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Solar lease cancellation
How to cancel a solar lease
Paying a solar lease and still paying your utility? How solar leases work, why they’re hard to exit, and every realistic way out.
Last verified October 9, 2026
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The short answer: If you signed a solar lease at home within the last few business days, you can cancel in writing under the FTC Cooling-Off Rule, 16 CFR Part 429, and some states give more time. After that, lease exits usually come from how the lease was sold, whether required notices and disclosures were given under your state’s law, a negotiated buyout, or a transfer when you sell your home.
Key takeaways
- You can cancel a home-signed lease within the cooling-off window.
- Most leases run 20 to 25 years, often with yearly increases.
- Many state laws add disclosure and cancellation rules.
- Leases usually transfer only with the company's approval.
- Keep paying while options are reviewed.
On this page
How solar leases work
With a lease, a company owns the panels on your roof and you pay a monthly amount, usually for 20 or 25 years, often with a yearly increase called an escalator. You still pay your utility for power the panels don’t cover. When the escalator rises every year and the utility bill doesn’t fall as promised, the lease turns against you.
How an escalator adds up
At 2.9% a year, a $150 monthly lease payment grows to about $298 by year 25, nearly double. If you were shown only the first-year payment, ask for the full payment schedule in writing.
Your options
Cancel within the window
Send written notice within the federal or state cooling-off period.
Missing notices or disclosures
Some states keep the right open, or void the contract, when required notices or disclosures were missing; check your state's rules.
Challenge how it was sold
Misrepresented savings can support claims under state consumer protection laws.
Negotiated buyout
Some leasing companies negotiate, especially when the paperwork has problems.
Transfer to a buyer
A qualified buyer may take over the lease when you sell.
Enforce service terms
If the system fails, the lease's maintenance obligations may apply.
Want out of your solar lease?
A free intake checks your lease against federal and state rules.
Liens and selling
Leasing companies often record a precautionary UCC-1 fixture filing to protect their ownership of the equipment. It can surface at closing. See our guides to UCC-1 filings and selling a home with solar.
Common questions
Solar lease FAQs
Can I cancel a solar lease?
Within the cooling-off window, yes. After that, it depends on how the lease was sold and your state’s rules.
How much does it cost to break a solar lease?
It depends on the buyout terms. Problems with how it was sold can change what you owe.
What happens to my lease if I sell?
A qualified buyer may assume it with the company’s approval, or you may need to buy it out.
Is a lease better than a loan?
Neither is automatically better. The terms and how they were explained matter most.
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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.