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GoodLeap Solar Loan in California: How to Get Out in 2026

Wed, 20 May 2026 21:24:02 GMT

GoodLeap Solar Loan in California: How to Get Out in 2026

If you signed a GoodLeap solar loan in California — whether the paperwork said GoodLeap, Loanpal, or Paramount Equity — and you're now realizing the loan balance doesn't match what your installer quoted, you're not imagining it. You're looking at one of the most aggressively investigated lending practices in the residential solar industry, and as a California homeowner, you have more leverage than GoodLeap's customer service line will ever tell you.

This guide walks through what GoodLeap actually is, why the loan balance is almost always larger than the system price, what the Minnesota Attorney General lawsuit and the 2024 Kneupper & Covey arbitration ruling mean for California borrowers in 2026, and what your real exit options look like — buyout, refinance, transfer, complaint, arbitration, or full cancellation under California consumer protection law .

If you'd rather skip the reading and have someone look at your specific contract, you can call California Solar Exit at (213) 579-5156 for a free review. Otherwise, keep going — this is the long version.

Who is GoodLeap, and why does the name on my paperwork keep changing?

GoodLeap is a fintech lender headquartered in Roseville, California, with additional offices in San Francisco, Irvine, and Phoenix. The company was founded in 2003 as Paramount Equity, rebranded to Loanpal in 2017, and rebranded again to GoodLeap in 2021. If your original loan documents say "Loanpal" or "Paramount Equity," it's the same company — and it's the same loan.

GoodLeap is the largest residential solar lender in the United States by loan volume. It has facilitated more than $30 billion in loans to over 1 million homeowners across all 50 states. The company does not sell solar panels, install systems, or service equipment. It writes the loan, collects the payments, and partners with thousands of solar installers who present GoodLeap financing at the point of sale — usually in your living room, on a tablet, after a 90-minute pitch.

That structure — a three-party relationship between you, the installer, and GoodLeap — is exactly where most California homeowners get hurt. When the system underperforms or fails, the installer points at GoodLeap, and GoodLeap points at the installer. Your payment is still due on the first of the month regardless of who's at fault. This dynamic is especially brutal when the installer goes out of business, which is exactly what happened to thousands of Sunnova customers after the 2025 Chapter 11 filing .

The dealer fee: where most of your loan balance actually comes from

Here is the single most important sentence in this entire article: the amount on your GoodLeap loan is almost certainly not what your solar panels cost.

GoodLeap, like every major solar fintech lender, charges what the industry calls a "dealer fee" — a markup that gets baked into the loan principal but does not appear as a separate line item. The CFPB has documented dealer fee practices that can increase the loan principal by 30 percent or more above the actual cash price of the system. Independent analysis of GoodLeap loans specifically has found dealer fees ranging from 10 percent to over 35 percent of the system cost, with averages in the high teens.

The Minnesota Attorney General sued GoodLeap, Sunlight Financial, Solar Mosaic, and Dividend Solar in 2024 alleging that these four lenders concealed approximately $35 million in dealer fees from Minnesota consumers alone since 2017. According to the Minnesota complaint, GoodLeap's average fee runs around 19.32 percent of each loan, with an average dollar amount of $7,552.19 added to the consumer's loan balance — money the homeowner never agreed to pay because they were never told it existed.

Here's a concrete California example. If your installer quoted you a $25,000 solar system and you financed through GoodLeap at a typical 19 percent dealer fee, your actual loan principal is closer to $30,750. Over a 25-year term at 5.99 percent APR, that hidden $5,750 turns into roughly $11,200 in real cost when interest is layered on. On a $40,000 system, the same math pushes the hidden cost above $18,000. (If you have a PPA instead of a loan, the equivalent 25-year cost driver is the escalator clause — different mechanism, same long-term damage.)

The reason you didn't see it: dealer fees are frequently described in the loan documents only as something the purchase price "may include," without specifying the amount. In some cases, the Center for Responsible Lending has documented that installers are contractually forbidden from disclosing the markup. The Federal Consumer Financial Protection Bureau has compared the structure to subprime mortgage lending — not as rhetoric, but as a regulatory framing.

If you live in California and your loan was originated through a door-to-door sale or a high-pressure in-home presentation, the dealer fee almost certainly was not disclosed in a way that meets California's Home Solicitation Sales Act (HSSA) standards. That matters. We'll come back to it.

The arbitration clause is doing a lot of work

Every GoodLeap and Loanpal loan agreement contains an arbitration clause. These clauses require you to resolve disputes through individual binding arbitration rather than in court, and they explicitly prohibit you from filing or joining a class action lawsuit.

This is why the long-rumored "GoodLeap class action" has not materialized into a meaningful payout for California consumers. Attorneys who have evaluated the arbitration clause — including those who have litigated against GoodLeap directly — generally agree that a court is unlikely to strike it down in its entirety. Even when class actions do move forward, the typical outcome is large attorneys' fees and small individual settlements, often a few hundred dollars per consumer. This is a meaningfully different posture from the Vivint Solar $4.3M settlement , where the underlying claims targeted installer conduct rather than lender conduct.

The good news, if you can call it that, is that arbitration is not always bad for the homeowner. In July 2024, Kneupper & Covey won a binding arbitration against GoodLeap before a former Chief Justice of the Georgia Supreme Court. The arbitrator held GoodLeap responsible for the conduct of its installer partner (Pink Energy) under an agency theory of liability. The client received around $13,000 in damages, her $90,000 GoodLeap loan was cancelled in its entirety, and GoodLeap was ordered to pay her attorneys' fees on top of it.

That ruling does not bind California arbitrators, but it is a published precedent that solar consumer attorneys now cite when negotiating with GoodLeap on California cases. The leverage works in both directions: GoodLeap knows that if your case goes to arbitration and you have a competent consumer protection attorney, the downside risk to GoodLeap can include full loan cancellation plus fee-shifting.

Why California is a stronger venue than almost any other state

California has the most aggressive consumer protection statutes in the country for solar contract disputes. The relevant frameworks include:

The Home Solicitation Sales Act (Civil Code §§ 1689.5–1689.15) governs any contract signed in your home and gives you a three-day right of rescission. That window is short, but HSSA violations — including failure to provide the required Notice of Cancellation, failure to translate the contract into the language of negotiation, and missing disclosures — can extend the rescission period indefinitely and void the contract. We walk through the full HSSA cancellation framework here .

The Consumer Legal Remedies Act (Civ. Code § 1750 et seq.) prohibits deceptive practices in consumer transactions and authorizes actual damages, restitution, injunctive relief, and attorneys' fees.

California Business & Professions Code § 17200 (the Unfair Competition Law) reaches business practices that are unlawful, unfair, or fraudulent — a deliberately broad standard that captures dealer fee concealment cleanly.

The Solar Energy System Disclosure Document required by California law mandates specific disclosures about system production, financing terms, and contractor information. Missing or materially inaccurate disclosures support a cancellation claim.

If your GoodLeap loan was originated in California through an installer who used misleading production estimates, failed to provide Spanish-language documents to a Spanish-speaking homeowner, concealed the dealer fee, or pressured a senior into signing on a tablet — these are not "complaints," they are statutory violations. And under California's fee-shifting provisions, a contingency-fee consumer protection attorney is economically viable on cases that would not be in most other states.

Your real exit options in 2026

There are five legitimate paths out of a GoodLeap loan in California. They are not mutually exclusive, and the right one depends on your specific contract, your equity position, and whether the system is functioning. If you're not sure which applies, our cancellation services page walks through how we triage cases.

1. Payoff or buyout from cash, equity, or a HELOC

If you have the cash or accessible home equity, paying off the GoodLeap loan removes the lien and frees the title. This is the cleanest option but also the most expensive in absolute dollars, because you're paying off the inflated principal that includes the dealer fee.

Most California homeowners with significant equity find that a HELOC at 7–9 percent is cheaper over the remaining loan term than the all-in GoodLeap cost when dealer fees are amortized. Run the math both ways before assuming a payoff is too expensive — our 25-year cost calculator handles the comparison.

2. Refinance through a credit union or local bank

Several California credit unions — including Provident, SchoolsFirst, and various community lenders — offer unsecured or home-equity-backed solar refinance products. The refinance typically pays off GoodLeap directly and replaces the loan with a transparent product that has no dealer fee, no installer kickback, and clearer terms.

The catch: the refinance amount equals the GoodLeap payoff, so the dealer fee remains in the principal. Refinancing improves the terms but does not recover the markup.

3. Loan transfer at sale of home

If you're selling your California home, GoodLeap allows loan transfer to a qualified buyer, but the assumption process is restrictive enough that two buyers have routinely walked away from deals after seeing the terms. Some California sellers have reported losing $10,000 deposits to GoodLeap when the assumption couldn't close. The dynamics are similar to what we documented for Mosaic loan transfers at sale — same lien problem, slightly different paperwork.

The alternative at sale is full payoff at escrow out of your equity proceeds. Plan for this before you list the home, not after you're in contract.

4. BBB and regulatory complaint

GoodLeap maintains an A rating with the BBB despite over 1,000 complaints in three years, but BBB complaints do produce written responses and occasionally negotiated relief. The more leverage-producing complaints in California go to:

The California Department of Financial Protection and Innovation (DFPI), which has authority over consumer lenders and has taken action against other dealer-fee schemes
The California Attorney General's Public Inquiry Unit
The Contractors State License Board (CSLB) if the installer is at fault
The CFPB for federal Truth in Lending Act and UDAAP violations

Filing a regulatory complaint in parallel with retaining counsel substantially increases settlement leverage.

5. Arbitration with consumer protection counsel

This is the path that produces the largest outcomes when the case is strong. The Kneupper & Covey precedent and the broader litigation environment around dealer fees mean that GoodLeap is increasingly willing to negotiate principal reductions, full cancellations, or settlements rather than risk an arbitration loss with fee-shifting. The typical case profile that works:

The system was sold door-to-door or in a high-pressure in-home pitch
Production estimates were materially inflated relative to actual output
The dealer fee was not disclosed at the point of sale
The contract was signed by a senior, a non-English speaker, or someone with limited capacity to consent
The installer has gone out of business, was unlicensed, or has a pattern of complaints

If any of those apply to your situation, the case is worth a free review with a California solar contract attorney before you make another payment.

What about the 2025 Solar for All cuts and the political environment?

In October 2025, California Attorney General Rob Bonta joined a multistate coalition suing to block the EPA's termination of the $7 billion federal Solar for All program. The federal funding environment for residential solar is the most hostile it has been in a decade, which has two effects on existing GoodLeap borrowers:

First, the secondary market for solar loan portfolios has tightened. GoodLeap has more incentive in 2026 than in 2024 to retain performing loans on its books, which translates to more willingness to negotiate principal reductions to avoid default and litigation.

Second, the political environment means California state-level enforcement is increasingly the only enforcement available. The DFPI, the California AG, and the CSLB are the agencies that matter for solar contract disputes in 2026. Federal CFPB enforcement under the current administration is effectively dormant.

For California homeowners, that means the relevant question is not "is anyone going to do something about this nationally" but "what does my California-specific exit path look like in the next 90 days."

A short FAQ

Is GoodLeap going out of business? No. GoodLeap is the largest residential solar lender in the US and is not in bankruptcy. Unlike Sunnova, which filed Chapter 11 in 2025 , GoodLeap is operationally stable. That actually makes negotiation easier — there's a real counterparty with assets to protect.

Can I stop paying my GoodLeap loan while I dispute it? California Solar Exit does not advise for or against payment or non-payment of any financial obligation. Stopping payments without a written settlement, forbearance, or court order will damage your credit and may trigger lien enforcement on your home. Always talk to counsel before changing your payment behavior.

Will GoodLeap put a UCC-1 fixture filing or mechanic's lien on my home? GoodLeap typically files a UCC-1 fixture filing that attaches to the solar equipment, not a traditional mortgage lien on the real property. However, that fixture filing will absolutely show up in title work and can block or delay a home sale. Treat it as a lien for practical purposes.

My loan is in my deceased parent's name — am I still on the hook? Depends on whether you inherited the home and whether the loan was assumed. This is a fact-specific question and worth a free review before you do anything else.

Does GoodLeap have to release the lien if I pay off the loan? Yes. Once the loan is paid in full, GoodLeap is required to terminate the UCC filing. Get it in writing and verify the termination on the California Secretary of State business filings portal.

How long does cancellation take? A clean rescission inside the HSSA window can resolve in days. A negotiated settlement typically resolves in 60–180 days. A contested arbitration can take 9–18 months. Every case is different — start with a free review to see where yours lands.

What to do this week

If you're a California homeowner with a GoodLeap solar loan and any of this sounds familiar, three steps:

First, pull your loan documents and the original solar contract. Look for the cash price of the system versus the financed amount. The difference is the dealer fee.

Second, document everything the installer told you that turned out to be false — production estimates, tax credit promises, utility bill elimination claims, "the system pays for itself." Save emails, voicemails, and any marketing materials.

Third, get a free review . California Solar Exit reviews GoodLeap contracts at no charge and walks through your specific options. We don't advise for or against payment. We don't promise outcomes. We tell you what your case looks like under California law, what the realistic exit paths are, and what they cost.

Call (213) 579-5156 or book a consultation at californiasolarexit.com. The review is free. The clock on some of your rights is not.

About the Author

Daniel Merritt is a Senior Solar Contract Analyst at California Solar Exit with over a decade of experience evaluating residential solar lease, PPA, and loan agreements under California consumer protection law. He has reviewed thousands of GoodLeap, Mosaic, Sunnova, Sunrun, and Tesla contracts for homeowners across Los Angeles, Orange County, San Diego, the Inland Empire, and the Central Valley.

Disclaimer

California Solar Exit is a consumer advocacy firm. This article is for general informational purposes and does not constitute legal advice. Responding to or contacting California Solar Exit does not create an attorney-client relationship. Individual results vary. Not all solar contracts qualify for cancellation. If you are experiencing financial hardship, we encourage you to contact GoodLeap directly first, as hardship programs may be available.

Solar PPA Escalator Clause in California: What It Really Costs You Over 25 Years

Tue, 19 May 2026 22:01:55 GMT

Solar PPA Escalator Clause in California: What It Really Costs You Over 25 Years

If you signed a solar Power Purchase Agreement (PPA) or solar lease in California, there is one clause buried in your contract that quietly decides whether you actually save money or end up paying more than the utility you were trying to escape: the annual rate escalator .

It's usually one sentence. It's usually somewhere between page 4 and page 8. And it is doing more to your monthly bill than any other line in the document.

This guide breaks down exactly what a solar PPA escalator clause is, the math on what it costs California homeowners over 20 to 25 years, and what to do if yours is too high or was never properly explained to you before you signed.

What Is a Solar PPA Escalator Clause?

A solar PPA escalator clause is a contract provision that increases the per-kilowatt-hour (kWh) rate you pay for solar electricity every year for the entire term of the agreement — typically 20 or 25 years.

In a Power Purchase Agreement, you don't own the solar panels. A third party — companies like Sunrun, Sunnova, SunStrong (which now services former Sunnova contracts), Tesla, or the former Vivint Solar accounts now under Sunrun — installs them on your roof and sells you the electricity those panels produce. You pay a per-kWh rate that's supposed to be lower than what Southern California Edison, PG&E, SDG&E, SMUD, or your local Community Choice Aggregator charges.

The escalator is what makes that rate go up year after year. The most common escalators in California PPAs are 0.99%, 1.99%, 2.9%, and 2.99%. A "fair" escalator falls between roughly 0.99% and 2.99%. Anything at or above 3% should be treated as a red flag. Industry watchdogs and consumer advocates flag escalators above 2.99% as predatory because they often outpace actual utility rate increases over the contract term.

Here's the key sentence to look for in your contract: "The price per kilowatt-hour shall increase annually by [X]% on each anniversary of the System Activation Date." That's your escalator.

How Escalators Compound: The 25-Year Math

The trap with escalator clauses isn't the percentage itself — it's how that percentage compounds over decades.

Consider a Riverside County homeowner who signs a 25-year Sunrun PPA at $0.18/kWh with a 2.9% annual escalator. That looks great compared to a $0.32/kWh SCE bill. But here's what happens to that rate:

Year 1: $0.180/kWh
Year 5: $0.202/kWh
Year 10: $0.233/kWh
Year 15: $0.269/kWh
Year 20: $0.310/kWh
Year 25: $0.358/kWh

By year 25, that homeowner is paying nearly double what they started at — and potentially more than what SCE charges if utility rates flatten or new fixed-charge structures (like PG&E's Base Services Charge launching March 2026) shift more cost off per-kWh rates.

Run the same math at a 3.9% escalator and the year-25 rate hits roughly $0.466/kWh. A $275 monthly payment in year one becomes more than $620 by year 25. That's not solar savings. That's a 25-year liability dressed up as a clean-energy investment.

Why Escalators Made Sense (Until They Didn't)

The original logic behind escalators was reasonable. Utility rates rise over time, so the PPA company built in an annual increase to keep their solar rate "competitive" with the grid — supposedly while still saving you money.

Over the last 25 years, U.S. utility rates have increased an average of about 2.67% annually. So a 1.99% or even 2.5% escalator could legitimately keep PPA pricing below grid rates over a contract term.

But California is now a different market:

NEM 3.0 has gutted export credits. Under California's current net metering rules, the credit you receive for exporting excess solar to the grid is roughly 75% lower than it was under NEM 2.0. That means PPAs designed under the old credit structure no longer deliver the same savings — but the escalator keeps climbing anyway.
The 30% federal solar tax credit (25D) ended December 31, 2025. PPAs are now even more aggressively marketed as the "no upfront cost" option to fill the gap left by homeowners losing direct tax credit access. New PPA pitches in 2026 are often hiding higher base rates and steeper escalators behind that messaging.
California utilities are restructuring how they bill you. PG&E's new Base Services Charge starts March 2026, lowering the per-kWh rate by roughly $0.05–$0.07 while adding a fixed monthly charge. SCE customers absorbed a roughly 13% rate hike starting on October 2025 bills, recovered over 24 months. The point: per-kWh utility rates are no longer climbing in a straight predictable line, but your PPA escalator is. The math the salesperson showed you in 2021 or 2023 doesn't hold up.
Resale problems. From Bakersfield to Chula Vista to Rancho Cordova, real estate agents are reporting that buyers walk away from homes with high-escalator PPA contracts. A 25-year obligation tied to your roof — with payments that double — is a closing-killer.

How to Find the Escalator in Your Contract

The escalator clause is rarely labeled "escalator" in the actual document. Here's what to search for in your PPA or solar lease:

"Annual price adjustment"
"Annual rate increase"
"Price escalator"
"Annual escalation rate"
"Adjustment factor"
"Schedule of payments" (sometimes presented as a 25-year table you can reverse-engineer the % from)

You're looking for a percentage figure. Common values: 0.99%, 1.49%, 1.99%, 2.5%, 2.9%, 2.99%, 3.5%, 3.9%, 3.99%.

If you can't find it, that's itself a problem. Every legitimate PPA has one (or explicitly states "0% escalator" / "fixed rate"). If a salesperson told you your rate was "locked in" but the contract has an escalator clause, you may have a verbal misrepresentation claim under California consumer protection law.

What Counts as a Predatory Escalator in California?

Based on patterns we see across thousands of California PPA contracts, here's the rough framework:

EscalatorRisk LevelNotes0% (fixed)NoneIncreasingly rare. Best case.0.99% – 1.99%LowReasonable inflation hedge.2.0% – 2.9%ModerateIndustry standard. Verify it was disclosed clearly.2.99%HighRight at the edge of what consumer advocates flag.3.0% – 3.5%PredatoryLikely to outpace utility increases in CA.3.99%+Severely predatoryOften paired with other red flags (inflated production estimates, balloon buyouts, AHJ-incompatible designs).

A predatory escalator on its own may not be enough to legally cancel a contract. But combined with one or more of the following, it builds a real case under California law:

The escalator was not verbally disclosed during the sales pitch
Production estimates were inflated and you've never hit projected output
The salesperson said your rate was "locked" or "fixed"
You were 65+ or a non-native English speaker at signing
The contract was signed during a high-pressure home visit
A UCC-1 lien was filed on your home without clear disclosure (more on this in our UCC-1 lien guide )

What to Do If Your Escalator Is Too High

You have more options than the solar company will tell you. In order of least to most aggressive:

1. Run the actual numbers. Pull your contract. Find the escalator. Use our solar payment calculator to project what you'll pay in years 10, 15, 20, and 25. Compare that to current SCE, PG&E, or SDG&E rates plus a realistic 2.5% annual utility increase. If your PPA rate crosses your projected utility rate before year 20, you're losing money on the deal.

2. Request the buyout quote. Most PPAs allow a buyout at year 5, 6, or 7 — often at fair market value, sometimes at a pre-set schedule. Get the number in writing. It is often higher than homeowners expect because the PPA company prices it to capture remaining contract value.

3. Try to transfer the contract on home sale. If you're selling, the PPA can be transferred to the buyer — but only if the buyer agrees and meets the financing company's credit requirements. Many won't.

4. Cancellation under California consumer protection law. This is the route we focus on. California has strong contract cancellation grounds when there's been misrepresentation, deceptive sales practices, elder financial abuse, or violations of the Home Solicitation Sales Act and the Solar Consumer Protection Guide disclosure requirements. A high escalator alone isn't usually enough — but a high escalator that was never disclosed, paired with other contract failures, often is.

If you're not sure which category you fall into, a free contract review will tell you within a few days. Start with our main solar cancellation guide to see the full framework.

Frequently Asked Questions

What is a good escalator rate on a California solar PPA?

A 0% (fixed) escalator is best. Between 0.99% and 1.99% is reasonable. Anything between 2% and 2.99% is industry standard but should be carefully compared against projected utility rate increases. At 3% or above, the escalator is likely to outpace utility rates over the 25-year term and erode your savings.

Is a 2.9% escalator on a solar PPA predatory in California?

2.9% sits at the high end of "standard" but is not automatically predatory. The bigger question is whether the escalator was clearly disclosed at signing and whether the system is actually producing the energy that was promised. If a salesperson described your rate as "locked" or "fixed" and the contract contains a 2.9% escalator, that's a potential misrepresentation issue under California consumer protection law.

Can I cancel my solar PPA in California because the escalator is too high?

Not on the escalator alone, in most cases. But escalators are rarely the only issue. Most cancellable California PPA contracts have multiple defects: undisclosed escalators, inflated production estimates, missing or improper Home Improvement Sales Act disclosures, elder financial abuse signals, or undisclosed UCC-1 liens. A free contract review can identify whether your specific contract qualifies.

How does a PPA escalator interact with NEM 3.0?

NEM 3.0 cut the value of exported solar energy by roughly 75% versus NEM 2.0. If your PPA was designed under NEM 2.0 assumptions, you're producing the same kWh but receiving far less credit for excess production sent to the grid. Meanwhile, your escalator continues to raise your per-kWh PPA rate every year. The two together can flip a "savings" contract into a net-loss contract within 7 to 10 years.

Does the escalator stop if utility rates fall?

No. The escalator is contractual and continues regardless of what SCE, PG&E, or SDG&E does. Most PPAs include a "rate cap" clause that promises the PPA rate will never exceed the avoided utility rate — but that cap is often poorly defined, weakly enforced, and excludes fixed charges like PG&E's new Base Services Charge starting March 2026.

Will the escalator transfer to a new buyer if I sell my house?

Yes — that's the whole point of contract assumption. The new buyer takes over the existing rate plus all remaining escalator increases for the rest of the term. This is one of the most common reasons California home sales fall through when a PPA is on the property. If the buyer refuses to assume the contract, the homeowner must either pay the buyout or face termination penalties.

What's the difference between an escalator and a "fixed-rate" PPA?

A fixed-rate PPA locks in the same per-kWh price for the entire contract term — no annual increases. An escalating PPA starts at a lower per-kWh rate but increases every year by the agreed escalator percentage. Fixed-rate PPAs have a higher starting rate but lower lifetime cost. Escalating PPAs look cheaper in year 1 and 2, then quietly become more expensive over the back half of the contract.

My salesperson said the escalator was "just inflation" — is that true?

Inflation has averaged closer to 3.2% over the last several years, but California utility rate increases haven't moved in lockstep with inflation, and the per-kWh portion of your bill is increasingly being restructured (see PG&E's 2026 Base Services Charge). Calling the escalator "just inflation" oversimplifies a clause that compounds over 25 years and is paid on every kWh, not just inflation-sensitive overhead.

The Bottom Line for California Homeowners

The escalator clause is the single most overlooked line item in California solar PPAs — and the one most responsible for homeowners realizing, five or ten years in, that the contract isn't saving them what they were promised.

If your escalator is at or above 3%, if it was never clearly disclosed at signing, or if your salesperson told you the rate was "locked" when it isn't — you may have legal grounds to cancel under California consumer protection law.

A free contract review takes about 15 minutes. We'll pull your specific escalator, run the 25-year math against current utility projections, and tell you whether your contract has cancellable defects.

Get a Free Solar Contract Review →

Or call (213) 579-5156 and speak with our team directly.

How to Cancel a Solar Contract After Signing in California (2026 Homeowner Guide)

Mon, 18 May 2026 23:20:26 GMT

How to Cancel a Solar Contract After Signing in California (2026 Homeowner Guide)

You signed. Maybe last night at the kitchen table in Bakersfield. Maybe at a Costco kiosk in Burbank. Maybe at a "free energy assessment" appointment in Riverside that turned into a 3-hour pitch and a DocuSign by 10pm. Now it's the next morning, you've reread the contract, and your stomach is in your throat.

Here is the short answer most California homeowners need before anything else: yes, you can cancel a solar contract after signing in California — and the window is wider than the salesperson told you.

The 3-day federal rescission rule is the floor, not the ceiling. California consumer protection law, the Home Solicitation Sales Act, the Solar Consumer Protection Guide requirement, and recent enforcement actions from the California Department of Financial Protection and Innovation (DFPI) have stacked up real exit paths for homeowners who signed under pressure, signed based on false savings claims, or signed without ever receiving required disclosures.

This guide walks through every option, on every timeline — from "I signed 6 hours ago in Fresno" to "I signed 3 years ago in San Diego and I just realized the lease was never recorded properly."

Quick Answer: Can I Cancel a Solar Contract After Signing in California?

Yes. California homeowners have at least four separate cancellation paths after signing a solar lease, PPA, or loan contract:

3-day federal right of rescission — works for any in-home or off-premises sale (most California rooftop deals qualify)
California Home Solicitation Sales Act — extends and strengthens the federal 3-day rule for door-to-door and in-home sales
Solar Consumer Protection Guide violation — California requires this guide to be delivered and signed before the contract; if it wasn't, the contract is voidable
Misrepresentation, fraud, or unconscionability claims — no time limit if the company lied about savings, ownership, tax credits, or financing terms

Which path applies to you depends on where you signed, when you signed, what you were told, and what paperwork you actually received. Most California homeowners qualify for at least one. Many qualify for two or three at once.

The 3-Day Rule: What It Actually Says (And What the Salesperson Didn't Tell You)

The federal "cooling-off rule" — formally the FTC's Cooling-Off Rule, 16 CFR Part 429 — gives consumers three business days to cancel any sale of $25 or more that takes place at the buyer's home or anywhere other than the seller's permanent place of business.

For California rooftop solar, this covers:

Contracts signed at your house (the most common scenario in Anaheim, Sacramento, San Jose, and basically every California suburb)
Contracts signed at a temporary location — Costco kiosks, Home Depot tables, county fair booths, mall pop-ups
Contracts signed at a "free energy assessment" appointment held at your residence

Three business days means 72 hours, excluding Sundays and federal holidays , starting the day after you sign. If you signed Thursday evening in Long Beach, your cancellation deadline is end-of-business Monday. If you signed the Friday before Memorial Day weekend in Pasadena, your deadline pushes to Wednesday.

The cancellation must be in writing. A phone call doesn't count. A text to the salesperson doesn't count. You need a dated, written notice — email is fine, certified mail is better, both is best — sent to the address listed on your contract's Notice of Cancellation form.

If the company never gave you a Notice of Cancellation form, the 3-day clock never started. This is one of the most common violations in the California rooftop solar industry, and it means homeowners in places like Stockton, Modesto, Fontana, and Oxnard can sometimes cancel contracts months or years after signing — because the rescission window technically never opened.

The California Home Solicitation Sales Act: Stronger Than the Federal Rule

California Civil Code § 1689.5–1689.14 — the Home Solicitation Sales Act (HSSA) — applies on top of the federal rule and gives California homeowners stronger protections than residents of any other state.

Under the HSSA, for any contract over $25 signed at a place other than the seller's main office:

The seller must provide the cancellation notice in the same language used in the sales pitch. A Spanish-language pitch in East LA, Boyle Heights, or the Coachella Valley requires a Spanish-language cancellation notice. Vietnamese pitch in Westminster or Garden Grove requires Vietnamese paperwork. Tagalog pitch in Daly City requires Tagalog paperwork. If the contract is English-only but the pitch wasn't, the contract is voidable.
The cancellation notice must be attached to the contract and clearly identified.
The buyer must be told orally of their right to cancel at the time of signing.
Failure to comply with any of these requirements means the 3-day window never starts running.

This is the single most-violated statute in California's rooftop solar industry. Door-to-door reps in Riverside County, Sacramento County, and the Central Valley routinely sign Spanish-speaking and Vietnamese-speaking homeowners on English-only paperwork. Every one of those contracts is voidable today, regardless of how many months or years ago it was signed.

The Solar Consumer Protection Guide: California's Hidden Cancellation Path

In 2018 California passed AB 1070, which required the California Public Utilities Commission to develop a standardized Solar Consumer Protection Guide. Since 2019, every California rooftop solar contract is required by law to include this guide, delivered to the homeowner before the contract is signed, with the homeowner's signature acknowledging receipt.

If you didn't receive the Solar Consumer Protection Guide, or you received it after signing, or the company forged your initials on the acknowledgment page (which happens), the contract violates California law and is subject to cancellation.

Pull out your contract right now. Look for a document titled "Solar Consumer Protection Guide" or "Solar Energy System Disclosure Document" — typically 10–14 pages, with a signature block on the last page dated before the contract date. If it's missing, dated the same day or after the contract, or you don't remember ever seeing it, you have a cancellation case.

This is a particularly powerful path for homeowners who signed during the 2020–2023 rooftop solar boom in the Inland Empire, the High Desert, and Central Valley markets like Visalia, Tulare, and Merced, where high-pressure door-to-door operations were systematically skipping the guide.

The Misrepresentation Path: When the 3-Day Window Doesn't Matter

The three paths above are timing-based. The fourth path — misrepresentation, fraud, or unconscionability — has no expiration date as long as you can show the company materially misled you.

The most common misrepresentations California Solar Exit sees:

"This will eliminate your electric bill." Almost no California solar system fully eliminates an electric bill. Between non-bypassable charges, minimum delivery fees, NEM 3.0 export rates, and seasonal usage variance, most homeowners in PG&E, SCE, and SDG&E territory still pay $20–$80/month after solar. If the salesperson promised a $0 bill, that's a misrepresentation claim.
"You'll own the system." Lease and PPA customers in Chula Vista, Elk Grove, and Santa Clarita are routinely told they "own" the panels. They don't. The financing company does. The lien is on the home.
"The 30% tax credit will cover your first payment." PPA and lease customers don't qualify for the federal solar tax credit. Only owners do. Telling a PPA customer they'll get the ITC is a misrepresentation claim — and one DFPI has cited repeatedly in enforcement actions against companies like Solgen Power and Pink Energy.
"This payment is locked for 20 years." Most California solar leases have a 2.9–3.9% annual escalator. The $129/month quote becomes $230/month by year 20. If the escalator wasn't explained, it's a misrepresentation.
"This is a government program." No. Solar leases are private contracts with private companies. California doesn't run a residential solar program.

Misrepresentation claims don't require you to prove the company intentionally lied — only that the statement was material, false, and induced you to sign. California's Consumers Legal Remedies Act (Civil Code § 1750) and Unfair Competition Law (Business & Professions Code § 17200) both provide cancellation, restitution, and attorney's fees for misrepresentation claims.

For the full breakdown of every cancellation route under California law, see our pillar guide: Solar Cancellation in California: The Complete 2026 Guide .

Step-by-Step: How to Cancel a Solar Contract After Signing

If you signed in the last 72 hours

Stop all installation work immediately. Email the installer, the salesperson, and the financing company. Tell them in writing that you are exercising your right of rescission and they are to halt all work, permit applications, and equipment deliveries.
Find your Notice of Cancellation form. It should be attached to your contract. If you can't find it, that's its own cancellation ground (see the HSSA section above).
Send written cancellation by email AND certified mail. Email creates a timestamp. Certified mail creates a USPS-tracked legal record. Do both. Send to every address listed on the contract — the installer, the financing company (Mosaic, GoodLeap, Sunlight Financial, Dividend, etc.), and the sales company if it's separate.
Document everything. Photos of any equipment dropped off. Screenshots of every text. Voicemails saved. Names and dates of every phone call.
Do not let them install anything. Once panels are on the roof, your leverage drops sharply. Block the install at the curb if you have to.

If you signed more than 72 hours ago

Pull every document the company gave you. Contract, Solar Consumer Protection Guide, Notice of Cancellation form, financing disclosures, UCC-1 filings (more on this in our Solar Lien on Your House guide ).
Write down what you were told. Savings promises. Tax credit promises. "Free panels" claims. "Government program" claims. Names of every rep. Dates of every appointment. The more specific, the stronger the misrepresentation claim.
Check the language used in your sales pitch vs. the contract. Mismatch = HSSA violation = voidable contract.
Get a contract review. California Solar Exit offers free reviews for California homeowners. We'll tell you within one phone call which paths apply to your specific contract.

What Happens After You Cancel

A valid cancellation in California means:

The contract is void. No further payments owed.
Any panels installed must be removed at the company's expense. Not yours.
Your roof must be restored. Penetrations sealed, decking replaced if damaged.
Any UCC-1 lien must be terminated. This is the part most homeowners forget. Even after a contract is canceled, the financing company's UCC-1 filing on your home can linger and block a sale or refinance. Get a written lien release in writing.
Any deposit or upfront payment must be refunded within 10 business days of cancellation notice (Civil Code § 1689.7).

If the company refuses, the next step is a formal demand letter and, if needed, litigation. California's consumer protection statutes include attorney's fee shifting, so most reputable consumer protection firms — including the team California Solar Exit works with — take qualifying cases on contingency.

Frequently Asked Questions

Can I cancel a solar contract after signing in California if I'm past the 3-day window? Yes. The 3-day rule is only one of four cancellation paths under California law. If the company violated the Home Solicitation Sales Act, failed to deliver the Solar Consumer Protection Guide, or misrepresented savings, tax credits, or ownership, the contract is cancellable regardless of how long ago you signed.

Do I have to give a reason to cancel within 3 days? No. Federal and California rescission rights are no-fault. You don't have to explain anything. You just have to send written notice before the deadline.

What if installation has already started? You can still cancel within the 3-day window, and the company must remove any equipment and restore your property at their expense. After 72 hours, your options narrow but don't disappear — misrepresentation and HSSA violations can still void the contract.

What if I signed at a Costco, Home Depot, or county fair in California? Those count as "off-premises" sales under federal law and "home solicitation" sales under California law. The 3-day rule and HSSA both apply. The company was required to give you a Notice of Cancellation form at the time of signing.

Can I cancel a Sunrun, Tesla, or Sunnova contract specifically? Yes. The same California consumer protection laws apply regardless of which company sold you the contract. We have specific guides for Tesla / SolarCity contracts , Vivint / Sunrun contracts , and Sunnova contracts in bankruptcy .

What about my solar loan — can I cancel that too? Yes. Solar loans through GoodLeap, Mosaic, Sunlight Financial, and Dividend are subject to the same 3-day rule and California consumer protection laws. If the underlying solar contract is voided, the financing typically goes with it.

Will canceling hurt my credit? A timely, valid cancellation does not hurt your credit. If the company has already pulled a hard inquiry on your credit report, that stays for two years but the trade line never reports. The risk to your credit comes from not canceling and missing payments later.

You Signed. You Have Options.

Whether you signed an hour ago in San Bernardino or three years ago in Lancaster, the answer is the same: California homeowners have stronger solar cancellation rights than the rooftop industry wants you to know. The 3-day rule, the Home Solicitation Sales Act, the Solar Consumer Protection Guide, and California's consumer protection statutes give homeowners four overlapping ways out of a contract they shouldn't have signed.

The first step is a contract review. Pull every document the company gave you, sit down for ten minutes, and call (213) 579-5156 for a free review. We'll tell you which paths apply, what the realistic timeline is, and what the next move looks like for your specific situation.

You signed. You're not stuck.

Tesla / SolarCity Solar Contract in California: How to Get Out in 2026

Fri, 15 May 2026 20:52:29 GMT

Tesla / SolarCity Solar Contract in California: How to Get Out in 2026

If you signed a SolarCity lease in San Bernardino back in 2015 — or a Tesla Solar Roof contract in Irvine in 2021 — you're now dealing with the same company. Tesla absorbed SolarCity in 2016, and roughly a decade later, California homeowners from Riverside to Sacramento are calling our office asking the same question: how do I get out of this thing?

The answer in 2026 is more complicated than it was three years ago. Tesla quietly wound down most of its in-house residential installation business, relaunched a new solar panel in January 2026, settled a $6 million class action over Solar Roof pricing, and is still servicing tens of thousands of legacy SolarCity leases and PPAs across California — most of them with twenty-year terms that won't expire until the 2030s.

Here's what you actually need to know if you're stuck in a Tesla or SolarCity contract in California.

Quick answer: Yes, you can get out — but the path depends on your contract type

Tesla currently services three different kinds of residential solar agreements in California:

Legacy SolarCity leases and PPAs signed between 2008 and 2016 (before the Tesla acquisition)
Tesla Solar leases and PPAs signed between 2016 and roughly 2021
Tesla Solar Roof and panel purchase contracts (cash or financed through GoodLeap, Mosaic, or third-party lenders)

Each path out is different. A 2014 SolarCity lease on a single-story home in Rancho Cucamonga has different cancellation leverage than a 2022 Solar Roof financed through GoodLeap in San Diego County. If a "solar exit" company tells you it's all the same process, walk away.

Why Tesla / SolarCity contracts are uniquely difficult in California

SolarCity built the largest residential solar portfolio in the country before Tesla bought it. At its peak, the company held a 34% share of all U.S. residential solar installations, more than double its closest competitor at the time. Most of those contracts were 20-year leases or PPAs, and most of them are still active.

What makes them harder than a standard Sunrun or Vivint exit:

Two distinct sales eras. Pre-2016 SolarCity sales reps used aggressive door-to-door tactics across the Inland Empire, Central Valley, and South Bay. Verbal promises about "free solar," lock-in utility rates, and lifetime savings were common — and rarely matched the actual contract. Post-2016 Tesla pitches shifted to online quotes and were tied heavily to the Powerwall battery and Solar Roof products, which had their own pricing disputes.
The Solar Roof bait-and-switch settlement. A $6 million class action settlement covered roughly 6,300 Solar Roof customers who saw their quoted prices jump after signing — in one named plaintiff's case, from around $72,000 to nearly $146,000. The settlement is closed, but it set a paper trail that's useful in individual cases.
NEM 1.0 grandfathering complications. Many SolarCity systems installed before 2016 in PG&E, SCE, and SDG&E territory are on NEM 1.0, which is dramatically more valuable than NEM 3.0. Cancelling or transferring the contract can put that grandfathered status at risk — something most exit firms don't understand.
Tesla's customer service collapse. Tesla shut down most of its dedicated residential solar phone support and routed customers to app-based ticketing. Homeowners from Bakersfield to Chico routinely report unanswered tickets, no monitoring data, and no path to a human when the system underproduces.
Third-party servicing. Tesla wound down most in-house installations and now relies on roughly 2,000 certified installers across 14 countries. If your panels fail, the company that originally installed them may no longer be in business, and Tesla may not honor the production guarantee without a fight.

6 ways out of a Tesla or SolarCity contract in California

1. The buyout (and why most quotes are too high)

Tesla and SolarCity contracts include a buyout schedule, usually starting at year six or seven. The number Tesla quotes is rarely the lowest number they'll take.

For a typical SolarCity lease on a 6kW system in San Bernardino County, buyout quotes in 2026 are running $18,000 to $35,000 depending on contract year and system size. That's almost never fair market value. Independent appraisals on 8-to-12-year-old systems typically come in 40% to 60% lower than Tesla's first quoted figure.

Always get a written buyout quote in your hands before negotiating. Always.

2. Transfer to the new homeowner (the path most agents botch)

If you're selling your home in Orange County, the Bay Area, or anywhere with a buyer pool, transferring the lease is the cleanest exit — if the buyer qualifies.

Tesla requires the new buyer to meet a minimum FICO score (currently around 680) and submit a service transfer application. In a hot Riverside or San Diego market, this works. In a slower market, it kills deals — buyers don't want a 20-year lease on a system they didn't choose, especially with a 2.9% annual escalator buried in the PPA pricing.

The trap: real estate agents who don't understand solar transfers will often tell sellers "just pay it off at closing." That's usually the most expensive option and almost never necessary.

3. Cancellation for misrepresentation (the most overlooked option)

California's consumer protection statutes — particularly the Consumers Legal Remedies Act, the Home Solicitation Sales Act, and the Unfair Competition Law — give homeowners real leverage when a contract was sold on misrepresented numbers.

For SolarCity and Tesla specifically, the most common misrepresentation patterns we see are:

Production estimates that ignored shading from neighboring properties in hillside communities like Chino Hills or Diamond Bar
"Lock in your rate" promises that didn't disclose the 2.9% or 3.5% annual escalator
Verbal claims of utility-rate guarantees that conflict with the written contract
Sales materials promising NEM 1.0 savings projections that were already obsolete when signed in 2017-2018
Solar Roof quotes that doubled after the contract was signed (the basis for the Amans class action)

If you have your original sales materials, email threads, or even text messages from your SolarCity or Tesla rep, that's the foundation of a misrepresentation case.

4. Removal and decommissioning (the nuclear option)

In a small number of cases — usually involving roof damage, failed equipment, or a system that's underperformed for years — full removal is on the table. This typically requires either a negotiated settlement with Tesla or, in harder cases, formal legal action.

Removal isn't cheap, and it's not a DIY project. Anyone in California touching a grid-tied solar system needs a C-46 (solar) or C-10 (electrical) license. But for homeowners in Fresno, Modesto, and Stockton with non-functioning SolarCity systems still drawing monthly payments, it's often the only real path forward.

5. Roof replacement leverage

If your roof needs to be replaced — and many SolarCity-era roofs in San Diego, Long Beach, and the South Bay are hitting that window now — Tesla is required to coordinate panel removal and reinstallation. The cost they quote (typically $3,500 to $7,500) and the timeline they offer (often 6 to 12 months) become real negotiation leverage. Homeowners have used roof replacement as the trigger to renegotiate buyout terms or, in some cases, exit the contract entirely.

6. Payment hardship programs

If you're genuinely unable to make payments, Tesla does have an internal hardship review process. It's not advertised, it's not easy to access, and we don't recommend stopping payments to force the issue — that creates credit damage that's much harder to undo than the contract itself. But for homeowners in genuine financial distress in places like Riverside, Apple Valley, and Victorville where wage stagnation has been heaviest, hardship review is a starting point worth knowing exists.

What to do this week if you're stuck

Pull your original contract. All of it — the lease/PPA agreement, the production guarantee, the disclosure forms, the truth-in-lending statement if it was a loan. If you can't find them, request them in writing from Tesla.
Check your NEM status. Call your utility (PG&E, SCE, SDG&E, or your municipal utility) and confirm whether you're on NEM 1.0, NEM 2.0, or NEM 3.0. This affects every exit calculation.
Pull your production data. Tesla's app shows recent production. Compare it against the production estimate in your contract. A 15%+ shortfall over the last 12-24 months is often actionable.
Document everything verbal you remember. What the rep promised about savings, escalators, lock-ins, and utility rates. Even informal notes are admissible.
Don't sign anything Tesla sends you in response. Especially not a release or amendment. Get a contract review first.

Why California Solar Exit handles Tesla / SolarCity cases differently

Most consumer advocacy in solar contract cancellation came into the space after 2022, when complaints started spiking. Daniel Merritt spent eight years inside California's residential solar industry — including the SolarCity / Tesla transition era — before moving to the homeowner side. He's reviewed more than 600 California solar contracts, including legacy SolarCity leases, post-acquisition Tesla agreements, and Solar Roof purchase contracts.

That industry knowledge changes the case review. Knowing what a 2015 SolarCity sales rep in Ontario was trained to say, what numbers they were given to present, and what the company's internal pitch deck looked like is the difference between a generic intake and a case that can actually move.

If you signed a Tesla or SolarCity contract in California — whether it's a 2012 lease, a 2018 Solar Roof, or a 2022 financed purchase — we'll review your contract for free, identify whether you have grounds for cancellation, and walk you through your real options under California law.

Call (213) 579-5156 for a free Tesla / SolarCity contract review. Serving all of California. Remote consultations available.

Frequently asked questions

Is SolarCity still in business? No. SolarCity was acquired by Tesla in 2016 and no longer operates as a separate company. All SolarCity contracts are now serviced by Tesla.

Can I cancel a Tesla solar contract after the 3-day window? Yes, in many cases. California's consumer protection statutes — including the Consumers Legal Remedies Act and the Home Solicitation Sales Act — allow cancellation well beyond three days when the contract was sold on misrepresented numbers or in violation of disclosure requirements.

What happens to my SolarCity warranty if I cancel? Production guarantees and equipment warranties are tied to the contract. If the contract is cancelled, the warranty typically ends with it — which is why understanding system age and condition matters before cancellation.

Will cancelling affect my NEM 1.0 status? It can. NEM 1.0 grandfathering is tied to the system, not always the contract holder. Cancellation pathways need to account for this, especially in PG&E and SCE territory where NEM 1.0 is dramatically more valuable than NEM 3.0.

Does Tesla still install residential solar in California? Tesla relaunched its own solar panel in January 2026 but does most installations through its certified installer network rather than in-house crews. Most legacy SolarCity systems are now serviced by third parties under Tesla's oversight.

Vivint Solar Contract in California: How to Get Out in 2026

Mon, 11 May 2026 21:08:44 GMT

Vivint Solar Contract in California: How to Get Out in 2026

If you signed a Vivint Solar agreement and you're trying to get out, you're not alone — and you may have more leverage than you think.

In February 2026, five California district attorneys reached a $4.3 million settlement with Vivint Solar over misleading sales practices. The allegations: Vivint misrepresented its relationship with local utilities, inflated projected savings, and told customers they could cancel their contracts when they couldn't. Eligible customers who signed PPAs between August 2016 and October 2020 may qualify for restitution.

But what if your contract is newer, or you weren't part of that window? Here's what California homeowners need to know in 2026.

Vivint Solar Is Now Sunrun

Sunrun acquired Vivint Solar in October 2020 for $3.2 billion, making it the largest residential solar company in the U.S. If you have a Vivint agreement, Sunrun now services it. Your monthly statements, customer service calls, and contract terms all run through Sunrun — though the underlying Vivint agreement remains in effect.

This matters for homeowners in Los Angeles, the Inland Empire, San Diego, Riverside County, and the Bay Area who signed with Vivint's door-to-door sales teams years ago and now find themselves locked into agreements they didn't fully understand.

What the 2026 Settlement Means for You

The February 2026 settlement applies to California customers who entered into PPAs with Vivint Solar between August 3, 2016 and October 8, 2020 . If that's you:

Vivint is required to notify eligible consumers about the $3 million restitution fund
Claims processes and deadlines will be posted on Vivint Solar's and Sunrun's consumer-facing websites
The settlement also included $1.3 million in civil penalties

Sunrun was not a party to the settlement — the action was against Vivint Solar as the original company. But the complaints that fueled the case — misleading utility comparisons, false cancellation promises, aggressive door-to-door tactics in neighborhoods from Fresno to San Bernardino — are the same complaints California homeowners have raised for years.

Your Exit Options If You're Still Stuck

Whether or not you're covered by the settlement, California homeowners with Vivint/Sunrun contracts have several paths out.

1. Check for Misrepresentation If a sales rep told you your bill would be lower, that you were signing up with your utility company, or that you could cancel at any time — and none of that was true — you may have grounds for a consumer protection claim. California's UCL (Unfair Competition Law) and CLRA give regulators and private advocates real tools here. This is the strongest exit route for homeowners who were genuinely misled during the sales process.

2. Buyout You can purchase the remaining contract value from Sunrun and either keep the panels as owned equipment or have them removed. Buyout quotes for 20–25 year agreements vary widely, but for systems with 10+ years remaining, costs often run between $10,000 and $30,000. Request a written quote before making any decisions.

3. Transfer at Home Sale If you're selling a home in Orange County, the San Gabriel Valley, Sacramento, or anywhere else in California, you can transfer the Vivint/Sunrun agreement to the buyer — provided they pass a credit check. This is the most common path for homeowners selling before the lease ends. Buyers with 680+ credit scores typically qualify.

4. Consumer Protection Review If your contract involved misrepresentation, a lien you didn't know about, or terms that were materially different from what you were told, you may be able to pursue cancellation through California consumer protection law — even if you're past the 3-day cooling-off window.

What Not to Do

Don't stop making payments without legal guidance. Even if Vivint/Sunrun misled you, unilateral nonpayment can trigger lien enforcement actions, credit damage, and collections activity. California law gives you real tools — use them properly.

Don't assume the 2026 settlement covers your situation. If you signed after October 2020, you're outside the settlement window. Your options are still real, but they require a different approach.

Get a Free Review

California Solar Exit works with California homeowners who are trapped in Vivint, Sunrun, Tesla, and other solar contracts they can't exit cleanly. We've reviewed contracts across Los Angeles, Riverside, San Diego, Fresno, Orange County, and the Central Valley — and we'll tell you whether yours qualifies for cancellation or relief.

Call (213) 579-5156 or book a free consultation .

Frequently Asked Questions

Is Vivint Solar still in business? Vivint Solar was acquired by Sunrun in October 2020. If you have a Vivint contract, Sunrun now services it.

Does the 2026 Vivint Solar settlement apply to me? The $4.3M settlement covers California customers who signed PPAs between August 3, 2016 and October 8, 2020. Vivint Solar is required to notify eligible customers with restitution claim instructions and deadlines.

Can I cancel a Vivint Solar contract in California? Depending on your contract type and circumstances, yes. Misrepresentation claims, buyouts, and lease transfers are the most common routes. A free contract review can tell you which applies to your situation.

What happens to my Vivint contract if I sell my home? The agreement can typically be transferred to the buyer, who must pass a credit check with Sunrun. If the buyer won't accept the transfer, you may need to buy out the contract before closing.

What if I was misled by a Vivint door-to-door salesperson? Misrepresentation during the sales process is the strongest legal basis for contract cancellation under California consumer protection law. Document what you were told, pull your original contract, and get a professional review.

Sunnova Bankruptcy: What California Customers Need to Know in 2026

Sat, 09 May 2026 19:32:06 GMT

Sunnova Bankruptcy: What California Customers Need to Know in 2026

If you have a Sunnova solar lease, PPA, or loan on your California home, here's the short version: Sunnova is gone. The company filed Chapter 11 bankruptcy on June 8, 2025, the bankruptcy court confirmed the restructuring plan on November 12, 2025, and a new entity called SunStrong Management now services your contract. Your monthly payment didn't go away. Your contract didn't get torn up. The lien on your home is still there.

But your situation has changed in ways most California homeowners haven't fully thought through — and there are exit doors that opened during the restructuring that weren't there before.

This guide walks through what actually happened, what it means for your specific contract type, and what your real options look like in 2026.

What Actually Happened to Sunnova

Sunnova Energy International was the second-largest installer of third-party owned residential solar in the United States, with more than 500,000 customers concentrated heavily in California, Texas, and Puerto Rico. The company had grown aggressively on cheap debt — the Department of Energy had even committed up to $3 billion in loan guarantees through Project Hestia, the largest federal solar commitment ever made.

That model fell apart fast. Rising interest rates pushed Sunnova's cost of capital from 2.8% in 2021 to 6.8% by 2024. California's NEM 3.0 cut net metering credits by roughly 75% and helped trigger a 45% drop in California solar installations. The Trump Administration terminated the DOE loan guarantee. The residential solar industry contracted 31% in 2024. Sunnova entered bankruptcy with $8.9 billion in long-term debt and $13.5 million in cash.

Chapter 11 filed June 8, 2025 in the U.S. Bankruptcy Court for the Southern District of Texas, Houston (Case No. 25-90160). On November 12, 2025, Judge Alfredo R. Perez confirmed the company's restructuring plan. The Effective Date hit November 14, 2025. Substantially all of Sunnova's assets — including your contract — were sold to Solaris Assets LLC, an entity backed by GoodFinch Management that paid roughly $118 million for the portfolio. SunStrong Management, an experienced renewable energy asset manager, took over servicing.

Sunnova itself has ceased independent operations.

What This Means for Your Contract

This is the part where the answer depends on what you signed. The bankruptcy treats each contract type differently under Section 365 of the Bankruptcy Code, and the practical reality on the ground also varies.

If You Have a Sunnova Lease (about 31% of customers)

Your lease is what bankruptcy law calls an "executory contract" — both parties still have ongoing obligations. The court allowed Solaris/SunStrong to assume the lease, which means it survived the bankruptcy intact. You still owe the monthly payment. You still have the rate escalator. The system on your roof is still owned by the lender. The UCC-1 fixture filing on your property is still there.

What's different: your service relationship is now with SunStrong Management, not Sunnova. Billing, monitoring, maintenance requests, and customer service all go through SunStrong. If your panels stop producing or your inverter fails, you are calling a different company than the one whose name is on your contract.

If You Have a Sunnova PPA (about 28% of customers)

Same legal mechanics as a lease. The PPA was assumed and assigned to the new owner group. Your kilowatt-hour rate, the production guarantee (if you have one), and the escalator clause all survived. SunStrong handles servicing.

The practical concern with PPAs is whether the new owners will honor production shortfall remedies the same way Sunnova promised them. PPAs typically include a "true-up" if the system underproduces a guaranteed kWh threshold. How aggressively the new servicer enforces or pays out on those guarantees is something California PPA holders should watch closely in 2026.

If You Have a Sunnova Solar Loan (about 24% of customers)

Loan customers are in a different position because the underlying lender — typically GoodLeap, Mosaic, Dividend Finance, Sunlight Financial, or one of Sunnova's white-labeled lending partners — was usually a separate entity from Sunnova. Your loan didn't necessarily go through bankruptcy with Sunnova at all.

What did go through bankruptcy: the workmanship warranty, the production guarantee, the system monitoring, and the maintenance obligations Sunnova had promised. If your panels stop working in 2026 and you call the number on your old Sunnova paperwork, you're going to get routed to SunStrong (for serviced customers) or hit a dead end. If your loan was sold off separately, you may now have a loan with one company and a system serviced by another — or worse, a system with no clear servicer at all.

If You Have a Sunnova Service or Accessory Loan (about 12%)

Customers with battery storage loans, EV charger financing, generator loans, or HVAC bundled with their solar are in the most fragmented position. These products were the last to be sold and the most likely to have orphaned warranty obligations. Read your paperwork carefully and call SunStrong to confirm who is responsible for service on each piece of equipment.

The Service Quality Question

This is the part Sunnova customers across California — from San Diego's coastal neighborhoods to the Inland Empire to Bay Area suburbs — are asking and not getting good answers on.

SunStrong Management took over a half-million-customer portfolio in late 2025. Their job is to maximize the cash flow on those contracts for the new owners. That is not the same job Sunnova had, which was to grow a customer base. The incentives have shifted from "keep the customer happy so they refer their neighbor" to "collect the monthly payment and minimize service costs."

What that looks like in practice for a California homeowner whose system stops producing:

Longer hold times and slower response on service requests
Stricter interpretation of what's covered under the original warranty
Less appetite for true-up payments on underproducing systems
Reduced or eliminated proactive monitoring outreach
Harder to reach a human about complex billing or contract questions

Your contract didn't change. But your leverage to enforce it is now against a company that bought the receivable for pennies on the dollar and has every reason to do the absolute minimum required.

What This Means for Selling Your Home

The bankruptcy does not fix the lien problem. If you have a Sunnova lease or PPA, there is still a UCC-1 fixture filing on your property. That filing now lists Solaris Assets, SunStrong, or one of the bankruptcy-remote special purpose entities as the secured party — depending on which portfolio your specific contract was bundled into.

When you go to sell your California home, your title company is going to find that UCC-1. The buyer's lender is going to flag it. You will have one of three choices, all the same as before:

Buy out the lease or PPA before closing — typically $10,000 to $30,000 plus depending on remaining term
Get the buyer to assume the lease/PPA — requires SunStrong's credit approval of the buyer, and many buyers in 2026 are refusing to take on a Sunnova-originated contract because of the service uncertainty
Pay off and remove the system — the most expensive option, often $15,000 to $40,000 between buyout and removal

The bankruptcy added a fourth wrinkle: title companies and real estate agents in California are now treating Sunnova-originated UCC-1 filings as a higher-risk closing item because the chain of ownership runs through a Chapter 11 sale. Some title underwriters require additional documentation from SunStrong before they'll insure over the lien. That can delay closings by weeks.

If you have an active listing or a 2026 sale planned, address the lien now, not three days before closing.

Your Actual Exit Options in 2026

The bankruptcy created some new openings and confirmed some that already existed under California law.

1. Cancellation Based on Original Misrepresentation

This is the strongest path for many Sunnova customers. The fact that Sunnova went bankrupt does not eliminate any legal claims you have for how the contract was originally sold. If your sales rep gave you false savings projections, misrepresented the production estimate, hid the lien, forged a signature, or violated California's Solar Energy System Disclosure Document requirements, those grounds for cancellation under California's Consumer Legal Remedies Act, Unfair Competition Law, and Business and Professions Code §7159 still apply.

The bankruptcy actually clears one common defense — Sunnova used to argue these claims belonged in mandatory arbitration. With the original entity dissolved and the contract assigned to a successor, the arbitration analysis is more complex and often weaker for the new servicer.

2. Breach of Contract for Service Failures After the Effective Date

Every service failure that happens after November 14, 2025 — every missed monitoring outreach, every ignored production shortfall, every unanswered maintenance request — is a potential breach against SunStrong. California courts have long recognized that successor servicers inherit the obligations they were paid to perform. If your system has been underproducing and SunStrong is not honoring the production guarantee, document everything.

3. SB 784 Cooling-Off Window (Newer Contracts Only)

If you signed a Sunnova contract on or after January 1, 2026, California's SB 784 expanded cancellation windows apply. If you somehow signed a Sunnova-branded contract late in the bankruptcy or immediately after the asset sale, the new statutory protections give you a stronger and longer window to walk away.

4. Buyout and Be Done

If your contract terms are reasonable and you just want it gone, requesting a current buyout figure from SunStrong is a clean exit. Buyout pricing varies dramatically — some early-vintage Sunnova leases have surprisingly favorable buyout discounts, while later-vintage contracts can be brutally expensive. Get the number in writing before deciding.

5. Lease/PPA Transfer to a Buyer

Possible, but harder than it used to be. SunStrong's credit standards for assumption are tighter than Sunnova's were, and buyer reluctance has gone up.

What You Should Do Right Now

If you're a California Sunnova customer reading this in 2026:

Pull every document you have — the original contract, any disclosure documents, the proposal that showed savings projections, sales emails, and any production reports
Document current service issues — system production data, billing communications, maintenance requests and any non-responses, dates and details
Find your UCC-1 — look at your most recent property title work or pull the UCC-1 from California Secretary of State's database. Confirm whether it's been assigned to a successor entity
Don't stop paying — under bankruptcy law, you owe the contract obligations. Withholding payment puts you in default, and that's a much weaker legal position than challenging the contract itself
Get a free contract review — California consumer protection law gives you real leverage if your contract was misrepresented, but the deadlines under various statutes of limitations are running. Sooner is better

Frequently Asked Questions

Is Sunnova still in business? Sunnova Energy International ceased independent operations on November 14, 2025. SunStrong Management now services most existing customer accounts. New solar installations under the Sunnova name are not happening.

Do I still have to pay my Sunnova bill? Yes. Your contract was assumed by the new owner group during bankruptcy. Stopping payments puts you in default and harms your legal options. Continue paying and pursue exit options through the proper legal channels.

Who do I call if my Sunnova system stops working? SunStrong Management is now the servicer for most former Sunnova customers. Contact information should have come in writing after the November 2025 Effective Date. If you never received it, the Sunnova financial restructuring page (www.sunnova.com/lp/financialrestructuring) and the Kroll case site (www.restructuring.ra.kroll.com/Sunnova) have current contact details.

Is the lien on my house still there? Yes. The UCC-1 fixture filing on your California property survived the bankruptcy. It may have been assigned to a successor entity. If you're selling or refinancing, that lien still has to be addressed at closing.

Can I cancel my Sunnova contract because of the bankruptcy? The bankruptcy itself is generally not grounds for cancellation. But if your contract was originally sold through misrepresentation, hidden terms, or sales tactics that violated California consumer protection law, those grounds still apply — and the bankruptcy may actually weaken some of the defenses Sunnova used to raise.

What about my workmanship warranty? Most Sunnova workmanship warranties were assumed by the new servicer for in-service customers. The practical question is how aggressively SunStrong honors them. Document any service failures carefully.

My Sunnova solar loan is with GoodLeap (or Mosaic, Dividend, Sunlight). Did that change? The lender on your loan typically did not file bankruptcy with Sunnova. Your loan obligations to the original lender are unchanged. What changed is who's responsible for the system itself, the warranty, and the production guarantee.

Can I just stop paying and walk away? No. This puts you in default, damages your credit, and weakens any legal claims you might have. The right path is to challenge the contract through legal channels while staying current on payments — or pursuing a buyout.

How do I know if my contract has misrepresentation grounds? Compare what your sales rep promised to what's in the written contract. Compare the production estimate they showed you to your actual production. Look for missing disclosures, escalator language that wasn't explained, and any verbal promises that never made it onto paper. A free contract review can tell you whether you have a real case.

Free Sunnova Contract Review for California Customers

California Solar Exit has helped hundreds of California homeowners challenge solar leases, PPAs, and loans that were sold through misrepresentation, hidden terms, or deceptive tactics. The Sunnova bankruptcy doesn't close the door on those claims — in many cases it opens it wider.

If you have a Sunnova-originated contract on your California home and you're seeing service problems, escalating payments, a lien blocking your home sale, or you suspect you were misled at signing, we'll review your situation for free. Call (213) 579-5156 or book a consultation. We serve homeowners statewide — Los Angeles County, Orange County, San Diego, the Inland Empire, the Bay Area, Sacramento, the Central Valley, and the Central Coast — remotely, so geography doesn't matter.

The bankruptcy didn't take your options away. It changed them. Let's figure out which one is yours.

Mosaic Loan Transfer When Selling Your Home in California

Tue, 05 May 2026 19:37:53 GMT

Mosaic Solar Loan Transfer When Selling Your Home in California

If your buyer's lender just flagged a Mosaic UCC-1 fixture filing and your closing is two weeks out, you already know the problem. Mosaic solar loans are not transferable to a new homeowner — the loan is in your name, and the lien Mosaic placed on the property has to be cleared before title can pass cleanly. You have three real options: pay it off at closing, negotiate the buyer to assume the monthly payment outside escrow, or exit the loan before you list.

Stuck in escrow with a Mosaic lien? Call (888) 354-5072 for a free California exit review.

Why the Mosaic Loan Becomes a Closing Problem

When you financed solar panels through Mosaic — whether you live in San Diego, Fresno, Sacramento, Riverside, or anywhere from the Bay Area down to the Inland Empire — Mosaic filed a UCC-1 fixture lien against the property. This is not a mortgage, but title companies, escrow officers, and the buyer's lender treat it like one. Most California title insurers will refuse to issue a clean policy until the lien is released, and that release only happens after the loan is paid in full.

The result: California sellers in markets like Orange County, the San Fernando Valley, and the Central Valley regularly hit a wall 10–14 days before closing when the title commitment comes back showing the Mosaic encumbrance. Your buyer's lender — Rocket Mortgage, Wells Fargo, a credit union, anyone — will not fund until that lien is gone.

Option 1: Pay Off the Mosaic Loan at Closing

This is the cleanest path and the one most California escrow officers will steer you toward. You request a payoff letter from Mosaic, your escrow company wires the balance from your sale proceeds, and Mosaic files a UCC-3 termination releasing the lien. In coastal California markets where home equity is high — Newport Beach, La Jolla, Palo Alto, Marin — this often works because the seller has enough proceeds to absorb a $30,000–$60,000 payoff.

The downside: in inland markets like Bakersfield, Modesto, Victorville, and parts of the High Desert where appreciation has been thinner, sellers sometimes don't have enough equity left to clear the loan and still walk away with cash.

Option 2: Buyer Assumes the Payments (Not the Loan)

The Mosaic loan stays in your name. The buyer agrees in writing to reimburse you each month for the solar payment going forward. This is legally allowed, but it's a side agreement — not a true loan transfer — and three things tend to break it:

The buyer's mortgage lender has to accept the structure, and many won't. The buyer can stop paying you any time, and you're still the one Mosaic reports to the credit bureaus. And in California, disclosure requirements under Civil Code §1102 mean you must disclose the solar lien clearly on the TDS (Transfer Disclosure Statement) — buyers often back out once they see the math.

This option works occasionally in hot markets like Austin-style California pockets — Folsom, Roseville, parts of San Diego County — where buyers are willing to take on anything to win the home. Statewide, it fails more often than it succeeds.

Option 3: Exit the Mosaic Loan Before You List

If your panels are underperforming, the install caused roof issues, the salesperson misrepresented the savings, or you're stuck in NEM 3.0 export rates that gut your projected ROI, you may have grounds to exit the loan entirely — not pay it off, but cancel it. California's solar industry has been the subject of widespread Attorney General activity, CSLB complaints, and Department of Financial Protection and Innovation enforcement, particularly around Mosaic, GoodLeap, and Sunlight Financial loan disclosures.

Common grounds California homeowners use to exit:

Disclosure violations at the point of sale (interest rate, dealer fee, true APR not properly explained)
Misrepresentation of savings versus actual production
Roof damage from improper install — common in older Bay Area and LA County housing stock
Unlicensed or misrepresented contractor — verifiable through CSLB.ca.gov
NEM 3.0 bait-and-switch for contracts signed near the April 2023 cutoff

This is the route that lets you close without the lien and without raiding your sale proceeds.

What to Do This Week

If you're already in escrow: get the Mosaic payoff statement today, share it with your title company, and ask escrow for a side-by-side of your net proceeds with and without the payoff. If you have not listed yet: handle the loan first. Selling a California home with an unresolved solar loan in 2026 — under tighter NEM 3.0 economics and stricter title scrutiny — is harder than selling clean.

Find out if your Mosaic loan qualifies for cancellation. Free California review — call (888) 354-5072 or request a callback.

Frequently Asked Questions

Can I transfer my Mosaic solar loan to the buyer? No. Mosaic solar loans are not assumable or transferable. The loan stays in the original borrower's name and must be paid off, refinanced into the buyer's mortgage, or exited before a clean title transfer.

Will the Mosaic lien stop my home sale in California? It will stop the sale until the lien is released. California title insurers and the buyer's lender will require Mosaic to file a UCC-3 termination before closing.

How long does it take Mosaic to release the lien after payoff? Typically 7–21 business days after Mosaic confirms receipt of full payoff funds. Plan your closing date accordingly — don't promise the buyer a 21-day close if your Mosaic payoff is still outstanding.

Can I roll the Mosaic loan into the buyer's new mortgage? Only if the buyer's lender allows it and the home appraises for enough to cover both the existing mortgage payoff and the solar loan. Most California conforming loans will not bundle a solar loan this way.

What if I don't have enough equity to pay off the Mosaic loan? You have two paths: negotiate a short payoff with Mosaic (rare, but possible if the loan is in distress), or pursue a loan exit on disclosure or contractor grounds before you sell.

Solar Cancellation in California: The Complete 2026 Guide for Homeowners Trapped in Bad Contracts

Thu, 30 Apr 2026 21:59:31 GMT

Solar Cancellation in California: The Complete 2026 Guide for Homeowners Trapped in Bad Contracts

Solar Cancellation Isn't Always Off the Table — Even Years After You Signed

If you typed "solar cancellation" into Google from a kitchen table in Riverside, a Tesla in Irvine, or a job site in San Bernardino, you're already past the point most homeowners reach. You signed something you regret. The savings didn't show up. Maybe a lien did. And now the solar company that used to call you twice a week won't return your messages.

Here's what most homeowners across California — from Pacific Beach to Pasadena, from the Coachella Valley to the Sonoma wine country — don't realize: solar cancellation is a real legal pathway, not a marketing slogan . It's grounded in the California Consumer Legal Remedies Act (CLRA), the California Home Solicitation Sales Act, the Rosenthal Fair Debt Collection Practices Act, and SB 784 (which took effect January 1, 2026 and extended cancellation protections statewide).

This guide breaks down exactly what solar cancellation means in California in 2026, who qualifies, the realistic timeline, what it costs, and where homeowners most often go wrong trying to do it alone.

What "Solar Cancellation" Actually Means

Solar cancellation is the legal termination of a residential solar agreement — a lease, a power purchase agreement (PPA), or a financed solar loan — based on consumer protection violations, contract defects, or misrepresentation in the original sale.

It is not the same as:

The 3-day cooling-off period (5 days for homeowners 65+) printed on every California solar contract
A solar company "buyout" where you pay tens of thousands to terminate the lease
Walking away from payments and hoping for the best (this damages credit and invites collections)
A prepayment refinance through a third-party solar loan consolidator

Real solar cancellation works by identifying violations the solar company already committed — falsified utility bill projections, undisclosed UCC-1 liens, missing CSLB-required disclosures, forged initials, language access violations, or escalator clauses buried beneath the signature line — and using those violations as legal leverage to terminate the contract.

In California, that leverage is unusually strong. The state has the most residential solar installations in the country (more than 1.5 million, per the California Energy Commission) and also the strictest disclosure requirements. When a solar contractor in El Cajon or Modesto skips a required disclosure, the contract becomes vulnerable.

Who Qualifies for Solar Cancellation in California

Not every homeowner with regret qualifies. Solar cancellation requires a legal basis — a violation, misrepresentation, or contract defect. The most common qualifying scenarios our team has reviewed across Orange County, the Inland Empire, the South Bay, and the Central Coast include:

1. Inflated savings projections that never materialized. A rep in Chino Hills shows you a chart promising $0 utility bills. Three years later, you're paying both the solar company and SCE. That gap is documented misrepresentation under California's CLRA.

2. Undisclosed UCC-1 liens. A homeowner in Eastvale lists their property and discovers the title is encumbered by a financing statement they were never told about. The lien blocks the sale. This is one of the fastest-moving cancellation paths in 2026.

3. NEM 3.0 / NEM 2.0 misrepresentation. Reps signed homeowners onto systems sized for NEM 2.0 export rates after April 14, 2023, when NEM 3.0 reduced export credits by roughly 75%. If the production estimates in your contract assumed NEM 2.0 economics, you have a strong case.

4. Language access violations. California law requires the contract to be provided in the language the sale was conducted in. Spanish-speaking homeowners in Boyle Heights, Korean-speaking homeowners in Koreatown, and Mandarin-speaking homeowners in Arcadia and the San Gabriel Valley are routinely handed English-only contracts after Spanish, Korean, or Mandarin sales presentations. That's a violation.

5. Forged or rep-completed signatures. Common with door-to-door sales in retiree-heavy markets like Sun City, Laguna Woods, and Leisure World in Seal Beach.

6. Sales conducted by unlicensed reps. California requires the salesperson — not just the installer — to hold the appropriate registration. Many regional dealers in the Central Valley and High Desert skip this.

7. Verbal promises that never made the contract. "We'll buy your panels back if you move." "The federal tax credit covers everything." Standard verbal traps that don't appear in the written agreement.

If any of these match your situation, you likely qualify for a contract review — even if you signed five or seven years ago. SB 784 specifically extended the rescission window for misrepresented sales beyond the original cooling-off period.

The Three Solar Contract Types — and Why Cancellation Looks Different for Each

The cancellation pathway depends on which contract you signed. Most California homeowners aren't entirely sure which they have, which is the first thing a contract review clarifies.

Solar Lease

You rent the panels. You pay a fixed monthly amount whether the system produces 20 kWh or 200 kWh in a day. Sunrun and Sunnova dominate this market across California — particularly in the Bay Area suburbs (Walnut Creek, Pleasanton, San Ramon) and the Sacramento metro (Roseville, Folsom, Elk Grove).

Cancellation leverage: Misrepresented savings, escalator clauses (typically 2.9% annual), undisclosed lien filings, and NEM 3.0 misrepresentation.

Power Purchase Agreement (PPA)

You buy the electricity the panels produce at a per-kWh rate. The kWh rate often escalates 2.9% annually — meaning by year 15, you're paying significantly more per kWh than a homeowner in Long Beach paying SCE retail rates. SunPower (now operating under Complete Solaria after the 2024 bankruptcy), Sunnova, and Tesla Energy run heavy PPA portfolios across California.

Cancellation leverage: Production shortfalls (your system produces 60% of what was promised), escalator misrepresentation, and bankruptcy-related successor liability for SunPower contracts.

Solar Loan

You financed the system through GreenSky, Mosaic, Loanpal/GoodLeap, Dividend Finance, or Sunlight Financial. You technically own the panels — but a UCC-1 lien is recorded on your home's title. This is the structure most popular in newer Inland Empire developments (Murrieta, Menifee, Wildomar, Beaumont, Banning) and the Central Valley (Bakersfield, Fresno, Visalia, Tulare).

Cancellation leverage: Truth in Lending Act (TILA) violations, undisclosed dealer fees (often 25-30% baked into the loan principal), misrepresented APR, and lender liability under the FTC Holder Rule — which makes the lender legally responsible for the dealer's misrepresentations.

The Realistic Timeline (And What Actually Happens at Each Stage)

Solar cancellation in California isn't fast. Anyone promising you a 30-day exit is overselling it. Here's the realistic timeline based on hundreds of California cases:

Days 1-7: Contract review. Your contract, sales documents, and any text/email communications are analyzed for violations. You get a clear yes-or-no on whether you have a viable case.

Weeks 2-4: Demand letter and intake. Formal correspondence goes out to the solar company and any lender. Communication shifts from you to the consumer advocacy team.

Months 1-3: Negotiation phase. Most cases resolve here. The solar company or lender agrees to terminate the contract, release the lien, and in many cases issue a refund or settlement credit.

Months 3-6: Escalation if needed. When companies stall — Sunnova and Mosaic are the slowest in 2026 — the case escalates to formal consumer protection complaints with the CSLB, the California DFPI, the FTC, and in some cases litigation through partner attorneys.

Cases involving home sales (escrow on a property in Newport Beach, a refinance in Carlsbad, a HELOC application in Burlingame) move faster because the title issue forces the lender's hand.

What Solar Cancellation Costs (And the Pricing Models to Avoid)

The honest answer: it depends on the contract type, the solar company, and the strength of the violation evidence.

Free contract reviews are standard. Any firm that charges for the initial review is a red flag. California Solar Exit, Solar Equity Solutions, and most legitimate consumer advocacy firms offer the case evaluation at no cost.

Watch for upfront retainers. Some firms charge $2,000 to $5,000 before they've done a single thing. If the firm is confident in your case, they'll structure the fee around the outcome — flat fee at engagement, success fee at resolution, or a hybrid.

Watch for contingency-only firms making contingency-style promises. Solar cancellation isn't a personal injury case. A pure 33% contingency model often means the firm is only motivated to push for cash settlements, not actual contract termination — which leaves you with the lien still attached.

The cost should always be less than continuing the contract. A homeowner in Diamond Bar paying $327/month on a 25-year Sunrun lease will pay roughly $98,000 over the life of the contract. Spending $4,000-$7,000 to legally terminate that obligation is the math that justifies cancellation work.

Why Homeowners Fail When They Try DIY Solar Cancellation

We've reviewed hundreds of cases where the homeowner started the process alone and ended up in a worse position. The most common failures:

Stopping payment. This is the single most damaging move. It triggers default reporting, collections, and a lien enforcement posture from the lender — which is harder to unwind than the original contract.
Filing a BBB complaint and waiting. BBB complaints don't terminate contracts. They notify the solar company of dissatisfaction. The company responds with boilerplate. Nothing changes.
Sending a generic cancellation letter past the 3-day window. Solar companies file these in the trash. Without a documented violation cited under specific California statute, the letter has no legal weight.
Posting on Reddit's r/solar and r/RealEstate hoping for advice. You'll get conflicting opinions from people in Texas, Florida, and Arizona — none of which have California's consumer protection framework.
Accepting a "buyout offer" from the solar company. Sunrun and Sunnova will often offer a buyout figure that's 80-90% of the remaining contract value. That's not a settlement. That's the solar company protecting its asset.

The cases that resolve cleanly are the ones where the violation is documented, the demand is grounded in specific California statute, and the homeowner stops communicating directly with the solar company.

What to Do Right Now If You Think You Qualify

If you're reading this from a home in Long Beach, Fresno, Stockton, Anaheim, Glendale, San Jose, Oakland, or anywhere else in California, here's the sequence:

Pull your full contract. Lease, PPA, loan agreement — and the original sales presentation if you have it.
Pull 12 months of utility bills. SCE, PG&E, SDG&E, LADWP, SMUD, Roseville Electric, whichever utility serves you. Compare them to the projections in your contract.
Search your county recorder's site for a UCC-1 filing under your name. Most California county recorder offices (Los Angeles, Orange, San Diego, Riverside, San Bernardino, Alameda, Santa Clara, Sacramento) offer free UCC search tools online.
Document any verbal promises. Texts, emails, voicemails, anything in writing where the rep made claims that didn't appear in the contract.
Get a free contract review.

The contract review is the deciding step. Either you have a case or you don't, and a 30-minute review with a California-specific consumer advocacy firm tells you which.

Frequently Asked Questions About Solar Cancellation in California

Can I cancel my solar contract in California after the 3-day window?

Yes, in many cases. The 3-day cooling-off period (or 5-day for seniors 65+) is the unconditional cancellation window. After that, cancellation requires a legal basis — misrepresentation, undisclosed liens, language access violations, or other consumer protection violations under California law. SB 784, effective January 1, 2026, expanded the rescission window for documented misrepresentation cases.

How long does solar cancellation take in California?

Most cases resolve within 3 to 6 months. Cases tied to a home sale or refinance often resolve faster because the title issue forces the lender to act. Cases with cooperative solar companies sometimes resolve in 4 to 8 weeks.

Will solar cancellation hurt my credit score?

Not when handled correctly. The damage to credit comes from stopping payments without a strategy in place. A properly managed cancellation maintains payment status during negotiation and protects credit throughout the process.

Can I cancel a Sunrun, SunPower, or Sunnova contract?

Yes — these are the most common cancellation cases in California. Each company has different contract structures and different vulnerabilities, but all three are subject to the same California consumer protection framework. SunPower contracts have additional cancellation pathways tied to the 2024 bankruptcy and successor liability under Complete Solaria.

What if my solar contract is a financed loan, not a lease?

Solar loans cancel through a different pathway — Truth in Lending Act violations, undisclosed dealer fees, and the FTC Holder Rule (which makes lenders like GreenSky, Mosaic, GoodLeap, and Dividend Finance liable for the dealer's misrepresentations). The UCC-1 lien on your title is the leverage point.

Does solar cancellation remove the panels from my roof?

Not necessarily. In some cases the panels stay (you keep the system, the contract is voided). In others the solar company is required to remove them. The outcome depends on the contract type, the violation, and the resolution structure. This is decided case-by-case.

Can I cancel solar if I'm trying to sell my home?

Yes — and this is often the highest-priority case type. An unresolved solar lease, PPA, or UCC-1 lien blocks home sales across California. Buyers in Newport Beach, Manhattan Beach, La Jolla, and Palo Alto regularly walk from deals when a solar contract surfaces during escrow. If you're listing or already in escrow, contact a consumer advocacy firm immediately.

How much does it cost to cancel a solar contract in California?

The contract review is free. Engagement fees vary by case — typically $3,000 to $7,000 depending on contract type, solar company, and complexity. The cost should always be substantially less than continuing the contract obligation.

Ready to See If Your Solar Contract Qualifies for Cancellation?

California Solar Exit has helped more than 500 homeowners across Los Angeles, Orange County, San Diego, the Inland Empire, the Bay Area, Sacramento, and the Central Valley terminate predatory solar contracts. The contract review is free. The conversation is direct. And if you don't have a case, we'll tell you.

�� Call (213) 579-5156 for a free contract review — no obligation, no pressure, no sales pitch.

Or book a consultation online and we'll get back to you within one business day.

Solar Lien on Your House in California? Here's How to Find It, Fight It, and Get It Removed

Thu, 30 Apr 2026 18:24:12 GMT

Solar Lien on Your House in California? Here's How to Find It, Fight It, and Get It Removed

Most California Homeowners Don't Know There's a Lien on Their House Until It's Too Late

You signed the solar contract three years ago. The rep in the polo shirt promised your bill would disappear. Maybe you were sitting at your kitchen table in Mission Viejo, or in a Fresno cul-de-sac, or on the patio of a San Marcos townhome — and the conversation moved fast. Sign here. Initial there. Welcome to the future. Nobody mentioned the UCC-1 financing statement that would be filed against your property within thirty days. Nobody said the words "lien on your home." And so, like more than a million other California homeowners across Los Angeles County, Orange County, the Inland Empire, San Diego, the Bay Area, Sacramento, and the Central Valley, you only found out about it when something else forced the issue: a refinance application denied, a buyer's title company flagging a cloud on the deed, or a HELOC offer that came back with conditions you didn't expect.

If you're discovering a solar lien on your California home right now, you are not alone. The California Department of Financial Protection and Innovation has logged thousands of complaints related to solar financing disclosures since 2021, and lien-related disputes are one of the most common categories. The good news: under California's Consumer Legal Remedies Act, the Home Solicitation Sales Act, and the consumer protection framework rebuilt by SB 784 in 2026 , homeowners have real, enforceable options. The path out is not simple, but it exists. Let's walk through what a solar lien actually is, how to find out if one is on your house, what removal looks like, and where the leverage points sit in California law.

What Is a UCC-1 Solar Lien, Exactly?

A UCC-1 financing statement is a legal filing recorded under the Uniform Commercial Code that gives a lender a security interest in a specific piece of property — in this case, the solar system installed on your roof. When you finance solar panels through GreenSky, Mosaic, GoodLeap (formerly Loanpal), Dividend Finance, Sunlight Financial, or Service Finance Company, the lender almost always files a UCC-1 with the California Secretary of State and, in many cases, records a fixture filing with the county recorder where your property sits — Los Angeles County, San Bernardino County, Riverside County, Orange County, San Diego County, Alameda County, Santa Clara County, Sacramento County, or wherever you live.

The lien isn't on the panels alone. It clouds your title. That means when you go to sell your Huntington Beach bungalow, refinance your Temecula tract home, or pull equity out of your Roseville new-build, the title company will flag it. Most buyers' lenders will not close on a property with an unresolved fixture filing. Most refinance underwriters will require the lien either be paid off, subordinated, or removed before they fund. In hot real estate corridors like the South Bay, North County San Diego, the Tri-Valley, and the Sacramento suburbs of Folsom and Roseville, an unresolved solar lien has cost homeowners deals worth hundreds of thousands of dollars.

The kicker: California solar reps are required by Civil Code §1689.7 and Business & Professions Code §7169 to clearly disclose financing terms, including any security interest in the property. When that disclosure is buried, glossed over, or misrepresented during the sale, the contract itself becomes vulnerable to cancellation.

How to Find Out If There's a Solar Lien on Your California Home

Three ways to check, in order of speed:

1. Search the California Secretary of State UCC database. Go to bizfileonline.sos.ca.gov, run a UCC search using your name as the debtor, and you'll see every active UCC-1 filing tied to your name. This is free. It takes about three minutes. If you live in Burbank, Bakersfield, Berkeley, or anywhere in between, the same database covers you.

2. Pull your property profile from your county recorder. Los Angeles County, Orange County, San Diego County, Riverside County, San Bernardino County, Alameda County, Contra Costa County, and Sacramento County all offer online property record searches. Look specifically for a "fixture filing" or any document with the solar lender's name on it. Many counties charge a small fee for certified copies, but the lookup itself is free.

3. Order a title report from a local title company. Stewart Title, Fidelity National, First American, Old Republic, and Chicago Title all operate throughout California and can pull a preliminary title report for a modest fee. This is what your buyer's title company will see, so it's the most realistic preview of what's actually on your record.

If a lien shows up in any of these searches and you don't recognize the lender, or you don't remember being told a security interest would be filed, that's a documentation issue worth investigating immediately.

Why So Many California Solar Liens Are Vulnerable to Cancellation

Here's what most homeowners don't realize: the existence of a lien isn't automatically bulletproof. The lien depends entirely on the validity of the underlying contract. If the solar contract was sold to you through misrepresentation, deceptive savings projections, undisclosed escalator clauses, or sales practices that violated California's CLRA or Home Solicitation Sales Act, the contract — and by extension, the lien — becomes contestable. (See our full breakdown of 9 misrepresentation tactics that can cancel your contract .)

Common patterns we see across the California solar market, from Long Beach to Lodi to Lake Forest:

Verbal promises that never made it into writing. "Your bill will be zero." "You'll get a federal tax credit that covers most of the cost." "You can transfer this easily when you sell."
Falsified or wildly optimistic NEM production estimates. Solar Energy Industries Association data shows that real-world residential solar production in California averages 10–25% below initial sales projections — and in some Inland Empire and Central Valley markets the gap runs even wider.
Failure to clearly explain the UCC-1 filing. Civil Code §1689.7 requires plain-language disclosure of financing terms, including security interests.
Pressure tactics that violate California's three-day cooling-off rule. The Home Solicitation Sales Act gives California homeowners a clear three-day right to cancel any door-to-door or in-home solicitation sale.
Forgery or proxy signatures on disclosure pages. This one is more common than people think, especially with rushed in-home closes in markets like Stockton, Modesto, Fresno, and the Coachella Valley.

When any of these are present in the original sale, you're not just disputing a lien — you're challenging the underlying contract. That's the leverage point.

What the Removal Process Actually Looks Like

There is no single button to push. Solar lien removal in California typically follows one of four pathways:

Pathway A: Negotiated buyout or settlement with the lender. GreenSky, Mosaic, GoodLeap, and Dividend will sometimes negotiate a discounted payoff, especially when the contract is contested or the homeowner is mid-transaction on a property sale. We've seen settlements in the 40–70% range when the underlying sales conduct is well-documented.

Pathway B: Cancellation under the Consumer Legal Remedies Act. When the original sale involved misrepresentation, the CLRA allows for rescission of the contract, which removes the basis for the lien. This typically requires written demand, documentation of the misrepresentation, and a structured negotiation with both the solar company and the lender.

Pathway C: Cancellation under the Home Solicitation Sales Act. If the contract was signed in your home (which most California residential solar contracts are) and certain disclosures were missing or improperly executed, the cancellation window can extend well beyond the standard three days.

Pathway D: Litigation or arbitration. Most California solar contracts include mandatory arbitration clauses. A consumer protection arbitration filing can sometimes accomplish what direct negotiation can't, particularly when the lender is uncooperative.

The right pathway depends on your specific contract, the documentation you still have from the original sale, the lender involved, and your timeline (a homeowner trying to close escrow next month has different priorities than one starting from scratch).

Real Numbers: What This Costs California Homeowners

The financial damage from a misrepresented solar contract in California is rarely just the monthly payment. Here's what we see:

Lost home sale equity. Buyers who back out over solar lien complications cost sellers an average of $15,000–$45,000 in carrying costs, price reductions, and re-listing expenses, based on California Association of Realtors data on transaction failures.
Refinance opportunity cost. A homeowner in Pasadena who couldn't refinance from a 7.2% mortgage to 6.1% because of a solar lien lost roughly $340/month — over $80,000 across a 20-year horizon.
HELOC denial. Equity locked behind a solar lien can't be tapped for renovations, medical bills, college tuition, or business needs.
The contract itself. A 25-year solar lease at $250/month is a $75,000 obligation. A misrepresented loan at $400/month over 20 years is $96,000. These are not small numbers.

Frequently Asked Questions

How do I know if there's a UCC-1 lien on my California home from solar?

Search the California Secretary of State UCC database at bizfileonline.sos.ca.gov using your name as debtor, and pull a property records search from your county recorder (Los Angeles, Orange, San Diego, Riverside, San Bernardino, Alameda, Sacramento, etc.). For the most accurate picture, order a preliminary title report from a California title company.

Can a solar lien stop me from selling my house in California?

Yes. Most buyers' title companies will flag a UCC-1 fixture filing tied to a solar system, and most mortgage lenders will not close on a property with an unresolved lien. Sellers in Orange County, North County San Diego, the South Bay, the Tri-Valley, and the Sacramento suburbs have lost deals over unresolved solar liens.

How long does it take to remove a solar lien in California?

It depends on the pathway. A negotiated buyout can resolve in 3–8 weeks. A CLRA-based cancellation typically runs 2–6 months. Litigation or arbitration can extend longer. Real estate timelines often accelerate negotiations.

Is the lien on my whole house or just the panels?

Functionally, on your whole house. While the security interest technically attaches to the solar equipment, a UCC-1 fixture filing recorded against your property creates a cloud on title that affects your ability to sell, refinance, or borrow against the home until it's resolved.

What if I didn't know about the lien when I signed?

That's a strong indicator the original sale may have violated California's disclosure requirements under Civil Code §1689.7 and Business & Professions Code §7169. Lack of disclosure is one of the most common grounds for contract cancellation under California consumer protection law.

Does SB 784 help with solar liens?

SB 784, which took effect January 1, 2026, expanded cancellation windows and added lender accountability provisions for California solar contracts. It doesn't automatically remove existing liens, but it strengthens the legal framework for challenging contracts where disclosures were inadequate.

Can I just stop paying my solar loan to force the issue?

No — and we strongly advise against it. Stopping payment without a documented dispute strategy can damage your credit and complicate the cancellation process. Work with consumer protection professionals before changing your payment status. For a full comparison of approaches, see 7 ways to get out of a solar contract in California, ranked .

Will canceling the contract remove the lien automatically?

When a contract is rescinded under the CLRA or Home Solicitation Sales Act, the underlying basis for the lien dissolves and the lender is required to terminate the UCC-1 filing. Coordinated paperwork is required to ensure the lien is properly released through the Secretary of State and county recorder.

Found a Solar Lien on Your House? Don't Wait.

If you've discovered a UCC-1 filing tied to your solar system — or if a real estate transaction is about to surface one — the timeline matters. Every week of delay narrows your options, especially if you're in escrow or planning to list. California Solar Exit reviews every solar contract for free, identifies the disclosure failures and misrepresentation that may give you grounds for cancellation, and handles the lender communications so you don't have to. We've helped more than 500 homeowners across Los Angeles, Orange County, San Diego, the Inland Empire, the Bay Area, Sacramento, and the Central Valley resolve solar contracts and the liens that came with them.

Call (213) 579-5156 for a free, no-obligation contract review.

Looking for direct help with your solar exit? We refer homeowners to Solar Equity Solutions, California specialists in solar PPA, lease, and lien resolution.

California Solar Exit is a consumer advocacy firm. The content of this post is for general informational purposes only and does not constitute legal advice or create an attorney-client relationship. Individual results vary. Consult our team to evaluate your specific situation.

How to Get Out of a Sunrun Solar Contract in California (2026 Guide)

Wed, 29 Apr 2026 23:29:10 GMT

How to Get Out of a Sunrun Solar Contract in California (2026 Guide)

If you signed a 20- or 25-year Sunrun lease or PPA in California and you're now staring at a true-up bill that doesn't match the savings projection your sales rep walked you through at your kitchen table — you're not stuck. You have more options than Sunrun's retention department will tell you on a phone call, but you have to know which lever to pull and when.

The playbook for exiting a Sunrun agreement in 2026 looks very different than it did three years ago. NEM 3.0 changed the math. The Vivint Solar acquisition created a paperwork mess that still hasn't fully cleared. And the California 1st District Court of Appeal's March 2026 ruling that left NEM 3.0 in place means a lot of homeowners — from Riverside to Roseville, from Bakersfield to Burlingame — are now locked into contracts whose savings projections never accounted for the rule change.

This guide walks through every realistic exit path: the buyout schedule, the homeowner transfer, the legal cancellation grounds most people don't know they have, and the situations where doing nothing is genuinely the right answer.

The Quick Reality Check

Sunrun is the largest residential solar company in the United States, and after their 2020 acquisition of Vivint Solar, they hold the contracts on hundreds of thousands of California rooftops — from Mission Viejo and Yorba Linda through the Inland Empire, into Sacramento County, and across the Bay Area from San Jose to Walnut Creek.

Their standard agreement runs 20 to 25 years . There is no "cancel" button. What there is:

Buyout — purchase the system outright at the price set in your contract's prepayment schedule
Transfer — pass the agreement to a qualified buyer when you sell your home
Refinance — pay off the lease with a solar loan and convert to ownership
Legal cancellation — pursue rescission based on misrepresentation, particularly around NEM 3.0 savings projections
Removal — the nuclear option, expensive and rarely the right call
Run out the clock — sometimes the cheapest path

Which one is right depends on three things: how many years you have left, whether your savings projection was based on NEM 2.0 rules, and whether you're trying to sell your house in the next 24 months.

Option 1: The Buyout — When the Math Works

Every Sunrun lease has a buyout schedule buried in the contract. Look for the section titled "Purchase Option" or check the pricing appendix — typically Section 7 in newer agreements. The number drops each year as the system depreciates.

Typical buyout figures in California right now:

A 2018 system in Temecula at year 8 of a 20-year lease — $14,000 to $19,000
A 2021 Vivint-installed system in Elk Grove at year 5 of a 25-year PPA — $22,000 to $28,000
Older systems from the early 2010s in Chula Vista or Lancaster — $8,000 to $12,000

To get your number, call Sunrun at 1-855-478-6786 and request a written buyout quote. Don't accept a verbal figure.

Buyout makes sense when your remaining payments over the contract term exceed the buyout cost plus electricity savings post-buyout , when you're selling within 12 months and your buyer is balking at the lease assumption, or when you have cash or a HELOC at a low rate that makes the math work. It's a trap when you're 18+ years into a 20-year contract (just wait it out), when the quote is suspiciously high compared to fair market value, or when you'd need high-interest debt to cover it.

Pro move: Get an independent appraisal of your system's fair market value before accepting Sunrun's figure. Solar appraisers in markets like Orange County, Sacramento, and the East Bay charge $300–$600 for a written valuation. If the appraisal comes in 20–30% below Sunrun's quote, you have negotiating leverage — particularly on PPAs, where buyouts are supposed to be based on fair market value.

Option 2: Transfer to the New Homeowner

If you're selling, the cleanest exit is often handing the agreement to the buyer. Sunrun runs a credit check (most agreements require 650+ FICO) and approves the transfer in 2 to 4 weeks.

This works well in markets where solar is genuinely valued — coastal Orange County cities like Newport Beach and Laguna Niguel, the Silicon Valley peninsula, parts of San Diego. It works less well where the savings story has unraveled. Buyers in the Inland Empire, Central Valley, and parts of the High Desert have started pushing back hard on assumed solar agreements after seeing neighbors' true-up bills under NEM 3.0. Roughly 20% of buyers nationwide refuse to assume solar leases — in some California submarkets, that number runs higher.

Steps to transfer:

Contact transfers@sunrun.com before you list, not after you're under contract
Request the transfer paperwork and get a copy of what your buyer will be assuming
Disclose the agreement upfront — California's seller disclosure rules require it anyway
Build the assumption into your purchase agreement language with your agent

If your buyer refuses: You're now choosing between buying out the system (rolling the cost into the sale price) or losing the deal. Better to know your buyout number before you list.

Option 3: Refinance the Lease into a Solar Loan

This option doesn't get talked about enough. The basic move: pay off Sunrun's buyout figure using a solar-specific loan from Mosaic, GoodLeap, Sunlight Financial, or a credit union solar product. You now own the panels and you're making payments on a loan instead of a lease.

Why it can work: solar loan rates in 2026 run roughly 6.99%–9.99% for qualified borrowers, terms can be structured at 10, 15, or 20 years (often shorter than your remaining lease), no more annual escalator eating your savings, and the home sells more cleanly because there's no lease to assume.

Run this math:

Path A (stay in lease): Remaining monthly payment × months remaining + projected escalator increases
Path B (refinance): Buyout amount + total interest over loan term

If Path B is meaningfully cheaper and the monthly payment fits, refinancing is a strong play. Talk to a credit union local to your area first — their rates are often better than the big solar lenders.

Option 4: Legal Cancellation — The NEM 3.0 Angle

This is the option Sunrun's retention team will not mention. If you signed a Sunrun agreement between roughly 2020 and 2024, and your sales rep showed you a savings projection based on NEM 2.0 rules — but your system received Permission to Operate (PTO) from PG&E, SCE, or SDG&E after April 14, 2023 — you may have grounds for legal rescission.

NEM 3.0 took effect in April 2023 and cut export credits for solar generation from roughly 30¢ per kWh down to about 5¢ per kWh — an 80%+ reduction in the value of energy your panels send back to the grid. That single rule change torched the savings projections solar reps had been showing California homeowners for two years.

The legally significant date is not when you signed your contract. It's when your utility issued PTO. A homeowner in Visalia who signed in February 2023 but didn't get PTO from SCE until July 2023 is operating under NEM 3.0 — even though their entire financial case was built on NEM 2.0 economics.

If your sales rep used NEM 2.0 projections during a sales process that resulted in a NEM 3.0 system, that may constitute material misrepresentation under California's Consumer Legal Remedies Act (CLRA), and may also violate the Unfair Competition Law (Business & Professions Code §17200) and home solicitation contract provisions.

What to do if this might apply to you:

Pull every document from your sale — proposal PDF, savings projection, contract, emails or texts with the rep
Find your PTO date — it's in your utility's interconnection paperwork or account portal
Compare the export credit assumptions in your savings projection to the 5¢/kWh NEM 3.0 reality
Consult a California consumer protection attorney who handles solar cases — many offer free initial consultations and work on contingency
Don't sign anything Sunrun's retention team puts in front of you without legal review

There are active class action filings in 2026 against multiple solar installers on these grounds. Whether you join an existing case or pursue an individual rescission depends on the specifics — that's a conversation with a lawyer.

Other legal grounds worth investigating: improper right-of-rescission notice (extends your cancellation window), license issues with the C-46 contractor on your paperwork, additional protections for sales to people over 65, and material failure of promised production.

Options 5 and 6: Removal and Running Out the Clock

Removal runs $3,000–$8,000, plus $1,500–$4,000 in roof repairs where the mounts came off — and you still owe Sunrun for the contract. Almost never the right move unless you're replacing the roof, the system is non-functional, or you're demolishing.

Running out the clock is often the cheapest path if you're 5 or fewer years from end-of-term. At end-of-term you typically can renew at a much lower rate, buy the system at fair market value (often $1,000–$3,000), or have Sunrun remove it free.

The Vivint Solar Wrinkle

If your contract was originally with Vivint Solar — common across Riverside County, San Bernardino County, the Central Valley, and the Antelope Valley — you're now dealing with Sunrun. The 2020 acquisition rolled all Vivint contracts into Sunrun's portfolio, but operational integration has been imperfect: account portals that don't show original Vivint terms accurately, service requests routed to the wrong department, confusion about warranty coverage.

Reference your original Vivint paperwork explicitly when you call. Don't accept "we don't have those records" as an answer.

Watch Out For These Sunrun Exit Traps

The "modification offer." Retention teams often pivot to a battery add-on, extended warranty, or modified payment plan. This locks you in deeper. Decline anything you didn't initiate.
Buyout quotes that exceed contract schedule. Your prepayment schedule is contractually binding. If a phone quote is higher than your paperwork, push back in writing.
Roof repair upcharges. Sunrun's $1,000–$3,000 remove-and-reinstall fee often expands at the actual job. Get the figure in writing in advance with no exceptions.
The "limited time" pressure on legal claims. California's statute of limitations on consumer fraud is generally 3 to 4 years from discovery. If a rep tells you it's "too late," that's not their call to make.

What I'd Do If This Were My Contract

The highest-leverage move for most California Sunrun customers in 2026 is determining whether NEM 3.0 misrepresentation applies to you. That single question — was your savings projection based on rules that no longer applied to your system — opens up a path that doesn't require you to pay tens of thousands to escape.

If that doesn't apply, the next-best path is usually a transfer (if you're selling) or a refinance into ownership (if you're staying and the loan math works). Buyout is for specific situations. Removal is almost never the answer.

Whatever you decide, document everything in writing. Phone calls with Sunrun's retention team are not enforceable; email is. Email support@sunrun.com or transfers@sunrun.com and keep a paper trail of every promise, quote, and commitment.

You're not the first person trying to get out of a 25-year solar contract that didn't deliver what was sold. You won't be the last. If you want help walking through your specific situation, the team at California Solar Exit reviews contracts at no cost and connects homeowners with the right legal and financial resources.

Frequently Asked Questions

Can I cancel a Sunrun contract before installation? Yes. California law gives you a minimum of 3 business days to rescind a home solicitation contract, and Sunrun's contracts typically include a cancellation window before installation. Send written notice and keep proof of delivery. After installation, your options shift to buyout, transfer, refinance, or legal action.

How much does it cost to buy out a Sunrun lease in California? Typical buyouts range from $8,000 to $30,000 depending on system size, age, and contract type. Newer systems and PPAs tend to cost more because less depreciation has occurred. Get your quote in writing and compare it to your contract's purchase option schedule.

Will canceling Sunrun affect my credit score? Cancellation before installation typically does not affect credit. Defaulting after installation can if Sunrun reports it. Buyouts, transfers, and legal rescissions handled properly do not damage credit.

What if Sunrun refuses to let me out of my contract? Escalate in writing to a manager or legal department. If you have grounds for legal rescission — particularly NEM 3.0 misrepresentation — consult a California consumer protection attorney. Many work on contingency.

Does NEM 3.0 give me grounds to cancel my Sunrun contract? Possibly. If your system received Permission to Operate after April 14, 2023, but your savings projection was based on NEM 2.0 rules, you may have a misrepresentation claim under California's Consumer Legal Remedies Act. This is fact-specific — pull your paperwork and consult an attorney.

Can I transfer my Sunrun lease to a new homeowner when I sell? Yes, in most cases. The buyer must pass Sunrun's credit check (typically 650+ FICO) and assume the contract terms. Start the transfer with Sunrun before listing. Roughly 20% of homebuyers refuse to assume solar leases, so factor this into your sale strategy.

What happens at the end of a Sunrun lease? You typically have three options at the end of a 20- or 25-year term: renew at a reduced rate, purchase the system at fair market value (often $1,000–$3,000), or have Sunrun remove the panels at no cost.

Is it worth refinancing my Sunrun lease into a solar loan? Sometimes. Run the math: total remaining lease payments (including escalator increases) versus buyout amount plus loan interest. If the loan path is meaningfully cheaper and the monthly payment fits, refinancing converts you from a lessee to an owner.

Solar Misrepresentation in California: 9 Sales Tactics That Could Cancel Your Contract

Mon, 27 Apr 2026 23:48:44 GMT

Solar Misrepresentation in California: 9 Sales Tactics That Could Cancel Your Contract

If your solar payment hasn't matched what you were promised, and your utility bill hasn't disappeared the way the rep said it would, you may have grounds to cancel your contract under California law .

Solar misrepresentation cases are the single most common reason California homeowners successfully exit solar leases, PPAs, and loans. From Long Beach to Bakersfield, from the Inland Empire to the East Bay, the same handful of sales tactics show up in case after case, and California's Consumer Legal Remedies Act (CLRA), the Home Solicitation Sales Act, and FTC cooling-off rules give homeowners real leverage against them.

Call (213) 579-5156 for a free contract review or keep reading to see the 9 misrepresentation tactics we see most often.

What Counts as Solar Misrepresentation in California?

Under California Civil Code § 1770 (the CLRA), it's unlawful for a seller to make false or misleading statements about the characteristics, benefits, or quantities of goods or services. Solar sales reps fall squarely under this statute, and so do the lenders and dealers who train them.

Misrepresentation doesn't have to be a deliberate lie. It can be:

A verbal promise that contradicts the written contract
An "estimate" presented as a guarantee
A material fact that was withheld during the sale
A document the homeowner was rushed through without time to read

If any of those happened during your sale, you may have a case. Here are the 9 tactics we see most often across California.

1. Inflated Savings Projections

This is the single most common misrepresentation in California solar sales.

The rep shows you a glossy savings comparison: your current SCE, PG&E, or SDG&E bill versus your projected solar payment. They promise "free electricity," "$0 utility bill," or "guaranteed savings of $40,000 over 25 years."

Then you sign, and the math falls apart.

The projection assumed utility rate increases of 6%, 7%, or even 9% per year. It ignored your actual usage patterns. It didn't account for the NEM 3.0 transition that slashed export credits for systems installed after April 2023. The "savings" never materialize, and you're paying both your solar bill and your utility bill,sometimes more than before.

Why it's actionable: California courts have repeatedly found that materially false savings projections, especially those presented as guarantees, violate the CLRA and California's false advertising statutes (Business & Professions Code § 17500).

2. Undisclosed UCC-1 Liens on Your Home

Homeowners across Orange County, the South Bay, and the Sacramento suburbs have discovered solar liens only when they tried to sell, refinance, or pull a HELOC.

A UCC-1 financing statement gives the solar lender a security interest in the panels and by extension, your roof. When you go to close on a real estate transaction, that lien must be resolved, subordinated, or transferred. Buyers walk. Lenders refuse to close. Deals fall through.

If the rep never told you a lien would be filed against your property or if they told you the system "doesn't affect your home" that's a material omission under California consumer law.

3. Fake or Falsified Utility Bill Projections

Some reps go further than optimistic math. They generate falsified utility projections that show wildly inflated future bills from PG&E, SCE, or SDG&E to make the solar deal look like a no-brainer.

We've seen "projected" 25-year utility costs north of $200,000 used to pressure homeowners in Riverside, Bakersfield, and the Central Valley into signing. None of those projections held up against actual rate filings with the California Public Utilities Commission.

If your rep showed you a utility cost projection that turned out to be fabricated or grossly exaggerated, that's textbook misrepresentation under § 1770(a)(5) and (a)(7).

4. Misrepresented Net Energy Metering (NEM) Credits

Many California homeowners signed solar contracts believing they'd be credited at full retail rate for every kilowatt-hour their panels exported back to the grid.

Then NEM 3.0 changed the rules. Systems installed after April 14, 2023 receive export credits at a fraction of retail rates — often 75% lower than NEM 2.0 customers.

If your rep promised NEM 2.0 economics on a system that was actually grandfathered into NEM 3.0, or if they implied your "credits" would offset your full bill when they wouldn't, you have a misrepresentation case. This is hitting homeowners hard from San Diego County to Marin.

5. Verbal Promises That Never Made the Contract

"You'll qualify for the federal tax credit — that'll cover your down payment."

"We'll buy back your panels at fair market value if you ever want out."

"The 30% ITC comes back to you as a check."

If your rep made promises like these and the written contract says nothing about them — or directly contradicts them — that's actionable. California's parol evidence rule has exceptions for fraud, and Civil Code § 1572 specifically defines actual fraud to include promises made without intention of performing them.

We've reviewed contracts across Los Angeles, the Inland Empire, and the Central Coast where the rep's verbal pitch was completely disconnected from the document the homeowner signed.

6. Forged Signatures or Initialed Boxes

This one is more common than most homeowners realize.

A rep walks the homeowner through a tablet during a high-pressure pitch, taps through dozens of disclosure screens, and "helps" by checking boxes or initialing on the homeowner's behalf. The homeowner later finds they "agreed" to escalator clauses, prepayment penalties, or arbitration provisions they never saw.

Under California's Home Solicitation Sales Act (Civil Code § 1689.5), in-home solicited sales over $25 require specific written disclosures and a 3-business-day cancellation window. If those weren't properly executed — or if your "signatures" were applied by someone else — the contract may be voidable from day one.

7. Hidden Escalator Clauses on PPAs

A power purchase agreement (PPA) charges you for the electricity your panels produce at a per-kilowatt-hour rate. The catch: most PPAs include an annual escalator — typically 2.9% to 3.9% — that compounds over the 20- or 25-year term.

Reps often present the first-year rate as the "rate" and gloss over the escalator. By year 15 or 20, homeowners in places like Fresno, Stockton, and the High Desert are paying more per kWh through their PPA than they would from the utility.

If the escalator was buried in fine print or never explained, and the rep made comparisons based on year-one pricing only, that's a material misrepresentation.

8. Production Guarantees That Don't Actually Guarantee Anything

The rep tells you the system will produce, say, 12,000 kWh per year. The contract includes a "production guarantee."

Then year one comes in at 8,400 kWh. You file a claim. The fine print kicks in: the guarantee only applies after panel degradation, weather adjustments, shading allowances, and a dozen other carve-outs. The "guarantee" is meaningless.

We've seen this pattern across the Bay Area, Sacramento, and Inland Empire — particularly with systems installed by regional dealers who white-label financing through GreenSky, Mosaic, or GoodLeap. If your contract's production language was misrepresented as a real guarantee, you have grounds to challenge it.

9. Pressure Tactics and Rushed Signings

California's Home Solicitation Sales Act exists specifically because in-home sales pressure is a recognized consumer protection issue.

Common patterns we see:

The rep shows up for a "free quote" and stays for four hours
The "expiring incentive" pitch — sign tonight or lose the deal
Signing on a tablet with no time to read
Being told the cancellation window is shorter than California law actually provides
Spouses pressured to sign without the other present

If any of these happened to you, the sale itself may have been improperly executed regardless of what the contract says.

What to Do If You Recognize Your Situation

If even one of these tactics matches what happened during your sale, you may have a viable misrepresentation case under California law. SB 784 — which took effect January 1, 2026 — also expanded cancellation windows and added lender disclosure rules that strengthen many existing cases.

The strongest cases combine:

A documented sales pitch (texts, emails, marketing materials, brochures)
The original contract and any addenda
Utility bills before and after installation
The production projection vs. actual production
Notes or recordings from the sales meeting

Even if you don't have all of these, we can usually piece together what you need.

Get a Free Contract Review — No Obligation

California Solar Exit has helped more than 500 California homeowners cancel deceptive solar leases, PPAs, and loans. We work remotely with homeowners across Los Angeles County, Orange County, San Diego County, the Inland Empire, the Bay Area, Sacramento, and the Central Valley.

If you were misled, pressured, or shown projections that didn't hold up, the consultation is free and there's no obligation to proceed.

Call (213) 579-5156 or book a consultation .

Frequently Asked Questions

Q: How do I prove my solar rep misrepresented the deal? A: The strongest evidence is anything in writing — text messages, email exchanges, marketing flyers, savings projection printouts, or screenshots from the rep's tablet. Recordings, where lawful, are also valuable. California is a two-party consent state for recordings, but written communications are fair game. We help clients reconstruct the sales presentation from whatever documentation they have.

Q: How long do I have to file a misrepresentation claim in California? A: The statute of limitations under the CLRA is generally three years from the date the misrepresentation was discovered, or reasonably should have been discovered. For fraud claims under Civil Code § 1572, the window can extend further. SB 784 also expanded certain cancellation windows for solar contracts specifically. The sooner you act, the more options you have.

Q: Does it matter which solar company sold me the system? A: California consumer protection law applies to all solar sellers operating in the state — Sunrun, Sunnova, Tesla Energy, the former SunPower (now Complete Solaria), Vivint Solar (now part of NRG), and regional dealers alike. The tactics differ slightly by company, but the legal framework is the same.

Q: What if I signed years ago — am I out of options? A: Not necessarily. Many homeowners only discover the misrepresentation years later — when a refinance fails, when a home sale stalls, or when the savings simply never show up. The discovery rule under California law often allows older contracts to be challenged. We've successfully resolved cases on contracts signed five and even seven years prior.

Q: Will challenging my contract hurt my credit? A: It depends on how the dispute is handled. Stopping payment on a financed solar loan without a strategy in place can have credit consequences. That's why we coordinate with lenders like GreenSky, Mosaic, and GoodLeap as part of the cancellation process — to protect your financial standing while resolving the underlying contract issue.

Q: Is California Solar Exit a law firm? A: California Solar Exit is a consumer advocacy firm that works with general counsel and a specialized team focused on solar contract cancellation through consumer protection law. We're not a law firm and our consultations don't constitute legal advice or create an attorney-client relationship. We do, however, know exactly how to apply California consumer protection statutes to deceptive solar contracts — and we've done it 500+ times.

SB 784 Just Took Effect: What California's New Solar Cancellation Law Means for Homeowners in 2026

Fri, 24 Apr 2026 20:32:51 GMT

SB 784 Just Took Effect: What California's New Solar Cancellation Law Means for Homeowners in 2026

If you signed a solar contract in California on or after January 1, 2026, the rules that govern your deal are no longer the ones you've read about online. Senate Bill 784 — signed into law in the 2025–26 legislative session and now in force statewide — quietly rewrote some of the most important consumer protections attached to residential solar agreements, home improvement loans, and door-to-door sales in this state.

For homeowners in Riverside, San Bernardino, Los Angeles, San Diego, Orange County, Fresno, Sacramento, and every California market in between, this matters. The solar industry in California is the largest in the country, and it's also the one that generates the most complaints to the Federal Trade Commission, the Better Business Bureau, and the Contractors State License Board. SB 784 was written specifically because state lawmakers believed existing protections weren't enough — and because thousands of Californians, particularly seniors, were getting locked into 20- and 25-year contracts they didn't fully understand.

If you're asking whether you can still get out of a solar contract , the answer is yes — and in some cases, SB 784 makes it easier than it was last year. Free contract review: (213) 579-5156 .

What SB 784 Actually Does

Senate Bill 784 is not a single change — it's a package of new requirements that hit three different parts of the solar sales process.

1. Longer cancellation windows. Under the old rules, California homeowners had three business days to cancel a home solicitation contract (five for seniors over 65). SB 784 extends the cancellation period to five days and seven days, respectively, for contracts entered into on or after January 1, 2026. That means if a solar rep showed up at your door in Rancho Cucamonga, Elk Grove, or Chula Vista last month and you signed that night, you had more time to back out than homeowners did in 2025.

2. Lender confirmation calls and permission-to-operate requirements. Before a lender can fund a solar loan, they now have to take specific steps — including confirming key contract terms with the homeowner directly. More importantly, repayment obligations on a solar loan don't begin until the lender confirms the utility has connected the system and granted permission to operate. In plain terms: you shouldn't be making payments on a system that isn't turned on. This was one of the most common complaints under the old system — homeowners in places like Bakersfield and Stockton were being billed for months while waiting for PG&E or SCE interconnection.

3. Claims and defenses against loan holders. This is the quiet giant in SB 784. Consumers can now assert claims or defenses against loan holders that they could have asserted against the contractor or salesperson — especially in cases involving misrepresentations about the contract or solar system performance. Translation: if the salesperson lied to you about your bill savings, your tax credit eligibility, or how the system would perform, the company that bought your loan can no longer hide behind the fact that they didn't make the promises. That's a major shift in leverage for homeowners fighting fraudulent solar agreements.

Why This Law Exists

SB 784 didn't appear out of nowhere. It was a direct response to years of mounting complaints, enforcement actions, and civil lawsuits targeting California solar operators. The bill came in response to documented predatory lending schemes that had misled thousands of homeowners across the state.

The California Attorney General , the FTC, and the Consumer Financial Protection Bureau have all taken action against solar companies in recent years for misrepresenting savings, forging documents, and pressuring elderly homeowners into contracts they couldn't afford. The BBB's solar category is one of the most complaint-heavy sectors in the country — and California accounts for an outsized share of those complaints.

The senators who introduced the bill focused specifically on seniors, who have been targeted aggressively by in-home solar sales teams in communities across the state, from retirement-heavy areas like Palm Desert and Laguna Woods to quieter pockets of the Central Valley. The extended cancellation window — seven days for seniors — is meant to give older homeowners time to show the contract to family members, financial advisors, or attorneys before the deal becomes binding.

What SB 784 Doesn't Do

This is the part most articles skip. SB 784 strengthens the front end of the sales process, but it doesn't retroactively cancel existing solar contracts. If you signed a 25-year PPA with Sunrun in 2022, a loan with GoodLeap in 2023, or a lease with SunPower before their 2024 bankruptcy , SB 784 doesn't automatically give you a way out.

What it does do is reinforce the broader consumer protection framework that governs those older contracts. California already has some of the strongest consumer protection laws in the country — the Unfair Competition Law (Business & Professions Code §17200), the Consumers Legal Remedies Act, and the False Advertising Law all apply to solar contracts. SB 784 adds to that framework rather than replacing it.

For homeowners who signed before 2026, the path to cancellation still runs through those existing laws — and through documented evidence of misrepresentation, contract alterations, license violations, or disclosure failures. That's where a contract review comes in.

How SB 784 Changes the Cancellation Conversation

If you signed a solar contract in the last few weeks and you're having second thoughts, the math is straightforward:

Signed on or after January 1, 2026 at your home: You have five business days to cancel (seven if you're 65+), measured from midnight of the day you received a signed, dated copy.
Cancellation must be in writing: You can email, mail, fax, or hand-deliver a notice to the solar provider.
Keep proof: Certified mail with return receipt, or email with a read receipt, is the safest route.
If you were never given the required disclosure documents: The cancellation clock may not have started at all.

That last point is the one solar companies don't advertise. California requires installers to give you a specific Solar Energy System Disclosure Document — a CSLB-created cover page showing total costs, financial obligations, and a standardized bill savings estimate. If you didn't receive it, or if it was filled out incorrectly, your cancellation rights may extend well beyond the five- or seven-day window.

For Homeowners Outside the Cancellation Window

Most homeowners who contact us aren't within a five-day window. They signed six months ago, two years ago, sometimes longer. They're calling because the savings never showed up, the panels never got turned on, the salesperson disappeared, or their utility bill under NEM 3.0 turned out nothing like what they were promised.

SB 784 doesn't help those homeowners directly — but it signals something important. The California legislature has officially recognized that the residential solar market has a fraud problem. That recognition strengthens every existing claim under consumer protection law, and it gives judges, arbitrators, and regulators additional context when evaluating older contracts.

If any of the following apply to your contract, your situation may still qualify for cancellation under existing California law:

The salesperson made specific promises about bill savings that didn't materialize.
Pages were added to your contract after you signed.
You were told the 30% federal tax credit would cover a portion of your cost and you didn't qualify.
Your system was never properly interconnected and you're being billed anyway.
The installer wasn't properly licensed under the CSLB C-46 or C-10 classifications.
You were pressured into signing the same day, without time to review.
Your contract was financed through a lender you never spoke to directly.
You're a senior who was solicited at home and didn't receive disclosures in your primary language.

None of these situations resolve themselves. Solar companies and the finance firms that buy their loans aren't going to volunteer the fact that your contract may be unenforceable — that determination has to come from a proper review.

What to Do Right Now

If you're in the five- or seven-day window, don't wait. Send your cancellation notice today. Use certified mail, keep copies of everything, and don't let the salesperson talk you into "giving it another week to think about it." Every day past the window makes cancellation harder.

If you're outside the window and something about your contract feels wrong, the next step is a contract review. That means sitting down with someone who can read your agreement, your financing documents, and your utility bills side by side and identify whether you have a viable cancellation path under California law.

California Solar Exit offers free contract reviews for homeowners anywhere in the state — Los Angeles, San Diego, the Inland Empire, the Bay Area, the Central Valley, and every market in between. We're a consumer advocacy firm, not a law firm, and we work with general counsel and a specialized team focused specifically on solar contract cancellation under consumer protection law.

Call (213) 579-5156 for a free review. Or book a remote consultation at californiasolarexit.com. Most calls take 15 minutes. You'll know whether you have options before you hang up.

Frequently Asked Questions

When did SB 784 take effect? SB 784 took effect January 1, 2026. Its provisions apply to contracts entered into, or offers to purchase conveyed, on or after that date.

How many days do I have to cancel a solar contract in California now? Under SB 784, you have five business days to cancel a home solicitation solar contract signed on or after January 1, 2026. If you're 65 or older, you have seven business days.

Does SB 784 apply to contracts I signed in 2024 or 2025? No. SB 784's extended cancellation windows apply only to contracts signed on or after January 1, 2026. However, older contracts may still be cancellable under other California consumer protection laws.

Does SB 784 cover PACE financing? No. PACE (Property Assessed Clean Energy) financing is regulated separately under California law and is excluded from SB 784's home improvement loan provisions.

What if my solar company never gave me the required disclosure documents? California requires installers to provide a Solar Energy System Disclosure Document at the time of contract. If you didn't receive it, your cancellation rights may extend beyond the standard five- or seven-day window. A contract review can determine whether this applies to your situation.

Can I still be held to my solar loan if the salesperson lied to me? Under SB 784, consumers can now assert claims and defenses against loan holders that they could have raised against the original contractor or salesperson. This is a significant shift from prior law and may provide relief even when the loan has been sold to a third party.

California Solar Exit is a consumer advocacy firm serving homeowners throughout California. We offer free contract reviews and work with general counsel focused on solar contract cancellation under California consumer protection law. This article is for general informational purposes and does not constitute legal advice.

7 Ways to Get Out of a Solar Contract in California — Ranked From Worst to Best

Thu, 23 Apr 2026 17:27:27 GMT

7 Ways to Get Out of a Solar Contract in California — Ranked From Worst to Best

If you're trapped in a solar lease, power purchase agreement, or financed solar loan in California, you've probably already discovered something frustrating: the solar company makes it very hard to find a clear exit.

You may have Googled "how to cancel my solar contract," called Sunrun's customer service line, or even talked to a local attorney who looked at you blankly. The options are real, but they're not equal. Some will cost you thousands. Some will stall for months. And some — if handled wrong — can hurt your credit or your home's title before you realize what went wrong.

Here's an honest look at every option available to California homeowners right now, ranked from the most frustrating (and expensive) to the most effective.

7. Going It Alone With a Cancellation Letter

What it is: Writing your own cancellation or dispute letter and sending it directly to your solar company.

Why people try it: It's free, it feels empowering, and countless blog posts suggest it's possible.

The reality: Solar companies like Sunrun, Sunnova, and Tesla Energy have entire retention and legal departments whose job is to respond to self-written cancellation requests in ways that protect the contract, not the homeowner. Unless your letter specifically invokes the right California consumer protection statutes — the Consumer Legal Remedies Act (CLRA), the Home Solicitation Sales Act, or applicable FTC cooling-off rules — the company has no real obligation to respond to it as a legal dispute. Most homeowners who try this route receive a form letter and nothing changes.

Best case: You get lucky and the company has a known compliance problem and settles quickly. Worst case: You've put the company on notice without the legal leverage to back it up, and you've lost time.

6. Stopping Payments and Hoping for the Best

What it is: Simply refusing to pay your solar loan or lease and waiting to see what happens.

Why people try it: Desperation. When you feel like you were lied to and have no options, withholding payment feels like the only leverage you have.

The reality: For solar loans through lenders like GreenSky, Mosaic, or Dividend Finance, stopping payment without a legal strategy in place can trigger collections activity, damage your credit score, and in some cases accelerate the debt. For leases and PPAs, you may face demand letters and eventually civil action. There are scenarios where strategic non-payment is part of a broader approach, but only when managed by professionals who know exactly what they're doing.

Best case: The company chooses not to pursue you and quietly moves on. Worst case: Your credit takes a serious hit, and you now have both a bad solar contract and a collections account.

5. Transferring the Contract to a New Buyer

What it is: When selling your home, finding a buyer willing to assume your existing solar lease or PPA.

Why people try it: If you're already planning to sell, this seems like a natural off-ramp.

The reality: This only works if your buyer agrees to take on the contract — and many won't. Solar leases and PPAs are notoriously difficult to transfer. The solar company must approve the transfer, the new buyer must qualify under the company's criteria, and in competitive California real estate markets — especially in Orange County, the South Bay, and Sacramento suburbs — buyers have enough leverage to simply walk away from a home with an encumbered title. A UCC-1 lien from a financed solar loan must also be resolved before escrow can close.

Best case: You find a buyer who wants solar and qualifies for the transfer. Worst case: A deal falls apart in escrow because of your unresolved solar obligation, costing you time, money, and the sale.

4. Hiring a General Practice Attorney

What it is: Retaining a local attorney — perhaps a real estate or consumer protection lawyer — to review your solar contract and pursue cancellation.

Why people try it: Attorneys carry legal authority that individuals don't. If you were clearly misled, the thinking goes, a lawyer will make the solar company take notice.

The reality: Most general practice attorneys, even experienced consumer protection attorneys, have limited familiarity with California's solar industry specifically. They may not know how Sunrun structures its PPA escalators, how GreenSky loan agreements reference CSLB licensing requirements, or how misrepresented NEM (Net Energy Metering) projections create actionable CLRA claims. You'll often pay hundreds of dollars per hour for an attorney who is learning the industry at your expense.

Best case: You find an attorney with genuine solar contract experience who builds a strong case efficiently. Worst case: You spend significant money on legal fees for a strategy that doesn't move the solar company.

3. Contacting the CSLB, CPUC, or Filing an FTC Complaint

What it is: Filing formal complaints against your solar installer or company with state and federal regulatory agencies — the California Contractors State License Board (CSLB), the California Public Utilities Commission (CPUC), or the FTC.

Why people try it: Regulatory complaints are free to file and create an official record of your dispute. They also put pressure on companies that have pattern violations.

The reality: Regulatory agencies move slowly and do not advocate for individual homeowners. A CSLB complaint against a licensed solar contractor may trigger an investigation, but it will not cancel your contract or get your money back on your timeline. These filings are most useful as supporting evidence in a broader consumer protection dispute — not as a standalone strategy.

Best case: Your complaint adds to a pattern of violations that supports regulatory action, and your case benefits from that record as additional leverage. Worst case: You wait months for a response that doesn't directly resolve your contract situation.

2. Negotiating Directly Through the Solar Company's Escalation Team

What it is: Bypassing standard customer service and reaching a solar company's executive escalation team, hardship department, or legal/compliance team to negotiate a buyout, mutual termination, or settlement.

Why people try it: Solar companies like Sunrun and Sunnova do have escalation pathways, and occasionally homeowners get results through persistence and documentation.

The reality: Solar companies' escalation teams exist to protect the company's interests, not yours. They are trained to offer the minimum resolution that keeps the contract intact or converts your complaint into a manageable form. Buyout figures are typically set high. Settlements, when offered, often include non-disclosure agreements. And if you don't know which violations to reference — CLRA misrepresentation, Home Solicitation Sales Act rescission rights, or CSLB contractor violations — you're negotiating blind against people who do this every day.

Best case: The company offers a reasonable settlement because your documentation is strong and they want the dispute to go away quietly. Worst case: You spend months in a back-and-forth that goes nowhere while your contract continues to accrue.

1. Working With a California Solar Contract Cancellation Specialist

What it is: Retaining a firm that specializes exclusively in solar contract cancellation using California consumer protection law — not a general attorney, not a regulatory agency, not a solar company's own process.

Why it works: The California solar cancellation space is narrow and specific. Effective advocacy requires deep familiarity with how Sunrun, SunPower, Sunnova, Vivint, and regional California installers write their contracts; how lenders like GreenSky, Mosaic, and Dividend Finance respond to consumer protection challenges; and exactly which statutes — CLRA, HSSA, FTC cooling-off rules, and CSLB licensing requirements — apply to your specific fact pattern.

A specialist firm takes over all communication with your solar company and lender from day one. You stop fielding retention calls. You stop decoding demand letters. You stop guessing what to say. The firm reviews your contract, identifies every actionable violation, builds your case, and applies sustained legal and consumer protection pressure on your behalf.

California Solar Exit has helped more than 500 California homeowners exit solar leases, PPAs, and financed loans across Los Angeles County, Orange County, San Diego, the Inland Empire, the Bay Area, Sacramento, and the Central Valley. The process starts with a free, no-obligation contract review — no retainer before you understand your options, no hidden fees, and no pressure.

If you've been misled by a Sunrun, SunPower, Sunnova, Vivint Solar, or Tesla Energy rep — or if you discovered a UCC-1 lien on your property you were never told about — you may have stronger grounds for cancellation than you realize.

Call (213) 579-5156 for a free solar contract review. No obligation.

Frequently Asked Questions

Which solar contract cancellation option is fastest? Working with a cancellation specialist is typically the fastest effective route. Some cases resolve through direct negotiation in a matter of weeks. DIY approaches and regulatory complaints often take months longer with no guaranteed outcome.

Do I need a lawyer to cancel a solar contract in California? Not necessarily. California consumer protection law provides significant leverage for homeowners who were misled or pressured into their solar contracts, and a specialized consumer advocacy firm can apply that leverage without the hourly billing structure of a traditional law firm. That said, the right firm will work alongside legal counsel when needed.

What if I'm already trying to sell my home? Contact California Solar Exit immediately. Unresolved solar liens and contract obligations can block escrow. The sooner the process starts, the more options are on the table before your real estate timeline is affected.

Can I cancel a solar loan (not just a lease or PPA)? Yes. Financed solar loans through GreenSky, Mosaic, Loanpal/GoodLeap, and Dividend Finance carry their own cancellation pathways and consumer protection vulnerabilities. We work with all three contract structures.

California Solar Exit serves homeowners throughout California, including Los Angeles, Orange County, San Diego, the Inland Empire, the Bay Area, Sacramento, and the Central Valley. Remote consultations available statewide. Call (213) 579-5156 or book a free case review online.

SunPower Cancellation in California: What Homeowners Need to Know After the Bankruptcy

Wed, 22 Apr 2026 17:26:43 GMT

SunPower Cancellation in California: What Homeowners Need to Know After the Bankruptcy

SunPower Corporation, once one of the largest residential solar companies in the United States, filed for Chapter 11 bankruptcy protection in August 2024. For California homeowners with SunPower PPAs, leases, or loans, the bankruptcy created immediate questions: Who owns my contract? Who do I call for maintenance? And can I finally get out?

This post covers what SunPower's bankruptcy means for California homeowners and what your cancellation options look like in 2026 and beyond.

What SunPower's Bankruptcy Actually Changed

A Chapter 11 bankruptcy is a reorganization, not a liquidation. SunPower did not simply disappear. What the bankruptcy did was allow SunPower to sell assets, including its residential solar contracts, to other companies.

SunStrong Capital acquired the majority of SunPower's residential lease and PPA portfolio. If you have a SunPower lease or PPA, your contract was likely transferred to SunStrong without your explicit consent. You may have received a notice, or you may not have.

Complete Solaria acquired SunPower's new homes and direct-to-home dealer business. If your system was installed through a SunPower dealer, your situation may be different from a direct SunPower customer.

Homeowners with SunPower loans, particularly through Spruce Financial or other SunPower financing partners, are in a separate situation. The loan exists independently of SunPower's corporate status. For a breakdown of how California law treats solar loans differently from leases and PPAs, see our guide on solar loan vs. lease cancellation in California .

What the Transfer to SunStrong Means

Your original contract was with SunPower. You agreed to do business with SunPower. SunStrong is a different company.

California contract law does not automatically permit one party to assign a contract to a third party without the other party's consent, particularly when the assignment materially changes what the contract delivers. Most SunPower PPAs and leases include assignment provisions, but whether those provisions are enforceable when they conflict with the reasonable expectations of the homeowner is a separate legal question.

The transfer to SunStrong has created a new body of claims: homeowners who were misled about SunPower's financial stability, homeowners whose maintenance and monitoring services have degraded under SunStrong, and homeowners who want out of a contract they never agreed to have transferred.

Grounds for SunPower PPA Cancellation in California

The bankruptcy and transfer are not, by themselves, automatic grounds for cancellation under California law. But for many SunPower customers, the bankruptcy has added to an existing set of facts that creates a strong case for cancellation.

Original misrepresentation claims. If your SunPower salesperson made promises about savings, company stability, or the ease of transfer that turned out to be false, those misrepresentations don't expire with the bankruptcy. For a full breakdown of the California statutes that apply, see our guide to California's solar consumer protections .

Disclosure failures. California CPUC regulations required SunPower to provide specific written disclosures before contract signing. If those disclosures were incomplete or absent, the contract may not be fully enforceable.

Licensing violations. SunPower used a network of dealers and subcontractors. If your installation was performed by an unlicensed contractor or a contractor whose license was inactive at the time, California Business and Professions Code Section 7031 may apply.

Degraded service post-transfer. If SunStrong is not fulfilling the maintenance and monitoring obligations SunPower promised, that's a breach of contract — which creates its own cancellation rights.

What SunPower / SunStrong Will Offer You

If you contact SunStrong about cancellation, they will offer you a buyout, the present value of remaining lease or PPA payments. For a contract with many years remaining, this is often $15,000 to $30,000.

They will not volunteer information about your California consumer protection rights, your rescission rights, or the grounds on which your original SunPower contract may be legally defective.

What to Do If You Have a SunPower System

Pull your original contract. This is your starting point. Look for who signed it, what company name appears on the installer documents, what the escalator clause says, and what the buyout formula is.

Check CSLB for your installer. Your installer may have been a SunPower dealer, not SunPower itself. Verify their license at cslb.ca.gov.

Document any service failures. If your monitoring app stopped working, if maintenance requests have gone unanswered, or if the system is underperforming, document it in writing. Our guide on how to document your solar case walks through exactly what to gather before contacting anyone.

Consider your home sale timeline. If you're planning to sell within the next few years, a SunPower PPA transferred to SunStrong creates the same escrow complications as any other solar lease. See our guide on selling a home with a solar lease in California for what to expect.

Get a free contract review. California Solar Exit reviews SunPower contracts specifically. We know the SunPower contract structure, the common misrepresentation patterns, and the post-bankruptcy transfer issues.

Call (213) 579-5156 for a free SunPower contract review.

Frequently Asked Questions

Who owns my SunPower contract after the bankruptcy? Most SunPower residential leases and PPAs were transferred to SunStrong Capital as part of the bankruptcy sale. You should have received notice, but many homeowners did not.

Can I cancel my SunPower PPA because of the bankruptcy? The bankruptcy alone is not an automatic cancellation right, but it may combine with existing misrepresentation or disclosure claims to create a stronger case for legal cancellation.

Is SunStrong Capital obligated to honor my original SunPower terms? SunStrong acquired the contracts and is generally obligated to honor the original terms. Whether those terms are themselves enforceable is a separate question.

What if my SunPower system has stopped being monitored or maintained? Service failures after the bankruptcy may constitute breach of contract, which creates independent cancellation rights. Document all failures in writing and contact California Solar Exit for a free review.

What a Solar Contract Lawyer in California Actually Does

Tue, 21 Apr 2026 18:44:49 GMT

What a Solar Contract Lawyer in California Actually Does

Most homeowners who contact a solar attorney in California have already spent months trying to solve the problem themselves. They've called the company. They've read their contract. They've filed a complaint. And they've hit a wall.

A solar contract lawyer's job is to find the legal leverage that the company doesn't want you to know exists. This post explains exactly what that looks like, and how to decide whether you need one.

What "Solar Contract Lawyer" Actually Means

There is no formal specialty called "solar law" in California. What you're looking for is an attorney or consumer advocacy firm with specific experience in:

California consumer protection statutes (Bus. & Prof. Code §17200, Civil Code §1689)
Home solicitation sales law (Civil Code §1689.5 et seq.)
CPUC residential solar disclosure regulations
Contract rescission under California law
UCC Article 9 for security interest / lien releases
CSLB licensing requirements and enforcement

A general practice attorney will not have this knowledge. An attorney who handles primarily real estate transactions or personal injury will not have it either. The niche is specific, and the value of a solar attorney comes almost entirely from their familiarity with how these statutes apply to solar contracts specifically.

What a Solar Attorney Does That You Can't Do Yourself

Identifies non-compliance you would miss. Solar PPAs and leases are long, dense documents. The violations that create grounds for cancellation are often not obvious, they're in what the contract doesn't say, in the disclosure documents that weren't provided, or in the licensing records of a subcontractor you never met. An experienced solar attorney knows exactly where to look.

Sends a demand letter that carries weight. A demand letter from a homeowner asking to cancel a contract is ignored. A demand letter from an attorney citing specific California statutes, documenting specific violations, and making a specific legal claim is a different document entirely. Solar companies have legal departments. A properly drafted demand letter from an attorney engages those departments in a way that a homeowner's request does not.

Negotiates from a position of legal strength. If your contract has violations, the solar company knows that pursuing collection or enforcement creates litigation risk for them. A solar attorney uses that risk as leverage, not to threaten, but to create a realistic settlement that gets the contract cancelled without a buyout fee or with a significantly reduced one.

Handles the lien release. If your solar company recorded a UCC-1 financing statement against your property, which many do, and most homeowners don't know about, that filing shows up on title searches and can block a home sale. A solar attorney ensures that the lien is released as part of the cancellation, not left open. For more on how solar liens work and how to find them, see our guide on solar liens on California homes.

Represents you if litigation is necessary. Most solar contract disputes are resolved without litigation. But when a company refuses to cancel a contract that has clear legal defects, litigation is the next step. An attorney who knows the statutes and has handled these cases can take it there.

What a Solar Contract Lawyer Can't Do

It's worth being direct about limitations.

A solar attorney cannot cancel a valid, compliant contract simply because you've changed your mind or because the economics turned out differently than you hoped. California law provides exit rights based on what the company did wrong, not based on buyer's remorse.

An attorney also cannot guarantee a specific outcome. Each case turns on the specific facts of your contract, the conduct of your salesperson, and the documentation available. Cases with strong evidence of misrepresentation have better outcomes than cases without it. Before contacting anyone, make sure you've gathered the right materials, our guide on how to document your solar case covers exactly what to pull together.

California Solar Exit: How We're Different

California Solar Exit is a consumer advocacy firm that works with general counsel and a specialized team focused on solar contract cancellation through California consumer protection law. We are not a general practice law firm. Every case we take is a solar contract case, which means we know the contracts, the companies, and the statutes better than anyone who handles these cases occasionally.

Our process starts with a free contract review. We'll tell you whether your situation has legal merit before you commit to anything. If it does, we'll walk you through what a resolution looks like and what it costs.

If you've been scammed or misled and aren't sure where to start, our step-by-step guide on what to do if you've been scammed by a solar company is a good first read before you call.

Call (213) 579-5156 or visit californiasolarexit.com to schedule your free review.

How to Evaluate Any Solar Attorney or Advocacy Firm in California

Before you hire anyone, ask these questions:

How many solar contract cases have you handled in California specifically?
What statutes do you rely on most often for cancellation?
Do you offer a free initial review before signing a service agreement?
What does your fee structure look like, contingency, flat fee, or hourly?
Can you provide references from past clients with similar situations?

An attorney or firm that can answer these questions specifically and directly is worth your time. One that speaks in generalities is not.

Frequently Asked Questions

How much does a solar contract lawyer cost in California? Fee structures vary. Some consumer advocacy firms handle solar contract cancellations on a flat-fee basis. Others work on contingency. Hourly rates for solar attorneys in California typically run $300 to $600 per hour. A free initial review is standard at reputable firms.

Can a solar attorney cancel my PPA without me paying the buyout? In cases involving misrepresentation, licensing violations, or disclosure non-compliance, yes, legal cancellation without a buyout fee is the goal. Whether it's achievable depends on the specific facts of your case.

Is California Solar Exit a law firm? California Solar Exit is a consumer advocacy firm that works with general counsel on solar contract cancellation matters. We do not provide general legal advice and do not create a traditional attorney-client relationship. We focus exclusively on solar contract cases.

What if the solar company threatens to sue me? Solar companies rarely pursue litigation against homeowners with valid legal defenses. When they do, having legal representation significantly changes the outcome. A firm with documented California consumer protection violations on your side is a very different defendant than an unrepresented homeowner.

How to Get Out of a Solar Contract in California

Mon, 20 Apr 2026 17:48:09 GMT

How to Get Out of a Solar Contract in California

If you're searching for a way out of a solar contract in California, you've probably already tried the obvious routes, calling the company, asking about buyouts, or hoping you misread the terms. Most homeowners who reach us have been through all of that.

The good news is that California law provides real exit routes for homeowners who were misled, whose contracts are non-compliant, or whose contractors were unlicensed. The bad news is that not every exit route works for every contract, and the wrong approach can close doors that were otherwise open.

The NEM 3.0 Problem: Why So Many 2023+ Contracts Are Failing

If you signed your solar contract on or after April 14, 2023, you're operating under California's Net Energy Metering 3.0 framework, and there's a good chance the savings you were promised are mathematically impossible.

NEM 3.0 cut the value of solar power exported back to the grid by roughly 75% compared to the prior NEM 2.0 framework. A kilowatt-hour your panels send to SCE, PG&E, or SDG&E that used to be credited at full retail rate is now credited at a fraction of that — often 5 to 8 cents per kWh instead of 30 cents or more.

The problem is that thousands of California homeowners signed contracts in 2023, 2024, 2025, and 2026 based on savings projections built on NEM 2.0 export math. Sales reps either didn't understand the change, didn't disclose it, or deliberately used outdated calculations to close deals. The result is homeowners across the Inland Empire, Central Valley, and Southern California staring at solar payments plus a utility bill that didn't shrink the way they were told it would.

If your contract was signed after April 14, 2023 and your savings are dramatically below what was projected, NEM 3.0 misrepresentation is one of the strongest grounds for cancellation we see. The math is provable, the timeline is documented, and California's Consumer Legal Remedies Act covers exactly this kind of misleading sales projection.

Here's what actually works and what doesn't.

Exit Route 1: Rescission Based on Misrepresentation

This is the most common and most powerful exit route available to California solar customers.

If what you were told by the salesperson, about savings, about the escalator, about what happens when you sell, about the company's track record, doesn't match what the contract actually says, you may have grounds for rescission under California law.

Rescission treats the contract as void from the beginning. You're not paying a buyout fee. You're not negotiating a settlement. The contract is cancelled because it was obtained through misrepresentation.

The standard for rescission under California Civil Code Section 1689 requires that a material misrepresentation was made, that you relied on it in signing, and that you were damaged as a result. For most solar customers, all three elements are present.

Exit Route 2: Statutory Three-Day Cancellation Right

If your solar contract was sold to you at your home, which includes door-to-door sales, in-home consultations, or any sale that didn't take place at the company's permanent place of business, the California Home Solicitation Sales Act gave you three business days to cancel without penalty.

If that right was not disclosed to you in writing, or if the cancellation notice was included in your paperwork in a way that wasn't clear and conspicuous, the three-day window may still be open, even years after signing.

This is not a technicality. It's a deliberate consumer protection, and California courts take non-disclosure of cancellation rights seriously. For a full breakdown of every California statute that applies to solar contracts, see our guide to California's solar consumer protections.

For contracts signed after January 1, 2026, [new SB 784 rules] give homeowners extended cancellation windows.

Exit Route 3: Contractor Licensing Violations

Every solar contractor in California must hold a valid C-46 (Solar) or C-10 (Electrical) license from the California Contractors State License Board. If your installer was unlicensed, or if a subcontractor performed work without a license, the contract may be void under California Business and Professions Code Section 7031.

Section 7031 is one of the strongest consumer protections in California law. An unlicensed contractor cannot enforce a contract, and in some cases the homeowner can recover payments already made. You can verify your contractor's license at cslb.ca.gov.

Exit Route 4: CPUC Disclosure Non-Compliance

California Public Utilities Commission regulations require specific written disclosures before any residential solar contract is signed. These include total cost projections, escalator terms, end-of-contract options, and cancellation rights.

If your contract was signed without these disclosures, or if the disclosures were incomplete or buried in fine print, that's a compliance failure that creates grounds for cancellation. Before contacting anyone, make sure you've gathered the right documentation. Our guide on how to document your solar case walks you through exactly what to collect.

Exit Routes by Contract Type: Lease vs. PPA vs. Loan

The exit strategy that works depends entirely on which type of solar contract you signed. Many California homeowners aren't sure — the paperwork looks similar, and the salesperson often used "lease," "PPA," and "loan" interchangeably even when the legal documents were different.

Solar Lease Cancellation

Lease agreements are typically held by Sunrun, Sunnova (now serviced by SunStrong after the 2025 bankruptcy), SunPower's successor entities, and Tesla. The leasing company owns the panels; you pay a monthly rate that usually escalates 2.9% to 3.9% per year over a 20- or 25-year term.

Lease cancellation paths:

Rescission for misrepresentation (most common path when escalator clauses or savings were misrepresented)
Three-day Home Solicitation Sales Act window if disclosure was non-compliant
Buyout — usually the worst option; quoted prices often run $15,000 to $40,000
Transfer to buyer at home sale — works only if the buyer qualifies and accepts the lease terms

For a deeper breakdown of lease-specific routes, see our guide on how to cancel a solar lease in California .

Power Purchase Agreement (PPA) Cancellation

PPAs work like leases but with a different payment structure — you pay per kilowatt-hour produced rather than a flat monthly rate. The legal exit routes are nearly identical to leases. The misrepresentation analysis is often easier with PPAs because the per-kWh pricing makes it more obvious when production fell short of projections.

Solar Loan Cancellation

Solar loans are the most complex to exit because you legally own the panels. The financing is typically held by Mosaic, GoodLeap, Sunlight Financial, Dividend Finance, Loanpal, EnFin, Service Finance, or smaller regional lenders. Most are secured by a UCC-1 fixture filing on your property, which becomes a problem the moment you try to refinance or sell.

Solar loan exit paths:

Rescission against the solar installer for misrepresentation, with the loan unwound under California's holder-in-due-course rules for consumer credit
Workmanship breach claims that void the underlying contract, releasing the loan obligation
Contractor licensing violations under Business and Professions Code Section 7031
Negotiated settlement with both the installer and lender, including UCC-1 lien release

The critical point on solar loans: do not let the lender tell you the loan is separate from the installation contract. Under California consumer credit law, lenders financing home improvement contracts can be held responsible for the installer's misrepresentations. "Talk to the installer, not us" is not the final word.

Where We See the Most Solar Contract Problems in California

Solar misrepresentation cases come from every corner of California, but certain regions show up disproportionately in the cases we review.

The Inland Empire and High Desert — Riverside, San Bernardino, Hesperia, Victorville, Apple Valley, Moreno Valley, Fontana — saw a wave of door-to-door sales from 2020 through 2024 tied to extreme summer SCE bills. Homeowners were sold systems oversized for their roofs and undersized for their actual usage.

Orange County neighborhoods in Mission Viejo, Irvine, Rancho Santa Margarita, Lake Forest, Anaheim, and Huntington Beach were targeted heavily during the NEM 2.0 sunset rush in early 2023. Many of these contracts were signed within days of the April 14 cutoff with savings projections that no longer applied.

The Sacramento metro — Roseville, Folsom, Elk Grove, Rocklin, Citrus Heights, and the broader SMUD service area — saw aggressive PPA pitches through 2024 and 2025, often with verbal promises that didn't survive the written contract.

Central Valley homeowners in Fresno, Bakersfield, Modesto, Stockton, Visalia, and Merced face a particular problem: high air-conditioning loads, expensive PG&E rates, and salespeople who used those numbers to inflate savings projections that NEM 3.0 made impossible.

Bay Area suburbs from Livermore and Pleasanton through Concord, Antioch, and the Tri-Valley reported a high rate of contracts where the federal tax credit assumptions didn't match the homeowner's actual tax liability.

The 55+ communities — Leisure World, Laguna Woods, Sun City Palm Desert, Rossmoor, Sun City Roseville, and the desert retirement corridors — were hit particularly hard. Fixed-income seniors were pressured into 25-year contracts that frequently qualify for elder financial abuse remedies under California Welfare and Institutions Code Sections 15610.30 and 15657.5, including treble damages and attorney's fees.

Whatever region you're in, the underlying legal framework is the same. The path forward depends on the specifics of your contract, not your zip code.

What Doesn't Work

Stopping payments — This does not cancel your contract. It will result in collection activity, credit reporting, and potentially a lien on your home. Do not do this without legal guidance.

Calling the solar company and asking to cancel — The company will offer you a buyout, which often runs $15,000 to $30,000 or more. This is not a legal exit. It's paying to escape a contract the company knows may be unenforceable.

Filing a BBB complaint alone — A complaint may be useful documentation, but it doesn't cancel a contract. It's a step, not a solution.

Waiting it out — If you're planning to sell your home in the next several years, a PPA or solar lease that can't transfer will surface at escrow and create serious transaction problems. For a full picture of what that looks like, see our guide on selling a home with a solar lease in California. Addressing it proactively costs significantly less than addressing it under time pressure.

The Process for a Legal Solar Contract Exit in California

A proper solar contract exit in California follows this sequence:

Contract review — A detailed review of your original agreement, including all addenda, disclosure documents, and any financing paperwork, to identify what was and wasn't compliant.
Documentation — Gathering your original sales presentation materials, any written communications with the company, your utility bills before and after installation, and any verbal promises that were made.
Legal basis determination — Identifying which exit route or combination of routes applies to your specific contract.
Cancellation or negotiation — Depending on the strength of your case, this is either a formal demand letter asserting rescission rights or a negotiated settlement that eliminates the contract without a buyout.
Confirmation — Ensuring the cancellation is documented, the lien is released if applicable, and your title is clear.

California Solar Exit handles this process for California homeowners on a case-by-case basis. We review contracts at no upfront cost and will tell you whether your situation qualifies before any service agreement is signed.

Call (213) 579-5156 or book a consultation at californiasolarexit.com.

Frequently Asked Questions

Can I get out of a solar lease in California without paying a buyout? Yes, in some cases. If the lease was obtained through misrepresentation, if required disclosures were not made, or if the contractor was unlicensed, legal cancellation without a buyout fee may be possible.

How long do I have to cancel a solar contract in California? The statutory three-day cancellation window applies to in-home sales. Rescission based on fraud or misrepresentation has a longer window under California Civil Code Section 338 — typically three years from discovery of the fraud.

What if I already signed all the documents and the panels are installed? Cancellation is still possible. Installation does not forfeit your rights under California consumer protection law.

Does the solar company have to remove the panels if the contract is cancelled? Generally yes, at the company's expense, when cancellation is based on their misrepresentation or non-compliance. The specifics depend on the cancellation basis and the company's response.

Can I cancel a solar loan if the panels are already paid off in part? Yes. Partial payments do not waive your right to challenge the underlying contract. If the original sale involved misrepresentation, fraud, or licensing violations, the contract can still be rescinded — and California consumer protection law often allows recovery of payments already made. Mosaic, GoodLeap, and other lenders cannot use partial payment as a defense to a valid rescission claim.

Do I have stronger rights if I'm 65 or older? Significantly stronger. California Welfare and Institutions Code Sections 15610.30 and 15657.5 treat financial exploitation of homeowners 65+ as elder financial abuse, which carries treble damages, attorney's fees, and a longer statute of limitations than standard consumer protection claims. Solar contracts pushed on seniors in communities like Leisure World, Laguna Woods, Sun City Palm Desert, and Rossmoor often qualify for these enhanced remedies.

What happens if my solar company filed for bankruptcy like Sunnova or SunPower? Bankruptcy does not eliminate your rights — it changes who you negotiate with. Sunnova contracts are now serviced by SunStrong, and SunPower's residential business has been transferred to successor entities. Your underlying claims for misrepresentation, disclosure violations, or licensing issues remain valid against the original contracting party and any successor that assumed the obligations. For Sunnova-specific guidance, see our Sunnova bankruptcy guide for California customers .

Will canceling my solar contract affect my home sale or refinance? Successful cancellation typically improves your position. UCC-1 fixture filings tied to solar loans regularly delay or kill home sales in California, particularly in markets like Orange County, the South Bay, and the Bay Area where buyers are sensitive to title issues. Removing the contract and clearing the lien resolves the problem before it surfaces at escrow.

The Most Common Solar PPA Problems California Homeowners Report

Sat, 18 Apr 2026 20:22:31 GMT

The Most Common Solar PPA Problems California Homeowners Report

A Power Purchase Agreement sounds like a simple deal: a solar company installs panels on your roof, you buy the electricity they generate at a set rate, and everyone wins. No upfront cost. Clean energy. Lower bills.

That's the pitch. The reality that many California homeowners discover, often years after signing is more complicated.

Solar PPAs are 20 to 25-year contracts with terms that were not explained clearly at the door, escalator clauses that erode the promised savings, and transfer provisions that create serious problems when you try to sell your home. This post covers the most common PPA problems California homeowners report and what your options are when you're facing them.

What a Solar PPA Actually Is

A solar PPA is not a purchase, a loan, or a lease. It's a contract to buy electricity from a solar system that someone else owns and that sits on your roof. The solar company retains ownership of the panels. You pay for the kilowatt-hours they produce, typically at a rate below your utility's retail rate at the time you sign.

The catch is the length. Most PPAs run 20 to 25 years. And most include an annual escalator, typically 2 to 4 percent, that raises your per-kilowatt-hour rate every year. Utility rates fluctuate. Your escalator does not.

Problem 1: The Savings Disappeared

The most common complaint California Solar Exit hears from PPA customers is that the promised savings never materialized or materialized for the first year or two and then reversed.

This happens for two reasons. First, the solar salesperson projected savings based on your current utility rate without disclosing that the PPA rate would escalate annually. Second, California utility rates particularly PG&E, SCE, and SDG&E, have historically increased, but not always at the rate the salesperson projected, and sometimes your usage changed, your household grew, or your utility switched rate structures.

If your PPA rate has escalated past what you're paying your utility, you're in a situation the salesperson almost certainly did not disclose to you at signing. Under California Business and Professions Code Section 17200, misrepresentations about expected savings can constitute an unlawful business practice.

Problem 2: You Didn't Know About the Escalator Clause

California law requires solar contractors to disclose the total cost of a PPA over its full term, including all escalator increases. This requirement comes from California Public Utilities Code Section 2827.1 and associated CPUC regulations.

Many homeowners report that they were shown a first-year rate and a general estimate, but were never shown the 20-year cost projection with escalators applied. Some report that the escalator was buried in the contract in language they didn't understand.

If your escalator clause was not clearly disclosed before you signed, that is a compliance failure with California law — and potentially grounds for contract cancellation.

Problem 3: You Can't Sell Your Home

Selling a home with a solar PPA is one of the most common transaction problems in California real estate right now. The PPA doesn't go away when you sell. It transfers to the buyer, but only if the buyer qualifies under the solar company's credit requirements and agrees to assume the contract.

Many buyers won't. They don't want a 15-year obligation to a company they've never heard of, at a rate that may or may not be competitive when they move in. This means the PPA can directly kill a sale or force a price reduction. For a full breakdown of what happens at escrow and how to handle it, see our guide on selling a home with a solar lease in California .

The solar company's solution is typically one of three things: the buyer assumes the contract, the seller pays the buyout fee to terminate the PPA, or the panels are removed which often comes with its own fees and roof repair obligations. None of these options were disclosed to most homeowners when they signed.

Problem 4: The Buyout Price Is Prohibitive

Most PPAs include a buyout provision, a formula that lets you terminate the contract by paying the present value of the remaining electricity payments. In practice, this number is often $10,000 to $30,000 or more depending on how many years remain.

The buyout was almost never disclosed as a real number at signing. Salespeople routinely described PPAs as "easy to get out of" or "transferable when you sell." The actual buyout formula, and the dollar amount it produces, is a different story.

Problem 5: The Company Changed or Went Bankrupt

SunPower, one of the largest solar PPA providers in California, filed for Chapter 11 bankruptcy in 2024. Dozens of smaller installers have done the same. When a solar company files for bankruptcy, your PPA may be sold to a third party, often a company you never agreed to do business with. If this has happened to you, read our full guide on what to do when your solar company goes bankrupt .

This creates confusion about who to contact for maintenance, who holds the contract, and what your rights are during a home sale. California law does not automatically give you the right to exit a PPA because the original company went bankrupt, but the change in counterparty combined with original misrepresentation claims can create a stronger case for cancellation.

What California Law Gives You

California homeowners have more protection against predatory PPA terms than homeowners in most other states. For a complete breakdown of every statute that applies, see our guide to California's solar consumer protections . Key statutes include:

The Contractor State License Law — Solar contractors must hold a valid C-46 or C-10 license. Work done by unlicensed contractors can void the contract entirely.

Business and Professions Code Section 17200 — Prohibits unlawful, unfair, or fraudulent business practices. Misrepresentations about savings, escalators, or transfer terms can trigger liability under this statute.

California Home Solicitation Sales Act — If your PPA was sold at your home, you had a three-day right to cancel. If that right was not disclosed or was obstructed, the cancellation window may extend.

CPUC Disclosure Requirements — Solar companies must provide written disclosure of total contract cost, escalators, and end-of-term options before you sign.

What to Do If You're Trapped in a Problematic PPA

Start by pulling your original contract and any documents you were given before signing. Look for the escalator clause, the buyout formula, the transfer requirements, and any savings projections. Our guide on how to document your solar case walks you through exactly what to gather before contacting anyone. Compare what you were told verbally to what the contract actually says.

If there's a gap, and for most homeowners there is, that gap is where your legal options live. California Solar Exit reviews PPA contracts at no upfront cost to determine whether your situation qualifies for cancellation under California consumer protection law.

Call (213) 579-5156 for a free review. We'll tell you what your contract says, what California law gives you, and what your realistic options are.

Frequently Asked Questions

Can I cancel a solar PPA in California? Yes, in some cases. Cancellation is possible when the contract was obtained through misrepresentation, when required disclosures were not made, or when the contractor lacked proper licensing. Not every PPA qualifies, but many do.

What happens to my solar PPA if I sell my house? The buyer must typically agree to assume the PPA. If they won't, you may need to pay a buyout fee or have the panels removed. This is a significant and commonly undisclosed issue at signing.

Does the annual escalator in my PPA have to be disclosed? Yes. California CPUC regulations require full disclosure of PPA terms including escalation rates and total contract cost projections before signing.

What is the average buyout cost for a California solar PPA? Buyout costs vary by company and years remaining, but typically range from $10,000 to $30,000 or more. The formula is usually the net present value of remaining payments.

Solar Loan vs. Solar Lease: Which One Is Harder to Cancel in California?

Fri, 17 Apr 2026 18:54:19 GMT

Solar Loan vs. Solar Lease: Which One Is Harder to Cancel in California?

If you're trying to get out of a solar agreement in California, one of the first questions that matters — and one most people don't think to ask until they're stuck — is whether you have a loan or a lease. The answer changes everything about what options you have and how hard the exit is going to be.

These two financing structures are fundamentally different legal animals. A solar lease ties you to the solar company itself. A solar loan ties you to a lender — and often one you've never heard of, buried in the paperwork from the original sales appointment. Each one has different protections under California law, different points of leverage, and different failure modes that solar companies exploit.

Here's how they actually work and what your options look like under each.

What You Signed Matters More Than You Think

During the sales process, many California homeowners — particularly in the Inland Empire, Central Valley, and suburban Los Angeles markets — weren't given a clear explanation of which type of financing they were agreeing to. Some were told they were "just leasing" when they'd actually signed a solar loan agreement. Others were handed a financing agreement through a third-party lender like Mosaic, GoodLeap, or Sunlight Financial and didn't realize the solar company and the lender are entirely separate entities.

That distinction matters the moment you want out.

Solar Leases and PPAs: The Basics

A solar lease means you're renting the equipment. The solar company retains ownership of the panels on your roof and charges you a monthly payment for using the electricity they produce. A power purchase agreement (PPA) is similar — instead of paying a flat monthly lease fee, you're paying per kilowatt-hour of power generated at a contracted rate.

Both structures are 20–25 year agreements. Both typically include escalator clauses that increase your payments 2–3% per year. And both are notorious in California consumer protection circles for being sold with unrealistic production estimates — particularly to homeowners in partially-shaded markets like the foothills of San Bernardino County or neighborhoods in Fresno and Bakersfield where roof orientation varies significantly.

The leverage point on a lease or PPA: the solar company owns the equipment. They have skin in the game. If their representations about production or savings were materially false, that creates a direct breach of contract claim against the same entity you're trying to exit from. There's one company to deal with.

The challenge: 20–25 year agreements with escalators and buyout clauses that often scale with remaining contract value. Getting out of a lease typically requires negotiation, documentation of misrepresentation, or consumer protection escalation — including complaints to the California AG's office, which has been increasingly aggressive about solar company practices since 2023.

Solar Loans: A Completely Different Problem

A solar loan means you purchased the panels. You own the equipment. The lender — not the solar company — is who you actually owe money to.

This sounds cleaner. It isn't.

The problem is how these loans are structured. Solar loans are commonly originated through third-party lenders (Mosaic, GoodLeap, Sunlight Financial, Service Finance) during the sales appointment itself. The solar company acts as a dealer or broker. The loan is sold off to the lender, and the solar company moves on. If the system underperforms, if the savings projections were inflated, if the installer is now out of business — your loan payments keep going to the lender who had nothing to do with any of it.

California homeowners in San Diego, Riverside, and the greater Sacramento metro have reported being shocked to discover their "solar agreement" was actually a 25-year, $45,000–$80,000 loan originated the same day as the sales appointment — sometimes while they were still talking to the salesperson.

The UCC-1 Issue

One thing that catches people by surprise: many solar loans are accompanied by a UCC-1 financing statement filed against your property. This is a lien — not recorded as a traditional real estate lien through the county recorder's office, but filed through the Secretary of State — that gives the lender a security interest in the solar equipment. When you try to sell or refinance your home, the title company finds it. It has to be resolved before close of escrow. If the lender won't release it quickly, deals fall apart.

This is not disclosed clearly during the sales process. It's buried in the loan documents. And it becomes a serious problem for homeowners in high-turnover markets like Temecula, Murrieta, and Rancho Cucamonga, where move timelines don't always give you months to negotiate.

Which Structure Has More Exit Options?

Both have paths. Neither is easy.

For leases/PPAs , your strongest tools are:

California Consumer Legal Remedies Act (CLRA) — if the contract involved material misrepresentation (inflated savings projections, false production guarantees), California's CLRA provides for actual damages, punitive damages, and mandatory attorney fees. This is one of the strongest consumer protection statutes in the country.
California AG complaints — the attorney general's office has jurisdiction over unfair business practices under the UCL (Business and Professions Code § 17200). A formal complaint sometimes produces direct company response, particularly for larger solar operators.
Direct negotiation — lease buyouts exist in most agreements. The question is whether the formula is fair, and whether the company will honor it.

For solar loans , your strongest tools are:

TILA rescission — the Truth in Lending Act provides a three-business-day right of rescission for home-secured loans. If the transaction involved a security interest in your principal dwelling, and proper rescission notices weren't provided, the rescission window may extend to three years. This is one of the most powerful remedies available — it can cancel the loan entirely — but it requires precise execution. This is not a DIY process.
FTC Cooling-Off Rule — if the loan was originated during a door-to-door sales appointment and you weren't provided the required written cancellation notice, you may retain a right to cancel the transaction. California's Home Solicitation Sales Act provides parallel protections.
Dealer fee claims — many solar loans include undisclosed dealer fees paid by the lender back to the solar company. In California, failure to disclose these fees in the loan documents is a TILA violation. The amounts are sometimes substantial — $5,000–$15,000 on larger loan originations.

The short version: leases have more direct leverage against the solar company. Loans have more powerful federal legal remedies, but they're more complex to execute and typically require professional review to determine whether the violations are present and documentable.

What to Do If You're Not Sure Which You Have

Pull your paperwork. Look for the entity you're making payments to. If it's a company like Mosaic, GoodLeap, Sunlight Financial, or a regional credit union, you have a loan. If you're paying the solar company directly — SunRun, Sunnova, SunPower, or a regional installer — you likely have a lease or PPA.

Then look at the red flags in your solar contract — undisclosed escalators, inflated production estimates, missing cancellation notices — because those are the specific violations that open exit pathways.

If you've been told the panels are "yours" but you're paying a monthly financing bill you weren't clearly shown before signing, get a contract review before assuming you're stuck. Many California homeowners paying on solar loans right now have viable exit claims they don't know exist. You can also use our solar savings calculator to see how far off your actual savings are from what you were promised — that gap is often the clearest evidence of misrepresentation.

Whether you have a lease, a PPA, or a loan, the framework for solar contract cancellation in California applies differently depending on your structure. Get a professional review of your specific documents before making any moves.

Frequently Asked Questions

Can you cancel a solar loan in California? Yes, under certain conditions. Federal law under TILA provides a rescission right for home-secured loans where proper disclosures weren't made — potentially extending to three years in cases of serious violations. Undisclosed dealer fees and missing cancellation notices are the two most common violations that open loan cancellation pathways in California solar cases.

Is a solar lease or a solar loan harder to get out of? They're difficult in different ways. Leases involve 20–25 year agreements with buyout clauses, but you're dealing with one company. Loans involve a lender that's separate from the installer, and federal remedies like TILA rescission — while powerful — require precise documentation and execution to work.

What is a UCC-1 and why does it affect my solar loan? A UCC-1 financing statement is a lien filed by your solar lender against the solar equipment as collateral. It doesn't prevent you from selling your home, but it has to be resolved at closing. If the lender doesn't release it in time, it can delay or kill real estate transactions. Many California homeowners aren't told about it until they list their home.

Can I get out of a solar loan if the solar company is out of business? Yes — your contract with the lender survives the installer's bankruptcy. But a defunct installer can actually strengthen certain claims, particularly around warranty obligations and installation defects. The lender still owns the debt; your legal remedies against the original transaction may still apply depending on which violations are present.

What if I was told my solar would pay for itself but it hasn't? If the savings projections used to sell you the system were materially overstated, that can support a misrepresentation claim under California's CLRA or UCL — regardless of whether you have a lease or a loan. Document your actual production and utility bills from the start of service. The gap between projected and actual savings is often the foundation of a viable claim.

Not sure where your agreement falls? Book a free contract review or call (213) 579-5156 . We'll identify which structure you have, which violations may apply, and what your realistic options are. Serving all of California — remote consultations available.

When Do You Actually Need a Solar Attorney in California? An Honest Guide

Wed, 15 Apr 2026 17:06:48 GMT

When Do You Actually Need a Solar Attorney in California? An Honest Guide

Most California homeowners who've been misled by a solar company assume they need a lawyer immediately. Some go the opposite direction and assume the situation isn't serious enough for legal representation. Both assumptions can cost you.

The honest answer is that many solar contract issues can be resolved without an attorney — through direct negotiation, regulatory complaints, or buyout agreements. But some situations clearly warrant legal representation, and waiting too long to get it can close windows that don't reopen.

Here's how to tell the difference.

When You Probably Don't Need an Attorney

Your complaint is about service quality or system performance. If your panels aren't producing as promised but the gap is relatively small, your first step is a written complaint to the company and your monitoring data to support it. Many companies will address documented performance shortfalls through warranty service or compensation without litigation.

You want to negotiate a buyout. If you want to exit a lease or PPA by buying out the remaining contract value, this is typically a direct negotiation with the solar company. No attorney required — though having your contract reviewed first helps you understand what leverage you have.

You're filing regulatory complaints. Attorney general complaints, CFPB filings, and FTC reports are free, don't require legal representation, and sometimes produce faster results than formal litigation. These are almost always worth doing before escalating to legal action.

The financial gap is small. If the discrepancy between what you were promised and what you're experiencing amounts to a few hundred dollars over the contract term, the cost of litigation may exceed the potential recovery. Regulatory complaints and direct negotiation are proportionate responses.

When You Should Consult an Attorney

The solar company is refusing to honor a buyout clause. If your contract includes a buyout provision and the company is ignoring it or adding conditions not in the agreement, that's a breach of contract issue that typically requires legal pressure to resolve.

You believe your contract was forged or materially altered. If pages were added after signing, if your signature appears on documents you never saw, or if contract metadata shows modification dates after your signing date — this is potential fraud. Get legal counsel before taking any other action.

You have a strong FTC Cooling-Off Rule violation. If you were sold solar door-to-door and never received a proper written cancellation notice — and you want to exercise your right to cancel — having an attorney send the cancellation notice and manage the company's response significantly reduces the risk of the company disputing the cancellation improperly.

Your lender added hidden dealer fees. TILA rescission claims — which can cancel your loan entirely — are complex and time-sensitive. The three-year rescission window under TILA is one of the most powerful remedies available, but it requires precise legal execution. This is not a DIY process.

The company has gone bankrupt and a third party now holds your contract. Navigating bankruptcy creditor claims while simultaneously pursuing consumer protection rights against the original seller, the acquiring company, and the current servicer requires legal coordination that most homeowners can't manage alone.

You're a senior who was sold solar under conditions that may constitute elder abuse. California's Elder Abuse Act provides treble damages and mandatory attorney fees for successful plaintiffs — meaning attorneys frequently take these cases on contingency. If you're over 65 and believe the sale was conducted under undue influence or misrepresentation, a consultation costs nothing and the potential recovery is substantial.

Your PACE financing has resulted in a property tax lien you weren't told about. PACE loan disputes involving property tax liens require specialized legal knowledge. The consequences of getting this wrong — including potential foreclosure — are serious enough that legal representation is warranted.

What to Expect From a Solar Attorney

Free initial consultations are standard among consumer protection attorneys handling solar cases. Most reputable solar consumer protection attorneys offer a free first call to evaluate your situation before discussing representation.

Contingency arrangements are common in cases with strong CLRA, elder abuse, or TILA claims. Under a contingency arrangement, the attorney takes a percentage of the recovery rather than charging hourly fees — meaning you pay nothing unless you win. California's CLRA mandates attorney fees for successful plaintiffs, which makes many cases attractive to contingency attorneys.

Flat fee arrangements exist for more defined scopes of work — reviewing a contract, sending a demand letter, or managing a cooling-off cancellation. Flat fees for solar contract matters typically run $1,500–$5,000 depending on complexity.

Realistic timelines: Consumer protection litigation in California moves slowly. Most solar cases that go to formal litigation take 12–24 months to resolve. Cases that settle through negotiation or mediation — which is most of them — typically resolve in 3–9 months after legal engagement.

How to Find the Right Attorney

Not every consumer protection attorney handles solar cases. The specific legal frameworks — TILA, the FTC Cooling-Off Rule, California UCL, the Elder Abuse Act — require familiarity with how solar contracts are structured and how solar companies respond to legal pressure.

Look for attorneys who specifically list solar contract disputes, predatory lending, or home improvement fraud as practice areas. The California State Bar's referral service at calbar.ca.gov can identify consumer protection attorneys in your area. Many consumer protection attorneys also advertise directly to solar fraud victims given the volume of cases in California.

Questions to ask in an initial consultation:

Have you handled solar contract cases specifically?
Which legal theories do you think apply to my situation?
Do you work on contingency for cases like mine?
What is a realistic range of outcomes?
What is your assessment of the strength of my documentation?

A good attorney will answer these questions directly. One who is vague about applicable legal theories or unrealistically optimistic about outcomes is a red flag.

The Middle Path: Professional Contract Review First

For most California homeowners, the right sequence is not "file a complaint" or "hire an attorney" — it's get a professional contract review first, then decide.

A contract review identifies which red flags are present, which legal protections apply, and which exit pathways are available — before you spend money on legal fees or make moves that could complicate your position. Many issues can be resolved without an attorney once you know what leverage you actually have.

Frequently Asked Questions

How much does a solar attorney cost in California? Initial consultations are typically free. Contingency arrangements — common in CLRA and elder abuse cases — mean no upfront cost. Flat fee arrangements for defined scopes run $1,500–$5,000. Hourly rates for consumer protection attorneys in California typically run $300–$500 per hour.

What if I can't afford an attorney? California's CLRA mandatory attorney fee provision means attorneys take strong cases on contingency at no upfront cost. Additionally, California's Department of Consumer Affairs and nonprofit legal aid organizations provide free assistance for qualifying homeowners. The California AG's solar complaint intake system is also free and sometimes produces company responses without any legal fees.

Can I represent myself in a solar dispute? For regulatory complaints and direct negotiation, yes — no attorney required. For formal litigation, particularly TILA rescission claims or elder abuse cases, self-representation is strongly inadvisable. The procedural requirements are specific and errors can waive rights permanently.

What if the solar company offers me a settlement before I've consulted an attorney? Do not accept a settlement offer without understanding what you're giving up. Settlement agreements in solar cases typically include broad releases of all claims — meaning once you sign, every legal right you have against the company is extinguished regardless of what you later discover. Get a professional review of any settlement offer before signing.

Not sure whether your situation warrants legal representation? Book a free consultation or call (213) 579-5156 . We'll help you understand what you have before you decide what to do with it. Serving all of California — remote consultations available.

How to Document Your Solar Case Before Contacting an Attorney

Tue, 14 Apr 2026 17:02:00 GMT

How to Document Your Solar Case Before Contacting an Attorney

Most California homeowners who've been misled by a solar company wait too long to start gathering evidence — and by the time they consult an attorney or file a complaint, key documents have been deleted, memories have faded, and the salesperson who made the promises is long gone.

Documentation is the difference between a strong consumer protection claim and one that's difficult to substantiate. The good news: most of what you need already exists. You just need to know where to find it and how to preserve it.

This guide tells you exactly what to collect, where to get it, and how to organize it so that whoever reviews your case — a consumer protection attorney, the California AG, or California Solar Exit — can evaluate it immediately.

Why Documentation Matters More in Solar Cases

Solar fraud cases have a specific evidentiary challenge: the most damaging misrepresentations were often made verbally, by a salesperson who no longer works for the company, about projections that were only shown on a screen and never printed.

What closes that gap is the paper trail that does exist — and in most solar cases, that paper trail is substantial if you know where to look. Utility bills, monitoring data, loan statements, permit records, and e-signature audit trails together tell a story that is often more compelling than any verbal account.

Courts and regulators are experienced with solar fraud cases. They know what the documents should show. Your job is to make sure yours are complete.

The Core Documentation Checklist

Your contract and all related documents

Photograph or scan every page of your signed contract — front and back — including all exhibits, addenda, and amendments. If you signed electronically, request a complete copy from the solar company in writing and keep their response. Compare what you receive against what you remember signing. Note any pages or addenda you don't recognize.

Also request the audit trail or certificate of completion from your e-signature platform — DocuSign, Adobe Sign, or the company's proprietary system. This document shows the sequence and timing of every signature event and can reveal whether documents were added or modified after your signing session.

Your original sales proposal and savings projection

This is the single most important document in an inflated savings claim. It shows exactly what you were promised in writing — production figures, savings amounts, utility rate assumptions, and system specifications. If you don't have it, request it from the company. If they don't provide it, that refusal is itself documented evidence.

Also preserve any printed brochures, handouts, or marketing materials the salesperson left at your home.

All communications with the solar company

Save every email and text message with the salesperson, installer, and company — including any communications after installation about system problems, performance complaints, or attempts to resolve issues. Screenshot text conversations and save them to cloud storage. Export email threads and save them as PDFs.

If the salesperson made verbal promises that don't appear in the written contract, write down exactly what was said, when, and who was present — while it's still fresh. Dated written notes of verbal representations have been admitted as evidence in consumer protection proceedings.

Solar monitoring data

Your inverter or monitoring system — Enphase Enlighten, SolarEdge, or the company's proprietary portal — holds production records from the day your system was activated. Screenshot or export at least 24 months of production data showing actual kilowatt-hours produced per month. Compare this directly against the monthly production figure in your original sales proposal. A sustained shortfall of more than 10–15% is significant.

If you no longer have access to your monitoring portal — because the company went bankrupt or changed systems — contact your inverter manufacturer directly. Enphase and SolarEdge maintain production records independently of the installer.

Utility bills — before and after

Pull 24 months of utility bills from before your solar installation and every bill since. Most California utilities — PG&E, SCE, and SDG&E — allow you to download historical bill data directly from your online account going back several years. This data shows your pre-solar baseline consumption and cost, and your post-solar utility costs, allowing a direct comparison against what was promised.

Your loan documents

If you financed your system, collect your complete loan agreement, the lender's disclosure statement, and any correspondence from the lender. Identify the total loan amount and compare it against the cash price of the system as shown in your sales proposal or installation agreement. Document any gap that exceeds 15% — this is likely a hidden dealer fee.

Also note whether your loan has a "required prepayment" or "expected tax credit payment" provision. If it does, document what you were told about this provision at signing versus what your actual tax liability was in the year of installation.

Permit and inspection records

Request your building permit from your city or county building department. The permit application lists the specific equipment — panel model, inverter model, system size — submitted for regulatory approval. Compare this against the equipment specifications in your contract. Discrepancies between what was permitted and what was contracted — or between what was permitted and what was actually installed — are significant.

Most California jurisdictions have online permit portals where you can search by address. San Bernardino County, Los Angeles County, Orange County, and San Diego County all maintain searchable online permit databases.

Records of any UCC or fixture filings

Search your county recorder's online database using your name and property address. Solar lenders frequently file UCC-1 financing statements or fixture filings to secure their interest in the panels. If you find a filing you were never told about, screenshot it and note the filing date, the filer's name, and the collateral description.

A log of all contact attempts

Keep a running log — dated, with notes — of every attempt you make to contact the solar company, lender, or installer, and their response or lack of response. Include phone calls, emails, and any in-person visits. If a company stops responding after you raise concerns, that pattern of non-response is itself evidence.

How to Organize Everything

Store all documentation in a shared cloud folder — Google Drive or Dropbox — organized into clearly labeled subfolders:

Contract & Signing Documents
Sales Proposal & Marketing Materials
Communications (Emails & Texts)
Monitoring Data
Utility Bills (Pre-Solar)
Utility Bills (Post-Solar)
Loan Documents
Permit & Inspection Records
UCC/Lien Records
Contact Log

This structure allows any attorney, consumer protection analyst, or agency reviewer to find exactly what they need immediately. Organized evidence is the strongest evidence — and disorganized evidence, even when substantively strong, costs time and money to reconstruct.

Share the folder link rather than emailing attachments. It's easier to update and ensures everyone is working from the same complete set of documents.

What to Do If Documents Are Missing

Company won't provide your contract: Send a written request by certified mail. Their refusal or non-response is documented and itself supports a claim.

Can't access monitoring data: Contact your inverter manufacturer directly — Enphase and SolarEdge both have customer support lines and maintain records independently.

Sales proposal was only shown on a screen: Request it from the company in writing. If they claim it doesn't exist, that's significant. If you remember specific numbers, write them down now with the date of your recollection.

E-signature audit trail unavailable: Request the certificate of completion from the signing platform by name — DocuSign, Adobe Sign — using the email address you signed with.

Permit records not online: Call your city or county building department directly and request a copy of the permit for your property address. This is a public record and must be provided.

Frequently Asked Questions

How far back should my utility bills go? Ideally 24 months before installation. At minimum 12 months. This establishes your pre-solar baseline consumption and average monthly cost — the comparison point for any savings claim.

What if the salesperson communicated only by phone and I have no written record? Write down everything you remember — specific promises, specific numbers, specific phrases — as soon as possible and date the document. Note any witnesses who were present. Verbal representation records carry more weight when they're specific, contemporaneous, and consistent with other evidence.

My monitoring portal shows good production numbers — does that hurt my case? Not necessarily. Strong production doesn't preclude a misrepresentation case if the savings projection was built on false utility rate assumptions, an undisclosed escalator, a hidden dealer fee, or a tax credit the homeowner couldn't claim. Production is one component of the overall financial picture.

Should I contact the solar company before I have all my documents? Generally no. Contacting the company before your documentation is complete can result in admissions being walked back, records being altered, or the company positioning itself before you know what you have. Get organized first.

Ready to have your documentation reviewed? Book a free consultation or call (213) 579-5156 . We review solar contracts and supporting documentation across all of California — remote consultations available.

What to Do If You've Been Scammed by a Solar Company in California: A Step-by-Step Guide

Mon, 13 Apr 2026 17:13:35 GMT

What to Do If You've Been Scammed by a Solar Company in California: A Step-by-Step Guide

Finding out your solar contract wasn't what you were told is a disorienting experience. The system isn't saving what was promised. The payment is higher than expected. The company has gone bankrupt, changed names, or stopped returning calls. You signed something you didn't fully understand — and now you're not sure what, if anything, you can do about it.

The answer, for many California homeowners, is more than you think. But the steps you take in the next few weeks matter significantly for what options remain available to you.

Here is exactly what to do — in order.

Step 1: Stop and Breathe — But Don't Stop Paying

The first and most important instruction: do not stop making payments without legal counsel.

Stopping payments on a solar loan, lease, or PPA — even one obtained through fraud — can trigger default, damage your credit, and in the case of PACE financing, accelerate a property tax lien. Stopping payments feels like the logical response to being deceived, but it creates additional legal problems that complicate the path forward.

The law is on your side more often than you know. Millions of California homeowners are in similar situations. Acting strategically — not reactively — produces better outcomes.

Step 2: Gather Every Document You Have

Before you contact anyone — the solar company, an attorney, or a consumer protection agency — collect everything related to your solar sale and installation:

Your signed contract, including all exhibits and addenda
The original sales proposal or savings projection shown at signing
Any marketing materials, brochures, or printed handouts the salesperson left
All emails and text messages with the salesperson or company
Your loan documents if you financed the system
Utility bills for 12–24 months before installation
Utility bills for every month since installation
Screenshots of your solar monitoring app showing actual production vs. promised production
Any written promises about savings, production, or tax credits

If you don't have all of these, start requesting them. Your solar company is required to provide a complete copy of your contract. Your utility company can pull historical bill data. Your monitoring portal — Enphase, SolarEdge, or the company's own app — holds production records going back to installation.

Step 3: Document the Discrepancies in Writing

With your documents assembled, create a written record comparing what you were promised against what you've actually experienced. Write down:

What the salesperson told you verbally about savings, tax credits, and costs
What the written sales projection showed
What your contract actually says about payment amounts and escalators
What your system has actually produced vs. what was promised
What you're actually paying monthly vs. what you were told you'd pay
Whether you received a separate Notice of Cancellation form at signing
The language in which the sale was conducted vs. the language of the contract

This comparison document becomes the foundation of any formal complaint or legal claim. The more specific and contemporaneous it is, the more useful it is. Date it and keep a copy somewhere safe.

Step 4: Check for the Cooling-Off Notice

Before taking any other action, check your contract package for a document titled "Notice of Cancellation" — separate from the main contract, with its own signature line.

If that document doesn't exist in your package, or if cancellation language only appears inside the body of the main contract, the required notice under FTC Cooling-Off Rule 16 CFR 429 and California Civil Code Section 1689.5 was likely not properly given. Under California law, this may mean your right to cancel is still open — regardless of how long ago you signed.

This is worth checking before anything else because if the right to cancel is still legally open, it is one of the most direct exit pathways available.

Step 5: File Complaints With the Right Agencies

Filing complaints is free, creates an official record, and in some cases triggers a required response from the company. File with all of the following that apply to your situation:

California Attorney General — file at oag.ca.gov. The AG's consumer protection division maintains a dedicated solar complaint intake system. Each complaint contributes to the evidentiary record supporting broader enforcement action against repeat offenders.

CFPB — file at consumerfinance.gov/complaint if your complaint involves financing — a solar loan, PACE financing, or a lease with financing terms. The CFPB requires a response from the financial institution within 15 days.

FTC — file at reportfraud.ftc.gov if deceptive marketing, impersonation of a utility or government entity, or cooling-off rule violations were involved.

Better Business Bureau — file at bbb.org. Less powerful legally but creates a public record and sometimes produces faster company responses than formal regulatory complaints.

California Contractors State License Board — file at cslb.ca.gov if the installer was unlicensed, performed substandard work, or abandoned the project. The CSLB has authority to discipline and revoke contractor licenses.

Step 6: Request a Full Loan Disclosure Statement

If your system was financed, request a complete disclosure statement from your lender showing all fees charged — including any dealer fees, origination fees, or other charges added to your loan balance above the system's cash price.

Compare the total loan amount to the cash price of the system. A gap of more than 15% likely includes a hidden dealer fee that may constitute an undisclosed finance charge under TILA. Document this discrepancy in writing before contacting the lender.

Step 7: Check Your County Recorder for UCC Filings

Search your county recorder's online database using your name and property address. Solar lenders frequently file UCC-1 financing statements or fixture filings against California properties to secure their interest in the panels. These filings appear in title searches and can block a home sale or refinance.

If you find a filing you were never told about, document it. An undisclosed lien on your property is a material omission that may support both a contract rescission claim and a challenge to the lien itself.

Step 8: Get a Professional Contract Review

None of the steps above require a lawyer. But before deciding whether to pursue formal legal action — and which pathway makes most sense — a professional contract review is the right next step.

California Solar Exit reviews solar contracts across all contract types — leases, PPAs, and loans — at no cost before you commit to anything. We identify which red flags are present, which legal protections apply, and what exit pathways are available for your specific contract, state, and situation.

Many issues can be resolved through direct negotiation, AG complaints, or buyout agreements without formal litigation. Others — particularly cooling-off violations, TILA disclosure failures, and elder abuse cases — warrant legal representation. Knowing which category your situation falls into before taking action saves time, money, and mistakes.

Frequently Asked Questions

How long do I have before my options expire? It depends on which violation applies. California UCL claims have a four-year statute of limitations from discovery. TILA rescission claims have a three-year window from the transaction date. Cooling-off rights under California Civil Code 1689.5 may have no expiration if the notice was never given. Elder abuse claims have four years from discovery. Act sooner rather than later — some windows are closing.

What if the solar company has already gone bankrupt? Bankruptcy complicates but doesn't eliminate your options. Claims against the original company are filed in the bankruptcy proceeding as creditor claims. Claims against the current servicer or acquiring company — who may have assumed the contract without assuming the liability — require a separate analysis. Document everything now regardless.

Can I get the panels removed as part of a resolution? In some cases yes — particularly where a lease or PPA is rescinded, the solar company is responsible for removal. In loan cases where you own the panels, removal is your cost but may be part of a negotiated settlement. Don't remove panels unilaterally without legal guidance.

Will pursuing a claim affect my credit? Not directly. Filing regulatory complaints, requesting contract reviews, or pursuing legal claims does not affect your credit. Stopping payments does — which is why Step 1 emphasizes continuing payments while you evaluate your options.

Ready to understand your options? Book a free consultation or call (213) 579-5156 . We review solar contracts across all of California — remote consultations available.

California's Solar Consumer Protections: The Strongest in the Nation

Fri, 10 Apr 2026 19:23:36 GMT

California's Solar Consumer Protections: The Strongest in the Nation

Every state has consumer protection laws that apply to solar contracts. California's are among the most powerful — and most California solar homeowners have never heard of them.

If you were misled during a solar sale, pressured into signing a contract you didn't fully understand, or sold a system that hasn't delivered what was promised, California law gives you tools that don't exist in most other states. Understanding what those tools are — and how they apply to solar specifically — is the difference between feeling stuck and knowing your options.

California Business and Professions Code Section 17200

This is the foundation of California solar consumer protection — the Unfair Competition Law (UCL).

What it does: Prohibits any business act or practice that is unlawful, unfair, or fraudulent. The three-pronged structure is important: you don't need to prove all three. A practice that is unfair alone — meaning it causes substantial consumer harm that outweighs any legitimate business justification — is actionable under the UCL even without technical fraud.

Why it matters for solar: The "unfair" prong covers conduct that falls short of outright fraud but causes real harm — inflated savings projections, escalator clauses presented without honest long-term modeling, loan structures built around tax credits the homeowner couldn't claim. Courts have found UCL violations in solar cases based on business practices that were systematically misleading even when no individual statement was a provable lie.

Remedies: Restitution of money paid, injunctive relief, and civil penalties. The UCL has a four-year statute of limitations running from when the violation occurred or was discovered — giving many homeowners a longer window than they realize.

Private right of action: Yes. Any California resident harmed by an unfair business practice can bring a UCL claim without waiting for the attorney general to act.

Civil Code Section 1689.5 — The California Cooling-Off Law

California's home solicitation sales law reinforces and in some cases extends the federal FTC Cooling-Off Rule.

What it does: Provides a right to cancel any home solicitation contract within three business days of signing. Requires the seller to provide a written notice of cancellation in the same language as the contract.

The critical extension: Under California law, if the required cancellation notice was not given — or was not given in the correct language — the cancellation right does not expire after three days. It remains open indefinitely until proper notice is given. This is significantly stronger than the federal baseline, which is silent on what happens if notice is never provided.

Why it matters for solar: A homeowner who signed a solar contract at their door two years ago — without ever receiving a proper Spanish-language cancellation notice, or without receiving a separate cancellation form at all — may still have a live right to cancel under California law today. This is not theoretical. It is one of the most frequently used exit pathways for California solar homeowners.

California Consumer Legal Remedies Act (CLRA)

The CLRA specifically prohibits a list of deceptive business practices in consumer transactions — and several apply directly to common solar sales tactics.

Relevant prohibitions include:

Misrepresenting the characteristics or benefits of goods or services
Advertising goods or services with intent not to sell them as advertised
Inserting unconscionable contract terms that the consumer has not had a meaningful opportunity to review
Representing that a transaction confers rights that it does not

Why it matters for solar: Telling a homeowner that solar will "eliminate" their utility bill, that the tax credit will come as a refund check, or that their energy costs will be "frozen" — when none of these things are true — are textbook CLRA violations.

Remedies: Actual damages, punitive damages, injunctive relief, and mandatory attorney fees for successful plaintiffs. The mandatory attorney fee provision is significant — it means a California homeowner with a strong CLRA claim can often find representation without paying upfront legal fees.

Civil Code Section 1632 — The Spanish Language Contract Law

California is one of the few states with a law specifically requiring contracts negotiated in Spanish to be provided in Spanish.

What it does: Any contract for goods or services over $250, negotiated primarily in Spanish, must be given to the consumer in Spanish before signing. This applies to door-to-door sales, home improvement contracts, and solar agreements.

Remedy for violation: The consumer may rescind the contract. Not damages — rescission. The contract can be unwound entirely if this requirement was violated.

Why it matters for solar: California's large Spanish-speaking population has been specifically targeted by solar companies that pitch in Spanish and contract in English. Systematic violation of Section 1632 has been documented across multiple solar companies operating in California's Central Valley, Inland Empire, and Los Angeles County.

California Elder Abuse and Dependent Adult Civil Protection Act

For homeowners over 65, California provides enhanced remedies that go beyond standard consumer protection law.

What it does: Prohibits financial abuse of elders, including taking property through undue influence, misrepresentation, or fraud. Solar contracts sold to seniors under high-pressure conditions — particularly when the financial terms were misrepresented — may qualify as financial elder abuse under this statute.

Remedies: Treble damages (three times actual damages), mandatory attorney fees, and enhanced penalties. These remedies are among the strongest available under any California consumer protection statute.

The undue influence standard: California Probate Code Section 86 defines undue influence to include excessive pressure, isolation from advisors, and exploitation of a victim's vulnerability. A senior sold a 25-year solar contract on the same day as the first sales visit, without family present, after a high-pressure pitch — meets several elements of this standard.

How California Law Works With Federal Law

California's consumer protection statutes operate independently of and in addition to federal protections. A single solar sale can simultaneously violate:

The FTC Cooling-Off Rule (federal)
TILA (federal)
California UCL Section 17200 (state)
California CLRA (state)
California Civil Code 1632 (state)
California Elder Abuse Act (state, if applicable)

Each violation carries its own remedies. Pursuing one doesn't preclude pursuing others. California courts have consistently held that state consumer protection claims are not preempted by federal law in this context.

Frequently Asked Questions

How long do I have to bring a claim under California law? The UCL has a four-year statute of limitations from discovery. The CLRA has a three-year limitations period. The cooling-off right under Civil Code 1689.5 has no limitations period if the required notice was never given. Elder abuse claims have a four-year period from discovery.

Do I need an attorney to pursue a California consumer protection claim? Not necessarily for all pathways. Attorney general complaints, CFPB filings, and direct negotiation with the solar company are available without legal representation. For formal litigation, the CLRA's mandatory attorney fee provision means many attorneys will take strong cases on contingency.

What if the solar company says California law doesn't apply because their contract has an out-of-state choice-of-law clause? California courts have repeatedly declined to enforce choice-of-law provisions that would deprive California residents of protections under California consumer protection statutes. The UCL and CLRA apply to California residents regardless of what state law the contract purports to designate.

Can I pursue a California claim if my company went bankrupt? Claims against the original company may be subject to the bankruptcy stay and filed as creditor claims in the bankruptcy proceeding. Claims against the acquiring company or current servicer — who may have assumed the contract without assuming the liability — require a different analysis. Get a professional review before assuming bankruptcy ends your options.

Want to know which California protections apply to your contract? Book a free consultation or call (213) 579-5156 . We review solar contracts across all of California — remote consultations available.

Your Federal Legal Rights Against Solar Fraud: FTC, TILA, and CFPB Explained

Thu, 09 Apr 2026 17:22:49 GMT

Your Federal Legal Rights Against Solar Fraud: FTC, TILA, and CFPB Explained

Most California homeowners who've been misled by a solar company don't realize they have federal protections — not just state ones. Three separate federal laws apply directly to the most common solar fraud patterns, and each one carries its own remedies that exist independent of anything California law provides.

Understanding these laws doesn't require a law degree. It requires knowing which one applies to your situation — and what it actually gives you.

The FTC Cooling-Off Rule (16 CFR 429)

This is the single most powerful and most frequently violated federal protection in residential solar sales.

What it does: Gives you three business days to cancel any sale of $25 or more made at your home — or anywhere other than the seller's permanent place of business.

What it requires of the seller: Two copies of a written "Notice of Cancellation" form must be provided at the time of sale, on a document separate from the main contract, with its own signature line. The seller must also inform you verbally of your right to cancel.

Why it matters for solar: Door-to-door solar sales are the primary target of this rule. If the cancellation form was not provided, provided incorrectly, or buried inside the main contract rather than on a separate document, the violation is established. The consequence: your cancellation window may never have legally started — meaning the right to cancel may still be open today regardless of how long ago you signed.

Enforcement and remedies: The FTC enforces this rule and private right of action exists in most states. In California, Civil Code Section 1689.5 reinforces and in some cases extends the federal baseline, providing additional state-level remedies on top of the federal protections.

The Truth in Lending Act (TILA) and Regulation Z

If your solar system was financed through a loan, TILA is the federal law most directly relevant to hidden dealer fees and undisclosed finance charges.

What it does: Requires lenders to clearly disclose the true cost of credit before you sign — including the APR, all finance charges, the total amount financed, the total of all payments, and the payment schedule.

Why it matters for solar: The CFPB has documented that solar lenders routinely add dealer fees of 10–30% to loan balances without clearly disclosing them as finance charges. A $40,000 system becomes a $50,000–$52,000 loan. If the dealer fee was not clearly disclosed as part of the finance charge calculation — if the loan documents simply showed a total financed amount without explaining why it exceeded the system's cash price — there is a potential TILA violation.

Enforcement and remedies: TILA violations carry statutory damages of up to $4,000 per violation in individual cases, plus actual damages and attorney fees. In cases involving significant disclosure failures, rescission of the loan — cancellation of the entire financing agreement — is available for up to three years from the date of the transaction.

The three-year rescission window under TILA is particularly significant. Many California homeowners who financed solar in 2022 and 2023 may still be within the rescission period if their loan documents contained material disclosure failures.

CFPB Consumer Financial Protection

The Consumer Financial Protection Bureau doesn't create a private right of action the way TILA does — but its role in the solar fraud landscape is significant for two reasons.

What it does: The CFPB oversees consumer financial products, including solar loans. It has authority to investigate lenders, issue civil penalties, and require remediation for affected consumers.

Why it matters for solar: The CFPB has published multiple reports specifically documenting hidden dealer fees, deceptive loan structures, and predatory lending practices in residential solar financing. These reports carry significant evidentiary weight in consumer protection claims — when a homeowner argues their lender engaged in undisclosed dealer fee practices, CFPB findings documenting the same practice across the industry strengthen that argument considerably.

In August 2024, the CFPB joined the FTC and U.S. Treasury in a joint interagency partnership specifically targeting deceptive solar sales. This coordination signals active federal enforcement attention on the industry.

How to use it: File a complaint directly at consumerfinance.gov/complaint. Each complaint creates an official record, triggers a required response from the lender, and contributes to the evidentiary record supporting broader enforcement action. Filing costs nothing and takes approximately 15 minutes.

The FTC Impersonation Rule (Effective April 2024)

This is the newest federal protection and directly addresses one of the most common solar sales tactics — salespeople claiming to represent your utility company or a government program.

What it does: Makes it specifically illegal for any business to impersonate a government entity, government official, or another business during the course of marketing or sales.

Why it matters for solar: "We're here from SCE about your solar eligibility" is a direct violation of this rule if the salesperson is not actually from SCE. Claiming to represent a government energy efficiency program, the Department of Energy, or any utility company during a sales pitch — when you don't — is now a specifically enumerated federal offense carrying civil penalties.

Enforcement: FTC civil penalties. If you believe a solar salesperson impersonated a utility or government entity during your sales visit, report it at reportfraud.ftc.gov and document the details of what was said as specifically as possible.

How These Laws Work Together

Federal and California state consumer protection laws are not mutually exclusive. A single solar sale can violate the FTC Cooling-Off Rule, TILA, and California Business and Professions Code Section 17200 simultaneously. Each violation carries its own remedies, and pursuing one doesn't preclude pursuing others.

For most California homeowners, the strongest cases combine a federal violation — typically a cooling-off rule failure or TILA disclosure failure — with California's broader unfair competition law, which requires a lower threshold of proof and provides a four-year statute of limitations running from discovery.

Frequently Asked Questions

Do I need to file a federal complaint before pursuing a California claim? No. State and federal claims are independent. Filing an FTC or CFPB complaint is free and creates a useful record, but it's not a prerequisite to pursuing a California consumer protection claim.

How long do I have to bring a TILA claim? One year for damages claims from the date of the violation. Three years for rescission claims from the date of the transaction. The rescission window is the more powerful remedy and the more important deadline to track.

What does rescission under TILA actually mean? If a court grants rescission, the loan is cancelled — you return the panels (or their equivalent value) and the lender returns all payments made. In practice, most TILA rescission claims are settled before reaching that point, often through loan modification or principal reduction.

Can I bring a TILA claim against a lender even if my complaint is really with the solar installer? In some circumstances yes. TILA has provisions — particularly around affiliated business arrangements — that can create lender liability for installer conduct. This is fact-specific and depends on the relationship between your installer and lender.

Not sure which federal protections apply to your situation? Book a free consultation or call (213) 579-5156 . We review solar contracts across all of California — remote consultations available.

12 Red Flags in Your California Solar Contract (And What Each One Means)

Thu, 09 Apr 2026 00:09:02 GMT

12 Red Flags in Your California Solar Contract (And What Each One Means)

Most California homeowners who end up trapped in a bad solar contract didn't see it coming. The problem wasn't that the warning signs weren't there — it's that nobody told them what to look for.

Consumer protection analysts flag the same contract terms and patterns repeatedly across thousands of California solar complaints. If three or more of the following apply to your situation, your contract may warrant a formal review.

The 12 Red Flags

1. Your annual escalator is 2.5% or higher

An escalator at or above 2.5% compounding annually means your payment will increase by more than 85% over a 25-year term. If utility rates don't increase at the rate projected during your sales pitch — and under NEM 3.0 the economics have already shifted significantly — you'll be paying above-market rates for solar within 5–10 years. This is especially problematic if the escalator was never clearly modeled against realistic utility rate projections at signing.

2. Your contract term is 20 years or longer

A 20–25 year obligation is longer than most car loans, personal loans, and many mortgages. At this length, the compounding effect of an escalator, the difficulty of home sale transfer, and the risk of company bankruptcy all become material concerns. Contracts of this length require proportionally thorough disclosure — and many didn't receive it.

3. You were never given a separate written cancellation notice

Under the FTC Cooling-Off Rule (16 CFR 429), any door-to-door sale must include a separate "Notice of Cancellation" form. If this document isn't in your contract package — as its own page with its own signature line — the required notice was likely not properly given. Under California Civil Code Section 1689.5, this may mean your right to cancel never legally started.

4. Your loan balance is more than 15% higher than the system's cash price

A gap of more than 15% between the cash price and your loan balance almost certainly includes a hidden dealer fee — a markup of 10–30% added to your loan by the lender before funds were disbursed to the installer. This fee is rarely disclosed clearly and may constitute an undisclosed finance charge under the Truth in Lending Act.

5. You were told you'd receive the full tax credit as a refund check

The federal ITC is a credit against taxes owed — not a refund. If your tax liability is less than 30% of your system cost, you can't fully realize the credit in a single year. If your loan was structured around a lump-sum tax credit payment in year one and that payment never materialized, your loan may have recasted to significantly higher payments without proper disclosure.

6. The contract was signed the same day as the first sales visit

Same-day signings under sales pressure are one of the most consistent indicators of a problematic solar sale. The FTC Cooling-Off Rule exists precisely because of this dynamic — consumers need time to review a 25-year financial commitment without a salesperson in the room. A same-day signing combined with a missing cancellation notice is among the strongest indicators of a cooling-off violation.

7. You don't have a complete copy of your signed contract

California law requires sellers to provide a completed copy of any contract at the time of signing. If you never received one, or if your copy appears incomplete — missing pages, exhibits, or addenda — request a full copy in writing immediately. Gaps between what you have and what's on file may indicate post-signing alterations.

8. Your monthly solar payment is higher than your pre-solar utility bill

If your combined monthly solar payment plus current utility bill exceeds what you paid for electricity before installation, the savings projection was false. This is the simplest and most direct test of whether the financial promise made during the sales process has been kept.

9. The contract is in a language you don't fully understand

California Civil Code Section 1632 requires that contracts negotiated primarily in Spanish be provided in Spanish before signing. If your sales pitch was conducted in Spanish but your contract was only in English, you may have the right to rescind regardless of what you signed.

10. Your solar company has gone bankrupt, been acquired, or changed names

SunPower, Sunnova, and dozens of smaller California solar companies have gone bankrupt or been acquired since 2022. If your original company no longer exists in its original form, your contract has likely been transferred to a new servicer or acquiring entity. This complicates exit pathways but doesn't eliminate consumer protection rights against the original seller.

11. There is a UCC lien or fixture filing on your property you weren't told about

Solar lenders frequently file UCC-1 financing statements or fixture filings against your property to secure their interest in the panels. These filings appear in title searches and can complicate or block a home sale or refinance. If you weren't clearly told about this filing at signing, that's a material omission — and in some cases grounds for challenging the lien itself.

12. Your system produces significantly less energy than was promised

Request your solar monitoring data — from your inverter app or the company's monitoring portal — and compare actual annual production against the production figure in your original sales proposal. A shortfall of more than 10–15% from projected production, sustained over multiple years, supports both a misrepresentation claim and potentially a warranty or performance claim depending on your contract terms.

What to Do If You Checked Three or More

Three or more red flags in a single contract is a strong indicator that consumer protection law may provide relief — whether that means contract rescission, loan modification, or damages. The specific pathway depends on which red flags apply, your contract type (lease, PPA, or loan), and when you signed.

The most important thing is not to assume you're stuck. California's consumer protection framework is among the strongest in the country, and contracts signed under misrepresentation, incomplete disclosure, or cooling-off violations are not always enforceable.

Frequently Asked Questions

Do I need all 12 red flags to have a case? No. A single serious violation — a missing cancellation notice, a TILA-violating dealer fee, a materially altered contract — can be sufficient grounds for a claim. The more red flags present, the stronger the overall picture of a problematic sale.

What if my contract has some red flags but I've been making payments for years? Length of payments doesn't automatically waive your rights. Some violations — particularly cooling-off rule violations where the notice was never given — create ongoing rights regardless of how long you've been in the contract. California's statute of limitations for unfair business practices is four years from discovery.

I recognize several of these but my contract has an arbitration clause. Does that matter? Arbitration clauses limit the venue for disputes, not the existence of your legal rights. Consumer protection claims are still available in arbitration. Some California protections also have specific carve-outs from mandatory arbitration.

How do I find out if there's a UCC lien on my property? Search your county recorder's office online using your name and property address. UCC-1 filings and fixture filings are public records. Many California counties have searchable online databases. Your title company can also run a search.

How many apply to you? Book a free consultation or call (213) 579-5156 . We review contracts across all of California — remote consultations available.

Solar Companies Targeting Seniors and Non-English Speakers in California: What the Law Says

Wed, 08 Apr 2026 16:46:44 GMT

Solar Companies Targeting Seniors and Non-English Speakers in California: What the Law Says

Not every California homeowner who ended up in a bad solar contract was simply unlucky. Consumer protection agencies and state attorney general offices have documented a consistent pattern: solar companies disproportionately target seniors on fixed income, non-English speakers, and lower-income homeowners — the populations least equipped to evaluate a complex 25-year financial contract under high-pressure sales conditions.

The CFPB found that one-third of the 8.4 million solar direct mail pieces sent between 2021 and 2023 targeted adults over 60. That is not coincidence. It is strategy.

Why These Groups Are Targeted

The targeting is deliberate and economically rational from the solar company's perspective. Here's why each group is specifically sought out:

Seniors on fixed income — retirees often own their homes outright, have established credit histories, and are home during the day when door-to-door sales teams are working. They are also less likely to have a family member present to review a contract, more likely to trust an authority figure, and — critically — more likely to have low tax liability, making the tax credit promises that drive many sales conversations impossible for them to fully realize.

Non-English speakers — California's large Spanish-speaking population has been specifically targeted by solar companies that conduct the sales pitch in Spanish but present the contract in English. California Civil Code Section 1632 requires that contracts negotiated in Spanish must be provided to the consumer in Spanish before signing. Many solar companies have violated this requirement systematically.

Lower-income homeowners — utility bills represent a larger percentage of household income for lower-income families, making the promise of reduced energy costs particularly compelling. Predatory solar financing structured around dealer fees and escalators hits these households hardest when the promised savings don't materialize.

The Specific Tactics Used

Consumer protection filings and attorney general complaints reveal consistent sales tactics used against vulnerable populations:

"Freezing" energy costs for seniors — salespeople told seniors on fixed income that solar would "lock in" or "freeze" their energy costs for 25 years. What they omitted: the escalator clause that increases the payment every year. A senior told their costs would be frozen while signing a contract with a 2.9% annual escalator was misled about a material contract term.

Government impersonation — salespeople claiming to represent SCE, PG&E, SDG&E, or a government energy efficiency program to gain entry and trust. The FTC's Impersonation Rule, effective April 2024, makes this practice specifically illegal.

Rushed signings without translation — non-English speaking homeowners were walked through e-signature processes in a language they didn't understand, initialing documents without meaningful comprehension of the terms.

Targeting through direct mail and door-knocking — CFPB data shows concentrated direct mail campaigns in ZIP codes with high concentrations of seniors and Hispanic households throughout California's Central Valley, Inland Empire, and San Diego County.

Isolation tactics — sales visits conducted when adult children or other family members weren't present, sometimes explicitly scheduled to avoid family members who might ask harder questions.

What California Law Provides

California has some of the strongest elder and consumer protections in the country, and several apply directly to predatory solar targeting.

California Elder Abuse and Dependent Adult Civil Protection Act (Welfare and Institutions Code Section 15600+) — provides enhanced protections for adults over 65 against financial abuse, including solar contracts entered under undue influence or misrepresentation. Remedies include treble damages and mandatory attorney fees in successful cases.

California Civil Code Section 1632 — requires that any contract for goods or services over $250, negotiated primarily in Spanish, be provided to the consumer in Spanish before signing. Violation gives the consumer the right to rescind the contract.

California Unruh Civil Rights Act — prohibits discrimination in business transactions. Targeting specific populations with predatory terms that wouldn't be offered to others may implicate this statute.

California Unfair Competition Law (Business and Professions Code Section 17200) — the broad "unfair" prong covers business practices that are oppressive or substantially injurious to consumers, even without technical fraud. Systematic targeting of vulnerable populations with escalating contracts they can't afford to exit fits squarely within this framework.

FTC Impersonation Rule (effective April 2024) — makes it specifically illegal for any business to impersonate a government entity or utility company during a sales pitch. Civil penalties apply.

Signs Your Sale May Have Been Predatory

Not every sale to a senior or non-English speaker is predatory. These indicators, taken together, suggest a case worth reviewing:

The sale was conducted in a language other than English but the contract was only in English
The buyer is over 65 on fixed income with a 20–25 year contract and a tax liability below 30% of system cost
The sales visit occurred when family members were not present, and the salesperson discourraged calling them
The salesperson claimed to represent a utility company or government program
The buyer was told their costs would be "frozen" or "locked in" without disclosure of the escalator
The contract was signed the same day as the first sales visit with no cooling-off notice provided
The buyer has no meaningful memory of what they agreed to

Three or more of these indicators in a single case is a strong signal that consumer protection law may provide relief.

Frequently Asked Questions

Can a senior rescind a solar contract signed years ago? Potentially yes, depending on the grounds. California's elder abuse statutes have specific limitations periods, and the cooling-off rule violation — if the cancellation notice was never properly given — may create an ongoing right to cancel regardless of how much time has passed. Each case is fact-specific.

My parent signed a solar contract I'm concerned about. What can I do? If your parent is over 65 and you believe they were misled, you may have standing to pursue a claim on their behalf depending on the circumstances. Document everything — the contract, the sales materials, the sales visit date, and what your parent recalls being told. A free contract review is the right first step.

What if the contract was in English but my family member doesn't read English well? If the negotiation was conducted primarily in Spanish and the contract was only provided in English, California Civil Code Section 1632 may give your family member the right to rescind regardless of whether they signed.

Does it matter if the solar company has since gone bankrupt? It complicates the picture but doesn't eliminate your rights. The contract has likely been transferred to a third party — a lender, servicer, or acquiring company. Consumer protection claims may still be available against the original seller depending on the timing and the nature of the transfer.

Were you or a family member sold solar under these circumstances? Book a free consultation or call (213) 579-5156 . We review contracts for seniors and non-English speaking homeowners across all of California — remote consultations available.

Forged and Incomplete Solar Contracts: What to Do If You Never Saw the Full Terms

Tue, 07 Apr 2026 16:32:21 GMT

Forged and Incomplete Solar Contracts: What to Do If You Never Saw the Full Terms

Of all the solar fraud patterns documented by consumer protection attorneys and state attorney general offices, this one tends to shock homeowners the most: the contract they signed may not be the contract that exists on file.

Solar contracts are increasingly signed electronically — on a tablet or phone, during the sales visit, often in a rush. Homeowners report that pages were skipped during the e-signature process, that they were told to "just initial here and here," that they never saw the full terms before signing. And in some cases, homeowners have discovered that supplementary terms were added to their contract after the initial signing — pages they never saw, carrying obligations they never agreed to.

This is not a minor paperwork issue. A contract that was materially altered after signing may be legally unenforceable.

How Incomplete Signing Happens

The e-signature process for solar contracts is designed to move quickly. A salesperson pulls up a DocuSign link or proprietary signing app, scrolls to the signature fields, and directs the homeowner to sign and initial in specific places. The full document — often 30–50 pages including exhibits, addenda, and financing agreements — is rarely read in full during this process.

What homeowners consistently report:

Being shown only the summary page or key terms, not the full agreement
Signature fields appearing without the surrounding contract text visible on screen
Being told the rest of the document is "standard" or "just legal boilerplate"
Receiving a copy of the contract days later — or never — rather than immediately at signing
Discovering pages or addenda in their contract file that they have no memory of seeing

Under California law, a seller is required to provide a completed copy of any contract at the time of signing. Failure to do so is itself a violation — and it sets up the conditions for post-signing alterations to go undetected.

Post-Signing Alterations: What the Evidence Shows

Some solar companies have been found to add supplementary terms after the initial signing. This can take several forms:

Addenda added to the file — additional pages attached to the original contract that weren't present at signing, sometimes appearing with the homeowner's signature reproduced from the original document.

Modified payment schedules — loan or lease exhibits showing different terms than what was discussed at signing.

Changed system specifications — equipment lists updated after signing to reflect lower-quality panels than originally specified, with the homeowner's signature carried over from the original agreement.

Supplementary arbitration clauses — in some documented cases, mandatory arbitration clauses have been added to contracts after initial signing to limit a homeowner's legal options before they discovered a problem.

How to Detect If Your Contract Was Altered

The most important tool available to you is document metadata — and most homeowners don't know to look for it.

Every electronic document carries embedded metadata showing when it was created, when it was last modified, and in some cases who modified it. If your contract's metadata shows a modification date after your signing date, that's a significant red flag warranting a full review.

Here's what to do:

Step 1: Request a complete copy of your signed contract from the solar company, including all exhibits and addenda. If they delay or provide an incomplete response, document that.

Step 2: Compare every page against what you remember signing. Pay particular attention to any pages that contain your signature or initials on documents you don't recall seeing.

Step 3: If you signed electronically, check whether your signing platform — DocuSign, Adobe Sign, or a proprietary system — has an audit trail or certificate of completion. This document shows the sequence and timing of every signature event and can reveal whether documents were modified after your session.

Step 4: Check for pages or addenda with modification dates after your signing date. On a PDF, this information is often visible under File > Properties > Description in Adobe Acrobat.

Step 5: Compare the system specifications in your contract against what was actually installed. Request the permit and inspection records from your local building department — they will show the equipment that was actually submitted for permit.

What California Law Says

A contract that was materially altered after signing without the homeowner's knowledge or consent may be void or voidable under California contract law. Material alteration — meaning a change that affects the rights or obligations of a party — can render a contract unenforceable regardless of what the document now says.

Additionally, forging or fraudulently altering a contract document may constitute fraud under California Penal Code Section 470 and civil fraud under common law, opening the door to both contract rescission and damages.

California's Consumer Legal Remedies Act (CLRA) also specifically prohibits inserting unconscionable contract terms that a consumer has not had a meaningful opportunity to review.

Frequently Asked Questions

I signed electronically — is that binding? Electronic signatures are legally binding in California under the Uniform Electronic Transactions Act (UETA). However, binding signature doesn't mean the underlying contract is enforceable if it was altered after signing or if required disclosures were omitted.

What if I never received a copy of my contract? California law requires you be given a copy at signing. If you never received one, request it in writing from the solar company immediately. Their response — or non-response — is itself evidence. Keep everything documented.

The company says I initialed every page — does that mean I agreed to everything? Not necessarily. If pages were presented in a way that prevented meaningful review, or if content was added after your initials were captured, initials alone don't create binding agreement to terms you never saw.

How do I know if my system specifications were changed after signing? Request your building permit from your city or county building department. The permit application lists the specific equipment submitted for approval. Compare it against your contract's equipment exhibit. Discrepancies between the two are significant.

Think your contract may have been altered or that you never saw the full terms? Book a free consultation or call (213) 579-5156 . We review solar contracts across all of California — remote consultations available.

The Solar Escalator Trap: How a Small Annual Increase Can Double Your Payment

Mon, 06 Apr 2026 21:04:23 GMT

The Solar Escalator Trap: How a Small Annual Increase Can Double Your Payment

When the salesperson mentioned the annual escalator, they probably called it something like "a small adjustment to keep pace with inflation" or "a minor yearly increase." What they likely didn't show you was what that increase looks like in year 15, year 20, or year 25.

At 2.9% per year, your solar payment nearly doubles over the life of a 25-year contract. And in many parts of California, utility rates have not increased at the rate that was projected when your escalator was justified. Within 5–10 years, a significant number of homeowners are paying more for solar than they would have paid for grid power.

This is the escalator trap — and it's built directly into the contract terms of most California solar leases and PPAs.

How the Escalator Actually Works

A solar lease or PPA escalator is a contractual clause that increases your monthly payment by a fixed percentage every year for the life of the agreement. Typical escalator rates in California contracts run 1.9–3.5% annually.

Here's what that looks like in real numbers. If your starting payment is $150/month with a 2.9% escalator:

Year 1: $150/month
Year 5: $168/month
Year 10: $194/month
Year 15: $224/month
Year 20: $259/month
Year 25: $299/month — nearly double the starting payment

Over the full 25-year term, you'll pay approximately $56,000 on a contract that started at $150/month. A salesperson who showed you only the year-one payment and called the escalator "minor" was presenting an incomplete picture of your financial commitment.

The Utility Rate Assumption Problem

The escalator was typically justified during the sales pitch with a projection showing utility rates increasing faster than your solar payment. "Your utility bill will go up 5–6% a year," the salesperson said. "Your solar payment only goes up 2.9%. You'll always come out ahead."

There are two problems with this framing.

First, utility rate projections are estimates — and often optimistic ones designed to make the escalator look favorable by comparison. California utility rates have increased, but not uniformly, not predictably, and not always at the rates used in solar sales projections.

Second, NEM 3.0, which took effect in April 2023, changed the fundamental economics of California residential solar. Under the new net billing tariff, the value of excess solar energy exported to the grid dropped approximately 75% for most California utilities. A homeowner sold a lease in 2021 with projections showing robust export credit income now receives a fraction of that value — while their escalating payment continues to rise on schedule.

The gap between the projected savings and the actual outcome widens every year. By year 10, many California homeowners are paying more in combined solar and utility costs than they would have paid for grid power alone.

Finding the Escalator in Your Contract

Your escalator percentage is in your lease or PPA agreement — typically in a section labeled "payment schedule," "annual adjustment," or "escalation rate." It may also appear in a separate exhibit or addendum attached to the main contract.

To calculate what your payment will be in future years, multiply your current payment by 1.0X (where X is your escalator percentage) raised to the power of each remaining year. A 2.9% escalator is 1.029. Your year 10 payment is your current payment multiplied by 1.029 to the power of 10.

Compare that projected payment against current utility rates in your area using your utility's published tariff schedules — available on PG&E, SCE, and SDG&E's websites. If your solar payment in year 10 or 15 exceeds what you'd pay for grid power at current rates, the escalator has already made the contract economically unfavorable.

When the Escalator Becomes a Legal Issue

An escalator clause itself is not automatically illegal. What may be actionable is how it was presented — or not presented — during the sales process.

If the salesperson used utility rate escalation projections to justify your solar escalator but those projections were inflated or based on pre-NEM 3.0 assumptions, that may constitute misrepresentation under California's Unfair Competition Law. If the long-term payment schedule was never shown to you at signing — only the year-one payment — that omission may support a UDAP claim. And if the escalator was presented as matching or trailing utility rate increases when the salesperson had reason to know those projections were unrealistic, the case for misrepresentation strengthens further.

Frequently Asked Questions

Can I negotiate the escalator out of my contract? Some solar companies will negotiate escalator terms, particularly if you can demonstrate the projection used to justify it was inflated. Most won't do this voluntarily — but a documented misrepresentation claim changes the negotiating dynamic significantly.

What if my escalator is below 2%? Is that still a problem? Lower escalators compound more slowly, but the same analysis applies — if utility rates don't increase as projected, any escalator creates a growing payment gap over time. The question is whether the escalator was honestly presented in context of realistic utility rate projections.

Does the escalator apply to a solar loan? No. Solar loan payments are fixed at the interest rate set at origination and don't escalate annually. The escalator trap is specific to leases and PPAs where you don't own the system.

I'm selling my home — does the buyer have to accept my escalating payment? The buyer must either qualify to assume your lease or PPA — including the escalating payment schedule — or you must buy out the contract before closing. As your payment grows in later years, finding a buyer willing to assume it becomes increasingly difficult.

Concerned about where your escalating payment is heading? Book a free consultation or call (213) 579-5156 . We review lease and PPA terms across all of California — remote consultations available.

Your Solar Contract May Still Be Cancellable — Here's Why

Sat, 04 Apr 2026 16:52:51 GMT

Your Solar Contract May Still Be Cancellable — Here's Why

If a salesperson came to your door, gave you a pitch, and got you to sign a solar contract on the spot — there's a federal law that was supposed to protect you. Many solar companies either didn't follow it, or followed it badly enough that your right to cancel may never have legally started.

This is not a technicality. It is one of the most powerful and underused consumer protections available to California solar homeowners.

The FTC Cooling-Off Rule (16 CFR 429)

Under federal law, any sale of $25 or more made at your home — or anywhere other than the seller's permanent place of business — must include a written 3-day right to cancel. The seller is required to:

Inform you verbally of your right to cancel at the time of sale
Provide you with two copies of a written "Notice of Cancellation" form
That form must be on a separate document with its own signature line — not buried in the main contract

This is not optional. It is not a courtesy. It is a legal requirement, and it applies to every door-to-door solar sale in the United States.

What Most Solar Companies Got Wrong

In practice, solar companies violated this rule in several consistent ways:

No cancellation notice at all — the salesperson left with a signed contract and no separate cancellation form was ever provided.

Notice buried in the main contract — some companies included cancellation language inside the body of the main agreement rather than on a separate document with its own signature line. This does not satisfy the rule.

Electronic signing on a tablet — contracts signed on a tablet or phone during the sales visit often skipped the cancellation notice entirely, or presented it as a checkbox the homeowner scrolled past without reading.

Verbal mention only — telling a homeowner they have three days to cancel without providing the written form does not satisfy the requirement.

Why This Matters More Than You Think

Here is the critical consequence most homeowners don't know: if the required cancellation notice was not properly provided, your 3-day cancellation window may never have legally begun.

California's Civil Code Section 1689.5 reinforces this at the state level and in some cases extends the cooling-off period further than the federal baseline. Under California law, if the notice of cancellation was not given in the required form, the cancellation right remains open — potentially indefinitely.

This means a homeowner who signed a solar contract two or three years ago, without ever receiving a proper cancellation notice, may still have a legal basis to cancel that contract today.

How to Check Your Contract Package

Pull out everything you received at the time of signing — the main contract, any addenda, and any separate documents. You are looking for a document titled "Notice of Cancellation" that:

Is separate from the main contract
Has its own signature line or acknowledgment
States clearly that you have the right to cancel within three business days
Provides an address or method for submitting the cancellation

If that document doesn't exist in your contract package — or if the cancellation language only appears inside the body of the main agreement — the required notice was likely not properly given.

Also check whether you signed electronically on the day of the sales visit. If so, request a complete copy of everything you signed from the solar company and compare it against what you actually remember seeing.

Frequently Asked Questions

Does the cooling-off rule apply if I called the solar company and invited them to my home? Generally yes. The FTC rule applies to sales made at your home regardless of who initiated the visit, with narrow exceptions that don't typically apply to residential solar.

What if I signed at a home show or fair, not at my house? The rule applies to any location that is not the seller's permanent place of business. A booth at a county fair or home improvement expo qualifies — the seller's "place of business" means their actual office, not a temporary sales location.

If the cancellation window is still open, how do I cancel? Cancellation must typically be in writing, delivered to the company by the method specified in the notice — or by certified mail if no method was given. Do not cancel verbally or by phone only. Document everything.

Can I cancel even if installation is already complete? This is more complex once work has been performed, but a cooling-off violation doesn't automatically disappear because time has passed or panels are on the roof. The legal analysis depends on your specific facts, state law, and what remedies are available. Get a professional review before taking any action.

My contract has an arbitration clause — does that affect this? Arbitration clauses limit where disputes are resolved, not whether your legal rights exist. A cooling-off violation is still actionable in arbitration. Some California consumer protection claims also have specific exemptions from mandatory arbitration.

Not sure if you ever received a proper cancellation notice? Book a free consultation or call (213) 579-5156 . We review contract packages across all of California — remote consultations available.

The Solar Tax Credit Lie: What California Homeowners Were Actually Promised

Thu, 02 Apr 2026 18:14:34 GMT

The Solar Tax Credit Lie: What California Homeowners Were Actually Promised

Of all the misrepresentations made during solar sales pitches, the federal tax credit claim may be the most damaging — because it sounds so specific and official that most homeowners never think to question it.

The pitch goes like this: "You'll receive a 30% federal tax credit that dramatically reduces your net cost. On a $40,000 system, that's $12,000 back." Sometimes it's framed as a check you'll receive. Sometimes it's built into a loan structure where you're expected to make a lump-sum payment in year one using the credit. Either way, millions of California homeowners signed contracts based on a version of the tax credit that doesn't work the way they were told.

What the Federal ITC Actually Is

The federal Investment Tax Credit (ITC) is a credit against taxes you owe — not a refund, not a check, not guaranteed money. This distinction is critical and is the source of enormous harm to homeowners who didn't understand the difference.

Here's how it actually works: if you purchase or finance a solar system, you may be eligible to claim 30% of the system cost as a credit on your federal income tax return. That credit reduces your tax liability dollar for dollar. If your total federal tax liability for the year is $8,000 and your credit is $12,000, you eliminate your tax bill entirely — but the remaining $4,000 doesn't come back to you as a refund. It carries forward to the following tax year.

If your tax liability is consistently low — as it is for retirees on fixed income, part-time workers, or anyone with significant deductions — you may never fully realize the credit you were promised. The credit doesn't expire, but it only offsets taxes you actually owe. If you never owe enough, you never get the full benefit.

Who Gets Hurt Most

The CFPB and consumer protection attorneys have identified a consistent pattern: solar companies disproportionately targeted seniors on fixed income and lower-income homeowners — precisely the populations least likely to have the tax liability needed to claim the full credit.

A retired couple receiving Social Security and a small pension may have a federal tax liability of $2,000–$4,000 per year. A salesperson who told them they'd receive a $12,000 tax benefit on a $40,000 system was either lying or dangerously uninformed. Either way, the homeowners made a financial decision based on money they were never going to see.

The Loan Structure That Makes It Worse

Many solar loans are specifically structured around the tax credit — and this is where the misrepresentation causes the most acute financial damage.

Here's how it works: the loan is written with artificially low initial payments for the first 12–18 months. The lender expects the borrower to apply their tax credit refund as a lump-sum principal reduction during that window. If they don't, the loan recasts — payments jump significantly, and the total interest owed increases dramatically.

Homeowners who were told they'd receive $12,000 from the IRS, applied it against the loan, and kept their payments low — only to discover their actual refund was $2,000 or zero — are now facing recasted loans with payments hundreds of dollars higher than they expected, on top of the tax credit they never received.

This is not a paperwork error. It is a foreseeable outcome of selling a tax-credit-dependent loan structure to someone who doesn't qualify for the full credit.

How to Check If This Happened to You

Look at your federal tax return for the year you installed solar. Find your total tax liability — not your refund, your liability. This is the number on line 24 of Form 1040 (or the equivalent for your filing year).

If your tax liability is less than 30% of your system's cash price, you didn't — and won't — receive the full credit in a single year. If the salesperson told you that you would, the projection was misrepresented.

Also check your loan documents. If your loan has a "required prepayment" or "expected federal tax credit payment" built into the structure — and you weren't clearly told that this payment was contingent on actually receiving the credit — that's a material disclosure failure.

What California Law Says

Misrepresenting how the federal ITC works — particularly telling a homeowner they'll receive a refund check when they won't — may constitute misrepresentation under California's Consumer Legal Remedies Act (CLRA) and Business and Professions Code Section 17200. These statutes don't require the company to have intended to deceive. A misleading statement that a reasonable person would rely on is sufficient.

For loan-structured misrepresentations involving the tax credit, TILA violations may also apply if the credit-dependent payment structure wasn't clearly disclosed as a condition of the loan terms.

Frequently Asked Questions

Can I still claim the ITC if I have a solar lease or PPA? No. If you don't own the system, you don't get the credit. The solar company that owns the equipment claims it. This is another common misrepresentation — homeowners in leases being told they'd receive a tax credit.

What if I was told the credit would come as a check from the IRS? That is factually incorrect. The ITC has never been a refundable credit — it cannot exceed your tax liability and does not generate a refund beyond that. If a salesperson told you otherwise, that is a misrepresentation regardless of whether they believed it themselves.

My loan recasted because I didn't make the lump-sum payment. What are my options? This is one of the most actionable situations California Solar Exit reviews. Depending on your loan documents and what you were told at signing, there may be grounds to challenge the loan structure itself. Document everything — your original sales materials, any written savings projections, and your loan agreement — before contacting anyone.

Is the 30% credit still available in 2026? Yes. The ITC is currently scheduled to remain at 30% through 2032 under the Inflation Reduction Act. Any salesperson who told you the credit was "expiring soon" to pressure a faster decision was misrepresenting the law.

Were you sold solar based on a tax credit you couldn't fully use? Book a free consultation or call (213) 579-5156 . We review solar contracts and loan structures across all of California — remote consultations available.

Hidden Dealer Fees in Solar Loans: The Markup Most California Homeowners Never See

Wed, 01 Apr 2026 17:10:19 GMT

Hidden Dealer Fees in Solar Loans: The Markup Most California Homeowners Never See

If you financed your solar system through a loan, there's a number in your contract that almost nobody told you about. It's called a dealer fee — and it may have added $5,000 to $15,000 to your loan balance before you signed a single page.

The CFPB has documented this practice across major solar lenders. It is not a fringe issue. It is standard operating procedure in the residential solar financing industry — and California homeowners are among the most affected.

How Dealer Fees Work

When you finance solar through a loan, the transaction works like this: the lender pays the installer directly for the system. But before that payment goes out, the lender adds a "dealer fee" — typically 10–30% of the system's cash price — to your loan balance.

The installer receives the cash price. You repay the cash price plus the dealer fee, plus interest on the entire inflated amount, over the life of the loan.

A system with a cash price of $40,000 becomes a $44,000–$52,000 loan. You pay interest on $52,000 — not $40,000. Over a 20–25 year loan at a typical solar APR, that difference compounds into tens of thousands of dollars in additional payments.

The dealer fee is rarely disclosed clearly. In many contracts it doesn't appear as a line item at all. The loan documents show a total financed amount — they don't show you that the cash price and the loan amount are two different numbers, or explain why.

Why This May Violate Federal Law

The Truth in Lending Act (TILA) and its implementing regulation, Regulation Z, require lenders to clearly disclose the true cost of credit — including APR, finance charges, total amount of payments, and the total financed amount broken down honestly.

A dealer fee that inflates the loan balance without clear disclosure may constitute an undisclosed finance charge under TILA. If the total amount financed in your loan documents doesn't accurately reflect the actual cost of the system plus properly disclosed fees, there is a potential TILA violation — one that can carry statutory damages, actual damages, and in some cases rescission of the loan entirely.

The CFPB, which oversees consumer financial products including solar loans, has published multiple reports specifically documenting hidden dealer fees and deceptive loan structures in solar financing. Their findings provide strong evidentiary support for consumer claims.

How to Find the Dealer Fee in Your Contract

Most homeowners don't know to look for this — which is exactly the problem. Here's how to check:

Step 1: Find the cash price of your system. This may appear in your original sales proposal, the installation agreement, or a separate purchase agreement. If the salesperson gave you a "cash price" vs. "financed price" comparison, the cash price is the baseline.

Step 2: Find the total loan amount in your financing documents. This is the amount you're actually borrowing — not the monthly payment, the total loan balance.

Step 3: Compare the two numbers. If the loan amount is more than 5–10% higher than the cash price, the difference is likely a dealer fee. A gap of 20–30% is a significant undisclosed markup.

Step 4: Check your APR. If your credit score would normally qualify you for a rate significantly lower than what's in your loan documents, the effective rate may be inflated by the dealer fee structure.

If you can't find a cash price anywhere in your documentation — that itself is a red flag. Some solar companies deliberately avoid putting the cash price in writing so the comparison can't be made.

The Lenders Most Associated With This Practice

The CFPB's reporting has specifically identified dealer fee practices across the major solar lending market, which in California has been dominated by lenders including Mosaic, GreenSky, Sunlight Financial, and EnerBank. This is not an accusation that every loan from these lenders is problematic — it's context for where to look if you're reviewing your own documents.

Frequently Asked Questions

Is a dealer fee illegal? Not inherently — fees paid to dealers exist in other lending contexts. What may be illegal is failing to disclose the fee clearly as required under TILA, or misrepresenting the total cost of the system during the sales process. The legality turns on disclosure, not existence.

Can I get my loan cancelled because of a hidden dealer fee? In some cases, yes. TILA violations can result in rescission — cancellation of the loan — particularly where the disclosure failures are material. This is fact-specific and depends on your loan documents, lender, and the severity of the undisclosed amounts.

What if I already paid off part of the loan? A TILA claim may still be available depending on when the violation is deemed to have occurred and your state's applicable limitations period. Document everything and get a professional review before assuming you're past the window.

My salesperson told me the dealer fee is just how solar financing works — is that true? It is how solar financing commonly works. That doesn't make it disclosed, legal, or something you simply have to accept. "Industry standard" is not a defense to a TILA violation or a consumer protection claim.

Think your loan balance is higher than the system was worth? Book a free consultation or call (213) 579-5156 . We review solar loan documents across all of California — remote consultations available.

Inflated Solar Savings Promises: How to Tell If Your Quote Was Built on False Numbers

Tue, 31 Mar 2026 17:06:02 GMT

Inflated Solar Savings Promises: How to Tell If Your Quote Was Built on False Numbers

The salesperson sat at your kitchen table, pulled up a projection, and showed you exactly how much you'd save — $150 a month, maybe $200. Your utility bill would drop dramatically. The system would essentially pay for itself.

For a significant number of California homeowners, none of that came true.

Inflated savings promises are the most common solar complaint filed with state attorney general offices across California, and they follow a remarkably consistent pattern. Understanding how these projections get built — and how to check yours against reality — is the first step toward knowing whether you have a case.

How the Projection Gets Built

Solar savings estimates are not random. They're constructed from a series of inputs — and each one can be manipulated, intentionally or not, to produce a number that looks better than reality will deliver.

Peak sun hours — the number of hours per day your roof receives optimal sunlight. Salespeople often use the highest regional estimate rather than the actual number for your roof's orientation, pitch, shading, and microclimate. A south-facing roof in Fresno gets more peak sun hours than a west-facing roof in Daly City. Using the regional maximum for every roof inflates projected production.

System production — derived from peak sun hours multiplied by system size. If the sun hours input is inflated, every production number downstream is wrong.

Utility rate escalation assumptions — many projections assume your utility rates will increase 5–7% per year for 25 years. If rates stabilize or increase less than projected, the "savings vs. grid" comparison shrinks significantly. Under NEM 3.0 in California, the economics shifted dramatically for systems installed after April 2023 — salespeople using pre-NEM 3.0 projection models on post-NEM 3.0 contracts were showing customers fundamentally incorrect numbers.

PPA and lease escalators — if your contract includes an annual escalator of 2.9–3.5%, that payment grows every year whether your utility rate does or not. A projection that shows savings in year one may show you paying more than grid power by year eight or ten. Many projections shown at signing don't model this comparison honestly.

The Test: Are You Paying More Now Than Before?

This is the clearest diagnostic available to any California homeowner:

Add your current monthly solar payment (loan, lease, or PPA) to your current monthly utility bill. Compare that total to your average monthly utility bill for the 12 months before installation.

If the combined total is higher than your pre-solar bill, the savings claim was false — regardless of what the projection showed.

This comparison is the foundation of a misrepresentation claim under California's Unfair Competition Law (Business and Professions Code Section 17200) and UDAP statutes. The question isn't what the projection said. The question is whether the projection was an honest estimate or a number engineered to close a sale.

What "Best Case" Looks Like vs. What Was Promised

Here's how inflated projections typically diverge from real outcomes in California:

Shading and obstructions — a tree that partially shades your roof in the afternoon can reduce production by 10–25%. If the salesperson modeled your system without accounting for it, the production numbers are wrong from day one.

System degradation — solar panels lose roughly 0.5–0.8% of production capacity per year. A 25-year projection that doesn't account for degradation overstates lifetime production by 12–20%.

NEM 3.0 export rates — under the new net billing tariff that replaced NEM 2.0 in April 2023, the value of excess solar energy exported to the grid dropped by approximately 75% for most California utilities. Homeowners sold systems in 2022 with projections showing robust export credit income are now receiving a fraction of that value.

Grid connection delays — some California homeowners waited 6–18 months after installation for utility interconnection approval. During that period, the system couldn't export to the grid — but loan and lease payments were already running.

Frequently Asked Questions

Is an inaccurate savings projection automatically fraud? Not automatically — projections involve estimates, and honest estimates can be wrong. What crosses into misrepresentation is using inflated inputs knowingly, failing to disclose the assumptions behind the numbers, or presenting a best-case scenario as a guaranteed outcome. California's UDAP statutes don't require intent — an unfair or misleading business practice can be actionable even without deliberate deception.

What if the contract has a disclaimer saying savings aren't guaranteed? Fine-print disclaimers don't automatically shield a company from misrepresentation claims if the verbal sales pitch made specific promises. California courts have found that oral representations made during a sale can be actionable even when a written disclaimer exists.

How far back can I go with a claim? California's statute of limitations for unfair business practices under Business and Professions Code Section 17200 is four years from when the violation occurred or was discovered. For some homeowners whose systems have been underperforming for years, the clock may not have started until they realized the savings weren't materializing.

What documents do I need to evaluate my claim? Your original sales proposal or savings projection, your signed contract, your solar monitoring app data showing actual production, and 24 months of utility bills before and after installation. Together these tell the complete story of what you were promised versus what you received.

Think your savings projection was inflated? Book a free consultation or call (213) 579-5156 . We review contracts and production data across all of California — remote consultations available.

The Solar Complaint Crisis: Why California Homeowners Are Fighting Back in 2026

Mon, 30 Mar 2026 21:30:02 GMT

The Solar Complaint Crisis: Why California Homeowners Are Fighting Back in 2026

Solar energy was supposed to be one of the best financial decisions a California homeowner could make. For millions of people, it hasn't worked out that way.

Approximately 4.7–5 million U.S. homes now have rooftop solar. The residential solar market grew more than 700% in the last decade, driven by aggressive government incentives, falling panel costs, and door-to-door sales teams deployed across every major Sun Belt market. But consumer complaints have grown even faster than the industry itself.

The FTC documented a sevenfold increase in solar consumer complaints between 2012 and 2016 — and the pace has accelerated sharply since. State-level complaints have surged more than 500% since 2018. Attorney general offices in California, Florida, Texas, and Arizona now maintain dedicated solar complaint intake systems. That's not a coincidence — it's a systemic response to a systemic problem.

When Three Federal Agencies Coordinate, the Problem Is Real

In August 2024, the CFPB, FTC, and U.S. Treasury took the rare step of forming a joint interagency partnership specifically to combat deceptive solar sales practices. When three federal agencies coordinate enforcement action on a single industry, that signals the problem goes well beyond individual bad actors.

Among the most alarming findings: the CFPB documented that solar lenders routinely add hidden "dealer fees" of 10–30% to loan balances above the actual cash price of the system. A $40,000 solar installation becomes a $50,000–$52,000 loan — and the homeowner typically has no idea. With 58% of all residential solar projects in 2023 financed through loans, this exposes an enormous pool of consumers to predatory lending terms.

Why California Is Ground Zero

California has more rooftop solar than any other state — and more solar complaints. Several factors converge here specifically:

NEM 3.0 — the net energy metering reform that took effect in April 2023 — dramatically reduced the export credits California homeowners receive for sending excess solar power back to the grid. Systems sold before NEM 3.0 were projected under the old, more favorable rate structure. Homeowners who signed contracts in 2021 and 2022 are now discovering their actual savings are a fraction of what they were promised.

Aggressive door-to-door sales culture — California's warm climate and high utility rates made it the primary target market for large national solar companies deploying door-to-door sales forces. Many of these companies — including SunPower, Sunnova, and dozens of smaller regional operators — have since gone bankrupt, leaving homeowners with active contracts held by third parties they never agreed to work with.

High loan amounts — California's higher home values and larger systems mean loan amounts frequently exceed $40,000–$60,000. Hidden dealer fees at 10–30% represent $4,000–$18,000 in undisclosed costs on a single transaction.

The 7 Most Common Ways California Homeowners Get Trapped

The solar complaint crisis isn't random. The same patterns appear across thousands of cases:

Inflated savings promises — projections built on best-case production numbers that don't match real-world output
Hidden dealer fees — loan amounts 10–30% higher than the actual system cost, rarely disclosed at signing
Tax credit misrepresentation — homeowners told they'd receive the 30% federal ITC as a refund check, when it's actually a credit against taxes owed
Cooling-off violations — door-to-door contracts signed without the required written cancellation notice, meaning the right to cancel may never have legally started
The escalator trap — annual payment increases of 1.9–3.5% that can nearly double a monthly payment over 25 years
Forged or incomplete documentation — contracts signed on tablets where homeowners never saw the full terms, with supplementary pages sometimes added after signing
Predatory targeting — seniors on fixed income and non-English speakers disproportionately sold contracts they couldn't fully evaluate

What California Law Actually Gives You

California homeowners have the strongest solar consumer protections in the country. California Business and Professions Code Section 17200, combined with Civil Code 1689.5, provides both a broad private right of action for unfair business practices and an indefinite cooling-off period if the required cancellation notice was never properly given.

That last point matters more than most homeowners realize. If the salesperson who came to your door didn't provide a separate written "Notice of Cancellation" form with its own signature line — as required by federal law under FTC Cooling-Off Rule 16 CFR 429 — your right to cancel may never have legally expired.

You're Not Stuck. But You Need to Know Where You Stand.

The single biggest mistake California solar homeowners make is assuming that because they signed something, they're permanently bound by it. Consumer protection law exists precisely because contracts signed under misrepresentation, incomplete disclosure, or high-pressure tactics are not always enforceable.

The first step is understanding what your contract actually says — and what it should have said.

Book a free consultation or call (213) 579-5156 . California Solar Exit reviews solar contracts across all contract types — leases, PPAs, and loans — at no cost before you commit to anything. We serve homeowners across all of California with remote consultations available.

Who Pays to Remove Solar Panels in California — and How Do You Get Them Off?

Fri, 27 Mar 2026 18:04:08 GMT

Who Pays to Remove Solar Panels in California — and How Do You Get Them Off?

Whether you're re-roofing, selling your home to a buyer who doesn't want them, or simply done with a system that never delivered on its promises — getting solar panels physically removed in California is more complicated than most homeowners expect. Here's what you need to know before you make a move.

Why Solar Panel Removal Is Harder Than It Sounds

The panels themselves aren't the problem. Removal typically takes a licensed roofing or solar contractor one to two days. The complication is what's attached to them — your contract.

If you own your system outright, you can hire any licensed contractor to remove it. But if you're in a lease, PPA, or loan , the panels may not legally be yours to remove. Taking them down without authorization could be considered conversion of property (in the case of a lease or PPA) or trigger an immediate default on your loan.

Before anything touches your roof, you need to understand what your contract actually says.

Who Pays for Removal — and When

Lease or PPA: The solar company is responsible for removal at the end of the contract term, typically 20–25 years. Mid-contract removal is negotiable but rarely free — companies often charge $1,500–$5,000+ to remove their own equipment early.
Solar loan: You own the panels, so removal is your cost — typically $1,000–$3,000 depending on system size and roof complexity. The loan balance still exists after removal.
Purchased outright: Straightforward — hire a licensed contractor, budget $1,000–$2,500, and coordinate with your utility to disconnect net metering.

Re-Roofing With Solar Panels: What Contractors Require

Most roofing contractors in California will not re-roof under active solar panels. The panels must come down first, the roof replaced, and the panels reinstalled. If you're in a lease or PPA, you'll need written authorization from the solar company before your roofer can proceed — and the reinstallation must be done by an approved contractor, often at your expense even though you don't own the equipment.

Frequently Asked Questions

Can I force a solar company to remove their panels from my roof? At contract end, yes. Mid-contract, it depends on your agreement and the grounds for early termination. If the company misrepresented the system or went out of business, California consumer protection law may provide additional leverage.

What happens to the panels after removal? Owned panels can be sold, donated, or recycled. California has an active secondary market for used residential solar equipment. Leased panels are returned to the company.

Will removing solar panels damage my roof? A licensed contractor should leave your roof in the same condition it was found. Penetrations are sealed and flashing is addressed. Get this in writing before work begins.

Do I need a permit to remove solar panels in California? In most California jurisdictions, yes — a permit is required for disconnection from the electrical system. Your contractor should pull this.

Not sure what your contract allows? Book a free consultation or call (213) 579-5156 . We'll review your agreement and walk you through your options before anything comes off your roof.

Stuck in a Solar Loan in California? Here's What You Can Do

Thu, 26 Mar 2026 18:30:31 GMT

Stuck in a Solar Loan in California? Here's What You Can Do

A solar lease or PPA gets a lot of attention — but solar loans are where many California homeowners are quietly getting hurt. If you financed your panels through Mosaic, GreenSky, Sunlight Financial, or a similar lender and your system isn't performing as promised, your situation is different from a lease — and your options are too.

Here's what you need to know.

Solar Loans Are Different From Leases and PPAs

With a lease or PPA, the solar company owns the panels. With a loan, you own the panels — but you also own the debt. That changes everything.

If the system underperforms, your installer goes out of business, or you were misled during the sales process, you can't simply point to the equipment company. You're the owner. The loan keeps accruing interest whether the panels produce or not, and unlike a mortgage, solar loans are typically unsecured — meaning they can affect your credit without the same foreclosure protections.

Why California Homeowners Get Trapped

Several patterns show up repeatedly in California solar loan complaints:

Inflated savings projections — salespeople overstated how much the system would offset your utility bill, especially under NEM 3.0 which reduced export credits dramatically for systems installed after April 2023
Dealer fee abuse — solar lenders pay installers an upfront "dealer fee" of 20–40% of the loan amount, creating incentives to upsell loan size
Misrepresented federal tax credits — homeowners were told the 30% federal tax credit would reduce their loan balance, but if you don't owe enough in taxes to claim the full credit, you're left with a larger loan than expected
Contractor abandonment — the installer collected the loan funds and never completed the job, or went bankrupt mid-installation

What Exit Options Exist

Consumer protection claims — California's Consumer Legal Remedies Act (CLRA) and the Home Solicitation Sales Act provide specific protections for homeowners sold solar at the door or through high-pressure sales tactics. Misrepresentation of savings, loan terms, or tax benefits may qualify.

PACE loan disputes — if your solar was financed through a PACE program (Property Assessed Clean Energy) attached to your property tax bill, California has specific dispute resolution processes through your county assessor.

Lender disputes — in some cases, complaints filed directly with the solar lender — citing contractor fraud or misrepresentation — have resulted in loan modifications or cancellations.

Frequently Asked Questions

Can I cancel a solar loan in California? It depends on how the contract was sold and whether misrepresentation occurred. California consumer protection law provides stronger-than-average homeowner rights, particularly for door-to-door sales. A free contract review is the right starting point.

What if my solar installer went out of business? You still owe the lender, but the installer's bankruptcy may strengthen a misrepresentation or incomplete-work claim. Document everything — contracts, proposals, communications, and your utility bills before and after installation.

Will canceling my solar loan hurt my credit? That depends on how the resolution is structured. Our team works to reach outcomes that minimize credit impact wherever possible.

What does a solar loan review cost? California Solar Exit offers free initial consultations. We evaluate your contract, loan documents, and system performance before recommending any course of action.

Not sure if your situation qualifies? Book a free consultation or call (213) 579-5156 . We serve homeowners across all of California — remote consultations available.

Solar PPA Cancellation in California: What Homeowners Need to Know

Fri, 13 Mar 2026 21:28:34 GMT

Solar PPA Cancellation in California: What Homeowners Need to Know

A solar Power Purchase Agreement (PPA) is not a lease — and that distinction matters enormously when you're trying to get out. Thousands of California homeowners from Bakersfield to San Bernardino signed PPAs over the past decade, lured by the promise of no upfront costs and reduced electricity bills. Now, many are finding those promises didn't hold — and they want out.

This guide explains exactly what a solar PPA is, how it differs from a lease, and what cancellation options exist for California homeowners in 2026.

PPA vs. Solar Lease: What's the Difference?

Under a solar lease, you pay a fixed monthly fee to use the panels — regardless of how much electricity they produce. Under a Power Purchase Agreement (PPA), you pay for the actual electricity the panels generate, measured in kilowatt-hours, at a per-kWh rate that is usually lower than your utility rate.

Both agreements keep the solar company as the equipment owner. Both create a UCC-1 lien on your property. Both are typically 20 to 25 years long. And both become a problem when you want to sell your home in Irvine, refinance your condo in Long Beach, or simply can't afford the escalating payments.

Why California PPA Holders Are Looking for Exits

California's NEM 3.0 policy — implemented in 2023 — dramatically reduced the export rate that utilities pay for solar electricity sent back to the grid, by as much as 75% compared to NEM 2.0. This policy change crushed the economics of PPAs signed before 2023. Homeowners who signed a PPA expecting to offset most of their electricity costs now find that their PPA payments haven't dropped, but the value the system delivers has.

Combine NEM 3.0 with the bankruptcies of SunPower, Sunnova, and dozens of smaller installers, and you have a large population of California PPA holders whose contracts are no longer delivering promised value — and whose servicers may have changed hands without their consent.

Can You Legally Cancel a Solar PPA in California?

Path 1: The Cooling-Off Period

If you are within 3 business days of signing (5 days if you're 65+), you can cancel any home improvement contract in California without penalty. This statutory right under Business and Professions Code Section 7159 applies to PPAs signed at your home just as it does to leases.

Path 2: Misrepresentation During the Sales Process

California's Consumer Legal Remedies Act (Civil Code §1750) and Unfair Competition Law (B&P Code §17200) both provide remedies for homeowners who were deceived during the solar sales process. Common misrepresentations in PPA sales include:

Promises of zero electricity bills or specific dollar savings that were never achieved
Failure to disclose the annual escalator rate on the per-kWh price
Misrepresentation of the impact on your ability to sell or refinance your home
Failure to provide the required California Solar Consumer Protection Guide before signing

A consumer protection claim can result in contract rescission — meaning the contract is treated as if it never existed. This is the most powerful cancellation path available to California homeowners.

If you believe you were misled during your solar sales process, Solar Equity Solutions specializes in helping California homeowners evaluate their options and navigate solar contract exits.

Path 3: PPA Buyout

Most PPA agreements include a buyout option at fixed intervals. Unlike a lease buyout based on remaining payments, a PPA buyout is often calculated at the fair market value of the solar equipment — which depreciates significantly over time. A 10-year-old system may have a buyout value well below what the company quotes you. Have an independent solar appraiser assess value before agreeing to any number they offer.

Path 4: Transfer to Home Buyer

California real estate disclosures require sellers to inform buyers of any existing solar agreements tied to the property. In markets like Los Angeles, San Diego, and the Bay Area, buyers increasingly demand either a payoff or a significant price reduction. If your buyer qualifies on credit, the solar company will usually allow a transfer — but the process can take 30 to 90 days, so plan accordingly.

What Happened to Your PPA After SunPower or Sunnova Went Bankrupt?

If you had a PPA with SunPower, your agreement was most likely transferred to the new SunPower entity (Complete Solar) or to a third-party asset manager. If you had a Sunnova PPA, SunStrong Management took over those obligations. You should have received a written notice of assignment — if you didn't, contact California Solar Exit immediately, as failure to provide proper assignment notice may affect your rights.

Frequently Asked Questions

Is a solar PPA the same as a solar lease in California? No. A lease charges a fixed monthly fee. A PPA charges you per kilowatt-hour produced. Both mean the solar company owns the panels and neither gives you ownership. Both create UCC-1 liens on your property. The cancellation paths for both are similar but have technical differences — consult a solar exit specialist before proceeding.

Does NEM 3.0 give me grounds to cancel my solar PPA? Not directly. NEM 3.0 is a utility policy change, not a breach of your solar contract. However, if your salesperson made specific representations about net metering credits that are no longer accurate, those representations may support a misrepresentation claim under California consumer protection law.

How long does solar PPA cancellation take in California? It depends on the path. A cooling-off period cancellation is immediate. A consumer protection or breach of contract claim can take 3 to 12 months through negotiation or legal action. A buyout can be completed in 30 to 60 days once you have the payoff quote and funds.

Ready to Take the Next Step?

For homeowners ready to move forward, we recommend Solar Equity Solutions — a California-based team that works directly with homeowners through the solar PPA exit process. Whether your path is a buyout, transfer, or consumer protection claim, their team can walk you through your options.

California Solar Exit serves homeowners in California and nationwide. Call (213) 579-5156 for a free contract review.

My Solar Company Went Bankrupt in California — What Do I Do Now?

Fri, 13 Mar 2026 21:28:33 GMT

My Solar Company Went Bankrupt in California — What Do I Do Now?

You woke up one morning to an email saying your solar company has filed for Chapter 11 bankruptcy. Or worse — their phone is disconnected, their website is down, and there's no one left to call. This is the reality for hundreds of thousands of California homeowners in 2026, following the high-profile collapses of SunPower (August 2024) and Sunnova (Chapter 11 2025), plus more than 100 smaller installers statewide.

If your solar installer or leasing company has gone bankrupt, here's what you need to know right now — and the specific actions to take if you live in California.

What Actually Happens When a Solar Company Files Bankruptcy

Not all solar bankruptcies are equal. Chapter 11 is a reorganization filing — the company is still alive and trying to restructure its debts. Chapter 7 is liquidation — the company is shutting down. In both cases, your solar lease or loan contract becomes an asset of the bankruptcy estate.

For SunPower customers, Complete Solar purchased most of SunPower's assets and relaunched under the SunPower name in late 2024. Sunnova's assets were acquired by SunStrong Management, which took over billing, maintenance, and customer service for lease and PPA customers.

The practical reality: if your panels still work and a new servicer has been assigned, your contract continues. But if the bankruptcy left you with an "orphaned" system — no servicer, no warranty support, no one answering the phone — you have more leverage than you think.

Are You Required to Keep Paying?

Yes — unless you can establish a legal basis to rescind or cancel the contract. Bankruptcy does not void your lease obligations. The new company that acquires your contract steps into the original company's shoes. Stopping payment without a legal basis will damage your credit and could trigger a lien enforcement action on your home.

However, if the bankrupt company made material misrepresentations during the sale, failed to complete installation, or left your system non-functional, you may have grounds for rescission under California consumer protection law. These are the situations where a solar exit advocate can help.

Step-by-Step: What to Do if Your Solar Company Is Bankrupt

Step 1: Identify Who Now Owns Your Contract

Check your email and mail for notifications from a successor company. Log into any monitoring app (Enphase, SolarEdge, etc.) — the servicer information may have updated. If you had a SunPower lease or PPA, your contract likely transferred to Complete Solar or a third-party asset manager. Sunnova customers should look for communications from SunStrong Management.

Step 2: Document Your System's Current Status

Take photos of your panels today. Screenshot your production data going back as far as possible. Note any system alerts, error codes, or outages. If your panels have not been producing correctly since the company went under — or were never properly commissioned — document that failure in writing.

Step 3: Contact the CSLB

California's Contractors State License Board (cslb.ca.gov) regulates all licensed solar contractors in the state. If your installer abandoned your job, failed to pull permits, or left your system in a non-compliant state, filing a formal CSLB complaint creates a public record and puts pressure on the contractor or their bonding company.

Step 4: Check Your Equipment Warranties

Your panel manufacturer warranty — typically 25 years for product and power output — survives the installer's bankruptcy. Manufacturers like Enphase, SolarEdge, Q Cells, and REC honor their warranties through their own dealer networks. Contact the manufacturer directly, not the installer, for any equipment issues.

Step 5: Get a Free Contract Review

If you are experiencing service abandonment, were misled about savings, or your system is not performing as promised, get a free contract review before making any decisions. California Solar Exit reviews solar leases and PPAs for homeowners across the state — from San Francisco's Sunset District to Inland Empire communities like Ontario, Fontana, and Moreno Valley — and for homeowners in every state nationwide.

Can I Get Out of My Lease if the Company Went Bankrupt?

Possibly. The path depends on your specific situation:

If the bankrupt company failed to complete the installation and no successor has stepped in, you may have a breach of contract claim against the estate
If the sales process involved material misrepresentations, California's consumer protection statutes provide grounds for rescission regardless of whether the company is in bankruptcy
If the system is orphaned — no servicer, no monitoring, non-functional — California courts have recognized this as grounds for equitable relief

California-Specific Resources

California homeowners have access to protections not available in other states. The CPUC's Solar Consumer Protection Guide (Version 4, 2025) outlines your rights. The CSLB investigates contractor misconduct. And California's Unfair Competition Law (B&P Code §17200) provides a private right of action against deceptive solar sales practices — a tool unavailable in most other states.

Frequently Asked Questions

Does my solar company going bankrupt cancel my lease? No. Bankruptcy transfers your contract to a new entity — it does not automatically void your obligations. You will need a separate legal basis to cancel.

What if my panels stopped working after the company went bankrupt? Document the outage immediately. A non-functional system that the successor servicer fails to repair within a reasonable time may constitute a breach of the lease, giving you grounds to pursue cancellation under California contract law.

Can I sue a bankrupt solar company? You can file a claim in the bankruptcy proceeding, but recovery is typically limited. A better path for California homeowners is often a consumer protection action targeting the original sales conduct — not the bankruptcy estate.

California Solar Exit serves homeowners in California and nationwide. Call (213) 579-5156 for a free contract review.

How to Cancel a Solar Lease in California: Your Options in 2026

Fri, 13 Mar 2026 21:28:31 GMT

How to Cancel a Solar Lease in Cal ifornia: Your Options in 2026

You signed a 20-year solar lease. Maybe the savings never materialized. Maybe your electric bill actually went up. Or maybe you're trying to sell your home in Temecula or Rancho Cucamonga and your real estate agent just told you the lease is scaring buyers away. Whatever the reason, you're searching for a way out — and you deserve a real answer.

Here's the honest truth: canceling a solar lease in California after installation is not easy. It's not impossible, but it requires knowing which legal levers exist and how to use them. This guide walks you through every realistic path available to California homeowners in 2026.

What Is a Solar Lease?

A solar lease is a long-term agreement — typically 20 to 25 years — where a solar company installs panels on your roof and you pay a fixed monthly fee to use the electricity they generate. You do not own the panels. The solar company does. That distinction matters enormously when you want out.

Under a lease, the panels and the UCC-1 lien they create on your property title belong to the lender or leasing company. Companies like SunPower (bankrupt 2024), Sunnova (Chapter 11 2025), Sunrun, and others have placed these liens on hundreds of thousands of California homes — from San Jose to San Diego, from Fresno to the Inland Empire.

Option 1: The 3-Day (or 5-Day) Cooling-Off Period

California law gives homeowners a 3-business-day right to cancel any home improvement contract signed outside the contractor's place of business. If you are 65 or older, that window extends to 5 days. This right is codified in Business and Professions Code Section 7159.

To use it, you must submit a written cancellation notice to the solar company by midnight of the third business day after you received a signed, dated copy of your contract. Email with read receipt and certified mail are both acceptable. Keep copies of everything.

Important caveat: if a salesperson told you verbally that you can cancel anytime or that you have more time — that verbal promise means nothing. What matters is the written notice delivered on time.

Option 2: Breach of Contract by the Solar Company

Did your solar company fail to deliver what the contract promised? Common breaches that California courts and consumer protection attorneys have successfully argued include:

System underperformance — producing significantly less energy than the written production guarantee
Improper or incomplete installation — structural roof damage, code violations, unpermitted work
Failure to complete promised monitoring, maintenance, or warranty service
Company bankruptcy with service abandonment and no valid successor entity

If any of these apply, document everything now. Pull your monitoring app screenshots, photograph your system, and save every email. A documented breach is the foundation of a legitimate contract rescission claim.

Option 3: Consumer Protection Claims Under California Law

California has some of the strongest consumer protection statutes in the country. If you were misled during the solar sales process — promises of zero electricity bills, guaranteed savings, inflated production estimates, or pressure-signed contracts — you may have claims under:

California's Unfair Competition Law (Business & Professions Code §17200)
The Consumer Legal Remedies Act (Civil Code §1750)
The Contractors State License Board (CSLB) complaint process for unlicensed or deceptive contractors

The CSLB regulates all solar installers operating in California. Filing a complaint — especially for forged signatures, failure to provide the required Solar Energy System Disclosure Document, or misrepresentation of savings — can trigger investigations that create leverage for cancellation.

Option 4: Buy Out the Lease

Most solar leases include a buyout provision, usually exercisable at Years 5, 10, 15, and 20. The buyout price is calculated as the present value of your remaining lease payments, sometimes discounted. Expect to pay anywhere from $8,000 to $30,000+ depending on how many years remain.

For homeowners in the Bay Area, Los Angeles, or Orange County looking to sell, a lease buyout before closing can be worth it — owned solar panels increase home value, while a leased system with 15+ years remaining often complicates or kills the sale.

Option 5: Transfer the Lease to the Home Buyer

If you're selling your home, transferring the lease to a qualified buyer is the path of least resistance. The buyer must pass the solar company's credit approval, and the process typically takes 30 to 60 days. In competitive markets like Los Angeles, Riverside County, or the Central Valley, buyers are increasingly educated about solar leases — and many will demand the seller pay off the lease as a condition of sale.

What NOT to Do

Do not simply stop making payments. While your frustration is valid, unilaterally stopping payments can trigger credit damage, a lien enforcement action on your home, and a lawsuit for the full remaining lease balance. The solar company's lease contract was written by their attorneys specifically to protect them — not you.

When to Call a Solar Exit Advocate

If your solar company is bankrupt, has abandoned your system, or you were misled during the sales process, self-help routes may not be enough. California Solar Exit works with consumer protection specialists who have reviewed hundreds of solar lease contracts across San Diego, Los Angeles, the Inland Empire, Sacramento, and the Bay Area — and we serve homeowners in every state nationwide.

Call us at (213) 579-5156 or book a free consultation at californiasolarexit.com.

Frequently Asked Questions

Can I cancel a solar lease after installation in California? Yes, in certain circumstances. If you are within the 3-day (or 5-day for seniors) cooling-off period, you can cancel without penalty. After that, your options include breach of contract claims, consumer protection actions, lease buyouts, or lease transfer to a home buyer. Not every lease qualifies for cancellation, but a free review can determine whether yours does.

What happens if I stop paying my solar lease? The solar company can report you to credit bureaus, pursue you for the full remaining balance, and potentially enforce the UCC-1 lien against your property. Do not stop payments without legal guidance.

Does California law protect me from misleading solar sales tactics? Yes. California's Unfair Competition Law, Consumer Legal Remedies Act, and the CSLB regulatory framework provide strong protections. If your solar salesperson made false promises — about savings, tax credits, or bill elimination — you may have grounds for rescission under California law.

California Solar Exit serves homeowners in California and nationwide. Call (213) 579-5156 for a free contract review.

What Is a Solar Lien — and How Do You Get Rid of It in California?

Tue, 10 Mar 2026 04:12:58 GMT

What Is a Solar Lien, and How Do You Get Rid of It in California?

Thousands of California homeowners have a lien on their property they never agreed to — at least not knowingly. It was buried in a solar contract they signed at the kitchen table while a sales rep waited. Now it's sitting on their title, and they're finding out about it only when they try to sell their home, refinance their mortgage, or apply for a HELOC.

If that sounds familiar, here's what you need to know.

What Is a Solar Lien?

A solar lien is a legal claim placed on your property by a solar lender or financing company. It typically takes the form of a UCC-1 financing statement — a document filed with California's Secretary of State (and sometimes at the county recorder's office) that gives the lender a security interest in the solar equipment installed on your home.

The purpose of the filing is to protect the lender's financial interest in the system. The problem is that it attaches to your home's title, and most homeowners were never clearly told this would happen.

How Did a Lien End Up on My Home?

If you financed your solar system through a lender — GreenSky, Mosaic, Loanpal/GoodLeap, Dividend Finance, or a solar company's in-house financing — there is almost certainly a UCC-1 filing associated with your account. In many cases, the existence of this filing was not clearly disclosed during the sales process. Sales reps working across Los Angeles, Orange County, the Inland Empire, San Diego, and the Bay Area have routinely glossed over or omitted this detail entirely.

Some homeowners were told the filing was "just paperwork" or "standard procedure." Others weren't told anything at all.

Why Does It Matter?

A UCC-1 lien on your title can:

Block a home sale. Most buyers' lenders won't close on a property with an unresolved lien. The lien must be paid off or formally released before escrow can close.
Complicate a refinance. Mortgage lenders typically require a clear title. An outstanding solar lien can delay or derail a refinance — including rate-and-term refis and cash-out refis.
Affect a HELOC application. Home equity lenders review title the same way mortgage lenders do. A solar UCC-1 can reduce your available equity or disqualify you entirely.
Transfer to a new buyer. In some cases, particularly with solar leases and PPAs, the obligation — and the lien — can transfer with the property, making the home harder to sell and less attractive to buyers.

How Do You Remove a Solar Lien in California?

The path to lien removal depends on your situation.

If your solar loan is paid in full, the lender is required to file a UCC-3 termination statement releasing the lien. This sometimes happens automatically — and sometimes doesn't. If you've paid off your system and the lien is still showing on your title, contact your lender directly and request the termination filing.

If you're still under contract, lien removal typically requires either paying off the balance in full, negotiating a settlement with the lender, or pursuing a formal contract cancellation based on misrepresentation or consumer protection violations. This is where the process gets more complex — and where working with a solar contract cancellation specialist pays off.

If the lien was placed without your informed consent — meaning the UCC-1 filing was not clearly disclosed during the sales process — that may constitute grounds for a broader contract challenge under California's Consumer Legal Remedies Act and Business and Professions Code Section 17200.

Acting Quickly Matters

If you're already in escrow, under contract to sell, or approaching a refinance closing date, time is critical. Lien resolution that might take weeks under normal circumstances can become a transaction-killing problem when a deadline is looming.

California Solar Exit works with homeowners across Los Angeles County, Orange County, San Diego, Riverside, San Bernardino, Sacramento, and the Bay Area to resolve solar lien issues — including situations with tight real estate timelines. Our review is free, and we can tell you quickly what your options are.

Get My Free Contract Review (213) 579-5156

Solar Panels and Selling Your Home in California: What Happens to Your Contract

Wed, 04 Mar 2026 05:59:54 GMT

Solar Panels and Selling Your Home in California: What Happens to Your Contract

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