How to Cancel a Solar Contract in Maryland

Maryland gives most homeowners 5 business days, or 7 if you are 65 or older, to cancel a solar contract signed at home under the Door-to-Door Sales Act. After that window, cancellation depends on your contract type and whether the seller broke consumer protection law.

Understanding Maryland’s Cancellation Laws for Solar Contracts

Maryland does not offer a general three-day cooling-off period the way many other states do. Instead, the state’s strongest protection for solar buyers comes from the Maryland Door-to-Door Sales Act, found in the Commercial Law Article, Title 14, Subtitle 3 of the Annotated Code of Maryland. 

This law applies to any sale where the seller personally solicits the buyer and the agreement is signed somewhere other than the seller’s regular place of business, which covers nearly every residential solar deal closed at a kitchen table or on a front porch.

Solar installations are also typically classified as home improvements in Maryland, which brings them under the oversight of the Maryland Home Improvement Commission (MHIC). Contractors registered with the MHIC must follow additional disclosure and cancellation requirements on top of the Door-to-Door Sales Act.

Separately, Maryland homeowners are also covered by the federal FTC Cooling-Off Rule, which provides a baseline three-business-day right to cancel for in-home sales nationwide. In practice, Maryland’s own law is more generous than the federal rule, so state law is usually what protects you.

Door-to-Door Sales Act Cancellation Window

Under the Door-to-Door Sales Act, sellers must give buyers a specific amount of time to change their minds:

• Standard buyers get 5 business days from the date of signing to cancel without penalty or obligation.
• Buyers age 65 or older get 7 business days, a protection built specifically for older homeowners who are frequently targeted by aggressive solar sales tactics.
• The seller must supply a Notice of Cancellation form attached to the contract, along with bold, clearly stated cancellation language near the signature line.
• The seller cannot begin installation work until the cancellation period has fully expired.

If the installer never provided a proper Notice of Cancellation, Maryland law allows the buyer to cancel at any time, by any reasonable means, since the clock never legally started. 

This is one of the most useful protections buried in Maryland’s solar contract cancellation rights framework, and it catches out a surprising number of installers who rush paperwork during high-pressure sales visits.

How to Send a Valid Cancellation Notice

To exercise your right to cancel during the window, follow these steps closely.

• Put your cancellation in writing rather than relying on a phone call or a verbal conversation with the sales rep.
• Use the Notice of Cancellation form attached to your contract if one was provided.
• Send it by mail, hand delivery, or telegraph to the seller’s address listed on the contract, not a generic support line.
• Get it postmarked or delivered before midnight of the fifth business day, or the seventh if you qualify under the age exception.
• Keep a copy of everything you send, ideally through certified mail with a return receipt.

Once a valid cancellation is received, the seller has 10 business days to refund any deposit or payment you made. If any equipment or materials were already delivered, you generally need to make them available for pickup, but you are not responsible for the cost of removing them.

What Happens After the Cancellation Window Closes

Once the 5 or 7-day window passes, Maryland does not offer a general right to cancel simply because you changed your mind. At that point, your options depend on your contract structure and whether anything went wrong during the sale.

Cancellation Under the Maryland Consumer Protection Act

The Maryland Consumer Protection Act (MCPA), codified at Commercial Law Section 13-101 and following, prohibits unfair, abusive, or deceptive trade practices. 

If your solar salesperson misrepresented your expected savings, inflated projected energy production, promised incentives that don’t exist, or misquoted your financing terms, you may have grounds to challenge the contract under the MCPA, even after the standard cancellation period has closed. 

This typically requires solid documentation, so gathering your marketing materials and any written promises early matters more than most homeowners realize.

Buying Out a Lease or PPA

Most solar leases and power purchase agreements include an early termination clause. Exiting typically means paying the remaining balance owed on the contract, sometimes with an additional exit fee layered on top. 

Buyout amounts vary considerably depending on how many years remain and how the original agreement was priced, so it’s worth understanding the hidden costs of a solar contract before assuming a buyout is your cheapest path out.

Understanding Loan Versus Lease Cancellation

Homeowners who financed their system through a solar loan own the equipment outright, unlike lease or PPA customers. This changes the math considerably. Paying off a loan removes the debt obligation but doesn’t remove the panels, while canceling a lease or PPA removes the equipment and the payment obligation together, assuming the buyout terms are met. 

Understanding the practical difference between a solar lease versus a solar loan is one of the most important steps before deciding how to proceed.

Selling a Home With an Active Solar Contract

If you’re planning to sell your Maryland home while a lease or PPA is still active, the agreement usually needs to transfer to the new owner. That buyer will need to qualify with the leasing company through a credit check, which can slow down closing if it isn’t addressed early. Homeowners with solar loans instead need to either pay off the remaining balance at closing or work out a plan with the buyer, since the loan and any associated lien stay tied to the original borrower rather than the property itself in most cases.

Net Metering and SREC Considerations

Maryland’s solar market includes both net metering credits and a Solar Renewable Energy Certificate (SREC) program, which pays homeowners for the clean energy their system produces. 

If you’re evaluating whether to cancel a contract, it helps to understand how much of your promised savings depended on SREC income, since SREC prices fluctuate and are not guaranteed by the state. Salespeople who quoted a fixed, guaranteed SREC value as part of your projected savings may have crossed into misrepresentation territory under the MCPA.

Common Reasons Maryland Homeowners Want to Cancel

• Salesperson overstated monthly bill savings or total system output.
• Projected SREC income turned out to be far lower than what was quoted at signing.
• The homeowner found significantly better financing terms after signing.
• Installation was delayed well beyond the promised completion date.
• A home sale was complicated because a buyer would not qualify to assume the lease.
• The Notice of Cancellation form was missing or filled out incorrectly.

Maryland Solar Contract Cancellation Timeline and Costs

Step-by-Step: Canceling Within Your Legal Window

1. Find the Notice of Cancellation form attached to your signed contract.
2. Fill it out completely, including your name and the original signing date.
3. Make a copy for your own records before mailing anything.
4. Send it by certified mail with a return receipt to the seller’s listed address.
5. Follow up in writing if you haven’t received confirmation or a refund within 10 business days.

Protecting Yourself Before and After Signing

Keep every document tied to your solar purchase, including the signed contract, the Notice of Cancellation, any financing paperwork, and copies of texts or emails with the sales representative. 

If your installer promised specific SREC or bill savings numbers verbally that don’t appear in writing anywhere, note that gap, since it often becomes relevant if you later pursue a claim under the MCPA.

Be cautious of companies that promise a guaranteed exit from any solar contract for an upfront fee without first reviewing your specific paperwork. A legitimate evaluation always starts by reading your actual contract terms, not by quoting a flat price before knowing your situation. 

If you’re unsure where you stand, reviewing your options after the cooling-off period closes can help you understand what’s realistic before you commit to a buyout or a legal claim.

Frequently Asked Questions

How many days do I have to cancel a solar contract in Maryland?

Standard buyers get 5 business days under the Door-to-Door Sales Act, extended to 7 business days if you are 65 or older.

What happens if my solar contract never included a cancellation notice?

Your right to cancel does not expire. Maryland law allows you to cancel at any time until the seller provides a proper Notice of Cancellation.

Can I cancel my Maryland solar contract because savings were lower than promised?

Possibly, if the salesperson misrepresented specific numbers in writing or verbally, this may qualify as a violation under the Maryland Consumer Protection Act.

Is it harder to cancel a solar lease than a solar loan in Maryland?

Leases and PPAs usually require a buyout of the remaining balance, while loans require paying off the principal, so the better option depends on your specific contract terms.

Do I need a lawyer to cancel a solar contract in Maryland?

Not for cancellations within the standard window, but a lawyer or consumer protection specialist is often helpful for MCPA claims involving misrepresentation.

Note: This article is for informational purposes only and does not constitute legal advice. For questions specific to your contract, consult a licensed attorney or contact Solar Equity Solutions for guidance on your cancellation options.