You can cancel a Sungevity solar contract, but the path depends on your agreement type, installation status, and how long ago you signed. Acting fast matters, especially if you are still within your rescission window.
What Was Sungevity?
Sungevity was a U.S. solar company that offered leases and power purchase agreements (PPAs) to homeowners. The company filed for bankruptcy in 2017 and was later acquired, with some contracts transferred to third-party servicers.
If you are dealing with a Sungevity contract today, you may actually be dealing with a successor company or loan servicer. Before you take any action, pull out your original paperwork and confirm who currently holds your agreement. This step is critical and often overlooked.
Your Right to Cancel During The Rescission Period
Under the FTC’s Cooling-Off Rule, most home solicitation contracts give you 3 business days to cancel without penalty. Many states extend this rescission window further, sometimes up to 5 days.
If you signed recently and have not yet had panels installed, a Sungevity solar contract exit during this period is your cleanest and lowest-risk option. You will owe nothing, and the company must refund any deposits.
What Type of Sungevity Contract Do You Have?
Your cancellation options change significantly depending on your agreement type.
| Contract Type | What It Means | Cancellation Difficulty |
| Lease | You rent the panels monthly | Moderate, transfer or buyout options exist |
| PPA (Power Purchase Agreement) | You buy the power, not the panels | Moderate, tied to home sale or buyout |
| Solar Loan | You own the panels, financed through a lender | Depends on lender terms |
| Cash Purchase | You paid upfront | Generally no ongoing obligation |
If you are unsure which type you have, look for language like “monthly lease payment,” “cents per kilowatt-hour,” or “promissory note” in your documents.
How to Cancel Your Sungevity Solar Contract: Step-by-Step
Step 1: Identify the Current Contract Holder
Since Sungevity was acquired, your contract may have been transferred. Check your billing statements or call the number on your most recent invoice. The company servicing your account may be different from the one you originally signed with.
Step 2: Review Your Contract for Exit Clauses
Most solar leases and PPAs include terms for early termination. These often involve a buyout fee calculated based on the remaining months in your contract. Some agreements have a “transfer” clause that lets you pass the contract to a home buyer instead of canceling outright.
Understanding the solar lease vs solar loan distinction is important here, as each carries different exit terms.
Step 3: Send a Written Cancellation Notice
Put your cancellation request in writing. Include your full name, service address, account number, and a clear statement that you are requesting to cancel Sungevity solar panel contract obligations. Send it via certified mail so you have a timestamped record.
Step 4: Request a Payoff or Buyout Amount
If you are outside the rescission window, ask for the formal buyout figure. This is the amount you would pay to get out of Sungevity solar agreement terms early. Compare it against alternatives like transferring the contract if you are selling your home.
Step 5: Check for a UCC-1 Lien
Sungevity and its successors often filed UCC-1 liens against homes with leased panels. This can show up on your title report and complicate a home sale. Know whether a lien exists before you proceed.
Step 6: Get Professional Help If You Are Stuck
If the servicer is unresponsive, quoting unreasonable fees, or you suspect misrepresentation, you have escalation options. You can file a complaint with the Consumer Financial Protection Bureau or your state attorney general. You can also work with a solar contract cancellation firm.
Common Reasons Homeowners Want to Get Rid of Their Sungevity Contract
- The panels are underperforming and not delivering promised savings
- Escalator clauses are raising payments faster than expected
- The company changed after acquisition and service quality declined
- You are selling your home, and the buyer refuses to assume the lease
- You were misled about contract terms, fees, or savings projections
If any of these apply to you, document everything. Misrepresentation can strengthen your position significantly.
What Happens If You Just Stop Paying?
Do not do this without legal guidance. Stopping payments on a solar loan or lease can damage your credit, trigger collections, and in some cases lead to lien enforcement actions. If you are considering this route, first read what actually happens when you stop paying a solar loan.
Can You Cancel Sungevity Solar If You Are Selling Your Home?
Yes, but it takes coordination. If your buyer refuses to assume the contract, you typically have two choices: pay the buyout fee yourself or negotiate with the servicer. Our guide on selling a house with leased solar panels walks through exactly how this works.
Frequently Asked Questions
Is it possible to cancel a Sungevity solar contract after installation?
Yes, but it is harder after panels are installed. You will likely face a buyout fee based on the remaining term of your agreement. Some homeowners negotiate reductions, especially if there were misrepresentations during the sale.
Who holds my Sungevity contract now?
After Sungevity’s 2017 bankruptcy, contracts were transferred to third-party servicers. Check your billing statements or run a UCC lien search on your property to identify the current holder.
Does a Sungevity solar exit affect my credit?
It can, depending on how you exit. Paying a buyout fee or completing a transfer has no negative credit impact. Stopping payments without a formal resolution can lead to collections activity.
Can I transfer a Sungevity lease to a home buyer?
Most solar leases include a transfer option. The buyer must qualify under the servicer’s credit requirements. If they refuse the transfer, you may need to handle the buyout yourself before closing.
What if Sungevity made false promises about my savings?
Document every claim the salesperson made. Misrepresentation during the sales process may give you additional grounds to challenge the contract. A solar cancellation specialist or attorney can help you evaluate your options.
Disclaimer: This article is for informational purposes only and does not constitute legal advice. Every solar contract is different, and your specific rights and options depend on your agreement terms, state law, and individual circumstances.