Quick Answer: To cancel Momentum Solar contract, act within the 3-day rescission window for a penalty-free exit. After that period, review your contract for termination clauses, document any misrepresentation, and consult a solar contract attorney to explore legal options, including the FTC Holder Rule and TILA claims.
Momentum Solar was one of the largest residential solar installers in the United States, operating across more than a dozen states before shutting down operations in early 2022.
Many of its former customers are still locked into financing agreements, leases, and long-term contracts, often with lenders like GoodLeap, Mosaic, or Sunrun, and have no clear path forward.
If you are one of those homeowners, this guide walks you through every realistic option to cancel your Momentum Solar contract, what your legal rights look like at each stage, and what the process actually costs.
The information here draws on federal consumer protection law, including the FTC Cooling-Off Rule (ftc.gov), the Truth in Lending Act as administered by the Consumer Financial Protection Bureau (consumerfinance.gov), and state-level consumer protection statutes.
What Type of Momentum Solar Agreement Do You Have?
Before you take any action, you need to know exactly what you signed. The cancellation rules differ significantly depending on your contract type, and approaching the wrong party with the wrong argument wastes time and can weaken your legal position.
Momentum Solar typically sold systems through one of three arrangements: a solar loan (the most common), a solar lease, or a power purchase agreement (PPA). Each involves different parties, different obligations, and different exit strategies.
With a solar loan, you own the system but owe money to a third-party lender. With a lease or PPA, the leasing company technically owns the panels on your roof while you pay for either the system or the electricity it produces. If you are unsure which you have, look for language like “lessee,” “borrower,” or “kWh rate” in your paperwork. Your monthly statements will also show whether you are paying a lender or an energy company.
Why This Distinction Matters for Cancellation
Loans and leases trigger different legal protections. Solar loans structured as home improvement financing may fall under the Truth in Lending Act (TILA), which gives you specific disclosure rights and potential grounds to challenge the agreement if those disclosures were not made correctly.
Leases often include escalator clauses and transfer obligations that create complications when you try to sell your home.
Knowing your contract type is the essential first step in any Momentum solar contract cancellation process. Get this wrong, and you may end up negotiating with the wrong company entirely.
3-Day Cancellation Window: What Federal Law Guarantees
If you signed recently, federal law gives you a short but powerful window to walk away at no cost.
Under the FTC’s Cooling-Off Rule (16 CFR Part 429), any contract signed at your home gives you three business days to get rid of Momentun Solar Contract without penalty. This applies to door-to-door and in-home sales, which is how the vast majority of Momentum Solar contracts were executed.
Momentum’s own contract language reflected this requirement: customers were notified they could exit Momentum solar agreement prior to midnight of the third business day after signing.
During those three days, you can cancel Momentun Solar contract for any reason for free. You simply need to send a written notice and keep documentation proving it was received. Certified mail with a return receipt is the most reliable method.
Some states extend this window further. California provides additional protections under the Home Solicitation Sales Act. Texas, Florida, and New Jersey each have state-level statutes that may supplement federal rights depending on how the contract was executed.
If you are still within this window, act immediately. Missing this deadline by even one day meaningfully changes your options.
Sample Cancellation Notice (Within 3-Day Window)
Use this as a starting template. Send via certified mail and keep a copy for your records. Have an attorney review before sending if time permits.
[Your Full Name]
[Your Address]
[Date]
To: Momentum Solar / [Lender Name if applicable]
Re: Notice of Cancellation — Contract Dated [Date You Signed]
I am writing to exercise my right to cancel the above-referenced solar agreement under the FTC Cooling-Off Rule (16 CFR Part 429) and applicable state law. This notice is being sent within three business days of contract execution.
I request written confirmation of this cancellation and the return of any deposit or payment made within 10 business days as required by law.
[Your Signature]
[Printed Name]
Send one copy to Momentum Solar’s last known address, one copy to your lender if the loan has already been funded, and keep a copy for your records.
How to Cancel a Momentum Solar Contract After Installation
This is where most homeowners find themselves, and it is where things get genuinely complicated. Once panels are installed and a lender has funded the loan, there is no simple cancellation option. But you are not necessarily without recourse.
The viable path forward depends on which of the following legal grounds applies to your situation. Each one has different documentation requirements, timelines, and realistic outcomes.
Misrepresentation and Sales Fraud
This is the most frequently cited basis for disputing a Momentum Solar agreement. The company faced widespread complaints over misleading sales practices, including promises of specific monthly savings that were never realized, incorrect representations about federal tax credit eligibility, and inflated utility rate projections used to justify system costs.
If a sales representative made statements that were materially false and those statements influenced your decision to sign, you may have grounds for contract rescission based on misrepresentation.
Outcomes vary depending on the quality of documentation, the specific claims made, and the lender’s review process. This is not a guaranteed result, but it is a legitimate legal avenue worth evaluating with an attorney.
One example from a Solar Equity Solutions client: a homeowner came to us after being told her system would significantly reduce or eliminate her electric bill. Her bills dropped by less than 20 percent after installation. With documentation of what was represented during the sales process, her case was submitted to the lender and resolved through a loan cancellation. Results like this depend on the specifics of each situation and are not typical of all cases.
FTC Holder Rule Claims
This is one of the most underutilized consumer protections in solar disputes, and it is particularly relevant given that Momentum Solar is no longer operating.
The FTC Holder Rule (16 CFR Part 433) requires that consumer credit contracts include language making any subsequent holder of the contract subject to all claims and defenses the consumer could raise against the original seller.
In practical terms: if Momentum misled you and your loan was later sold to GoodLeap or another lender, you may be able to raise that misrepresentation as a defense against the lender, even though the lender had no involvement in the original sale.
If your loan agreement contains the required Holder Rule notice (typically beginning with the words “NOTICE — ANY HOLDER OF THIS CONSUMER CREDIT CONTRACT…”), this protection may apply. An attorney can evaluate whether your specific agreement qualifies and what claims may be viable based on your documentation.
TILA Violations
The Truth in Lending Act (15 U.S.C. Chapter 41), administered by the Consumer Financial Protection Bureau, requires lenders to clearly disclose the annual percentage rate, total loan cost, payment schedule, and all material terms before a consumer signs.
If those disclosures were incomplete, inaccurate, or never provided, you may have a right of rescission that extends beyond the standard 3-day window. Under TILA, certain rescission rights can extend up to three years from the date of the transaction in cases of material disclosure failure.
TILA violations are a recognized legal option to get out of a Momentum Solar contract after installation, but they require careful attorney review. The specific disclosures that were or were not made, the structure of the loan, and the timing of your claim all affect whether this applies.
Breach of Contract by Momentum Solar
If Momentum failed to deliver what the contract promised, guaranteed system output, a completed and properly permitted installation, or warranty service, this may constitute a breach of contract, which can potentially release you from your obligations under the agreement.
Given that Momentum Solar ceased operations and left many customers with unserviced systems, unresolved warranty claims, and, in some cases, incomplete installations, breach of contract arguments may be worth exploring. Document the specific obligations Momentum failed to fulfill and compare them directly against the language in your contract.
Momentum Solar Contract Cancellation Fees: What to Expect
If no legal grounds apply to your situation, you may still be able to exit your agreement, but it will likely involve a financial settlement. Understanding the cost to cancel a Momentum Solar contract before you negotiate puts you in a stronger position.
For solar loans, early payoff typically reflects the remaining principal plus any prepayment penalties specified in the loan agreement. Some lenders waive these penalties on request; others enforce them. Always request the exact payoff figure in writing before making any decisions.
For leases, Momentum solar contract termination fees can be significant. Solar lease buyout amounts commonly range from $10,000 to $40,000 or more, depending on system size, remaining contract term, and the formula specified in your agreement. Some leases allow purchase at current fair market value, which may be considerably lower than the formula price on an older system.
If you are selling your home, a lease transfer to the buyer is often the most straightforward exit. However, the buyer must qualify with the leasing company and agree to assume payments, which is not always guaranteed.
Steps to Cancel Your Momentum Solar Agreement: By Scenario
Here is a scenario-based breakdown of the Momentum solar lease cancellation process depending on where you are in the timeline.
1. If you signed within the last 3 business days:
Send a written cancellation notice immediately by certified mail. Use the template above as a starting point and have an attorney review it if possible. Contact your lender separately if the loan has already been funded.
2. If you are past the 3-day window but before installation:
Review your contract for any pre-installation cancellation provisions. Many agreements include a separate window before work begins. Document any discrepancies between what was promised verbally and what the contract actually says.
3. If the system is already installed:
- Step 1: Gather all documents. Collect your contract, loan agreement, installation records, utility bills from before and after installation, and any communications from the sales process including texts and emails.
- Step 2: Identify who currently holds your contract. If Momentum sold your loan, the lender (GoodLeap, Mosaic, etc.) is the entity you will be dealing with directly.
- Step 3: Write down every representation made during the sales process. Compare each claim against your actual experience with savings, tax credits, utility rates, and system performance.
- Step 4: Consult a solar contract attorney before contacting your lender. An attorney can identify whether grounds exist under TILA, the FTC Holder Rule, state consumer protection law, or breach of contract, and advise on how to present your claim effectively.
- Step 5: Submit a formal written dispute to your lender. Reference the applicable legal grounds, include your documentation, and request a written response.
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If you are in Texas (including Houston TX 77040 and surrounding areas):
Texas residents may have additional remedies under the Texas Deceptive Trade Practices Act (DTPA) in addition to federal options. For Momentum solar contract termination in Houston specifically, working with an attorney familiar with both federal solar loan law and the DTPA gives you the broadest set of options.
What Happens If You Stop Paying vs. Filing a Legal Dispute
Understanding what happens if you cancel a Momentum solar contract or stop paying entirely helps you make a more informed decision.
If cancellation proceeds through a formal legal dispute based on grounds like misrepresentation or TILA violations, potential outcomes may include loan modification, partial refund, or, in some cases, full rescission of the agreement.
Specific results depend on documentation quality, the lender’s review process, and applicable law. These outcomes are not guaranteed and vary by situation.
If you simply stop making payments without a formal legal dispute in place, the consequences are more serious. The lender can report delinquency to credit bureaus, pursue collections, and, in some cases, place a UCC-1 lien on your home. Stopping payment without legal guidance in place is not a recommended approach, regardless of how frustrated you may be with the situation.
Local Note: Cancel Momentum Solar Contract in Houston, TX
Momentum Solar operated across the Houston, TX 77040 area and throughout Texas. Texas residents can access the Texas Deceptive Trade Practices Act alongside federal consumer protections, which can meaningfully strengthen claims involving misrepresentation.
For Momentum solar lease cancellation in Houston or elsewhere in Texas, state law may expand your available remedies beyond what federal law alone provides. Consulting a Texas-licensed attorney familiar with solar financing disputes is the recommended first step.
Frequently Asked Questions
Can you cancel a Momentum Solar contract after installation?
In many cases, yes. Legal grounds such as documented misrepresentation, TILA violations, and FTC Holder Rule claims may support cancellation even years after installation. The strength of your case depends on your specific contract terms, what was represented during the sales process, and the documentation available. Consult a qualified attorney to evaluate your situation before taking action.
What is the Momentum Solar termination policy?
Momentum Solar’s contracts included a federally required 3-business-day cancellation window from the date of signing. After that period, exiting the agreement typically requires a buyout payment, a lease transfer to a new homeowner, or pursuing a legal claim based on misrepresentation or contract violations.
How long does the Momentum solar lease cancellation process take?
Timelines vary by situation. Cases with strong documentation and clear legal grounds may be resolved in 60 to 120 days. Cases requiring extended lender negotiation or formal legal proceedings take longer. An attorney familiar with solar contract disputes can provide a more accurate estimate once they have reviewed your specific agreement.
What are the legal options to cancel a Momentum Solar contract?
The primary legal avenues are: rescission based on misrepresentation during the sales process, TILA violation claims, FTC Holder Rule defenses raised against third-party lenders, breach of contract where Momentum failed to fulfill its obligations, and state consumer protection law claims such as the Texas DTPA.
How do I exit a Momentum solar agreement if I am selling my home?
The most common options are a lease transfer to the buyer (subject to lender approval and buyer qualification), a buyout at the formula or fair market value price, or pursuing legal cancellation if grounds exist. Disclose the solar agreement to potential buyers as early as possible.
Conclusion
At Solar Equity Solutions, our attorney-led team has worked with more than 5,000 homeowners on solar contract disputes, loan cancellations, and lender negotiations.
We are BBB accredited and work through a clear 3-step process: review your contract and situation, identify the applicable legal grounds, and pursue your cancellation or dispute on your behalf. If you are stuck in a Momentum Solar agreement and want an honest assessment of your options, we are glad to take a look.