The short answer
- Signed in the last few days: you may still be able to cancel. See how to cancel a solar contract.
- Misled about the payment, savings, or what you were signing: you may have a claim that gets you out.
- Otherwise: the exits are a buyout, prepaying the remaining payments, or a transfer when you sell.
- At the end of the term: most leases let you renew, buy the system, or have it removed.
A lease usually runs 20 to 25 years, and most don’t let you simply walk away. The exit depends on what your lease says, so start there.
Read these sections of your lease first
| Section | What it tells you |
|---|---|
| Term and escalator | How long the lease runs and how much the payment rises each year. See solar escalator clauses. |
| Purchase option | Whether and when you can buy the system, and how the price is set |
| Prepayment | Whether you can pay off the remaining payments, and at what discount |
| Transfer on sale | What a buyer must do to take over the lease, and any fee |
| Production guarantee | Whether you’re owed a credit when the system underproduces |
| Maintenance | Who fixes the system, and how fast |
| Default and removal | What happens if payments stop, and who pays to remove the system and repair the roof |
| End of term | Your choices when the lease ends |
Can’t find your lease? Ask the company for a full copy in writing. You’re entitled to the agreement you signed.
Were you misled about your solar?
Tell us what happened. It takes about two minutes, and you decide what happens next.
See my optionsWho owns your lease now
Leases get sold, and many older ones are now owned or serviced by a different company than the one that signed you up.
| If your lease came from | Who handles it now |
|---|---|
| Vivint Solar | Sunrun, which bought Vivint in 2020. See getting out of a Vivint Solar contract. |
| SunPower or Sunnova | Often SunStrong Management, on behalf of the owner. See the SunPower and Sunnova guides. |
| PosiGen | Mostly Renewbrook Energy, with Omnidian handling service. See the PosiGen guide. |
| A contract moved to Spruce | Spruce Power, which owns about 84,000 home leases and PPAs |
Not sure? Use the servicer lookup, or check the company on your latest bill. There are also guides for Sunrun, Tesla, and Palmetto LightReach leases.
Buy out the system
Many leases offer a purchase option at set points, often starting around year five or six, or at “fair market value.”
- Ask the company for the buyout price in writing and how it was calculated.
- Compare it with the payments you have left and with what a similar system would cost new.
- Ask what happens to the warranty, the production guarantee, and monitoring once you own it.
- Get the release of the UCC-1 filing confirmed in writing as part of the deal.
Lease buyout prices are explained in solar early termination fees. Once you own the system, maintenance and repairs become your responsibility. The buyout calculator compares a quote with your remaining payments.
Prepay the remaining payments
Prepaying ends the monthly bill but usually leaves the company as the owner until the term ends. Ask what discount applies to the remaining payments, whether the escalator is included in the figure, and what happens to service and warranties. Get it in writing before you pay.
Transfer it when you sell
Most leases allow transfer to a buyer who meets the company’s credit requirements.
- Start early. Contact the company as soon as you list your home. Transfers and filing updates take time.
- Give buyers the facts. The monthly payment, the escalator, years remaining, and production history help a buyer say yes.
- Have a fallback. If a buyer won’t take the lease, you may need to buy it out at closing, or lower your price.
More in selling a house with a solar lease.
When the lease ends
Most leases give you a choice at the end of the term: renew or extend, buy the system, often at fair market value, or have the company remove it. Read the notice requirements. Some leases renew automatically unless you give written notice months ahead. If you choose removal, get in writing who repairs the roof.
If the lease was misrepresented
These can all matter:
- Being told the payment wouldn’t increase, when the lease has an escalator
- Being told the system would move with you, or that you’d own it
- Being promised your electric bill would go away
- A lease signed without a copy, a cancellation notice, or required disclosures
Write down what you were told and gather the proposal and your bills. Read misled by a solar salesperson and check your state’s rules on our state solar laws page.
Mistakes to avoid
- Stopping payments. It can lead to collections and, under some leases, removal of the system with charges. See what happens if you stop paying.
- Removing or moving the panels yourself. They belong to the company. Need a new roof? See removing solar panels for a new roof.
- Waiting until closing to deal with the lease. It can cost you the buyer.
- Accepting a buyout figure without the math. Ask how it was calculated.
Common questions
Can I have the panels removed to end the lease?
Only if the lease or the company allows it. Removal is often costly and can damage the roof, so get any agreement in writing.
The company that installed my lease went bankrupt. Who do I pay?
Usually a new owner or servicer takes over the lease. Keep paying until you confirm who holds it, and ask for written confirmation of the transfer.
Will the lease show up on my credit report?
Many leases aren’t reported like loans, but missed payments can still go to collections. Check your lease and your credit report.
How much does a lease buyout cost?
It depends on the lease, the year, and how the price is set. Ask for the figure in writing and compare it with the payments you have left.
Does the payment go up every year?
Many leases have an annual escalator, often a few percent a year. Check the term and escalator section, and run the numbers with the escalator calculator.
What if the system isn’t producing what was promised?
If the lease has a production guarantee, you may be owed a credit. Compare your production data with the guarantee and ask the company in writing.
Sources
- FTC: Solar power for your home. Lease terms and questions to ask
- CFPB: Issue Spotlight, Solar Financing (August 2024). Lease and PPA business models
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.