potentially submit complaints to the Consumer Financial Protection Bureau, Federal Trade Commission, state Attorney General, contractor licensing agency, consumer-protection agency, or utility/energy regulator.
8. Seek Professional Contract Review
Complex solar disputes may require review by qualified professionals or licensed legal counsel.
What Documents Should You Gather?
- Original installation contract
- Solar loan agreement
- Solar lease or PPA
- Financing disclosures
- Solar proposal and savings projections
- Production estimates
- Tax-credit representations
- Utility bills and production reports
- Emails and text messages
- UCC filing or title documents
- Payoff statements
- Warranty and inspection records
- Permits and repair requests
- Home-sale documents
Do Not Stop Making Payments Without Understanding the Consequences
Wanting to cancel a solar agreement does not automatically suspend payment obligations. Stopping payments can potentially lead to late fees, collection activity, credit damage, default, and additional legal or financial consequences.
Solar Contract Cancellation Help From Dynamic Resource Group
Dynamic Resource Group helps homeowners review problematic solar agreements and understand potential solar contract resolution options.
We work with homeowners dealing with solar contract cancellation, loan disputes, leases, PPAs, liens, UCC filings, sales misrepresentation, tax-credit concerns, payment increases, home-sale problems, installation issues, underperforming systems, and long-term contracts.
Every homeowner's situation is different. No particular cancellation outcome can be guaranteed.
Request a Solar Contract Review
If you are trying to get out of a solar contract after installation, start by understanding exactly what you signed and what options may exist under your agreement.
Frequently Asked Questions
Can you cancel solar panels after installation?
Possibly. Available options depend on the contract, financing, timing, installation status, applicable law, and circumstances surrounding the sale.
Can I get out of a 25-year solar loan?
A long loan term alone does not automatically create a cancellation right, but financing terms, disclosures, sales representations, and other issues may warrant review.
Can I sell my home if I have a solar loan?
Usually, but payoff requirements, UCC filings, or transfer obligations may need to be addressed before closing.
Can a solar company put a lien on my home?
Different financing arrangements can create different security interests, UCC filings, assessments, or liens. Review the actual recorded documents to determine what applies.
What happens if my solar company closes?
The installer going out of business does not necessarily eliminate a separate financing agreement. Identify the lender, servicer, manufacturer, and warranty provider.
Can I remove the solar panels and stop paying?
Removing equipment does not automatically cancel a loan, lease, or PPA. Review your contract before taking action.
What if I was lied to when I bought solar?
Preserve communications and compare the sales representations with the written agreement. Material discrepancies may warrant additional review.
Disclaimer: Dynamic Resource Group is not a law firm and does not provide legal advice unless services are being provided through appropriately licensed legal counsel. Information on this page is for general educational purposes. Rights and remedies depend on individual circumstances, contract language, financing structure, state and federal law, and other factors. No specific cancellation or resolution result is guaranteed.