Quick Answer: The solar contract rescission period is the window of time after signing a solar agreement during which you can legally cancel the contract without penalty. Federal law gives you 3 business days. Some states extend this to 5 or even 10 days, depending on where you live.
What Is the Solar Contract Rescission Period?
The solar contract rescission period is your legal right to cancel a solar agreement after you sign it. It exists to protect consumers from high-pressure sales tactics and rushed decisions. During this window, you can walk away from the deal with no financial penalty and no obligation to proceed.
This right comes from the Federal Trade Commission’s (FTC) Cooling-Off Rule. It applies to most home solicitation sales, including solar panel contracts signed at your home or at a location that is not the seller’s permanent place of business.
The rescission period is not a courtesy. It is a legally enforceable right. Any solar company that tries to charge you a cancellation fee during this period is likely violating federal or state law.
How Long Is the Solar Rescission Period?
Federal Rescission Period
Under federal law, the standard solar contract cancellation window is 3 business days. This clock starts the day after you sign the contract, not the day you sign it.
Business days typically include Monday through Saturday but exclude Sundays and federal holidays.
State-Specific Rescission Periods
Many states go beyond the federal minimum. Here is a breakdown of key states:
| State | Rescission Period | Notes |
| California | 3 business days | Must be disclosed in writing |
| Texas | 3 business days | FTC rule applies |
| Florida | 3 business days | Some consumer protections extend this |
| New York | 3 business days | NY General Business Law applies |
| Arizona | 3 business days | Contractor disclosure required |
| Nevada | 3 business days | NRS consumer protection laws apply |
| New Jersey | 3 business days | Consumer Fraud Act protections |
| Hawaii | 3 business days | State solar incentive contracts may have different terms |
| Connecticut | 3 business days | DEEP solar contracts have added disclosures |
| Massachusetts | 3 business days | Attorney General oversight |
Some states allow longer periods under specific conditions. Always check your state’s consumer protection laws or consult a specialist.
Does the Rescission Period Apply to All Solar Contracts?
The cooling-off rule and rescission rights typically apply to:
- Solar panel purchase agreements
- Solar lease agreements
- Solar power purchase agreements (PPAs)
- Solar loan contracts signed at your home
- Energy storage (battery) contracts bundled with solar
What Solar Contracts May Not Be Covered?
The FTC cooling-off rule does not apply to:
- Contracts signed at the seller’s permanent business location (like a store or showroom)
- Emergency repairs you requested
- Contracts above certain thresholds in some states
- Real estate transactions (though solar attached to real estate has its own disclosures)
Even if the FTC rule does not technically apply, many state laws still provide rescission rights. Check your state before assuming you have no options.
What Is the California Solar Contract Rescission Period?
California has some of the strongest consumer protection laws in the country for solar buyers. The California solar contract rescission period is 3 business days under the Home Solicitation Sales Act.
However, the California Public Utilities Commission (CPUC) and the contractor licensing rules add further requirements. Solar companies must provide a clear written notice of your right to cancel. This notice must be given at the time of signing.
If the company failed to give you proper written notice of your cancellation rights, your rescission window may be extended. In some cases, significantly. This is a powerful consumer protection tool and is worth reviewing if you were not given a notice of cancellation.
How to Cancel a Solar Contract Within the Rescission Period
- Act quickly. Count your business days from the day after signing. Do not wait.
- Write a cancellation notice. A simple written statement that you are canceling the contract is enough. You do not need a lawyer to draft this.
- Send it in writing. Use certified mail with a return receipt requested. This gives you proof of the date you sent it.
- Keep copies of everything. Keep a copy of the cancellation notice, the original contract, and the mailing receipt.
- Follow up. Contact the company directly after mailing to confirm receipt.
- Expect a full refund. If you paid any deposit, the company must return it within a specific timeframe (usually 10 business days under the FTC rule).
What Happens After the Rescission Period Expires?
If the 3-day or state-extended window passes, canceling a solar contract becomes more complex. You may still have options, but they are not automatic.
Options after the rescission period include:
- Reviewing the contract for a cancellation clause or early termination provision
- Checking for misrepresentation or fraud during the sales process
- Filing a complaint with the FTC or your state’s attorney general
- Consulting a solar contract attorney or a specialized solar cancellation service
- Reviewing whether proper disclosures were made (which could restart your cancellation window)
Cancellation fees after the rescission period can be significant. Many solar companies charge between $1,000 and $10,000 or more in early termination fees. Some PPAs and leases include liquidated damages clauses.
Sunrun Solar Contract Rescission: What You Need to Know
Sunrun is one of the largest residential solar companies in the United States. Like all solar providers, Sunrun contracts include a federally mandated 3-business-day rescission period.
If you signed a Sunrun agreement at your home, you have the right to cancel within 3 business days. Sunrun must provide you with two copies of the Notice of Cancellation form at the time of signing.
If you did not receive this form, your right to cancel may extend beyond 3 days.
Common Sunrun contract types include solar leases and PPAs. These are long-term agreements, often 20 to 25 years. Understanding your rescission rights before that window closes is critical.
Tesla Solar Contract Rescission: Key Facts
Tesla Energy offers solar panel systems and the Tesla Powerwall battery. Tesla solar contracts also fall under the FTC cooling-off rule when signed at your home.
The Tesla solar contract rescission period is 3 business days from the day after signing. Tesla’s contracts are typically purchase agreements or installation contracts, not leases or PPAs.
If you want to cancel a Tesla solar order early, check whether installation has begun. Once installation starts, Tesla may claim the contract has been substantially performed, which complicates rescission.
Contact Tesla Energy directly in writing and document everything if you need to cancel within the rescission period.
Vivint Solar Contract Rescission
Vivint Solar (now part of SunPower) used long-term PPAs and leases. The Vivint Solar contract rescission period followed the standard 3-business-day federal rule.
If you signed a Vivint Solar agreement, review your contract for the specific cancellation terms. SunPower acquired Vivint Solar’s assets, and contract obligations may have transferred. Consult a solar cancellation specialist if you are unsure about your options.
SunPower Solar Contract Cancellation Period
SunPower offers both direct purchase and financing options. SunPower solar contract rescission rights mirror the federal 3-day window for home-signed contracts.
Note that SunPower filed for bankruptcy in 2023 and underwent restructuring. If you have a SunPower contract, your agreement may now be held by Blue Raven Solar or another successor entity. This adds complexity to any cancellation attempt.
Sunnova Solar Contract Rescission
Sunnova is a major solar-as-a-service provider. Sunnova solar contracts typically involve leases and PPAs with 25-year terms. The Sunnova solar contract rescission period is 3 business days under federal law.
After the rescission window, Sunnova contracts contain early termination provisions that can result in significant fees. Act fast if you want to cancel.
Momentum Solar, Titan Solar, and Other Common Providers
Many regional and national solar companies operate under the same rescission rules. This includes:
- Momentum Solar
- Titan Solar Power
- Freedom Forever
- Pink Energy (now defunct, but contracts may still be active)
- ADT Solar
- Palmetto Solar
- ION Solar
- Sunova
- GoodLeap (financing arm, not installer)
- Mosaic Solar (financing)
For any of these companies, the rescission process is the same. Send written notice within 3 business days of signing.
What Is a Solar Power Purchase Agreement (PPA) Rescission?
A solar PPA is not a purchase of panels. It is an agreement to buy the electricity the panels produce at a set rate over a long period. PPAs often run 20 to 25 years.
Rescinding a solar PPA follows the same 3-day federal rule. But after the rescission period, canceling a PPA is significantly harder. The solar company owns the panels on your roof. Removing them or transferring the agreement when you sell your home can be complicated.
This is exactly why knowing your rescission rights with a solar PPA matters so much. If you have second thoughts, act immediately.
What Is a Solar Lease Rescission?
A solar lease means you rent the panels from the company and pay a monthly fee. Like a PPA, rescinding a solar lease within the 3-day window is your cleanest option.
After the window closes, solar lease cancellation requires negotiation, attorney involvement, or a specialized solar contract resolution service.
What Does the FTC Cooling-Off Rule Say About Solar?
The FTC Cooling-Off Rule (16 CFR Part 429) gives consumers the right to cancel certain sales contracts within 3 business days. This rule applies when:
- The sale takes place at your home or at a location other than the seller’s regular place of business
- The transaction is worth $25 or more (virtually all solar contracts qualify)
The seller must give you two copies of the cancellation notice and one copy of the contract at the time of sale. If they fail to do this, your rescission window may not start until the notice is properly delivered.
This is a critical protection many homeowners do not know about.
Can a Solar Company Charge a Cancellation Fee During the Rescission Period?
No. During the legally mandated rescission period, a solar company cannot charge you a cancellation fee or penalty. Any attempt to do so is a violation of federal law and potentially state consumer protection laws.
If a solar company tries to enforce a fee within your rescission window, you should:
- Document the attempt in writing
- File a complaint with the FTC at reportfraud.ftc.gov
- File a complaint with your state attorney general
- Consult a consumer protection attorney or solar cancellation specialist
Common Mistakes Homeowners Make With Solar Rescission
- Missing the deadline. Homeowners count the day they signed as day one. It is actually day zero. The clock starts the next day.
- Not sending written notice. A phone call does not count. You need written documentation.
- Not using certified mail. Without proof of mailing date and delivery, the company can dispute your timing.
- Assuming verbal agreements matter. Verbal cancellations have almost no legal standing. Get everything in writing.
- Waiting for the company to confirm before acting. Send the notice. Do not wait for a callback or email response to start the process.
Solar Contract Rescission vs. Solar Contract Cancellation: What Is the Difference?
These terms are often used interchangeably, but they are slightly different.
Rescission is the legal right to cancel within a defined window, usually 3 business days, with no fees or obligations.
Cancellation is a broader term that covers ending a contract at any time, including after the rescission period. Cancellation after the rescission window may involve penalties, negotiation, or legal action.
Knowing which situation you are in determines your options and your costs.
How to Find Your Solar Contract Rescission Notice
Your solar contract should include a Notice of Cancellation form. This is a separate document that the company is required by law to give you. It looks like a simple form with your contract details and a statement of your right to cancel.
If you cannot find this form in your paperwork, that itself may be significant. Companies that fail to provide the notice may have extended your cancellation window. Contact a solar contract specialist to review your specific documents.
State-by-State Solar Rescission Laws
How Does the Rescission Period Work in Texas?
Texas follows the federal 3-business-day rule. Texas does not have a specific solar contract rescission statute beyond the federal baseline. The Texas Finance Code and DTPA (Deceptive Trade Practices Act) provide additional consumer protections if misrepresentation occurred during the sale.
What Is the Florida Solar Contract Cancellation Period?
Florida’s solar contract rescission period is 3 business days under the FTC rule. Florida also has the Florida Home Solicitation Sales Act, which reinforces these rights for in-home sales.
How Long Do You Have to Cancel a Solar Contract in New York?
New York follows the 3-business-day federal standard. The New York Home Solicitation Sales Act (General Business Law Article 10-A) may provide additional protections depending on the circumstances of your sale.
What are the Arizona Solar Contract Cancellation Rights?
In Arizona, the Residential Contractor’s Recovery Fund and the Arizona Registrar of Contractors enforce disclosure rules. Homeowners have 3 business days to rescind solar contracts under the FTC rule.
Closing Remarks
If you are within the rescission window, act now. Put your cancellation in writing, send it via certified mail, and keep copies of everything. If your rescission window has already passed, you still have options. Misrepresentation claims, missing disclosure notices, and contract review can all open doors that seem closed.
That is where Solar Equity Solutions comes in. We are a BBB-accredited solar contract cancellation company. We specialize in all types of solar contract cancellations, including lease cancellations, PPA exits, solar loan rescissions, and post-installation disputes. Reach out to Solar Equity Solutions today.
FAQs
What is the solar contract rescission period?
It is the legal window, usually 3 business days, during which you can cancel a solar contract after signing with no penalty.
Can Sunrun keep my deposit if I cancel within 3 days?
No. Sunrun and all solar companies must refund any deposit you paid if you cancel within the rescission period.
Does the 3-day cancellation rule apply to solar PPAs and leases?
Yes. Solar leases and PPAs signed at your home are covered under the FTC cooling-off rule, giving you 3 business days to cancel.
What if my solar company says I cannot cancel?
A solar company cannot legally deny your right to rescind within the federal 3-business-day window. File a complaint with the FTC and contact a solar contract cancellation specialist like Solar Equity Solutions.