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Federal and state law
Solar cancellation laws: what protects you
The federal rules that apply in every state, the state laws that add more, and how they fit together for solar leases, loans and PPAs.
Last verified October 9, 2026
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The short answer: Solar homeowners are protected by a layer of federal rules that apply everywhere, including the FTC Cooling-Off Rule, the FTC Holder Rule and the Truth in Lending Act, plus state consumer protection laws, state home solicitation laws and, in a growing number of states, solar-specific disclosure and licensing laws. The strongest path usually combines more than one. Every rule below is named so you can look it up, and the CFPB’s 2024 findings show what regulators found in solar lending; see the CFPB Issue Spotlight.
Key takeaways
- Federal rules set a floor in all 50 states.
- State laws often add more time and stronger remedies.
- Solar-specific laws are growing, including in Texas and Kansas.
- Most exits combine several rules.
- Laws change, so verified dates matter.
On this page
Solar laws at a glance
| Law | Citation | What it does |
|---|---|---|
| FTC Cooling-Off Rule | 16 CFR Part 429 | 3 business days to cancel covered sales made away from the seller’s place of business |
| FTC Holder Rule | 16 CFR 433.2 | Preserves claims against the seller against whoever holds certain consumer credit contracts |
| Truth in Lending Act | 15 U.S.C. 1601 and following | APR, finance charge and payment disclosures; a rescission right for some loans secured by your home |
| Uniform Commercial Code, Article 9 | UCC 9-513 and 9-515 as adopted by your state | How fixture filings work, how long they last and when they must be released |
| FTC Act Section 5 | 15 U.S.C. 45 | Bans unfair or deceptive practices; enforced by the FTC |
| State consumer protection laws | Every state | Ban deceptive and unfair sales practices, often with private remedies |
| State solar-specific laws | Texas, Kansas, California and others | Disclosure, licensing and cancellation rules written for solar |
The federal floor
The Cooling-Off Rule (16 CFR Part 429) covers your first three business days for covered sales. The Holder Rule (16 CFR Part 433) keeps claims alive when the installer and lender are different companies. The Truth in Lending Act requires accurate loan disclosures. The FTC Act bans unfair and deceptive practices, though it’s enforced by the FTC rather than by homeowners directly.
Where state law adds more
Every state has a consumer protection law against deceptive practices, and most have a home solicitation law with its own cancellation rules. Some go further for solar specifically. Texas requires residential solar retailers to give five business days to cancel and requires the lender to cancel the loan when the contract is cancelled. Kansas voids residential solar contracts missing its required disclosure. California requires a solar disclosure document and gives seniors 65 and older five business days to cancel. See your state.
Which laws apply to your contract?
A free intake checks your paperwork against federal and state rules.
How the laws work together
Each rule covers a different stage. Cancellation rules cover the first days. Disclosure rules cover what the paperwork had to say. Consumer protection laws cover what was said to get you to sign. Lending laws and the Holder Rule cover the loan. UCC rules cover the filing on your property. A proper review looks at all of them together.
Why dated citations matter
Solar law is changing fast, with new state laws in 2025 and the federal residential tax credit ending for systems installed after December 31, 2025. A guide that doesn’t say when its information was checked may be repeating rules that no longer apply.
Common questions
Solar law FAQs
What federal laws protect solar homeowners?
The FTC Cooling-Off Rule, the FTC Holder Rule, the Truth in Lending Act and the FTC Act’s ban on deceptive practices.
Do state laws give more protection?
Often. Many states add longer windows, solar disclosure rules and private remedies.
Can I sue under the FTC Act?
No. The FTC enforces it. Homeowners usually rely on state consumer protection laws instead.
Is there a national solar lemon law?
No. Protections come from the federal and state laws described here.
Find out where your solar contract stands
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Solar Cancellation HQ is not a law firm and does not provide legal advice. This page is general information, and reading it or submitting a form does not create an attorney-client relationship. Not every contract qualifies, and no outcome is guaranteed. We never advise anyone to stop making payments on a solar loan, lease or PPA. Laws and utility rules change, so verify before acting. Last verified October 9, 2026.