Two people at a table, one signing an agreement

Inside the cancellation window

If you are within your state’s window or the federal three-day window, you can cancel for any reason, and you are generally owed a full refund. Follow the steps in how to cancel a solar contract, and tell the company in writing not to schedule a site survey, permit, or installation.

After the window, before installation

Once the window closes, your rights come from the contract and from any problems with how it was sold.

  • Read the contract’s termination section. Some allow cancellation before installation for a set fee, or for actual costs incurred so far.
  • Look for conditions that were not met. Many contracts depend on permits, HOA approval, utility approval, or financing. If one fails, the contract may allow you to cancel. South Carolina, for example, gives seven days to cancel after a permit or HOA denial.
  • Ask in writing. Companies often release customers before installation rather than build a system for an unwilling homeowner. Ask for a written release and a refund.

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Deposits and cancellation fees

Check what you paid and what the contract says about it. Some state laws limit deposits. Colorado, for example, lets a company keep a nonrefundable deposit of up to $100 on covered purchases. A large cancellation fee for a project that never started may be challengeable, especially if it does not reflect real costs.

Do not forget the financing

If you signed loan documents with the sale, confirm in writing with the lender that the loan was canceled and no funds were released. A loan can sometimes fund before installation is complete. Check your credit report a month later to make sure no account was opened.

Common questions

They already ordered equipment. Do I have to pay for it?

Inside a legal cancellation window, generally no. Outside it, check your contract. The company may ask for actual costs, and you can ask for proof.

Can they install anyway after I cancel?

They should not. Put your cancellation in writing, tell them not to come, and file a complaint if they try.

Is a site survey the same as installation?

No. A survey, design, or permit application is not installation. Your cancellation rights usually still apply.

Sources

  1. FTC: Buyer’s Remorse, the FTC’s Cooling-Off Rule. Three-day right to cancel certain home sales
  2. S.C. Department of Consumer Affairs: Renewable energy regulation. Cancellation after a permit or HOA denial
  3. Colorado SB 25-299 (session law). Deposit limit and welcome call rules

General information, not legal advice.

This guide can’t tell you whether a right applies to your agreement. For that, talk with a licensed attorney in your state.