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Solar PPA cancellation
How to cancel a solar PPA
Paying per kWh for solar power that costs more than promised? How power purchase agreements work and the realistic ways out.
Last verified October 9, 2026
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The short answer: A solar PPA signed at your home can be cancelled within the cooling-off window under 16 CFR Part 429, and some states give more time. After that, exits depend on how it was sold, whether your state’s disclosure rules were followed, the system’s performance and the buyout or transfer terms.
Key takeaways
- You pay per kWh, often with a yearly escalator.
- You still buy whatever the panels don't cover.
- Home-signed PPAs carry cooling-off rights.
- Production guarantees and buyouts vary.
- Keep paying while options are reviewed.
On this page
How solar PPAs work
With a power purchase agreement, a company owns the panels and sells you the electricity they produce at a set price per kWh, usually for 20 to 25 years, often with a yearly increase. A PPA saves money only if its price plus your remaining utility bill beats what you’d pay the utility alone.
How a PPA escalator adds up
A PPA that starts at 15 cents per kWh with a 2.9% yearly escalator reaches about 19.4 cents by year 10 and about 25.8 cents by year 20. Compare that with what your utility actually charges.
Your options
Cancel within the window
Send written notice within the federal or state cooling-off period.
Enforce performance terms
If the system underperforms, check for a production guarantee.
Challenge how it was sold
Misrepresented savings can support state consumer protection claims.
Negotiated termination
Some providers negotiate an exit or a system purchase.
Is your PPA actually saving money?
A free intake compares your PPA with your bills.
Questions to ask your PPA provider
- What's my price per kWh this year, and every year after?
- Does my agreement include a production guarantee?
- What's the buyout or early termination price?
- What are the transfer requirements if I sell?
Common questions
Solar PPA FAQs
Can I cancel a solar PPA?
Within the cooling-off window, yes. After that, it depends on how it was sold and your state’s rules.
What's the difference between a lease and a PPA?
A lease has a fixed monthly payment; a PPA charges per kWh produced.
Why is my PPA costing more than my old bill?
Usually escalators plus credits that cover less than promised.
Can I buy my system from the PPA provider?
Many PPAs include purchase options; request the price in writing.
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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.