If you want to get out of a solar contract, you typically have several legal options including the 3-day rescission period, breach of contract claims, fraud or misrepresentation claims, and state consumer protection law violations. The best approach depends on your specific situation and how long ago you signed.
1. The 3-Day Right of Rescission
Under the Federal Trade Commission's Cooling-Off Rule, if you signed your solar contract at your home (which is the case for most door-to-door solar sales), you have 3 business days to cancel without penalty. This is your simplest and most straightforward exit option. The solar company must provide you with two copies of a cancellation form at the time of sale.
Key Action Steps:
- Send written cancellation via certified mail within 3 business days
- Keep a copy of the cancellation notice with proof of mailing
- The company must refund your money within 10 business days
2. Breach of Contract Claims
If your solar company failed to deliver what was promised in the contract, you may have grounds for a breach of contract claim. Common breaches include: the system producing significantly less energy than promised, installation not completed by the agreed-upon date, equipment different from what was specified, or failure to obtain required permits.
A solar lawyer can help you document the breach and pursue contract termination plus damages. In many cases, the solar company's own performance data proves the system isn't meeting contractual guarantees.
3. Fraud and Misrepresentation
Solar fraud is unfortunately common. If a solar salesperson made false promises about energy savings, tax credits, equipment quality, or financing terms, you may be able to void the contract entirely. Common misrepresentations include:
- Inflated savings projections - Promising $200/month savings when the actual savings are $50 or less
- False tax credit claims - Telling you the federal tax credit is a "rebate" or guaranteed refund
- Hidden escalator clauses - Not disclosing that lease payments increase 3-5% annually
- Equipment bait-and-switch - Promising premium panels but installing cheaper alternatives
4. State Consumer Protection Laws
Every state has consumer protection laws that can provide additional grounds for contract cancellation. For example, California's Consumer Legal Remedies Act (CLRA) and Song-Beverly Act provide strong protections, while Texas has the Deceptive Trade Practices Act (DTPA). These laws often allow you to recover not just your money, but also attorney's fees and sometimes treble damages.
5. TILA Violations in Solar Financing
The Truth in Lending Act (TILA) requires solar financing companies to clearly disclose all loan terms, including the APR, total cost of financing, and monthly payment amounts. If your solar lender failed to make proper disclosures, you may have the right to rescind the financing agreement entirely, even years after signing.
Need Help Getting Out of Your Solar Contract?
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