The short answer
- Signed in the last few days: you may still be able to cancel. See how to cancel a solar contract. Some state cancellation laws cover PPAs and some don’t, so check yours.
- Misled about the rate, savings, or what you were signing: you may have a claim.
- Otherwise: the exits are an early purchase, a prepayment, or a transfer when you sell.
- System underproducing: you may be owed a credit under the production guarantee.
How a PPA bill works
With a power purchase agreement, you pay for the electricity the system produces, not the equipment. A company owns the panels, keeps any tax incentives, and is usually responsible for maintenance.
- You pay a rate per kilowatt-hour for what the system produces, often with an annual increase.
- Your bill rises and falls with production, so a sunny month costs more than a cloudy one.
- You still pay your utility for what the panels don’t cover, plus fixed charges.
If your PPA rate now beats your utility’s rate, or the escalator has pushed it higher, run the numbers with the escalator calculator.
Were you misled about your solar?
Tell us what happened. It takes about two minutes, and you decide what happens next.
See my optionsRead these sections of your PPA first
| Section | What to look for |
|---|---|
| Rate and escalator | The starting price per kilowatt-hour and how much it rises each year |
| Early purchase option | The years you can buy the system, and whether the price comes from a schedule or fair market value |
| Prepayment | Whether you can prepay expected production at a discount |
| Production guarantee | The yearly production promised and the credit if it falls short |
| Transfer on sale | What a buyer must do to take over the PPA |
| End of term | Renewal, purchase, or removal, and any notice deadlines |
Many older PPAs are now owned or serviced by a different company. The table in the solar lease guide shows where Vivint, SunPower, Sunnova, and PosiGen agreements went, or use the servicer lookup.
Early purchase
Many PPAs include an early purchase option at certain years, priced from a schedule in the contract or at fair market value.
- Ask the owner for the current price in writing and the method behind it.
- If it’s “fair market value,” ask for the appraisal or the inputs used.
- Compare it with what you’d pay under the PPA for the rest of the term, including the escalator.
- Confirm the warranty, monitoring, and the release of the UCC-1 filing as part of the deal.
The buyout calculator compares a quote with your remaining payments, and solar early termination fees explains how these prices are set. Company guides: Sunrun, Tesla, and Palmetto LightReach.
Prepay or transfer
Some PPAs allow prepaying expected production at a discount, which ends the monthly bill but leaves the company as the owner. Ask what happens if the system produces less than the prepaid amount.
Most PPAs allow transfer to a home buyer who qualifies. Start as soon as you list your home, because the owner must approve the buyer and release or update its UCC-1 filing. A buyer may be more willing when the per-kilowatt-hour rate is below the utility’s.
If the system underproduces
Many PPAs include a production guarantee. If the system produces less than promised, you may be owed a credit.
- Pull your production data from the monitoring app or the owner’s statements.
- Compare a full year’s production with the guarantee in your contract.
- Ask the owner in writing for any credit due and for a repair if something failed.
- Keep the dates. A long gap without service can support a claim.
Because the owner is usually responsible for maintenance, a broken system isn’t your repair bill. If it isn’t being fixed, file a complaint with your state attorney general. See how to file a solar complaint.
If the PPA was misrepresented
Promises about savings, rate increases, or a bill that would disappear can matter, and so can being told you were buying the system when you signed a PPA. Read misled by a solar salesperson, and check your state on our state solar laws page.
Common questions
Is a PPA cheaper to exit than a lease?
It depends entirely on the contract. Compare the buyout or prepayment figure with what you expect to pay over the remaining term.
My PPA rate is now higher than my utility rate. What can I do?
That’s usually allowed by the contract if the escalator was disclosed. If you were told otherwise, it may be a misrepresentation worth reviewing.
Who maintains the system under a PPA?
Usually the owner. If repairs aren’t being made, document your requests and the dates.
Do I pay for power I don’t use?
Usually you pay for everything the system produces. Power you don’t use is typically sent to the grid, and your utility credits it under its own rules.
Can I cancel a PPA after installation?
Not just by changing your mind. You need a legal reason, such as misrepresentation or missing disclosures. Otherwise the options are an early purchase, a prepayment, or a transfer.
What happens at the end of a PPA?
Most PPAs let you renew, buy the system, or have it removed. Watch for automatic renewal and notice deadlines in the end-of-term section.
Sources
- CFPB: Issue Spotlight, Solar Financing (August 2024). How PPAs are structured
- FTC: Solar power for your home. Questions to ask about PPAs
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.