I often hear this question: How to get out of a solar panel contract?
In this post, I’ll walk you through practical steps you can take, explain the most common reasons homeowners want to cancel, and highlight important contract details to review before you act.
Possible Reasons to Exit a Solar Panel Contract
In my years of experience, many people have needed to cancel their solar agreements. Below are some of the main reasons you might consider ending a solar panel contract.
Unexpected Changes in Circumstances
Life can change suddenly—bankruptcy, job relocation, a family member’s illness, a big promotion requiring a move, or buying a new home.
Any of these are legitimate reasons to break or transfer a solar panel contract.
Issues With Installation or Performance
While I’ve personally avoided this problem, I’ve seen cases where poor design or incorrect calculations meant the system never produced the promised energy savings.
One customer was told they’d save 90 % on their electricity bill but ended up saving less than 20 %. Understandably, they wanted to cancel their solar contract.
How To Get Out Of A Solar Panel Contract in 6 Steps
I’ll be honest—it isn’t easy. Most solar companies want you to fulfill the entire term. But if you need to exit, follow these six steps carefully:
Read Your Contract Thoroughly
Start by reviewing your agreement line by line. Most solar panel contracts contain a termination or “break” clause.
This section outlines your rights, the conditions for cancellation, and any fees or penalties. Knowing these details is essential before making any move.
Contact the Solar Company
Once you know your rights, reach out to the company that installed your panels.
Explain your situation and your desire to get out of the contract. It may take a few days for them to respond, so be patient but persistent.
Negotiate a Buyout
The simplest method to exit a solar panel contract is a buyout.
Depending on how long you’ve been paying and what balance remains, you can negotiate a lump-sum payment to cover the remaining amount and end the agreement.
Consider Transferring the Contract
If a buyout isn’t feasible, ask about transferring the contract.
You may transfer it to the new homeowner if you’re selling your property, or in some cases to a solar leasing company willing to assume the payments.
Check for Termination Grounds
Your contract’s break clause may list valid reasons for termination:
- Underperformance (not producing the promised kilowatt hours)
- Poor installation or safety issues
- Lack of maintenance or support
If you can document any of these, you may have legal grounds to cancel.
Consult an Attorney
If you can’t reach a fair solution, consult an attorney who specializes in solar or energy contracts.
An experienced lawyer can interpret complex clauses and help you gather evidence to support cancellation or negotiate better terms.
Common Solar Panel Contract Cancellation Clauses
From my industry experience, these are the most frequent clauses allowing early termination:
Buy the Installation in Cash
Pay off the remaining balance to own the system outright.
Have the Installation Removed (with a Fee)
If you have a valid reason, the company may remove the panels, though you’ll likely pay a removal or cancellation fee.
Convert Purchase to Lease
Some contracts allow you to change from a purchase agreement to a lease, which may reduce your long-term costs.
Prove Fraud or Misrepresentation in Court
If the company engaged in fraud or failed to meet contractual obligations, legal action can cancel the contract entirely.
Frequently Asked Questions
Is it possible to get out of a solar lease?
Yes. Most solar leasing companies include a buyout option. You can prepay the remaining lease balance and either remove the panels or leave them on the property.
How do I exit a Power Purchase Agreement (PPA)?
Typically you can’t simply end it early. If you sell your home, you must either transfer the PPA to the buyer, negotiate a buyout, or pay for removal of the panels.
Can I cancel shortly after signing?
Yes. U.S. federal law grants a three-business-day cancellation period after signing most home improvement contracts, including solar panel agreements.
Key Takeaways
- Read your contract first to find any cancellation or break clauses.
- Contact your solar provider to discuss options such as buyout or contract transfer.
- Consider legal advice if negotiations fail or if you suspect fraud.
While getting out of a solar panel contract isn’t always easy, understanding your rights and exploring these steps can help you exit smoothly and protect your finances.