californiasolarexit

NEM 3.0 Is Now Permanent. The California Supreme Court Just Closed the Door.

Mon, 06 Jul 2026 17:19:28 GMT

NEM 3.0 Is Now Permanent. The California Supreme Court Just Closed the Door.

For three years, California homeowners stuck in solar leases and PPAs with shrinking bill savings had one thread of hope: the courts might still reverse NEM 3.0. Environmental groups, solar advocates, and consumer attorneys all pointed to active litigation as a reason the policy could change.

That thread is gone.

In June 2026, the California Supreme Court declined to hear a second appeal of the Net Billing Tariff — what everyone calls NEM 3.0. The court's refusal to take the case is the end of the line. The California Court of Appeals ruling from March 2026 stands. The California Public Utilities Commission 's 2022 decision to slash rooftop solar export credits by roughly 75% is now settled law with no further avenue for challenge.

If you signed a solar contract in California after April 15, 2023, the economics your salesperson projected — and the policy those projections relied on — are now permanently locked in against you.

What Did the California Supreme Court Actually Decide in June 2026?

The court declined to review the second Court of Appeal ruling upholding NEM 3.0, ending the litigation entirely. The legal fight over NEM 3.0 had already run an unusually long course. The Environmental Working Group , the Center for Biological Diversity , and the Protect Our Communities Foundation originally filed suit in 2023 after the CPUC cut export credits from retail rates — roughly $0.30/kWh — down to avoided-cost rates averaging $0.05–$0.08/kWh.

In August 2025, the California Supreme Court had ordered the Court of Appeal to rehear the case, finding it had applied the wrong legal standard. That gave advocates a second shot. The Court of Appeal reconsidered — and sided with the CPUC again in March 2026. When advocates petitioned the Supreme Court a second time in April, the court in June 2026 refused. No further judicial review is available.

The policy that gutted California's residential solar economics is now as permanent as California law gets.

Why Does the Final Ruling Matter for Homeowners Already in Contracts?

If you're already in a solar lease or power purchase agreement (PPA), you might wonder why a court ruling about export rates matters to your situation. The answer is what some homeowners were told — explicitly or implicitly — when they signed.

From 2023 through early 2026, some sales representatives and installers told customers that NEM 3.0 was "being challenged in court" and that the policy might be reversed. Some used this as reassurance: don't worry about the lower export credits, the old rates might come back. Some built it into savings projections that hedged toward better future policy. Some said nothing at all, presenting projected savings that only made sense if courts fixed what the CPUC broke.

The June 2026 Supreme Court denial makes every one of those representations false — and they were always legally questionable, because a pending appeal is not a guarantee of reversal. California installers are required under Business and Professions Code §§ 7169–7170 to provide homeowners with accurate, current information about the billing policy their system would operate under. Projections built on hoped-for judicial relief were not accurate representations of NEM 3.0 as it existed at the time of signing.

What Did Homeowners Lose When NEM 3.0 Took Effect?

The numbers are not abstract. When the CPUC implemented the Net Billing Tariff in April 2023, it fundamentally changed the return on any solar-only system for customers of Pacific Gas and Electric (PG&E), Southern California Edison (SCE), and San Diego Gas and Electric (SDG&E).

Under NEM 2.0, excess power pushed to the grid was credited at close to full retail rate — a kilowatt-hour out was worth nearly as much as a kilowatt-hour in. Under the Net Billing Tariff, that same export is compensated at avoided-cost rates that track the grid's real-time economics. Mid-day exports, when residential solar systems push the most power, receive the lowest compensation of the day because the grid is already flooded with cheap solar at noon. Evening consumption — when California's TOU rate plans hit peak pricing — is billed at rates that can exceed $0.45–$0.55/kWh at PG&E and SCE .

The spread is what destroys the promised savings. You produce when power is cheap. You consume when power is expensive. Without battery storage, a solar-only system under NEM 3.0 can leave a homeowner in a worse net billing position than they were in before installation — even as their salesperson's projection showed thousands in annual savings.

The industry felt it immediately. More than 17,000 California solar jobs were lost following NEM 3.0's implementation. Numerous solar installers filed for bankruptcy. Market demand declined sharply through 2024 and 2025. The companies that survived pivoted hard to battery-plus-solar configurations, where storage lets homeowners capture the self-consumption value NEM 3.0 still preserves.

Were Solar Homeowners Told This Before Signing?

This is the legal question — and the answer varies by installer, by region, and by how recently the contract was signed.

California Solar Exit has reviewed contracts from homeowners across Los Angeles, Orange County, the Inland Empire, the Central Valley, and the Bay Area. Across that review set, the same misalignment appears repeatedly: savings projections that don't match NEM 3.0 economics, solar-only systems sold with bill-zeroing promises in a market where battery attachment was climbing toward 70%, and disclosure documents missing or improperly completed under the solar-specific requirements of B&P Code §§ 7169–7170.

Some of those installers are still operating. Many are not — the wave of solar company bankruptcies that followed NEM 3.0's implementation wiped out a significant portion of the market. (We covered that installer collapse and what it means for contract rights in our California solar installer bankruptcy guide .)

Whether your company is still around or not, the contract obligation it created — and the misrepresentations it may have made — didn't disappear when the installer did.

Does the Final Court Ruling Change Your Legal Options?

Not in the way some homeowners hoped. A court overturning NEM 3.0 was never going to unwind signed contracts or restore savings retroactively. What it might have done is improve the economics of solar going forward — including for homeowners still locked into long-term leases and PPAs.

That avenue is now closed. What remains are contract-level remedies under California consumer protection law — and those are unaffected by the Supreme Court's June 2026 decision either way.

The Home Solicitation Sales Act , the Consumers Legal Remedies Act , and Business and Professions Code §17200 all create grounds for challenging solar contracts where the sales process involved misrepresentation — whether about savings projections, export credit rates, tax credit mechanics, or required disclosures. Those statutes apply to the conduct at the time of signing, and they aren't diminished by subsequent changes in regulatory or judicial outcomes.

What the Supreme Court's final ruling does change is this: the argument that you should "wait and see" what happens with NEM 3.0 litigation is no longer available. There's nothing left to wait on. If your solar contract isn't delivering what you were promised, the policy fight is over and the contract fight is the only path that remains.

For context on the underlying NEM 3.0 economics and which contract patterns are most likely to have qualifying misrepresentation grounds, see our earlier deep-dive: NEM 3.0 Killed Your Solar Savings? Your CA Exit Options in 2026 .

Frequently Asked Questions

Is NEM 3.0 now permanent in California?
Yes. The California Supreme Court declined to review the second Court of Appeal ruling upholding NEM 3.0 in June 2026. No further judicial challenge to the policy is available. The Net Billing Tariff — with its avoided-cost export compensation structure — is settled California law for customers of PG&E, SCE, and SDG&E.

Does the Supreme Court's June 2026 ruling affect my existing solar lease or PPA?
It doesn't change your contract terms directly, but it closes the litigation avenue some homeowners were waiting on. The economic conditions your contract operates under are now permanent. If your projected savings don't match what NEM 3.0 delivers, the path forward is contract-level review under California consumer protection law — not waiting for a regulatory reversal.

Can I cancel my solar contract now that NEM 3.0 is confirmed permanent?
Regulatory permanence doesn't create a cancellation right on its own. What creates cancellation grounds is whether your installer misrepresented the NEM 3.0 rules, skipped required disclosures under B&P Code §§ 7169–7170, or sold you a solar-only system with savings projections that only worked under NEM 2.0 economics. California Solar Exit reviews contracts at no charge to assess whether those grounds exist.

What if my installer told me NEM 3.0 might be reversed by the courts?
If a sales representative or contract document suggested the policy might be overturned and used that as reassurance about your projected savings, that was a misrepresentation at the time it was made — courts do not guarantee reversals. Now that the litigation has definitively ended with NEM 3.0 intact, the falseness of that representation is fully established. Document anything your installer told you about the pending litigation.

Does NEM 3.0 apply to LADWP customers?
No. NEM 3.0 only applies to the three investor-owned utilities — PG&E, SCE, and SDG&E. Customers of LADWP , SMUD , and other municipal utilities operate under separate net metering programs that were not affected by the CPUC's 2022 decision or the subsequent court rulings.

What happened to the solar companies that caused these problems?
Many of the installers most active in the 2023–2025 California residential market have since filed for bankruptcy or ceased operations. That includes companies that serviced contracts for Sunnova, Vivint Solar, and others. Bankruptcy doesn't void the contractual rights California homeowners hold against those entities — it complicates them. Our installer bankruptcy guide covers what your options look like when the company that sold you the system no longer exists.

The fight over NEM 3.0 is over. The policy California homeowners were promised their solar would work around is now permanent. If your contract was built on projections that assumed a different outcome, the only path to addressing that is the one California consumer protection law provides.

California Solar Exit reviews solar contracts at no charge — leases, PPAs, and loans — across all of California. Remote consultations available.

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9 Signs It's Time to Declare Independence From Your Solar Contract

Fri, 03 Jul 2026 19:43:31 GMT

9 Signs It's Time to Declare Independence From Your Solar Contract

This weekend marks the 250th anniversary of American independence — 250 years since the Declaration of Independence was signed in Philadelphia . From San Diego to the Central Valley , Californians will spend the Fourth of July grilling, watching fireworks, and celebrating the right to walk away from something that no longer serves them.

A lot of California homeowners are quietly asking themselves the same question about their solar contract. Not every solar deal turns bad — but every year, thousands of homeowners across Los Angeles County , the Inland Empire, and the Bay Area realize the system on their roof isn't the deal they thought they signed. Below are nine signs it may be time to explore solar cancellation — and where to go for the specifics on each.

1. Your Bill Didn't Shrink — It Doubled

If you're paying your solar company and a full utility bill to Southern California Edison , Pacific Gas and Electric , or San Diego Gas & Electric , that's the single most common sign a solar scam was involved. This is often tied to California's shift to Net Energy Metering 3.0, which cut the credit for excess power sent back to the grid. If your contract was priced on old export math, the savings promise may never have been achievable.

2. You're Not Sure If You Have a Lease, a Loan, or a PPA

If you can't clearly explain whether you own your panels, lease them, or buy the power they produce, that's worth fixing before anything else — the exit path is completely different for each. Our full breakdown of solar contract termination by contract type covers exactly how lease, PPA, and loan cancellation differ in California.

3. Nobody Told You About a Lien on Your Home

Many solar loans — through lenders like GoodLeap , Mosaic, or Sunlight Financial — are secured by a UCC-1 fixture filing recorded against your property. If you're only discovering this now, possibly because a title company flagged it during a refinance or sale, that's a serious red flag and a strong basis to rescind a solar contract , even years after signing.

4. Your Payment Escalates Every Single Year

A lease or PPA with a 2.9%–3.9% annual escalator can turn a $130/month payment into $230+ by year 20. If that clause wasn't clearly explained when you signed, it's a common cancel solar lease and cancel solar PPA scenario.

5. Your Solar Company Doesn't Exist Anymore

If your installer went bankrupt, merged, or was acquired — as happened with several major national providers over the past two years — and you're not sure who services your warranty or who holds your loan now, that uncertainty alone is worth a review. It's central to how Sunrun cancellation , Sunnova cancellation , and SunPower cancellation cases typically unfold in 2026.

6. You Signed at Your Kitchen Table or a Pop-Up Kiosk

Contracts signed in-home, at a Costco table, or at a "free energy assessment" appointment fall under both the FTC's federal Cooling-Off Rule and California's Home Solicitation Sales Act. If you were never given a proper Notice of Cancellation form, your rescind solar contract window may technically still be open — regardless of how long ago you signed.

7. You Were Told the Tax Credit Would Cover Your Payment

If you're leasing or on a PPA, you don't qualify for the federal solar tax credit — only owners do. A rep promising you'd see credit money if you don't own the system is a textbook misrepresentation and a foundational piece of most solar contract cancellation law claims.

8. You're Trying to Sell Your Home and the Deal Is Stalling

An unresolved solar lease, PPA, or UCC-1 lien is one of the most common reasons California home sales get delayed at escrow. Buyers in Orange County, the South Bay, and the Bay Area are increasingly walking from deals when a solar contract surfaces mid-transaction.

9. You Feel Stuck — and You've Already Tried Calling the Company

If you've called asking to cancel and were only offered a $15,000–$40,000 "buyout," that's not a legal exit — it's the company protecting its asset. A solar contract exit service or solar contract attorney can evaluate whether you actually have grounds to cancel without paying to escape a contract that may not be enforceable in the first place.

What to Do If Two or More of These Sound Familiar

If you recognized your situation in even two of the signs above, it's worth a proper review rather than guessing. For the full legal breakdown of your options — including rescission, the FTC Holder Rule , and contractor licensing violations under California's Contractors State License Board — see our complete guides:

For state-level consumer protection resources, the California Department of Financial Protection and Innovation and the California Public Utilities Commission both maintain guidance specific to solar financing complaints.

Frequently Asked Questions

Do I need a lawyer to get out of a solar contract?
Not always at first. A free contract review can tell you whether you have a legal basis to cancel before anyone talks about legal fees or a solar contract lawyer .

What if I signed years ago — is it too late?
Often no. Misrepresentation and disclosure-violation claims generally don't expire the way the 3-day cooling-off window does.

Is "solar exit" the same as filing a complaint with the BBB?
No. A BBB complaint documents dissatisfaction but doesn't cancel anything. A solar exit review identifies specific legal violations that can actually terminate the contract.

This Fourth of July, as California marks 250 years of independence, take stock of whether your solar contract is one more thing worth declaring freedom from. Wishing you and your family a safe, happy holiday weekend from all of us at California Solar Exit.

Recognize two or more of these signs in your own contract? Don't wait for the next bill. Call California Solar Exit at (213) 579-5156 or visit californiasolarexit.com for a free, no-pressure contract review — we'll tell you within one call whether you have a case.

Why Solar Companies Are Rushing Contracts Before July 4, 2026 — What Los Angeles Homeowners Should Know Before Signing Anything

Fri, 03 Jul 2026 16:56:35 GMT

Why Solar Companies Are Rushing Contracts Before July 4, 2026 — What Los Angeles Homeowners Should Know Before Signing Anything

Happy Fourth of July to our neighbors across Los Angeles — from the flag-lined blocks of Eagle Rock to backyard barbecues in Silver Lake, boat parades in Marina del Rey, and fireworks over the Rose Bowl in Pasadena. Before you fire up the grill, we wanted to flag something moving through the solar industry this week that's directly affecting homeowners from Downtown Los Angeles to Long Beach, Glendale, Downey, and the San Fernando Valley — because right now, it's fueling a wave of last-minute, high-pressure sales calls.

The July 4 Deadline Nobody's Telling You About

Buried in the fine print of the 2025 federal tax legislation known as the One Big Beautiful Bill Act is a critical date: July 4, 2026 . Under the finalized rules from the U.S. Department of the Treasury , commercial and third-party-owned solar projects — including the leases and power purchase agreements (PPAs) most Los Angeles County homeowners actually sign — only qualify for long-term federal tax credit eligibility under Section 48E if construction begins by that date. Miss it, and installers face a much tighter runway to place systems in service and keep those credits intact through 2027 instead of 2030.

That deadline is why phones have been ringing across neighborhoods from Boyle Heights to Sherman Oaks this week. Sales reps aren't calling because it's suddenly a great time for your household to go solar — they're calling because their company needs signed paperwork and a shovel in the ground before the deadline resets the math on them.

On top of that, the residential-owned solar credit under Section 25D — the one homeowners used to be pitched with, "you'll get thousands back at tax time" — was already eliminated for any system installed on or after January 1, 2026, according to the Solar Energy Industries Association (SEIA). If you're hearing that pitch from a rep in Glendale or Pasadena this week, the numbers on the page may no longer reflect current federal law.

Why the Industry Is in a Different Place Than It Was a Year Ago

This isn't just a paperwork deadline — it's happening against the backdrop of real turbulence in the national solar market, and Los Angeles homeowners deserve to know the context before they sign anything:

A major national installer went bankrupt. SEIA's own Q2 2026 market report cites the bankruptcy of the second-largest national solar installer, tighter tax equity availability, and updated permitting data as reasons it downgraded its five-year residential solar outlook, now projecting a 21% contraction in the U.S. residential market in 2026 alone.
New installations are actually declining. Federal data compiled by the U.S. Energy Information Administration shows U.S. residential solar capacity additions dropped sharply quarter-over-quarter in early 2026, even as some year-over-year segments ticked up modestly.
Globally, the slowdown is broader than just the U.S. Industry analysts now expect global solar installations to contract by roughly 8% in 2026 — one of the first meaningful annual pullbacks the sector has seen in years, driven largely by U.S. policy uncertainty and tighter financing conditions.
New foreign-sourcing rules add complexity. Under new "Material Assistance Cost Ratio" (FEOC) requirements phasing in starting in 2026, a rising share of a project's costs can't be tied to certain foreign-linked suppliers — adding legal and compliance complexity that smaller, undercapitalized installers may not be equipped to navigate.

None of this means solar is a bad technology — California still leads the nation, generating roughly 58% of its own electricity from solar. It means the company standing on your porch in South Gate or Whittier this week may be operating under more financial strain than they're letting on, right as they're asking you to sign a 20-year lease.

Why "Sign Today" Pressure Should Make You More Cautious, Not Less

A deadline that benefits the installer's tax position isn't the same as a deal that benefits you. A few red flags worth watching for between now and the holiday weekend:

Urgency untethered to your situation. Legitimate installers don't need a household in Compton or Culver City to sign within 24 hours of a tax deadline that has nothing to do with that family's finances.
Vague or outdated tax-credit promises. If a rep is still citing the old 25D residential credit as a selling point in mid-2026, that's a sign their pitch deck — and possibly their compliance training — hasn't caught up with the law.
No clear answer on company financial health. Given the pace of bankruptcies and consolidation in the sector this year, it's fair to ask any installer directly how long they've operated in California and who services the warranty if they close.
Buried escalator clauses and transfer restrictions. Existing leases and PPAs signed in recent years often contain annual payment escalators, restrictions on transferring the lease when you sell your home, and buyout terms that are easy to miss on a first read.

Already Signed Something You're Not Sure About?

If you're staring down a solar lease, PPA, or loan agreement — signed under pressure before this deadline or any other — you have options. A contract review can clarify what you actually agreed to, whether the sales process involved misrepresentation, and what paths exist to renegotiate, transfer, or exit the agreement entirely. Related resources on our site cover reviewing an existing solar lease and understanding your rights as a California solar consumer .

Complaint patterns around pressure sales aren't unique to solar — regulators have documented similar dynamics in industries from timeshare sales to home improvement financing. In California specifically, the Department of Financial Protection and Innovation has fielded a growing volume of complaints tied to third-party-owned solar financing, and the California Public Utilities Commission maintains consumer guidance on solar contracts and net metering rules that's worth reviewing before you sign or renegotiate anything.

Frequently Asked Questions

Is the residential solar tax credit really gone?
Yes — Section 25D, the credit homeowners claimed for owned residential systems, was eliminated for any system installed on or after January 1, 2026. Leased systems and PPAs fall under a different credit (Section 48E) claimed by the company, not the homeowner, and that credit has its own phase-out timeline tied to the July 4, 2026 construction-start deadline.

Does the July 4 deadline affect homeowners who already have solar?
Not directly — it primarily affects new contracts and whether the installer can secure tax credit eligibility for a project that hasn't started construction yet. But it's a useful moment to review any existing lease or PPA, since it's often the first time in years a homeowner takes a close look at the paperwork.

What should I do if I feel pressured into signing quickly?
Slow down. Ask for the contract in writing, take at least 24–48 hours, and consider having it reviewed independently before signing — especially if the pitch leans heavily on a deadline that benefits the installer more than you.

Wishing you and your family a safe, happy Fourth of July — from all of us at California Solar Exit. Enjoy the fireworks, the family time, and the long weekend. And if a solar contract has been sitting in a drawer nagging at you, remember: there's no rush like the one they're trying to sell you. Take the time to get it reviewed properly.

Have questions about a solar lease or PPA before you sign — or one you're already locked into? Call California Solar Exit at (213) 579-5156 or visit californiasolarexit.com for a no-pressure review.

California Just Admitted Rooftop Solar Contracts Were the Problem - Senate Bill 868

Thu, 02 Jul 2026 19:12:18 GMT

California Just Admitted Rooftop Solar Contracts Were the Problem

Sacramento lawmakers are racing to make solar power simpler than it's ever been. Senate Bill 868 , known as the Plug and Play Solar Act , cleared the California State Senate on a 35-1 vote in May and is now moving through the Assembly. Its entire premise is simple: let people plug a small solar panel into a wall outlet and start saving on electricity — no permits, no 20-year contract, no lien on the house.

If that sounds like the opposite of what you were sold, you're not imagining things. And for homeowners across California still locked into rooftop solar leases and power purchase agreements from the last decade, SB 868 is worth paying attention to — not because it applies to your existing system, but because of what it reveals about how the old model was built.

What SB 868 Actually Does

The bill, authored by State Senator Scott Wiener , creates a legal category for "portable solar generation devices" — small setups, typically 200 to 1,800 watts, that plug directly into a standard 120-volt outlet through a small inverter capped at 1,200 watts of AC output. A single 400-watt unit can offset roughly 14% of an average apartment's electricity usage, saving households an estimated $250 to $450 a year, according to the bill's sponsors at the Environmental Working Group .

The systems start around $500. No financing agreement. No 25-year commitment. No document attached to your property deed.

Most importantly, SB 868 explicitly exempts these devices from the utility interconnection process — the same red tape that traditional rooftop systems have to navigate through agreements with utilities like Pacific Gas and Electric , Southern California Edison , and San Diego Gas & Electric . As the bill's supporters put it, current rules make ordinary homeowners jump through the same hoops as a full-scale power plant just to plug in a small panel.

That's the part worth sitting with. The state is now writing legislation specifically to protect people from the exact bureaucratic structure that rooftop solar companies built their entire sales model around.

The Contrast With What You Signed

If you went solar through a lease or a power purchase agreement (PPA) during the rooftop solar boom, your experience probably looked nothing like what SB 868 describes:

A 20-to-25-year contract attached to your home, not a $500 plug-in device you can take with you if you move — see how this plays out with Sunrun leases , Vivint Solar contracts , and Tesla Energy agreements
A UCC-1 lien filed against your property, often tied to financing through GoodLeap , Mosaic , or Sunnova — rather than zero legal claim on the house
A formal utility interconnection agreement , the very process lawmakers are now trying to eliminate for small systems because it's considered unnecessary red tape
System sizing and savings promises built around net metering rates that existed before NEM 3.0 gutted export compensation for new customers by roughly 75%

None of this means your existing system is illegal or that SB 868 changes your contract. It doesn't. But it does mean the state's own energy policy is now built around a completely different philosophy than the one your sales rep was working from — cut the commitment, cut the lien, cut the paperwork.

Why NEM 3.0 Makes This Sting More

SB 868 isn't happening in a vacuum. It comes directly after major cuts to net metering that badly damaged the economics of rooftop solar for both new adopters and existing owners locked into older agreements. Homeowners who signed on when the math worked are now watching that math change under policies they had no say in — while the same legislature simultaneously fast-tracks a low-commitment alternative for everyone else.

If you haven't already, it's worth reading our full breakdown of NEM 3.0 and what it actually changed for existing solar owners, along with how SB 784 is now forcing more transparency in future solar sales — transparency many existing contracts were never held to.

That whiplash is exactly why so many homeowners are re-examining what they signed years ago: escalator clauses that raise lease payments annually regardless of actual savings, PPAs where the "guaranteed production" never materialized, or liens that surface unexpectedly during a home sale or refinance.

What This Means If You're Stuck in a Legacy Contract

SB 868 won't unwind your existing lease or PPA. But it's a useful reference point if you're trying to understand why your contract feels disconnected from where the market and the state are actually heading:

Simplicity is now the policy goal, not the exception. If lawmakers are actively working to strip out permits, interconnection agreements, and long-term financial commitments for new solar adopters, that's an implicit acknowledgment that those structures were a burden — the same structures many existing rooftop contracts are built on.
Portability is being treated as a consumer protection. SB 868's plug-in systems can move with you. Most legacy leases and PPAs cannot — they transfer to a new homeowner or trigger a payoff obligation, which becomes its own negotiation during a sale.
The state is watching the same net metering shift you are. SB 868's sponsors are explicit that they see this bill as one path to rebuild momentum in a solar market that struggled after cuts to net metering policies — the same cuts that may have already changed the value of the system on your roof.

If your solar lease or PPA no longer reflects the deal you thought you signed up for — whether because of escalating payments, a lien complicating a refinance or sale, or savings that never matched projections — it's worth having someone review the actual contract terms rather than assuming there's nothing to be done.

Frequently Asked Questions

Does SB 868 affect my existing rooftop solar lease or PPA?
No. SB 868 creates rules for new, small plug-in solar devices. It does not modify or void existing rooftop solar contracts, leases, or PPAs.

Is plug-in solar a replacement for rooftop solar?
Not directly — plug-in systems are much smaller (up to 1,200 watts AC) and are designed to offset a portion of usage, not replace a full rooftop installation. They're aimed primarily at renters and people who can't install rooftop systems.

When could SB 868 become law?
The bill passed the Senate in May 2026 and is currently in the Assembly Appropriations Committee, expected to be heard in August 2026 before potentially moving to the governor's desk.

If I'm unhappy with my current solar contract, what are my options?
Options vary based on your specific agreement — whether it's a lease, PPA, or loan — and can include renegotiation, transfer, buyout, or in some cases formal exit assistance. A contract review is the right first step.

What if my solar company misrepresented my savings or contract terms?
Misrepresentation claims may fall under consumer protection laws, including the FTC Holder Rule , which can affect your obligations under a solar loan even if the installer is no longer in business. See our full guide to solar sales misrepresentation .

The Bottom Line

SB 868 won't touch your existing contract. But it's a clear signal from the state itself: the complexity, the liens, the multi-decade commitments — that model is now considered the problem lawmakers are writing legislation to avoid for everyone else. If your rooftop solar lease, PPA, or loan no longer looks like a good deal in light of NEM 3.0, escalating payments, or promises that didn't hold up, you don't have to just keep paying and wondering.

Get a free, no-obligation review of your solar contract. Our team will walk through your actual lease, PPA, or loan documents, identify what your real options are — renegotiation, transfer, buyout, or exit — and explain them in plain English, with no pressure.

�� Call (213) 579-5156 or request your free contract review online to talk to someone who can tell you exactly where you stand.

Solar Servicer Investigations: What SunStrong and Spruce Power Mean for California Homeowners

Thu, 02 Jul 2026 17:41:28 GMT

Solar Servicer Investigations: What SunStrong and Spruce Power Mean for California Homeowners

If your original solar installer went bankrupt and your loan or lease got handed off to a company you never signed up with, you're not alone — and now regulators are paying attention. Two solar servicing companies, SunStrong Management and Spruce Power, are currently facing state investigations tied to complaints from homeowners about billing, warranty, and customer service failures. If you're still trying to understand why your SunPower contract ended up with SunStrong in the first place , this is the enforcement backdrop to that story.

What Is SunStrong Management and Why Is It Under Investigation?

SunStrong Management is the entity that now manages solar loans, leases, and power purchase agreements that customers originally signed with Sunnova and SunPower before both companies filed for bankruptcy — the same transfer we break down in our SunPower cancellation guide . Connecticut Attorney General William Tong opened a formal investigation into SunStrong on March 17, 2026, after the state received roughly 65 consumer complaints. LegalClarityLegalClarity

Homeowners say SunStrong has failed to honor warranties, doesn't respond to complaints, and charges a $10 monthly fee just to see their own system's production data. On February 27, 2026, Tong's office sent SunStrong a civil investigative demand requesting comprehensive records on how customer systems were transferred, contract terms, quality-control mechanisms, and complaint history. Connecticut DMVConnecticut DMV

Regulators aren't the only ones asking questions. The law firm Chimicles Schwartz Kriner & Donaldson-Smith is separately investigating potential class action claims against SunStrong over failure to honor warranties and unauthorized fees. One BBB complainant described an audit of their billing portal that allegedly showed SunStrong compressing a standard 30-day billing cycle into 18- and 20-day cycles to pull payments forward — the kind of documented discrepancy we walk homeowners through building in our guide to filing a solar complaint with the CSLB, CPUC, AG, and DFPI . Chimicles Better Business Bureau

Why Did Spruce Power Settle With Connecticut for $100,000?

Spruce Power's case, triggered by complaints about billing, customer service, and warranty issues after Spruce acquired a portfolio of solar contracts from NRG Energy, already resolved. The $100,000 settlement, filed in Hartford Superior Court on March 12, 2026, also requires Spruce to refund improper charges and reform its billing practices. Connecticut DMVConnecticut DMV

Is This Just a Connecticut Problem?

No. Solar Insure tracks close to two dozen major solar companies that went bankrupt as of January 2026, many with multi-state operations, driven by higher interest rates, financing cash-flow problems, and reduced net metering rates in states like California. For the fuller list, see our roundup of California's solar company bankruptcies and how each affects existing contracts. Yahoo Finance

California is arguably ground zero. SunPower's August 2024 bankruptcy affected nearly 600,000 residential customers, and Sunnova's June 2025 filing added hundreds of thousands more — many bought in during the NEM 2.0 era and are now stuck with a servicer they never chose. If NEM 3.0 misrepresentation is already part of your story, a bankrupt servicer just adds another layer to the case. LegalClarity

What Should You Do If Your Loan Was Transferred to SunStrong or Spruce Power?

Pull your original contract and compare it against what you're currently being billed — the same documentation standard behind the FTC Holder Rule , which means a bankrupt or sold installer doesn't give the new loan holder a clean slate on the original salesperson's promises.

Filing with your state AG and the BBB creates a paper trail even without an active investigation in California yet — and it's a required first step outlined in our complaint-filing guide . A servicer taking over a bankrupt company's contracts doesn't inherit unlimited authority to alter billing or deny warranties without your consent.

You don't have to fight SunStrong or Spruce Power alone. These aren't isolated billing glitches — they're the same pattern regulators in multiple states are now building cases around, and every documented complaint strengthens the position of homeowners still stuck in these contracts. If your solar loan or lease was transferred without your consent, if warranties are being denied, or if you're being billed for a system that isn't producing, get a free contract review from our team today. We've helped over 500 California homeowners cancel or renegotiate contracts with Sunrun, SunPower, Sunnova, and Vivint Solar — no hidden fees, every case attorney-reviewed.

Call (213) 579-5156 or start your review online now.

Saw a "Solar Lawsuit Settlement" Online? Here's How to Tell If It's Real Before You Trust It

Tue, 30 Jun 2026 17:05:16 GMT

Saw a "Solar Lawsuit Settlement" Online? Here's How to Tell If It's Real Before You Trust It

Search "solar lawsuit settlement 2026" and you'll get pages of results: settlement trackers, claims-administrator look-alikes, "see if you qualify" articles with countdown timers. Some of it is accurate. A lot of it isn't. We recently fact-checked one of these articles ourselves — a piece claiming a $15 million California class action settlement against a specific solar installer — and found the cited federal case number actually belonged to an unrelated employment lawsuit in a different state. The settlement amount, the judge's name, the payout tiers: none of it could be confirmed anywhere else.

This isn't rare. It's a pattern worth understanding, especially if you're a California homeowner trying to figure out whether your own solar contract has legal problems.

If you're trying to sort out whether your solar contract itself has real legal issues, skip the guesswork — California Solar Exit offers a free contract review . Contact us today.

Why Are There So Many Fake Solar Lawsuit Articles?

Class action settlements generate enormous search traffic because people want to know if they're owed money. That traffic has spawned an entire content industry — sites that publish AI-generated or lightly-rewritten "lawsuit update" articles optimized purely to rank in Google and collect ad revenue or affiliate referrals, not to report accurately. Some of these sites disclose they're not law firms. Many don't make that obvious.

The tell is usually specificity without sourcing. A real settlement article links to a court docket, a settlement administrator's website, or a named law firm's press release. A fabricated one describes specific dollar figures, dates, and "key takeaways" without ever linking to where that information came from — because it can't.

How Do I Check If a Solar Lawsuit Settlement Is Real?

Look Up the Case Number on PACER

Every federal lawsuit has a case number tied to a specific district court — for example, a number formatted like 8:23-cv-02145 in the United States District Court for the Central District of California . You can search any federal case number through PACER (Public Access to Court Electronic Records), the federal judiciary's own case lookup system. If the case number cited in an article belongs to a completely different lawsuit — a different company, a different type of claim, even a different state — that's disqualifying. It means the article fabricated or misattributed its central source.

Check for an Official Settlement Administrator Site

Real class action settlements are run through a court-appointed claims administrator — firms like JND Legal Administration, Epiq, or Kroll. These administrators publish a dedicated settlement website with the actual case caption, the court's preliminary approval order as a downloadable PDF, and a real claim form. If a settlement is genuine, this site exists and is easy to find by searching the company name plus "settlement administrator." If you can't find one, be skeptical of anyone telling you to "file a claim" through their own page instead.

Search for the Law Firm by Name

Legitimate class actions are litigated by identifiable law firms with a public track record — searchable on their own websites, in legal news outlets like Law360 or Reuters Legal, or through state bar associations. If an article names class counsel, verify that firm exists and actually has a case page referencing the same litigation. If no named firm appears anywhere outside the one article, that's a red flag.

Check the California Attorney General 's Office and the California Public Utilities Commission

For California-specific solar enforcement, the AG's office and the CPUC are primary sources. The AG publishes press releases for actual enforcement actions at oag.ca.gov , and the CPUC documents formal proceedings involving solar companies through its own public filings. A genuine California enforcement action will appear, at minimum, in local news coverage citing one of these agencies directly — not exclusively on a settlement-tracker site you've never heard of.

Be Skeptical of Urgency Language

"Claim window closes soon," "deadline approaching," "see if you qualify" — these phrases are common in both real and fake settlement content, but fabricated articles lean on urgency specifically because it discourages the reader from stopping to verify anything. A real deadline will be confirmed independently across multiple legitimate sources, not just the one article telling you to hurry.

Why This Matters Even If You're Not Trying to Join a Class Action

If you're a California homeowner evaluating whether your own solar contract has problems, fabricated settlement articles can do real damage in two directions. They can convince you a company is under more legal scrutiny than it actually is, leading you to make decisions — like stopping payments or assuming you have an automatic legal claim — based on facts that don't exist. Or they can convince you a real, serious enforcement pattern is "just clickbait," causing you to dismiss genuine legal exposure that does apply to your situation.

Genuine enforcement patterns against the solar industry do exist in California right now — documented AG subpoenas, CPUC disclosure requirements, and county-level settlements like the Riverside County DA's action against Vivint Solar. The way to know the difference between a real pattern and a fabricated one isn't to trust the article that sounds most confident. It's to check the primary source yourself, or have someone who works in this space check it for you.

What Should I Do If I'm Not Sure Whether My Own Contract Has Legal Problems?

Skip the lawsuit-tracker sites altogether and look at your own paperwork directly:

Pull your original contract and look for what was actually promised in writing versus what you remember being told verbally.
Compare your utility bills before and after installation against any savings projection you were shown.
Verify your installer's license directly at cslb.ca.gov , not through a third-party aggregator.
File a complaint directly with the relevant California agency — the CSLB, CPUC, AG, or DFPI — rather than a private settlement-tracking site that has no regulatory authority.
Request a free contract review from a team that can evaluate your specific facts against California consumer protection law, instead of generic claims-site language written for search traffic.

Frequently Asked Questions

How can I find out if a class action lawsuit against my solar company is real?
Search the company name plus "class action" through PACER or a law firm's published case list, and look for a dedicated settlement administrator website with a downloadable court order. If an article describes a settlement but provides no link to a verifiable docket or administrator site, treat the claims as unconfirmed.

What is PACER and how do I use it to check a lawsuit?
PACER (Public Access to Court Electronic Records) is the federal judiciary's official system for looking up case dockets. You can search by case number, party name, or company name to confirm whether a lawsuit exists, who is presiding, and the actual filing history — directly from the court itself rather than a secondhand article.

Why do fake solar lawsuit articles exist?
Settlement and lawsuit content generates significant search traffic from people checking if they're owed money. Some websites publish AI-generated or unverified "lawsuit update" articles purely to capture that traffic for ad revenue, without confirming the underlying legal facts are accurate.

Does a fabricated lawsuit article mean my own solar contract is fine?
No. A fake article about one specific case says nothing about whether your individual contract has legal problems. The way to find out is to review your own contract and sales materials directly, not to rely on the presence or absence of a settlement article online.

Where can I verify real solar enforcement actions in California?
The California Attorney General's consumer protection page, the California Public Utilities Commission's public filings, and the Contractors State License Board's license lookup are the primary sources for confirmed California solar enforcement activity.

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

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The 30% Solar Tax Credit Is Gone — Here's What That Means If You're Trapped in a California Solar Lease

Mon, 29 Jun 2026 17:42:59 GMT

The 30% Solar Tax Credit Is Gone — Here's What That Means If You're Trapped in a California Solar Lease

If a solar salesperson came to your door in Riverside, Bakersfield, San Bernardino, or anywhere else in California between 2022 and 2025, there's a good chance they handed you a savings projection built on two assumptions: the 30% federal solar tax credit would offset your upfront costs, and California's favorable net metering rules would keep your utility bill low for the next 20 years.

Both of those assumptions are now gone.

The federal residential solar tax credit — officially Section 25D of the Internal Revenue Code — expired for homeowners on December 31, 2025. The One Big Beautiful Bill Act , signed into law on July 4, 2025, eliminated it nearly a decade ahead of its original schedule, with no phase-down and no transition period. If you signed a solar purchase contract before that date hoping to claim the credit, you still can. But if you signed a solar lease or power purchase agreement in 2023, 2024, or 2025, believing the credit was already baked into your economics? The numbers your sales rep showed you were based on a tax policy that has since been gutted — and a net metering regime that California already replaced in April 2023.

That's not a technicality. That's potentially thousands of dollars in missing savings the company promised you, locked behind a 20-to-25-year contract you cannot simply walk away from.

Here's what actually happened, and what California homeowners need to know right now.

What Was the 30% Federal Solar Tax Credit, and Who Actually Got It?

The federal solar Investment Tax Credit — Section 25D — allowed homeowners who purchased a solar system outright (cash or loan) to deduct 30% of the total installation cost from their federal income tax bill. On a $30,000 system, that was $9,000 back in your pocket, dollar for dollar.

The credit existed for owners. Not leaseholders.

This matters enormously, because the majority of California solar contracts signed through door-to-door sales are not purchase agreements. They're leases or power purchase agreements — arrangements where a company like Sunrun, SunPower, Sunnova, Freedom Forever, or GoodLeap's financing arm retains ownership of the panels installed on your roof. You pay a monthly fee to use the electricity they generate. The company claims the tax credit. You don't.

So when a sales rep in Chula Vista or Stockton or the Inland Empire showed you a presentation in 2024 that included "federal tax incentives" as part of your household savings, they were being — at minimum — imprecise. The credit went to them, not to you. What you got was a monthly lease payment structured to reflect their benefit, not yours.

And as of January 1, 2026, even that arrangement is changing. The One Big Beautiful Bill Act accelerated the phase-out of the commercial solar tax credit (Section 48E) as well, which is what third-party solar companies use to claim the credit on leased systems. Those credits now have strict construction start deadlines and placed-in-service cutoffs that will further squeeze the lease economics many companies used to build their pitch to you.

What Happened to NEM 2.0, and Why Does It Matter for Your Lease?

Before the tax credit question comes the net metering question — because NEM 3.0 may be the bigger problem for California leaseholders.

Net Energy Metering is the California policy that governs how much credit homeowners receive when their solar system sends excess electricity back to the grid. Under NEM 2.0, the old system, those credits were calculated at close to the full retail rate — roughly what you'd pay PG&E , SCE , or SDG&E per kilowatt-hour if you were buying electricity from them. For homeowners in Los Angeles, Fresno, and Sacramento, that credit made the math on solar look compelling.

The California Public Utilities Commission replaced NEM 2.0 with NEM 3.0, called the Net Billing Tariff, effective April 14, 2023. Under NEM 3.0, export credits dropped by roughly 75%. Solar energy sent to the grid now earns credits tied to the avoided cost calculator — wholesale rates, not retail rates — often between $0.04 and $0.10 per kilowatt-hour, compared to the $0.30 or more per kilowatt-hour California homeowners now pay for grid electricity.

Here's the problem for anyone who signed a solar lease or PPA in 2023, 2024, or 2025: many sales reps either didn't understand NEM 3.0, didn't disclose it, or deliberately continued using NEM 2.0 export math to close deals after the policy had already changed.

The result: homeowners across the Coachella Valley, the Central Valley, Orange County, and San Diego are paying monthly solar fees plus a utility bill that didn't shrink the way they were told it would. The system is producing electricity. The grid is paying very little for what it doesn't use. And the homeowner is on the hook for both.

Under California's Consumer Legal Remedies Act (CLRA) and the California Home Solicitation Sales Act , a contract sold using materially misleading projections can be challenged. NEM 3.0 misrepresentation is one of the strongest cancellation grounds we see — the math is provable, the timeline is documented, and the legal standard is clear. For more on how this works, see our guide on how to cancel a solar lease in California .

What Did the One Big Beautiful Bill Act Actually Change for Solar Leases?

If you have a solar lease or PPA rather than an owned system, here's how the One Big Beautiful Bill Act affects your situation specifically.

The residential credit (Section 25D) is gone entirely for new owned systems. The commercial credit (Section 48E) — which solar lease companies use — was not eliminated but was given a hard construction-start deadline: projects must begin construction before July 4, 2026 to qualify for the full credit, with a placed-in-service deadline of December 31, 2030. After July 2026, commercial solar projects can only claim the credit if placed in service by the end of 2027.

What this means for existing California leaseholders: it doesn't directly cancel your contract. But it changes the financial pressure on the companies holding those contracts. Sunrun , which is publicly traded and has faced mounting legal pressure in multiple states, now operates in a tightening capital environment. Freedom Forever declared bankruptcy in April 2026. SunPower filed for bankruptcy in 2024. Sunnova filed Chapter 11 in 2025.

When a solar company goes bankrupt, the contract doesn't disappear — it transfers to whoever acquires the company's assets, which is often a private equity firm with no customer service obligation beyond minimum legal compliance. California homeowners in San Jose, Sacramento, and the Inland Empire who signed SunPower agreements found this out the hard way in 2024. For a detailed breakdown, see our guide on SunPower cancellation options after bankruptcy .

If you're in a lease with a company that's financially stressed — and several are — now is the time to understand your exit options, not after the company changes hands.

What Grounds Exist to Cancel a California Solar Lease in 2026?

You don't need the tax credit to have expired to have grounds for cancellation. The legal grounds for exiting a California solar lease generally fall into one of several categories. For a comprehensive walkthrough, see our full guide on how to get out of a solar contract in California .

NEM 3.0 misrepresentation. If your contract was signed after April 14, 2023 and your savings projections used NEM 2.0 export rates, that's a documented discrepancy between what you were told and what California policy actually provided. The CLRA covers exactly this kind of misleading sales projection.

Cooling-off violations. Under California Civil Code Section 1689.5 and the FTC Cooling-Off Rule (16 CFR 429) , you have the right to cancel a contract signed in your home within three business days. Senate Bill 784 , which took effect January 1, 2026, extended that window to five business days generally and seven days for customers 65 and older. If the solar company failed to provide a proper, separate Notice of Cancellation document at signing, your cancellation window may still be open — regardless of how long ago you signed.

Unlicensed contracting. Every solar installer in California must hold a valid C-46 (Solar) or C-10 (Electrical) license from the Contractors State License Board (CSLB). If your installer or their subcontractors were unlicensed, California Business and Professions Code Section 7031 may render the contract unenforceable — and in some cases, allow you to recover payments already made.

Lender liability under SB 784. For contracts signed on or after January 1, 2026, SB 784 now allows consumers to assert claims against loan holders that they could have asserted against the contractor or salesperson. If Mosaic, GoodLeap, or another lender financed a system sold using misrepresentations, the lender can no longer hide behind the fact that they didn't make the promises.

Elder financial abuse. Solar companies have aggressively targeted seniors in communities across Palm Desert, Laguna Woods, and the retirement-heavy pockets of the Central Valley. Fixed-income seniors locked into 25-year contracts frequently qualify for remedies under California Welfare and Institutions Code Sections 15610.30 and 15657.5 , which can include treble damages and attorney's fees.

What Should California Homeowners Do Right Now?

If you're paying a monthly solar lease and your electric bill hasn't dropped the way you were told it would, do not stop making payments. Stopping payments without legal guidance triggers credit damage, lien enforcement actions on your home, and potential lawsuits for the full remaining contract balance. Solar company contracts are drafted by their attorneys to protect them. Your next move needs to be based on your specific contract, not general advice from a forum.

Pull your original contract and look for the Notice of Cancellation document — it should be a separate page with its own signature line. If it's missing, or if cancellation language only appears inside the body of the main agreement, that is a documented violation of California and federal consumer protection law. Our guide on what to do if you were scammed by a solar company walks through exactly how to document this.

Compare the savings projections you were shown to your actual utility bills for the past 12 months. Calculate the gap. If the discrepancy is significant and your contract was signed after April 14, 2023, document it in writing with dates.

File regulatory complaints. Submit to the California Department of Financial Protection and Innovation (DFPI) if your system was financed. File with the CSLB if there were installation problems or licensing issues. File with the California Attorney General's consumer complaint portal . For a full breakdown of which agency handles what, see our guide on how to file a solar complaint in California .

Request a free contract review. 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 in Los Angeles, San Diego, San Francisco, Orange County, the Inland Empire, the Central Valley, and every California market in between. Call (213) 579-5156 or book a free consultation at californiasolarexit.com .

Frequently Asked Questions

Does the end of the federal solar tax credit give me grounds to cancel my solar lease?
Not by itself — the federal tax credit applied to purchased systems, not leases. But if a sales rep told you in 2023–2025 that your lease economics included federal incentive benefits, or used NEM 2.0 export rates after April 2023, that misrepresentation may be grounds for cancellation under California's Consumer Legal Remedies Act .

What is the One Big Beautiful Bill Act, and does it affect my existing solar contract?
The One Big Beautiful Bill Act (Public Law 119-21), signed July 4, 2025, eliminated the 30% residential solar tax credit (Section 25D) for systems placed in service after December 31, 2025. It does not directly void existing solar contracts, but adds financial pressure to solar companies — several of which (Freedom Forever, SunPower, Sunnova) have already filed for bankruptcy.

What is NEM 3.0, and why does it matter for my solar lease?
NEM 3.0 is California's current net metering policy, effective April 14, 2023, which reduced export credits by approximately 75% compared to NEM 2.0. If a solar rep showed you savings projections after April 2023 using NEM 2.0 export rates, that is a documented misrepresentation and one of the strongest grounds for cancellation under California consumer protection law.

Can I cancel a solar lease if my company went bankrupt?
Your contract transfers to whoever acquires the bankrupt company's assets — typically a private equity firm. The new holder has the same legal obligations as the original company. If you were considering cancellation before the bankruptcy, you may have stronger leverage now. See our guide on SunPower cancellation after bankruptcy for a detailed walkthrough, then request a free contract review .

What is SB 784, and did it change my California solar cancellation rights?
SB 784 , effective January 1, 2026, extends the door-to-door cancellation window to five business days (seven for customers 65+), requires lenders to confirm contract terms before funding, and allows consumers to assert claims against loan holders for the contractor's misrepresentations. Contracts signed before SB 784 are governed by the prior three-day window, but cooling-off violations from the original signing may still leave your cancellation right open.

Does canceling my solar lease affect my credit score?
Filing complaints or pursuing a legal cancellation does not affect your credit. Stopping payments does — continue making payments while you evaluate your options. A successful cancellation typically clears the UCC-1 lien from your property title, which can improve your position if you plan to sell or refinance.

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. This article is for informational purposes only and does not constitute legal advice. Call (213) 579-5156 for a free contract review.

Solar Bills of Rights: What Colorado and Oregon Just Did — and What California Already Has

Fri, 26 Jun 2026 17:02:13 GMT

Solar Bills of Rights: What Colorado and Oregon Just Did- and What California Already Has

In 2026, two states took direct legislative action against the solar industry's most common abuse: door-to-door sales reps locking homeowners into 20–25-year leases and power purchase agreements (PPAs) using deceptive pitches, inflated savings projections, and fake government affiliations. Colorado's Senate Bill 25-299 and Oregon's House Bill 4029 both took effect in 2026 with explicit consumer protection frameworks targeting third-party owned solar — the same lease and PPA structures that have generated thousands of complaints in California.

If you're a California homeowner who already signed one of these contracts, this post matters to you. What Colorado and Oregon just passed into law reflects the same documented violations that California's regulatory framework — the CPUC Solar Consumer Protection Guide , the CSLB , the California AG , and the DFPI — has been fighting for years. And it reinforces something important: the problems in your contract are not unique to California, and they are not imagined.

If you have a solar lease or PPA in California and want to know whether your agreement contains violations, contact California Solar Exit for a free contract review .

Oregon House Bill 4029: Signed Into Law March 5, 2026

Oregon Governor Tina Kotek signed House Bill 4029 on March 5, 2026. It took effect June 5, 2026. The law is formally enrolled as Oregon Laws 2026, Chapter 11, amending ORS 646.608 — Oregon's Unlawful Trade Practices Act — and creating new statutory provisions specifically governing solar energy contractors, sales agents, installation contracts, and power purchase agreements.

Under the law's definitions, a "solar energy contractor" includes any person selling or leasing solar systems, installing systems on behalf of another person, or selling power from residential solar systems under a PPA. A "sales agent" is any person who solicits, negotiates, or executes an installation contract on behalf of a solar energy contractor. Both are covered.

What HB 4029 Requires

Plain Language Disclosure Form. Before any installation contract can be signed, the solar energy contractor or sales agent must provide a standardized disclosure form. The form must explicitly state total financing costs, dealer fees, and system maintenance expectations — in plain language, not buried in fine print. Per the Oregon Department of Energy's 2026 legislative session report , this disclosure requirement was specifically designed to address the practice of rushing customers through tablet signings without meaningful review of contract terms.

Honest Savings Estimates. Solar contractors can no longer present inflated or speculative savings projections. Under HB 4029, savings estimates must use specific utility rates and real local net metering rules — not optimistic assumptions or outdated export credits. The Eugene Water & Electric Board's legislative update noted this provision directly responds to complaints about salespeople using pre-NEM-change economics after net metering rules had already reduced export credits.

Three-Day Right to Cancel. Homeowners have a strict three-day right to cancel any solar installation contract without paying any penalties or fees. The cancellation right applies to both installation purchase contracts and PPAs. No waiver of this right is enforceable.

Dealer Fee Disclosure. HB 4029 explicitly defines "dealer fee" — the amount a solar contractor pays a lender to offer the customer credit — and requires it to be disclosed in the standardized form. This is the same undisclosed dealer fee that California's DFPI and SB 784 (effective January 1, 2026) now regulate in California.

Deceptive Statements Are Unlawful Trade Practices. Any deceptive statement made by a door-to-door solar sales representative — about government affiliation, utility partnerships, savings projections, or cancellation rights — is classified as an unlawful practice under ORS 646.608. The Oregon Department of Justice has enhanced enforcement authority to pursue bad actors, and homeowners have a private right of action to sue for damages.

The Energy Trust of Oregon , a nonprofit that administers energy efficiency programs across the state, welcomed the law while noting it applies prospectively — homeowners who signed contracts before the law took effect are not covered by its protections.

Colorado Senate Bill 25-299: Consumer Protection Residential Energy Systems Act

Colorado's Senate Bill 25-299 — formally titled the Consumer Protection Residential Energy Systems Act — was enacted by the Colorado General Assembly and applies to residential energy system agreements signed on or after July 1, 2026. It covers solar leases, PPAs, and third-party owned solar agreements specifically, alongside other residential energy systems.

What SB 25-299 Requires

Ban on Fake Government Affiliations. Door-to-door solar salespeople are explicitly prohibited from claiming their company is "part of a government program," "sponsored by the state," or affiliated with a utility or government agency unless they have explicit written authorization confirming that affiliation. This directly targets one of the most documented misrepresentation categories in solar sales nationally — the same conduct cited in California's February 2026 Riverside County DA settlement with Vivint Solar, which became a Sunrun subsidiary in 2020.

Mandatory Workmanship Warranties. Solar sales companies must provide enforceable warranties covering the physical installation and long-term workmanship of the system — not just the manufacturer's warranty on the panels themselves. This addresses the "orphaned system" problem where a sales company collects a contract and then leaves a homeowner with installation defects and no recourse.

Full Disclosure for Third-Party Leases and PPAs. SB 25-299 explicitly wraps its requirements around third-party leased equipment and PPAs. The fine print commonly buried in 25-year contracts — escalator clauses, buyout provisions, UCC-1 lien filings, transfer obligations — must be clearly disclosed upfront before signing. This mirrors California's existing Solar Consumer Protection Guide requirements, which mandate disclosure of PPA terms, escalators, and cancellation rights.

Deceptive Trade Practice Classification. Violating SB 25-299's requirements is legally classified as a deceptive trade practice under the Colorado Consumer Protection Act, opening violators to state enforcement actions and civil penalties. Solar United Neighbors , a nonprofit solar consumer advocacy organization, highlighted the law's enforcement mechanism as one of its most significant features.

What These Laws Do Not Fix

Both HB 4029 and SB 25-299 are forward-looking. They protect future solar customers — not homeowners who already signed problematic contracts.

As the Energy Trust of Oregon explicitly noted , these laws generally do not help homeowners already locked into bad agreements. If you signed a 25-year lease in 2021, 2022, or 2023, Oregon's HB 4029 doesn't cancel it. If a Colorado homeowner signed a PPA before July 1, 2026, SB 25-299 doesn't reach back to fix it.

Two specific gaps both laws leave open:

No retroactive relief. Homeowners already in problematic leases or PPAs are not covered by the new disclosure requirements, cancellation rights, or deceptive trade practice classifications in these laws. Their remedies, if any, lie in the laws that existed at the time they signed — consumer protection statutes, contract law, and existing regulatory frameworks.

Orphaned systems. If a solar company goes bankrupt mid-project, refuses to honor a warranty, or stops returning calls on a malfunctioning system, disclosure laws cannot compel them to fix it. The Energy Trust of Oregon flagged this as an unresolved gap: new disclosure rules don't create a guarantee fund or bonding requirement that would protect homeowners from contractor insolvency.

How California Compares — and Where the Gaps Are

California does not have a single "Solar Bill of Rights" statute equivalent to Oregon's HB 4029 or Colorado's SB 25-299. What it has is a more fragmented — but in some respects more extensive — consumer protection infrastructure built across multiple agencies and statutes.

What California already has that Oregon and Colorado just created:

The CPUC's Solar Consumer Protection Guide (Version 4, published 2025) already requires standardized disclosure before signing, plain-language explanation of PPA and lease terms, escalator cap disclosures, and installer signature confirmation. It specifically prohibits savings projections above a 10% annual escalation rate as of 2025.

SB 784, effective January 1, 2026, requires California solar dealers to disclose dealer fees — the same provision Oregon just added in HB 4029.

California's Consumer Legal Remedies Act (CLRA) and Unfair Competition Law (UCL) already classify solar misrepresentation — including fake government affiliations — as actionable deceptive practices, the same classification Colorado's SB 25-299 just created.

The CSLB already has jurisdiction over installation workmanship and licensing, parallel to Colorado's mandatory workmanship warranty requirement.

Where California still lags:

California does not have a single, consolidated enforcement mechanism equivalent to Oregon's enhanced Oregon DOJ authority under HB 4029. Enforcement is distributed across the CSLB, CPUC, California AG, and DFPI — four agencies with four different jurisdictions and four different complaint processes. For a full breakdown of how to use all four, see our guide to filing a solar complaint with the CSLB, CPUC, AG, and DFPI .

California also has no equivalent to Colorado's mandatory workmanship warranty statute — CSLB licensing requirements cover contractor conduct but don't impose a statutory minimum warranty period on the solar company itself.

And critically: like Oregon and Colorado, California's consumer protection framework is largely prospective. Homeowners who signed contracts before key disclosure requirements took effect — before SB 784 in 2026, before the NEM 3.0 transition in April 2023, before Version 4 of the Solar Consumer Protection Guide in 2025 — must rely on the laws that existed when they signed, plus the general consumer protection statutes that have always been available. For those homeowners, the CLRA, the Home Solicitation Sales Act, and TILA remain the primary tools.

What the National Trend Means for California Homeowners Already in Contracts

The fact that Colorado and Oregon — two states with significant residential solar markets — passed consumer protection legislation specifically targeting the lease and PPA model in 2026 is not incidental. It reflects a documented national pattern. The same pattern that produced the Texas AG's April 2026 Civil Investigative Demands against Sunrun, Freedom Forever, Lone Star Solar Services, and CAM Solar. The same pattern documented in the Massachusetts federal lawsuits Karam v. Sunrun Inc. (Case No. 1:2024-cv-11112) and Murphy v. Sunrun, Inc. et al (Case No. 4:2025-cv-11708). The same pattern the WGBH Boston investigative team documented through court records and homeowner interviews in April and May 2025. For more on that national enforcement record, see our post on the Sunrun investigation and what California homeowners need to know .

For California homeowners already in contracts, that national trend matters in one specific way: it validates the claim categories. If you were told your solar was affiliated with a government program, if your savings estimates never materialized, if a dealer fee inflated your loan without disclosure, if you signed on a tablet in 15 minutes without reviewing a 25-year contract — those are not local complaints. They are the documented violations that drove two state legislatures to pass new law in 2026.

California already has the statutory tools to address those violations. The question is whether they apply to your specific contract — and that requires a review.

California Solar Exit offers a free contract review for homeowners with solar leases, PPAs, or financed solar loans. Contact us today . No cost to find out where you stand.

Frequently Asked Questions

Do Oregon's or Colorado's new solar laws apply to California homeowners?
No. Oregon's HB 4029 and Colorado's SB 25-299 are state laws that apply within their respective states. California homeowners with solar contracts are governed by California law — the CLRA, the Unfair Competition Law, the Home Solicitation Sales Act, CPUC Solar Consumer Protection Guide requirements, and SB 784. The new Oregon and Colorado laws are relevant as evidence of a documented national pattern, not as direct legal remedies for California residents.

If these new laws don't cover existing contracts, what options do California homeowners have?
California homeowners already in problematic solar contracts can pursue relief under the laws that existed when they signed. The CLRA, the Home Solicitation Sales Act, the UCL, TILA, and the CPUC Solar Consumer Protection Guide requirements all predate 2026. Misrepresentation, undisclosed dealer fees, inflated savings projections, and fake government affiliations were all prohibited under California law before Oregon and Colorado passed their new statutes. For a full breakdown, see our guide to how to get out of a solar contract in California .

What is the "dealer fee" that Oregon and California's SB 784 both now require to be disclosed?
A dealer fee is an amount a solar contractor collects from a lender — typically 20–30% of the loan amount — as compensation for originating the financing. This fee inflates the total principal the homeowner owes without appearing as a line item. Oregon's HB 4029 and California's SB 784 (effective January 1, 2026) both now require this fee to be disclosed before signing. If your pre-2026 California solar loan did not disclose the dealer fee, that is a documented complaint category for the DFPI .

Why did Colorado and Oregon pass these laws now?
Both states saw significant increases in solar consumer complaints tied to out-of-state companies using third-party ownership models — leases and PPAs — with high-pressure door-to-door sales tactics. Colorado and Oregon legislators cited deceptive math locking homeowners into multi-decade contracts they could not exit, savings projections that did not account for current net metering rules, and misrepresentations about government affiliation as the primary drivers. Those are the same complaint categories documented in California's enforcement record going back to the February 2026 Riverside County DA settlement with Vivint Solar and the active Texas AG investigation.

Does California have a "Solar Bill of Rights" equivalent?
Not as a single consolidated statute. California's consumer protections are distributed across the CPUC Solar Consumer Protection Guide, the CLRA, the UCL, the Home Solicitation Sales Act, SB 784, and the CSLB licensing and disclosure framework — enforced by four separate agencies. The CSLB , CPUC , California AG , and DFPI each cover different parts of the transaction. Filing with all four simultaneously creates the strongest complaint record.

Who Pays for California's Free Solar Programs — and Who Gets Them

Thu, 25 Jun 2026 17:04:34 GMT

Who Pays for California's Free Solar Programs — and Who Gets Them

California has more rooftop solar installations than any other state — over 1.5 million residential systems, according to the California Energy Commission . It also has some of the highest residential electricity rates in the country. Those two facts are not unrelated, and understanding the subsidy structure behind California's solar market helps explain something that confuses a lot of homeowners: why "free solar" programs exist, who actually qualifies for them, and what the difference is between a genuine government-funded solar program and the commercial lease or PPA a private salesperson is offering at your door.

If you signed a solar lease or PPA under the impression it was connected to a government program — or that it was essentially free — this post is directly relevant.

If you were told your solar agreement was tied to a state program, a utility rebate, or government funding that doesn't appear in your contract, contact California Solar Exit for a free contract review .

California's Cap-and-Invest Program: The Engine Behind Solar Subsidies

California's solar subsidy programs don't come from the general fund. They're funded primarily through the state's Cap-and-Invest Program , administered by the California Air Resources Board (CARB) . Formerly known as cap-and-trade, the program was extended through 2045 by Assembly Bill 1207 (AB 1207, Irwin) and Senate Bill 840 (SB 840, Limón), enacted in September 2025.

The mechanics: companies that emit greenhouse gases — power plants, industrial facilities, fuel suppliers covering roughly 76% of California's GHG emissions — must purchase allowances from CARB, each representing one metric ton of CO2 equivalent. CARB auctions those allowances quarterly, generating revenues deposited into the Greenhouse Gas Reduction Fund (GGRF) . Since the program launched in 2013, California has raised more than $19.2 billion through cap-and-invest auctions. Recent auctions generate between $3 billion and $4.3 billion per year, according to the California Legislative Analyst's Office (LAO) .

By statute, at least 35% of GGRF revenues must benefit disadvantaged and low-income communities — 25% directed to investments within disadvantaged communities, and an additional 10% specifically for low-income households. That statutory floor is the legal foundation for the state's subsidized solar programs.

Those costs flow through the system. The CPUC's Public Advocates Office has identified rooftop solar incentives — funded by ratepayers — as among the primary drivers of retail electricity rate increases statewide. The 2026 CARB regulatory update dedicates an estimated $8 billion to the Greenhouse Gas Reduction Fund going forward, alongside $10 billion directed to electricity bill credits for Californians.

The Low-Income Weatherization Program: What It Actually Is

The program generating significant recent attention is the Low-Income Weatherization Program (LIWP) , specifically its Farmworker Housing Component, administered by California's Department of Community Services and Development (CSD) . Launched in 2019 and expanded to 18 California counties with the highest farmworker populations, the program operates across two regions:

Region 1: Fresno, Kings, Madera, Merced, Napa, San Joaquin, Sonoma, Stanislaus, Tulare

Region 2: Imperial, Kern, Monterey, Riverside, San Luis Obispo, Santa Barbara, Santa Cruz, Ventura

The program is administered by La Cooperativa Campesina de California , a nonprofit established in 1995 to serve California's farmworker communities. La Cooperativa partners with MAROMA Energy Services and a network of local installation contractors. Since 2019, the state has allocated approximately $49 million to the Farmworker Housing Component, serving roughly 2,000 households — an average program delivery cost of approximately $23,000 per household when accounting for the full scope of services: solar PV, HVAC, insulation, window replacement, refrigerators, and other weatherization measures.

To qualify, households must meet all of the following criteria per CSD's program guidelines :

At least one household member must be an agricultural employee
The household must be at or below 80% of Area Median Income or 80% of State Median Income, whichever is higher
The property must be located within one of the 18 targeted counties
Citizenship is not required — CSD accepts identification from foreign governments for eligibility verification

Services are provided at no cost. The program covers single-family homes and small multifamily buildings of 2–4 units owned or rented by the farmworker family. For more information or to apply, call (833) FOR-LIWP — (833) 367-5497 — Monday through Friday, 9 a.m. to 4 p.m.

This is a genuine, government-administered program funded by CARB cap-and-invest revenues — not a commercial solar product.

The SOMAH Program: Solar for Multifamily Affordable Housing

A parallel program is the Solar on Multifamily Affordable Housing (SOMAH) program, authorized under California law and funded through CPUC-directed cap-and-invest revenues. SOMAH directs up to $100 million per year toward solar installation on apartment buildings in low-income areas. Since 2015, the program has installed approximately 129 megawatts of solar for roughly 65,600 residents, well below the 1 million "solar renters" target advocates sought, in part because projects average three and a half years to navigate required paperwork and inspections. More than 400 applications have been canceled or withdrawn.

Both LIWP and SOMAH represent one end of California's solar subsidy spectrum: programs funded by state climate revenues, administered by government agencies and qualified nonprofits, at no cost to the recipient household.

The commercial solar market — where Sunrun, Sunnova, Tesla Energy, Freedom Forever, and regional dealers operate — is the other end. This is precisely where the misrepresentation problems documented by the California AG, the CSLB, the CPUC, and the DFPI actually occur.

Why This Matters for Homeowners With Commercial Solar Contracts

The existence of genuine government-funded solar programs creates a specific and documented misrepresentation risk in California's commercial solar market. The February 2026 settlement by the Riverside County District Attorney's office involving Vivint Solar — which became a wholly owned Sunrun subsidiary on October 8, 2020 — cited among its alleged violations: misrepresenting relationships with utility companies including Pacific Gas & Electric (PG&E), Southern California Edison (SCE), and San Diego Gas & Electric (SDG&E), and misrepresenting the nature of the solar program being offered. The Riverside County DA noted that Sunrun was not a party to that action.

When a commercial solar sales representative implies — or directly states — that their product is affiliated with a government program, a utility incentive, or a state climate initiative, that representation has a specific legal name under California's Consumer Legal Remedies Act (CLRA) : fraudulent misrepresentation that can form the basis for contract rescission.

The questions worth asking about any solar agreement you've signed:

Is this a government program or a commercial product? Government programs like LIWP and SOMAH are administered by CSD or the CPUC, have specific statutory eligibility requirements, and involve no long-term payment obligation. Commercial solar leases and PPAs from private companies are 20–25-year contracts with annual payment escalators — typically around 2.9% per year.

Who is the other party to your contract? If you signed with a private solar company — not the State of California, CARB, CSD, Pacific Gas & Electric, Southern California Edison, or San Diego Gas & Electric — you are in a commercial agreement, not a government program. State agencies do not send salespeople to your door with tablets.

What incentives were in the pitch vs. the contract? The federal Investment Tax Credit (ITC), Net Energy Metering billing, and state cap-and-invest rebates are real programs — but the financial benefit of each accrues differently depending on whether you own the system, lease it, or signed a PPA. In a lease or PPA, the federal ITC goes to the solar company, not the homeowner. If you were told the tax credit would benefit you and it was not reflected in your contract, that is a documented complaint category under California law.

The Accountability Question: Where the Money Goes

California's cap-and-invest system has generated more than $27.9 billion in cumulative GGRF appropriations since 2014, distributed across low-income weatherization, transit, high-speed rail, wildfire resilience, and other programs across 24 state agencies administering 89 programs.

The California Legislative Analyst's Office has noted that ensuring GGRF funding achieves its intended goals effectively is an ongoing legislative priority, and that continued oversight of CARB's rulemaking — particularly following AB 1207 and SB 840 — is essential. The LAO's 2026 analysis of cap-and-invest expenditure plans flagged that GGRF revenues may not be adequate to support all proposed allocations, recommending the Legislature prioritize highest-impact uses.

For the Farmworker Housing Component specifically, a May 2026 City Journal investigation raised financial accountability questions about the relationship between La Cooperativa, MAROMA Energy Services, and John Harrison Contracting — specifically regarding a single individual appearing in executive roles across all three entities that receive, distribute, and execute program funds. CSD has not publicly responded to those specific allegations as of this publication date.

What This Means If You're Trying to Exit a Solar Contract

The policy context matters for one specific, practical reason: if a solar sales representative told you that your lease or PPA was part of a government program, a utility rebate, or a California climate initiative — and that representation was false or misleading — you have grounds for a consumer protection claim under California law regardless of what the written contract says.

The documented complaint categories in California's solar enforcement record — misrepresenting utility company affiliations, misrepresenting the nature of the program, misrepresenting savings and costs, misrepresenting cancellation rights — all intersect directly with the confusion between government solar programs and commercial solar products. For a full breakdown of where to file, see our guide to filing a solar complaint with the CSLB, CPUC, AG, and DFPI .

If any of the following apply to your situation, a contract review is worth pursuing:

You were told your solar was "free" or "funded by the state"
You were told the program was affiliated with PG&E, SCE, SDG&E, or a California government agency
You were told about a tax credit or rebate that did not materialize as described
Your savings projections have not matched actual utility bills from PG&E, SCE, SDG&E, LADWP, SMUD, or your local utility

California Solar Exit offers a free contract review for California homeowners with solar leases, PPAs, or financed solar loans. Contact us today — no cost to find out where you stand.

Frequently Asked Questions

Is the Low-Income Weatherization Program the same as a commercial solar lease?
No. The LIWP Farmworker Housing Component , administered by California's Department of Community Services and Development, is a government program funded by CARB cap-and-invest revenues. It is delivered at no cost to eligible households with no long-term payment obligation. A commercial solar lease or PPA from Sunrun, Sunnova, or Freedom Forever is a 20–25-year contract with a private company that includes monthly payments and annual rate escalators.

Do you have to be a U.S. citizen to qualify for California's government solar programs?
For the LIWP Farmworker Housing Component, citizenship is not required. CSD accepts identification from foreign governments. Income eligibility at or below 80% of Area or State Median Income, residence within the 18 targeted counties, and agricultural employment are the primary qualifying factors.

How is cap-and-invest funding different from what I pay in a solar lease?
Cap-and-invest revenues come from companies that emit greenhouse gases, deposited into the Greenhouse Gas Reduction Fund and distributed by state agencies to qualified programs. A solar lease payment goes directly to a private company under a long-term contract you signed. The two are legally and financially distinct — government programs involve no payment obligation for the recipient household.

Can a solar company legally claim to be affiliated with a California government program?
No. A commercial solar company misrepresenting affiliation with the State of California, a utility, or a government program violates California's Consumer Legal Remedies Act (CLRA), the Unfair Competition Law (UCL), and the CPUC's Solar Consumer Protection Guide requirements. The February 2026 Riverside County DA settlement with Vivint Solar cited this exact category of alleged violation.

What is the Solar on Multifamily Affordable Housing (SOMAH) program?
SOMAH is a California program funded through cap-and-invest revenues and administered by the CPUC that installs solar on affordable multifamily housing. Neither SOMAH nor the LIWP Farmworker Housing Component involves door-to-door sales, long-term contracts, or payment obligations for recipient households.

What if I was told my solar was "free" or government-funded but I'm now paying a monthly lease?
That is one of the documented misrepresentation categories in California's solar enforcement record. If your sales presentation included claims about government affiliation, free solar, or utility company partnership that do not appear in your written contract, contact California Solar Exit for a free contract review . The gap between what was said and what you signed is the starting point for a consumer protection claim under California law.

How to File a Solar Complaint in California: CSLB, CPUC, AG, and DFPI

Wed, 24 Jun 2026 18:53:15 GMT

How to File a Solar Complaint in California: CSLB, CPUC, AG, and DFPI

If you have a solar lease, power purchase agreement (PPA), or financed solar loan in California and something went wrong — the savings didn't show up, the salesperson made promises the contract doesn't honor, you found a UCC-1 lien on your title you didn't know about — filing a formal complaint with the right California agency is one of the most concrete steps you can take.

This is not the same as calling your solar company's customer service line, leaving a Google review, or filing a BBB complaint. Those carry no regulatory weight. A formal complaint with a California state agency creates an official record the solar company must respond to, and that record becomes part of the documented pattern regulators use to build enforcement cases.

If you're not sure which complaint path fits your situation, California Solar Exit offers a free contract review . Contact us today.

Why Agency Complaints Matter More Than You Think

California solar companies respond to regulatory complaints very differently than they respond to direct customer contact. When a homeowner calls Sunrun, Sunnova, Tesla Energy, or Freedom Forever to dispute their contract, they reach a retention department whose job is to protect the agreement. When the Contractors State License Board (CSLB), the California Public Utilities Commission (CPUC), or the California Attorney General's office contacts that same company about a formal consumer complaint, the company has a legal obligation to respond — and the response goes on record.

That record matters in two ways. First, it strengthens any individual solar contract cancellation claim by creating documented evidence of a dispute predating any legal action. Second, it contributes to the complaint volume regulators need to build enforcement cases.

The Texas Attorney General's April 2026 investigation of Sunrun, Freedom Forever, Lone Star Solar Services, and CAM Solar explicitly cited over 100 formal AG complaints as part of the trigger for issuing Civil Investigative Demands. The Connecticut Attorney General's lawsuit against Sunrun cited documented complaint patterns. WGBH Boston's April 2025 investigation into Sunrun's Massachusetts operations documented hundreds of complaints filed with the Massachusetts AG — complaints that shaped the investigative record and contributed to active federal litigation including Karam v. Sunrun Inc. (Case No. 1:2024-cv-11112) and Murphy v. Sunrun, Inc. et al (Case No. 4:2025-cv-11708).

Documented complaints drive enforcement. Filing takes 15 to 30 minutes per agency. You can file with all four simultaneously. There is no cost.

The Four California Solar Complaint Agencies

1. CSLB — Contractors State License Board

What it covers: The Contractors State License Board licenses and regulates contractors in California, including solar installation contractors. Its jurisdiction covers the physical installation work, licensing compliance, permit requirements, and the conduct of the licensed contractor who performed the work on your home.

File here if:

Your system was installed improperly, incompletely, or not to California building code
The installation contractor was not licensed or used unlicensed subcontractors
Required building permits were not pulled or inspections not completed
The contractor violated written contract requirements under California Home Improvement law
The company that installed your system is different from the company you signed with — common with Sunrun, Freedom Forever, Sunnova, and other companies that use regional installation subcontractors

What most homeowners miss: Even if Sunrun or Sunnova is the named party on your lease or PPA, the physical installation was almost certainly performed by a regional subcontractor holding a separate CSLB license. The CSLB has independent jurisdiction over that contractor. You can file against the installation contractor separately from any complaint against the solar company itself — and often should.

The CSLB also specifically references a Solar Disclosure Notice that contractors are required to provide. If you didn't receive it or weren't given time to review it, note that in your complaint.

How to file: Use the CSLB online Solar Complaint Form . You'll need your contract, the contractor's license number (look for it on your permit, your contract, or by searching cslb.ca.gov ), and a description of the issue. A CSLB representative will contact you to review the information. For questions, call (800) 321-CSLB (2752).

2. CPUC — California Public Utilities Commission

What it covers: The California Public Utilities Commission regulates how solar companies interact with California's investor-owned utilities — Pacific Gas & Electric (PG&E), Southern California Edison (SCE), San Diego Gas & Electric (SDG&E), Bear Valley Electric Service (BVES), PacifiCorp, and Liberty Utilities. The CPUC also enforces the consumer protection disclosure requirements governing all residential solar sales in California, including the California Solar Consumer Protection Guide — version 4 of which was published in 2025.

File here if:

You were not provided the California Solar Consumer Protection Guide before signing, or were not given time to read it
The salesperson implied an affiliation with PG&E, SCE, SDG&E, or another utility
Your contract contains "free solar" claims or misrepresented savings projections
You were rushed through a tablet signing without reviewing the contract
Your system has Permission to Operate (PTO) or interconnection delays the company has not resolved
Your system was sold using Net Energy Metering 2.0 (NEM 2.0) export economics after April 14, 2023, when NEM 3.0 took effect and reduced export credits by roughly 75%

What most homeowners miss: The Solar Consumer Protection Guide is a CPUC-mandated legal document, not optional marketing material. Solar providers submitting interconnection applications in PG&E, SCE, SDG&E, BVES, PacifiCorp, and Liberty service areas are required to collect customer initials and a signature confirming receipt. Customers 65 and older have five days to cancel; those under 65 have three days. If you received the Guide in English but your sale was conducted in Spanish, Mandarin, Korean, Tagalog, or another language, that is a standalone CPUC violation — California law requires the contract to be provided in the language the sale was conducted in.

How to file: For solar-related disclosure issues, contact the CPUC directly at energy@cpuc.ca.gov or use the CPUC utility complaint portal for issues involving interconnection or net metering. For formal complaints, see the CPUC formal complaint process . The CPUC's Public Advisor's Office can be reached toll-free at 1-866-849-8390.

3. California Attorney General — Consumer Protection Section

What it covers: The California Attorney General's consumer protection division handles complaints against businesses operating in California for deceptive practices, fraud, misrepresentation, and violations of the California Consumer Legal Remedies Act (CLRA), the Unfair Competition Law (UCL), and Business & Professions Code Section 17200. The AG's office has previously pursued enforcement actions against solar companies in California and continues to receive and review solar-related complaints.

File here if:

The salesperson made materially false statements about savings, costs, or projected system performance
You were told the solar was "free," "paid for by the government," or would eliminate your utility bill
Your credit was pulled or a solar account was created without your written consent
You were told the solar company worked "with" or "through" PG&E, SCE, or SDG&E when it did not
You were presented with a liquidated damages or early termination buyout clause that was not clearly explained
Your sale was conducted in Spanish, Mandarin, Korean, Tagalog, or another language but you received an English-only contract

What most homeowners miss: The California AG does not resolve individual contracts — it builds enforcement cases against patterns of conduct. But individual complaints feed directly into that pattern record. The AG's consumer complaint database is one of the first places investigators look when building a case. The Riverside County DA's February 2026 settlement with Vivint Solar — now a Sunrun subsidiary — stemmed from exactly this kind of complaint accumulation. The settlement cited alleged violations including misrepresenting relationships with utilities, misrepresenting cancellation rights at signing, obtaining credit reports without written consent, and enforcing liquidated-damages provisions alleged to be noncompliant with California law. Your complaint contributes to the enforcement record even if you never receive an individual response.

How to file: Submit the California AG Consumer Complaint Against a Business form at oag.ca.gov. For phone inquiries, contact the AG's Public Inquiry Unit at (916) 322-3360 or toll-free at (800) 952-5225.

4. DFPI — California Department of Financial Protection and Innovation

What it covers: The California Department of Financial Protection and Innovation regulates financial products and services in California, including solar loans, PPAs structured as financial instruments, and Property Assessed Clean Energy (PACE) financing. This covers agreements originated through lenders like GreenSky, Mosaic Solar Loans, GoodLeap (formerly Loanpal), Dividend Finance, and Sunlight Financial. The DFPI facilitates communication between you and the financial institution and reviews complaints to assess whether further enforcement action is warranted.

File here if:

Your solar loan's interest rate, APR, or total cost of credit was not clearly disclosed
A dealer fee was built into your loan principal without your knowledge — solar companies commonly collect 20–30% of the loan amount from the lender as a "dealer fee" that inflates your balance
You were told the loan was "zero interest" or "zero percent" when it carried deferred interest
The financing agreement referenced the federal Investment Tax Credit (ITC) in a way that was misleading or that you didn't qualify for
Your PPA is structured as a financial product and its terms — including annual escalator clauses — were not clearly disclosed
You have a PACE financing agreement and the terms were misrepresented or improperly originated

What most homeowners miss: SB 784, which took effect January 1, 2026, now requires solar dealers in California to disclose dealer fees. If your contract predates SB 784 and the dealer fee was not disclosed, that is a documented complaint category the DFPI is equipped to evaluate.

Also critical: the federal FTC Holder Rule makes the lender liable for the solar dealer's misrepresentations in many consumer financing transactions. If GreenSky or Mosaic financed your system and the sales rep made material misrepresentations to close the deal, you may have a viable claim against the lender directly — not just the solar company. The DFPI is the right California agency to receive that complaint.

How to file: Submit your complaint at dfpi.ca.gov/submit-a-complaint . For PACE-specific complaints, a separate PACE complaint form is available on the same page. For assistance, call the DFPI Consumer Services Office at 1-866-275-2677. Have your loan agreement, financing disclosures, and lender name ready before you start.

Filing With Multiple Agencies: Why It's Worth Doing

Each agency covers a different slice of the solar transaction. A deal that went wrong typically has problems in more than one area — an unlicensed subcontractor (CSLB), a missing Solar Consumer Protection Guide (CPUC), an inflated savings claim (AG), and an undisclosed dealer fee (DFPI) are four separate violations across four separate regulatory jurisdictions.

Filing with all applicable agencies simultaneously creates a multi-front paper trail the solar company must respond to on separate tracks, demonstrates a documented pattern rather than a one-off complaint, preserves your record if the situation escalates to formal legal action, and costs nothing.

The homeowners who reach resolution fastest are almost always the ones who combined formal agency complaints with a formal demand letter grounded in specific California statute — the CLRA, the Home Solicitation Sales Act, the Solar Consumer Protection Guide requirements, and applicable Truth in Lending Act (TILA) provisions — filed through a consumer advocacy firm that knows how solar companies respond to documented regulatory pressure.

For additional context on the national enforcement pattern driving these complaints, see our post on the Sunrun investigation and what California homeowners need to know .

What Happens After You File

Each agency operates on its own timeline. The CSLB will notify the contractor and give them a response window — a representative will contact you to review your information. The AG's office will log your complaint into its enforcement database. The DFPI will review your complaint, forward it to the company for a response, and send you email updates with status tracking.

None of these processes automatically terminates your solar contract. What they do — cumulatively — is create a documented regulatory record that changes the dynamic when you or a consumer advocacy firm later approach the solar company about resolution.

A Sunrun or Sunnova retention department that gets a phone call from a frustrated homeowner responds very differently than a legal or compliance team fielding simultaneous notices from the CSLB, CPUC, AG, and DFPI — all tied to the same customer and the same contract.

California Solar Exit helps homeowners build that documented record and translate it into a formal demand for cancellation or resolution. If you're ready to move from complaint to action, contact us today . The review is free.

Frequently Asked Questions

Does filing a complaint cancel my solar contract?
No. Filing a regulatory complaint with the CSLB, CPUC, California AG, or DFPI does not automatically terminate your solar lease, PPA, or loan. It creates an official record that strengthens any subsequent negotiation or legal action. Solar contract cancellation in California requires a formal demand grounded in specific statute — the Consumer Legal Remedies Act (CLRA), the Home Solicitation Sales Act, or applicable Truth in Lending Act provisions — combined with documented evidence of a violation.

Can I file with multiple California agencies at the same time?
Yes, and doing so is recommended. The CSLB covers installation and contractor issues, the CPUC covers utility and disclosure violations, the AG covers business conduct and misrepresentation, and the DFPI covers solar financing. Filing with all applicable agencies creates a multi-front paper trail the solar company must respond to separately.

Will the solar company know I filed a complaint?
Yes, in most cases. The CSLB notifies the contractor directly. The CPUC and AG processes involve company notification as part of their response procedures. The DFPI forwards your complaint to the financial institution and sends you status updates. The complaint process is designed to put the company on official notice and require a documented response.

What if my solar company threatens to void my warranty because I filed a complaint?
This is a scare tactic. California law prohibits retaliation against consumers for exercising their rights, including filing complaints with regulatory agencies. A solar company threatening to void your warranty in response to a CSLB or California AG complaint would itself be a potential violation of California consumer protection law.

Which California agency handles undisclosed solar loan fees?
The DFPI handles complaints involving solar financing, including undisclosed dealer fees, misrepresented APR, and PPA terms structured as financial products. File at dfpi.ca.gov/submit-a-complaint or call 1-866-275-2677. The federal FTC Holder Rule may also give you a direct claim against the lender.

I have a PACE loan, not a traditional solar loan. Does the DFPI cover that?
Yes. The DFPI began licensing and regulating PACE program administrators in 2019 and has a separate PACE-specific consumer complaint form available at dfpi.ca.gov/submit-a-complaint . PACE program administrators are required to obtain oral confirmation of key terms from the property owner before signing and must assess the homeowner's reasonable ability to repay before approving financing.

Selling a Home With a Solar Lease in California: What You Need to Know Before You List

Tue, 23 Jun 2026 17:52:53 GMT

Selling a Home With a Solar Lease in California: What You Need to Know Before You List

Most California homeowners with solar panels find out about the problem at the worst possible moment — in escrow, with a closing date set, when a buyer's lender flags the solar lease as an obstacle to funding.

At that point, your options have narrowed significantly. You're either paying to buy out the lease under deadline pressure, negotiating a price reduction to compensate the buyer, or watching a deal fall apart that took months to build.

None of that is inevitable. It's the result of not addressing the solar contract before listing — and it's more common than most real estate agents in California will tell you until they've seen it happen in a deal they're managing.

This guide covers what California homeowners with solar leases, power purchase agreements, and solar loans need to understand before they list, why each contract type creates different problems at escrow, and what your real options are depending on how much time you have.

If you want a review of your specific contract before you make any decisions, California Solar Exit offers free contract reviews at (213) 579-5156 . We've reviewed contracts for homeowners across Los Angeles, Orange County, San Diego, the Inland Empire, the Bay Area, Sacramento, and the Central Valley — and we can tell you exactly where your contract creates risk before your real estate agent finds out the hard way.

Does a Solar Lease Transfer Automatically When You Sell Your California Home?

No. A solar lease does not transfer automatically. It requires active approval from the solar company, a credit qualification process for the buyer, and in many cases, coordination with the buyer's mortgage lender — all of which takes time that escrow timelines don't always accommodate.

Here's how the process actually works. When you list a California home with an active solar lease from Sunrun, Vivint Solar (now Sunrun), SunPower, Tesla Energy, or another provider, the buyer who wants to assume the lease must apply directly with the solar company. The approval process typically takes 30 to 45 days and requires the buyer to meet a minimum FICO score — usually 650 to 680 — and pass a debt-to-income evaluation that treats the monthly solar payment as a recurring liability.

The solar company's approval is only half the problem. The buyer's mortgage lender also has to sign off on the assumption. Under Federal Housing Administration and Department of Veterans Affairs loan guidelines, monthly solar lease payments count toward the buyer's debt-to-income ratio — which can reduce their maximum borrowing capacity by $25,000 to $30,000 on a typical California loan amount. Conventional lenders vary in how they treat the obligation, but many require the lease to be paid off at closing rather than assumed.

The result: a significant portion of qualified California buyers are effectively disqualified from purchasing homes with active solar leases, even if they want the system and understand the value. According to data from California real estate transactions, homes with leased solar systems sit on market 13% longer and receive fewer offers than comparable homes with owned solar — not because solar is bad, but because the lease structure narrows the buyer pool before the first showing.

What Does California Law Require You to Disclose About Your Solar Lease?

California real estate law requires full solar disclosure under Civil Code Section 2079.10A , but the standard disclosure form doesn't walk sellers through what their specific contract means for buyers or how it affects financing.

What you are required to disclose, in practice:

The existence of the solar system and whether it is owned, leased, financed, or under a power purchase agreement. This goes on the Transfer Disclosure Statement. Any UCC-1 financing statements or fixture filings recorded against your property — these are liens that appear in title searches and must be resolved before most transactions can close. The California Solar Exit homepage explains how these liens have derailed sales in Orange County, the South Bay, and Sacramento suburbs when homeowners didn't know they existed.

The lease or PPA contract itself, including all addenda, payment schedules, and escalation clauses. Buyers are entitled to a complete copy of the agreement and typically need it to get lender approval.

Any transfer fees, credit requirements, or conditions imposed by the solar company. If Sunrun charges an assumption fee or requires the buyer to meet specific terms, that information is material to the transaction.

Failure to disclose material facts about a solar contract can expose California sellers to liability under the California Consumer Legal Remedies Act and Civil Code fraud provisions. Don't rely on your solar company to walk you or your buyer through the disclosure requirements — they have no obligation to do so and every incentive not to.

What Are Your Options When Selling With an Active Solar Lease?

You have three primary paths. Which one makes sense depends on your remaining lease term, the buyout cost, your market, and how much time you have before listing.

Option 1: Transfer the Lease to the Buyer

This is the most common path and works best when the buyer has strong credit, isn't using FHA or VA financing, and is motivated enough to wait out the 30–45 day transfer approval process.

Start the transfer process before you accept an offer — ideally before you list. Contact your solar company's transfer department as soon as you know you're selling, request the transfer application and all required documentation, and have it ready to send the moment a buyer is identified. Sunrun's transfer department can be reached at transfers@sunrun.com . Other providers have similar dedicated channels.

Build the transfer timeline into your purchase contract. A buyer who needs 45 days for solar approval needs that reflected in the escrow period — a standard 30-day escrow doesn't accommodate it.

Understand your buyer pool. In coastal markets like Newport Beach, Laguna Niguel, and Palo Alto, buyers are generally more familiar with solar leases and more willing to assume them. In the Inland Empire, Central Valley, and parts of the High Desert, buyer resistance to solar lease assumptions has increased significantly since NEM 3.0 took effect in April 2023 — buyers are seeing their neighbors' true-up bills and they know the savings story has changed. See our guide on how NEM 3.0 changed the economics of California solar contracts for the background on why.

Option 2: Buy Out the Lease Before Closing

If your buyer can't qualify for the assumption, won't accept it, or is using financing that prohibits it, a buyout removes the obstacle entirely. Owned solar panels are an asset that can add $15,000 to $25,000 in appraised value to a California home according to Lawrence Berkeley National Laboratory research — a leased system adds zero appraised value because the homeowner doesn't own the equipment.

Most California solar leases include buyout provisions exercisable at years 5, 10, 15, and 20 of the contract. Buyout costs typically range from $8,000 to $30,000 or more depending on remaining term, system size, escalation rate, and provider. The buyout price is calculated as the present value of all remaining lease payments, sometimes with a discount — but "sometimes" is the operative word. Get the quote in writing and compare it to the sum of remaining nominal payments yourself.

The math: if your buyout costs $20,000 and owned solar adds $20,000–$25,000 in appraised value, the net cost to you may be near zero or positive. If your buyout costs $28,000 and you're in a market where owned solar adds $15,000, you're taking a loss to clean the title — but you may still come out ahead versus selling with an active lease discount and a longer time on market.

For homeowners considering buyout, a consumer protection review is worth doing first. If your solar contract involved misrepresentation — inflated savings projections, undisclosed escalators, false claims about NEM 2.0 export credits — the buyout figure may be negotiable or the contract may be legally cancelable without a buyout at all. Call (213) 579-5156 for a free review before you accept the solar company's first number.

Option 3: Cancel the Contract Through Consumer Protection Law

This is the option most California homeowners don't know exists — and the one that eliminates both the transfer problem and the buyout cost when the facts support it.

California's Consumer Legal Remedies Act , the Unfair Competition Law under Business and Professions Code Section 17200 , and SB 784 — which took effect January 1, 2026 — give California homeowners legal tools to challenge solar contracts that were entered through misrepresentation, deceptive sales practices, or material omission.

The most common misrepresentation grounds that apply to California homeowners selling their homes:

NEM 3.0 bait-and-switch. If you signed a solar lease or PPA between 2020 and April 2023 with savings projections based on NEM 2.0 net energy metering rates — and your system received permission to operate after April 14, 2023 under NEM 3.0 — the projections used to sell you the contract may be legally actionable. The value of excess solar exported to the grid dropped approximately 75% under NEM 3.0. Salespeople who showed you NEM 2.0 projections in 2022 and 2023, knowing the rules were changing, were misrepresenting your expected savings.

Undisclosed UCC-1 liens. If your solar company filed a UCC-1 financing statement or fixture filing against your property title without clearly disclosing that fact in writing at signing, that omission may support a rescission claim. Thousands of California homeowners discovered these liens only when a title report surfaced one at the start of a real estate transaction.

Escalator misrepresentation. If the annual payment escalator in your contract — typically 1.9% to 3.5% per year — was not disclosed in writing at signing, or if the salesperson represented it as matching or trailing utility rate increases when those projections were inflated, that may constitute misrepresentation under the California Unfair Competition Law . Our solar escalator guide covers how to find yours and what the legal exposure looks like.

The UCC-1 Lien Problem: What It Means for Your Title

One of the most common surprises for California homeowners listing with a solar lease is a UCC-1 financing statement they didn't know existed. Solar lenders — including GoodLeap, Mosaic, Sunlight Financial, Sunnova, and others — routinely file these liens against California residential properties to secure their interest in the panels. Sunrun and Vivint Solar have placed similar liens on hundreds of thousands of California rooftops from San Jose to San Diego.

A UCC-1 lien appears in your title report and must be resolved before most real estate transactions can close. If the lien belongs to a company that has gone bankrupt — SunPower filed for Chapter 11 in 2024, Sunnova filed in 2025 — releasing the lien requires navigating the bankruptcy estate, which takes time and sometimes specialist involvement.

Before you list, run a search of your county recorder's database using your name and property address. If you find a UCC-1 filing you weren't told about at signing, document it and contact California Solar Exit before you accept any offers. An undisclosed lien is a material omission that can support both a title challenge and a contract rescission claim — and it is far better addressed before escrow opens than during it.

Timeline: When to Start the Process Before Listing

The single most expensive mistake California homeowners make with solar leases at home sale is waiting until they're already in escrow. Here's the timeline that produces better outcomes:

90 days before listing: Request a complete copy of your solar contract including all addenda, the current buyout quote, and the transfer application from your solar company. Confirm whether any UCC-1 lien exists on your title through your county recorder. Get a free contract review from California Solar Exit to understand your legal position.

60 days before listing: If you're pursuing a buyout, initiate it. If you're pursuing a legal cancellation, the review process needs time to build a case. If you're planning a transfer, have the documentation ready so the buyer's clock starts immediately when you accept an offer.

At listing: Disclose the solar contract fully in your Transfer Disclosure Statement. Provide buyers with a complete copy of the lease or PPA, including the payment schedule and escalation clause. Include the transfer timeline in your escrow period estimates.

At offer acceptance: Submit the transfer application to the solar company the same day, not when escrow instructs you to. Every day of delay on the transfer application is a day added to your closing risk.

Frequently Asked Questions

Can I sell my California home if it has a solar lease?
Yes. A solar lease doesn't prevent a sale, but it adds steps. The buyer must either qualify to assume the lease — passing the solar company's credit check and getting lender approval — or you must buy out the remaining balance before closing. In markets where buyers are resistant to lease assumptions, unresolved solar contracts have led to price reductions and lost deals. Address it before listing, not during escrow.

Does a solar lease reduce my home's value in California?
A leased system does not add appraised value the way an owned system does. Research from Lawrence Berkeley National Laboratory and Zillow data show owned solar adds $15,000 to $25,000 or more to California home values; leased systems add zero in appraisal because the homeowner doesn't own the equipment. In some markets, a lease with many years remaining and a significant escalating payment has led buyers to negotiate price reductions.

What is a UCC-1 lien and how does it affect my home sale?
A UCC-1 financing statement is a legal filing a solar lender records against your property to secure their interest in the panels. It appears in title searches and must be resolved before most California real estate transactions can close. If your solar company is bankrupt, releasing the lien requires coordination with the bankruptcy estate. Search your county recorder's database before listing to know what's on your title.

Can I cancel a solar lease instead of paying a buyout when selling my home?
In some cases, yes. If your contract was entered through misrepresentation — inflated savings projections, undisclosed escalators, NEM 2.0 bait-and-switch, or undisclosed liens — California consumer protection law may support cancellation without a buyout. California Solar Exit reviews contracts at no cost to determine whether cancellation grounds exist. Call (213) 579-5156 or book a free consultation before accepting a buyout figure from your solar company.

How long does a solar lease transfer take in California?
The solar company's credit review and approval typically takes 30 to 45 days from when the buyer submits a complete application. Start the process before you accept an offer if possible, or build the timeline into your escrow period. A standard 30-day California escrow does not accommodate a solar transfer.

Daniel Merritt is a Senior Solar Contract Analyst at California Solar Exit with experience reviewing residential solar lease, PPA, and loan agreements under California consumer protection law. California Solar Exit is a consumer advocacy firm. This article is for general informational purposes and does not constitute legal advice. Individual results vary. Not all solar contracts qualify for cancellation.

Sunrun Is Under Investigation. Here's What California Homeowners With a Sunrun Lease or PPA Need to Know.

Thu, 18 Jun 2026 23:19:18 GMT

Sunrun Is Under Investigation. Here's What California Homeowners With a Sunrun Lease or PPA Need to Know.

If you're a California homeowner locked into a Sunrun solar lease or power purchase agreement and something about your deal has never quite added up — the savings that didn't materialize, the utility bill that didn't shrink, the salesperson who made promises the contract doesn't back up — you're not imagining things.

Sunrun is now under active investigation by multiple state attorneys general, federal regulators, and a growing number of courts. Here's what's happening, what it means for California customers specifically, and whether your contract may be affected.

What Did the Texas Attorney General Investigate Sunrun For?

On April 3, 2026, Texas Attorney General Ken Paxton issued Civil Investigative Demands to Sunrun, Freedom Forever, Lone Star Solar Services, and CAM Solar as part of a sweeping initiative targeting deceptive practices in the residential solar industry. A Civil Investigative Demand — the state equivalent of a federal subpoena — requires the company to turn over internal documents, communications, and records related to how it sells solar to homeowners.

The AG's office cited over 100 formal complaints filed directly with the Office of the Attorney General against these companies, plus thousands more documented online. The companies are being investigated for potential violations of the Texas Deceptive Trade Practices–Consumer Protection Act, with allegations that include:

Overstating projected energy bill savings
Misrepresenting the performance of solar panel systems
Failing to clearly disclose contract terms, early termination fees, and warranty obligations
Using independent dealer networks to make verbal promises the written contract doesn't honor

You can read the official press release from the Texas Office of the Attorney General directly.

Does a Texas Investigation Matter If I'm in California?

It matters more than you might think — for two reasons.

First, Sunrun is a national company headquartered in San Francisco. Its sales playbook, training materials, and contract structures are largely uniform across the 22+ states it operates in. If Texas investigators are finding systemic misrepresentation in how Sunrun sells solar, California customers were almost certainly exposed to the same tactics.

Second, and more directly: California's own Attorney General has independently issued document subpoenas to Sunrun. That investigation is ongoing.

Here is the current legal landscape surrounding Sunrun specifically as it relates to California and federal courts:

Northern District of California: Active federal cases remain in litigation. Judges have denied most of Sunrun's motions to dismiss, and class certification has been granted in at least one major case. ( Lawfold, June 2026 )
California Attorney General: Document subpoenas have been issued to Sunrun as part of an ongoing consumer protection review.
Colorado Attorney General: A formal investigation has been announced.
New Mexico: The state's consumer protection division is reviewing complaints.
Federal Trade Commission: The FTC's review of solar industry sales practices — which names Sunrun among the companies under scrutiny — is ongoing, though no formal enforcement action has been announced as of June 2026.
Connecticut Attorney General: AG William Tong sued Sunrun along with two of its dealer partners, Bright Planet Solar and Elevate Solar Solutions, alleging that homeowners were locked into long-term contracts without their full consent and that some installations were never completed or activated.
Better Business Bureau: Sunrun has accumulated over 4,000 consumer complaints with the BBB — one of the highest totals of any solar company in the country.

Sunrun has publicly maintained that its sales practices are compliant with applicable law. The company has implemented internal sales training reforms — which plaintiffs in active cases argue is itself an acknowledgment of prior problems.

What the Federal Court Record and Investigative Press Show

The documented pattern extends beyond regulatory investigations. Federal court dockets and independent investigative journalism provide a separate layer of evidence that California homeowners can point to when building a cancellation case.

In Massachusetts, two separate lawsuits are working through the U.S. District Court for the District of Massachusetts naming Sunrun directly. Karam v. Sunrun Inc. (Case No. 1:2024-cv-11112) and Murphy v. Sunrun, Inc. et al (Case No. 4:2025-cv-11708) are both active. These are not class actions filed by law firms fishing for plaintiffs — they are individual homeowner cases that made it past initial court screening and into active litigation.

Investigative reporting by WGBH Boston, published in April 2025, documented hundreds of consumer complaints filed against Sunrun with the Massachusetts Attorney General's office. The report included direct interviews with homeowners describing the same patterns being investigated in California and Texas: savings projections that didn't hold, verbal promises that didn't appear in the written contract, and high-pressure signing environments where customers felt they couldn't slow down or ask questions. A WGBH follow-up in May 2025 described the investigation's methodology — court document review, homeowner interviews, and complaint record analysis — and the involvement of BU SPARK! in data review.

A January 2026 report by Law360 covered a separate Massachusetts lawsuit specifically alleging that Sunrun misclassified its sales representatives as independent contractors. The structural significance: when a sales rep makes a verbal promise that doesn't appear in the contract and a customer later complains, Sunrun's independent contractor structure creates an argument that the company isn't responsible for what the rep said. Regulators and plaintiffs in multiple states are challenging that structure directly.

Also worth noting for California homeowners: the February 2026 settlement by the Riverside County District Attorney's office involving Vivint Solar — which became a wholly owned Sunrun subsidiary on October 8, 2020 — cited specific alleged violations that map directly onto the complaint categories active in Massachusetts and Texas. Those included misrepresenting relationships with utilities like PG&E, SCE, and SDG&E; misrepresenting cancellation rights at signing; obtaining credit reports without written consent; failing to provide contract translations in the language of the sale; and enforcing liquidated-damages provisions alleged to be noncompliant with California law. The Riverside County DA's office noted that Sunrun was not a party to that action. The documented conduct is consistent with what investigators across multiple jurisdictions are examining today.

The combined weight of Texas, California, Colorado, New Mexico, Connecticut, Massachusetts federal courts, the FTC, and the Riverside County DA settlement is not a coincidence. It is a documented pattern — which is precisely what makes individual California cancellation claims stronger when properly documented and filed.

What Specific Practices Are Being Investigated?

The complaints across multiple jurisdictions cluster around the same set of allegations. If any of these sound familiar, your situation may be worth a professional review:

Savings projections that didn't hold up. Salespeople presented bill reduction estimates built on assumptions that either didn't apply to your home or didn't survive California's transition to NEM 3.0 — the Net Energy Metering rule that took effect April 2023 and dramatically reduced what utilities pay for exported solar energy. If your salesperson showed you projected savings using pre-NEM 3.0 math, that may constitute a material misrepresentation.

Verbal promises that aren't in writing. A common pattern: the salesperson says the system will eliminate your utility bill, the contract says something much more limited. Under California Civil Code Section 1689 , a material misrepresentation made during the sales process — and relied upon by the homeowner when signing — can form the basis for rescission. Rescission treats the contract as void from the beginning. No buyout fee. No settlement negotiation. The agreement is cancelled.

Undisclosed dealer fees. Solar loans are often financed through third-party lenders, and the amount a solar company collects from the lender to facilitate that financing — the "dealer fee" — is frequently not disclosed to the homeowner. California's SB 784 , which took effect January 1, 2026, now requires this disclosure. If your contract predates SB 784 and the dealer fee was not disclosed, that is a documented pattern regulators are actively investigating.

UCC-1 liens on title. Many Sunrun customers only discover that their solar agreement placed a Uniform Commercial Code lien on their home when they go to refinance or sell the property. If this was not clearly disclosed at the time of signing, it may constitute a material omission under the California Consumer Legal Remedies Act.

What Is the CPUC's Role in All of This?

The California Public Utilities Commission regulates how solar energy companies interact with the state's three investor-owned utilities — Pacific Gas & Electric, Southern California Edison, and San Diego Gas & Electric. CPUC regulations require specific written disclosures before any residential solar contract is signed, including total cost projections, escalator terms, end-of-contract options, and cancellation rights.

If your Sunrun contract failed to include those disclosures, or if you were not provided with the state-required Solar Energy System Disclosure Document at the time of signing, your right to cancel may extend beyond the standard window under California Civil Code Section 1689.6. CPUC proceedings involving Sunrun and NEM 3.0 misrepresentation remain an active part of the broader legal picture in California.

If Sunrun Is Under Investigation, Can I Cancel My Contract?

An investigation alone does not automatically cancel your contract. What it does — importantly — is validate the pattern. When the Texas AG, California's AG, the FTC, and courts in the Northern District of California are all looking at the same company for the same conduct, it dramatically strengthens the factual foundation for individual cancellation claims based on:

Misrepresentation of savings under the Consumer Legal Remedies Act
NEM 3.0 misrepresentation if your contract was signed between mid-2022 and late 2023
TILA rescission if your loan application contains falsified or undisclosed terms (a pattern documented by the Consumer Financial Protection Bureau in 2024)
Contractor license violations, if any work was performed by unlicensed subcontractors (verified at cslb.ca.gov )
Failure to provide required disclosure documents, which under California law may mean your cancellation period never began

The homeowners who successfully exit these contracts are typically the ones who document their situation early — original sales materials, text messages, emails, verbal promise notes, utility bills before and after installation — and have a professional review whether the specific facts of their agreement support a legal cancellation path.

What Should California Sunrun Customers Do Right Now?

Whether or not you plan to pursue cancellation, these steps protect you regardless of how the investigations develop:

Locate your original contract and read the escalator clause, early termination fee, and any language referencing a UCC-1 or security interest in your home.
Pull your utility bills from the 12 months before installation and compare them to the projected savings your salesperson presented.
Verify your installer's license at cslb.ca.gov using the name of the company that performed the installation.
File a complaint with the California AG's office, the FTC at ftc.gov/complaint , and the CFPB at consumerfinance.gov/complaint if you believe you were misled. Your complaint contributes to the formal record regulators use to build enforcement cases.
Request a free contract review from California Solar Exit. Most reviews take 15 minutes. You'll have a clear picture of whether your facts support a legal exit before you make any decisions.

Frequently Asked Questions

Is Sunrun still operating in California?
Yes. Sunrun is still active and continues to service existing contracts in California. The investigations are ongoing and no court has ordered the company to suspend operations. If you have a Sunrun system, you should continue to receive monitoring and maintenance services — but document any failures in writing.

Does the Texas investigation apply to my California Sunrun contract?
Not directly. California Sunrun customers are covered by California consumer protection law — the Consumer Legal Remedies Act, the Unfair Competition Law, Civil Code Section 1689, and CPUC regulations. The Texas investigation is significant because it validates the sales practice patterns California regulators are independently investigating.

Does a class action lawsuit mean I'll automatically get money back?
No. Class certification in the Northern District of California means a group of affected homeowners can proceed together, but individual damages depend on the specific facts of each case and any settlement or verdict. You do not need to wait for a class action to pursue your own legal review.

Can I cancel a Sunrun PPA or lease if I was misled about NEM 3.0 ?
This is one of the strongest grounds for cancellation we see. If your contract was signed between 2022 and 2023 and your salesperson presented savings projections using NEM 2.0 export rates that no longer apply to your system, you may have a rescission claim under California Civil Code Section 1689. A free contract review will tell you whether the specific dates and disclosures in your agreement support that path.

What is a UCC-1 filing and does my Sunrun contract have one?
A UCC-1 is a Uniform Commercial Code lien that some solar companies place on personal property connected to the financed system. In some cases this affects title. You can check for UCC-1 filings associated with your address through your county recorder's office.

Request a free contract review →

California Solar Door-to-Door Scams: What They Don't Tell You Before You Sign

Wed, 17 Jun 2026 17:22:09 GMT

California Solar Door-to-Door Scams: What They Don't Tell You Before You Sign

The solar salesperson who knocked on your door seemed confident. He had a tablet, a pitch about your utility bill, and a contract ready to sign before he left your driveway. What he may not have told you is that California law gives you significant rights in exactly this situation — rights that many solar companies actively work to obscure.

Door-to-door solar sales is one of the most complaint-heavy segments of the California consumer protection landscape, and the tactics haven't changed much in a decade: high-pressure closing, confusing financing structures, contracts signed on tablets with no copy provided, and promises about energy savings that never materialize. If any of this sounds familiar, you're not alone — and you may have more options than you think.

What Is California's Home Solicitation Sales Act and How Does It Protect Solar Customers?

California's Home Solicitation Sales Act covers virtually every consumer transaction over $25 that takes place outside a seller's brick-and-mortar business — which means it applies to the vast majority of residential solar sales. Under this law, you have the right to cancel a solar contract signed at your home, at a trade show, at a convention center, or anywhere else that isn't the company's official place of business.

The cancellation window is three days for most buyers. If you were 65 or older at the time of signing, that window extends to five days. And critically: if the contract you were handed doesn't include the specific cancellation language the law requires, you may have the right to cancel at any time — not just within the three-day window. Many solar contracts fail this test.

What Are the Most Common Solar Door-to-Door Scams in California?

California's consumer protection attorneys have documented several patterns that appear repeatedly in solar door-to-door sales complaints:

Fake email addresses and forged signatures. Sales reps sometimes create email addresses on behalf of the customer, then e-sign financing documents the homeowner never sees. The customer later discovers they've been enrolled in a loan they didn't knowingly agree to.

Hidden financing costs. The salesperson presents the solar panel system as the product being sold, while quietly enrolling the homeowner in a high-interest loan through a third-party lender like GoodLeap, GreenSky, Sunlight Financial, or Dividend Finance. The true cost of financing — sometimes doubling the sticker price over a 20-year term — is never clearly disclosed.

Inflated savings projections. Verbal promises about utility bill reductions, net metering credits, and "free electricity" are made during the pitch, then absent from the written contract. When the system underperforms, the company points to the contract and says the promises were never made.

No copy of documents provided. Under California law, you're entitled to receive copies of every document you sign — including all financing agreements. Reps frequently leave without providing them, or provide only partial sets.

Language mismatches. Negotiations conducted in Spanish (or another language) with a contract written only in English are a violation of California's translation requirements under the Home Solicitation Sales Act.

Which Solar Companies Are Most Frequently Named in California Complaints?

While any solar installer can engage in predatory door-to-door tactics, certain companies and lenders appear repeatedly in California consumer complaints and legal actions. These include Sunrun, Vivint, Complete Solar, Solgen Construction (also operating as Core Energy Group), Green Power Pros, Sunergy, and Pacific Energy Network. On the financing side, GoodLeap, GreenSky, Sunlight Financial, EnerBank, Dividend Finance, Service Finance Company, and Cross River Bank are frequently named as the lenders tied to contracts consumers are trying to exit or dispute.

Being a customer of any of these companies doesn't automatically mean your contract was improper — but if you feel something was off about the sales process, it's worth a closer look.

What Should You Do Immediately If You Signed a Solar Contract at Your Door?

Act within the cancellation window if you can. Three days moves fast. Here's what to do right now:

First, gather every document related to the sale — the contract itself, any financing agreements, brochures, and any digital records. If you signed on a tablet and never received a copy, that alone may be a violation giving you extended cancellation rights.

Second, check whether the contract includes a cancellation notice with specific statutory language. California law specifies exact wording that must appear. If it's missing, vague, or buried, your right to cancel may not have a deadline.

Third, send any cancellation notice in writing via certified mail with return receipt. Verbal cancellations are difficult to prove and companies frequently claim they were never received.

Fourth, if the cancellation window has already passed, don't assume you're out of options. Misrepresentation during the sales process, forged signatures, missing disclosures, and contract language violations are all independent grounds for legal action under California consumer protection law and the federal Truth in Lending Act (TILA).

Can You Cancel a Solar Contract After the Three-Day Window?

Yes — under the right circumstances. The three-day right to cancel is the floor, not the ceiling. If the contract was missing required disclosures, if the sale involved fraud or misrepresentation, if the financing was structured without your knowledge, or if the company failed to perform the services promised, California law and federal consumer protection statutes may provide additional remedies regardless of when you signed.

The California Public Utilities Commission (CPUC) also maintains complaint and mediation channels for solar customers, though navigating these without professional guidance is difficult and slow.

If you're past the cancellation window and still looking for options, California Solar Exit offers a free contract review to assess whether your situation qualifies for exit or resolution.

What Happens If You Exercise Your Right to Cancel?

Under the Home Solicitation Sales Act, the seller is required to return any money you paid within 10 days of receiving your cancellation. If the company installed equipment on your property and fails to retrieve it within 20 days of you making it available for return, you're legally entitled to keep it.

Document everything. Keep records of when you sent cancellation notice, who received it, and any responses. If the company fails to honor a valid cancellation, that's a separate violation — one that may entitle you to additional damages under California law.

Frequently Asked Questions

Does California's door-to-door cancellation law apply to solar leases and PPAs, not just purchases?
Yes. California's Home Solicitation Sales Act applies to both sales and leases of goods and services conducted outside a seller's traditional place of business. Solar leases and power purchase agreements (PPAs) signed at your home are covered.

What if my solar contract was negotiated in Spanish but written in English?
This may be a violation of California's contract translation requirements. If negotiations were conducted primarily in a language other than English, you may have grounds to rescind the contract based on the language mismatch alone. Document the language used in all communications.

Can I cancel a solar loan separately from the solar panel contract?
In some cases, yes. Federal Truth in Lending Act (TILA) rescission rights may apply to certain secured loan transactions tied to your home, giving you a three-day cancellation window independent of the state home solicitation rules. If the lender failed to provide required disclosures, that window may extend to three years.

What if the solar company that sold me my system is now out of business?
Installer bankruptcy or closure doesn't eliminate your legal rights. The financing company (GoodLeap, GreenSky, etc.) remains liable, and depending on how the transaction was structured, you may have claims against both the installer and the lender.

Contact California Solar Exit to review your specific situation.

Is it worth pursuing a claim if my solar system is working but I feel the sales process was dishonest?
Potentially. California consumer protection law — including the Consumer Legal Remedies Act (CLRA) and the Unfair Competition Law (UCL) — allows claims based on deceptive sales practices even when the physical product is functioning. The issue is how you were sold to, not just what you received.

US Solar Installations Are Falling — But Not in California. Here's What That Means for You.

Tue, 16 Jun 2026 23:40:43 GMT

US Solar Installations Are Falling — But Not in California. Here's What That Means for You.

The national residential solar market is in trouble. According to a June 2026 report from BloombergNEF, the US is on track to add just 4.1 gigawatts of new residential solar this year — a 15% drop from 2025 and the lowest installation volume in five years. Even more telling: the market isn't expected to return to its 2023 peak levels for at least a decade.

California is one of the few states bucking that trend. Installations here are projected to grow 17% in 2026. On the surface, that sounds like good news. But if you're a California homeowner already locked into a solar contract that isn't delivering, the state's continued solar activity doesn't help you — it just means more people are signing the same kinds of agreements you're trying to get out of.

Why Is US Residential Solar Declining So Sharply?

The primary driver is the elimination of the federal 30% residential solar tax credit — the Section 25D Investment Tax Credit — which expired at the end of 2025 under the One Big Beautiful Bill Act. This credit had long made rooftop solar financially viable for millions of homeowners. Without it, system costs jumped overnight for anyone financing a purchase.

Tariffs on imported solar equipment have compounded the problem. Major installers are already feeling the pressure: Sunrun is projecting a 25% decline in US residential solar additions this year, while Enphase Energy and SolarEdge are each expecting drops of 22% and 20% respectively.

The Wood Mackenzie analysis puts it plainly — the second half of 2025 saw a rush of installations as homeowners scrambled to lock in the tax credit before it disappeared. That demand was borrowed from the future, and 2026 is paying the price.

Why Is California Growing When the Rest of the Country Is Contracting?

California's growth is driven by a combination of state-level policy support, high electricity rates from utilities like Pacific Gas & Electric and Southern California Edison, and aggressive installer activity that continued even as federal incentives eroded.

The California Public Utilities Commission (CPUC) and programs tied to NEM 3.0 — the net energy metering successor policy — have reshaped the economics of rooftop solar in the state. Battery storage adoption is accelerating alongside it: nationally, 40% of new residential solar systems installed in Q1 2026 included batteries, up from 35% in 2025.

Florida is the only other state showing comparable growth, driven by new pro-solar legislation. Everywhere else, the story is contraction.

Does California's Solar Growth Mean the Industry Is Healthy Here?

Not necessarily. Sustained installer activity doesn't mean every contract being signed — or already in place — is a fair one. The same market conditions that are keeping California's installation numbers up are also keeping aggressive solar companies operating at full volume here.

High electricity rates create urgency. Installers exploit that urgency. And many of the contracts being pitched in 2026 carry the same 25-year term lengths, escalation clauses, and lease-over-purchase structures that have trapped California homeowners for years.

If you're currently in a solar agreement that isn't working — whether it's underperforming, financially burdensome, or tied to a company that's since gone bankrupt or exited the market — the state's overall solar health doesn't change your situation.

What Options Do Homeowners Have If Their Solar Contract Isn't Working?

California homeowners in problematic solar agreements generally have a few paths available depending on how the contract is structured:

Lease and PPA contracts (where you don't own the panels) can sometimes be transferred, negotiated, or exited based on the installer's status, your payment history, and whether any misrepresentations were made at signing.

Loan-financed purchases (where you do own the panels) may qualify for resolution through lender dispute channels, especially if the system was misrepresented during the sales process or if CPUC-regulated performance expectations weren't met.

Bankruptcy of the original installer — a growing issue as major players like SunPower have faced financial distress — can create additional leverage for resolution.

The Solar Energy Industries Association (SEIA) and the CPUC both maintain complaint and mediation resources, though navigating them without professional help is difficult.

If you're unsure whether your situation qualifies for exit or resolution, California Solar Exit offers a free consultation to review your contract and explain your options.

Is Battery Storage Worth Adding If You're Already in a Bad Solar Agreement?

Probably not. Adding a home battery system — even with the appeal of backup power or increased energy independence — doesn't resolve the underlying contract problems with your existing solar panels. It may actually deepen your financial exposure by layering a new financing obligation on top of a system you're already trying to exit.

BloombergNEF analyst Cosmo van Steenis noted that "battery storage is the future of home solar" — and that's likely true for new, well-structured systems. But adding storage to a broken arrangement is patching the roof while the foundation is cracked.

Resolve the contract issue first. Then evaluate storage from a clean slate.

Frequently Asked Questions

What caused the US residential solar market to decline in 2026?
The expiration of the federal Section 25D Investment Tax Credit at the end of 2025, combined with equipment tariffs and high interest rates, caused US residential solar installations to fall to their lowest level in five years, according to BloombergNEF's June 2026 report.

Why is California's solar market still growing when the rest of the US is declining?
California benefits from strong state-level policy support through the CPUC, high utility rates from providers like PG&E and SoCal Edison, and continued installer activity tied to NEM 3.0 net metering rules — factors that partially offset the loss of federal tax incentives.

Can I exit a solar lease or PPA in California?
It depends on your contract terms, the status of the installer, and whether any misrepresentation occurred during the sales process. Many California homeowners have successfully exited or modified agreements with professional help.

Contact California Solar Exit for a free contract review.

Does solar market growth mean solar companies are being more trustworthy?
No. High installation activity means more contracts are being signed, not necessarily better ones. Predatory terms, long escalation clauses, and lease-heavy structures remain common in the California market.

What should I do if my solar installer went bankrupt?
Installer bankruptcy can actually create leverage for contract resolution. Document your agreement, payment history, and any communications, then consult with a solar exit specialist to understand your options under California law.

The Sunrun Solar Lease Trap: What California Homeowners Need to Know Before They Sign

Thu, 11 Jun 2026 17:05:14 GMT

The Sunrun Solar Lease Trap: What California Homeowners Need to Know Before They Sign

If you've gotten a solar quote in California recently, there's a good chance Sunrun was one of the names on the list. They're the largest residential solar installer in the country — responsible for roughly one in five rooftop installations nationwide — and with SunPower having filed for bankruptcy, Sunrun is on track to control nearly half the residential market.

That kind of dominance means more Californians are being pitched their products every day. And the product Sunrun pushes hardest isn't the one that's best for you.

Here's what the sales rep probably didn't walk you through.

How Did Sunrun Get So Big in California?

Sunrun launched in 2007, right when California's solar market was taking off. Governor Arnold Schwarzenegger had just signed the Million Solar Roofs Initiative , which offered major rebates to homeowners who went solar. The problem? Panels were still expensive, and banks weren't lending for residential solar. Most families couldn't afford the upfront cost.

Sunrun solved that by offering solar leases and Power Purchase Agreements (PPAs). Instead of buying the system, you paid a monthly fee for the electricity it produced. No large upfront check. No bank approval. Just sign the paperwork.

It was a genuinely useful product in 2007. But the market has changed dramatically. Solar equipment is now cheaper than ever, loan products are widely available, and the federal Investment Tax Credit (ITC) covers 30% of system costs for owners. The lease model that once solved a real problem now primarily serves Sunrun's investors — not California homeowners.

What's the Real Difference Between Owning and Leasing Solar?

When you own your system — either outright with cash or through a loan — you receive the equipment, the warranty, and the 30% federal tax credit. After the loan is paid off, the electricity your system produces costs you nothing. Modern panels are built to last 40 to 50 years. The math is straightforward.

When you lease , Sunrun owns the equipment. They install it on your roof and charge you a monthly fee. That fee typically starts lower than your current utility bill, which is intentional. Most Sunrun leases also include a 2.9% annual escalator clause — meaning your payments increase every year for 20 to 25 years.

Run that math on a $150/month starting payment with a 2.9% annual increase over 20 years and you'll pay well over $45,000 total — for a system you never own and that would have cost a California homeowner roughly $21,000 to purchase outright after the federal tax credit.

Sunrun also claims the 30% ITC for themselves on every leased system. That's thousands of dollars that could have been yours.

What Are the Three Biggest Lies Sunrun Sales Reps Tell?

California has some of the strictest consumer protection laws in the country through the California Public Utilities Commission (CPUC) , but that doesn't stop misleading solar sales pitches. Here are the three most common:

"You can always buy out the system later." Technically true, but the buyout price is set by Sunrun — not the market. They frequently inflate the original system value to maximize their own tax credit claim, which means the "fair market price" you'd pay later is based on that inflated number. Worse, used equipment doesn't qualify for the federal tax credit. In many cases, it's cheaper to remove the old panels and start fresh with a new owned system.

"The lease covers all maintenance." Sunrun will replace broken parts — but so will any reputable installer's warranty on an owned system. What leasing companies don't do is proactively clean your panels, inspect wiring annually, or monitor performance without an alert. You get the same reactive warranty protection either way. Ownership just doesn't cost you 20 years of rent to get it.

"Panels only last 20 years anyway." This was true of older technology. Today's panels are built to last 40 to 50 years, with manufacturers guaranteeing no more than 10% degradation over 30 years. Inverters now carry 25-year warranties. If you own your system, the panels are likely still producing meaningful power long after your loan is paid — for free. If you lease, the agreement ends and you're left with nothing on your roof.

What Is a Prepaid Solar Lease and Is It a Good Deal?

Sunrun also sells a product called a prepaid lease , which sounds like ownership because there are no monthly payments. You pay a lump sum upfront and the system operates for the lease term with no recurring bill.

But you still don't own the panels. Sunrun does. Because you're not the legal owner, you cannot claim the 30% federal Investment Tax Credit — even though you paid a significant amount of money upfront.

Prepaid leases also tend to use lower-cost equipment (common brands include Trina Solar panels with SolarEdge inverters) while pricing the deal in ways that obscure the value gap. You end up paying a premium price for a product that offers neither the monthly savings of a traditional loan nor the tax credit of ownership.

If a rep is quoting you a prepaid lease in California, compare it directly to a loan purchase from an independent installer. The numbers rarely favor the prepaid structure.

What If You're Already Locked Into a Sunrun Lease in California?

This is where it gets more complicated — and it's the situation a lot of California homeowners contact us about. If you've already signed a Sunrun lease and you're experiencing problems, you have options.

NEM 3.0, the current net energy metering policy in California, changed the economics of solar significantly in 2023. Many homeowners who signed leases under NEM 2.0 assumptions are now finding that the financial projections Sunrun presented don't match reality. That gap between what was promised and what's being delivered can be the basis for a formal exit.

At California Solar Exit, we work specifically with homeowners who are locked into solar agreements that aren't performing as sold — whether that's a lease, a PPA, or a financed system tied to a contractor who misrepresented the terms.

If you're dealing with a Sunrun lease that doesn't match what you were told at the point of sale, contact us to review your agreement . We help Californians understand their exit options and take the right steps to get out.

Frequently Asked Questions: Sunrun Solar Leases in California

Can I cancel a Sunrun solar lease in California? Yes, in some circumstances. California has specific consumer protection statutes, and if the terms of your lease were misrepresented at the point of sale, you may have grounds for cancellation or renegotiation. The process depends on your specific contract terms, how long ago you signed, and whether the system has performed as promised.

Does a Sunrun lease affect my home sale in California? Yes. A solar lease is recorded as a lien or UCC filing against your property. Buyers must either assume the lease or Sunrun must approve a transfer. Many home sales in California have fallen through or been delayed because of unresolved solar leases. This is one of the most common problems we help homeowners resolve.

What is a Power Purchase Agreement and how is it different from a lease? A Power Purchase Agreement (PPA) is similar to a lease in that you don't own the equipment. Instead of a fixed monthly payment, you pay a per-kilowatt-hour rate for the electricity the system produces — often with the same annual escalator clauses. Both structures benefit the solar company more than the homeowner over time.

Is Sunrun going out of business? As of 2026, Sunrun is publicly traded on the NASDAQ and is the largest residential solar company in the U.S. However, the company has faced financial pressure and restructuring. If your installer goes out of business while you're under a lease, the lease obligations can transfer to a third party — which is another reason ownership protects you.

What should I do if my Sunrun system isn't producing what was promised? Document everything — your utility bills before and after installation, any monitoring app data Sunrun provides, and your original sales agreement. Then call us. Underperformance compared to contracted projections is one of the strongest bases for a solar contract exit in California.

Ready to Get Out of Your Solar Lease? Call Us Today.

If you're a California homeowner stuck in a Sunrun lease or any other solar agreement that isn't working for you, you don't have to ride it out for 20 years.

California Solar Exit helps homeowners review their contracts, identify their options, and take action. Whether your system is underperforming, your home sale is at risk, or you were misled at the point of sale — we know California solar law and we know how to help.

Call us now: (213) 579-5156 Or submit your contract for a free review →

You signed up for savings. Let's make sure that's what you're actually getting.

The Paper Trail Behind California's Solar Scam: Newsom, Sunrun, and the Contracts You Can't Escape

Wed, 10 Jun 2026 17:10:44 GMT

The Paper Trail Behind California's Solar Scam: Newsom, Sunrun, and the Contracts You Can't Escape

If you're a California homeowner stuck in a solar lease or loan that hasn't performed the way you were promised, you've probably spent time wondering how you got here. The savings projections didn't materialize. Your utility bill didn't disappear. And every time you've tried to find a way out, you've hit a wall.

That wall has a paper trail. It runs from Sacramento straight to the company that may be on your roof right now.

A May 2026 investigative report from City Journal documented the collapse of California's Solar on Multifamily Affordable Housing program — nearly $900 million collected, $131 million actually spent on solar installation, and roughly 935,000 promised solar renters who never got panels. The investigation named names, traced donations, and identified appointments. What it revealed isn't just a story about government waste. It's a map of why residential solar contracts in California are so hard to escape — and who benefits from keeping them that way.

Step One: The Program That Was Never Going to Work

The Solar on Multifamily Affordable Housing program — SOMAH — was signed into law under Governor Jerry Brown and has operated under Governor Gavin Newsom. Funded through California's cap-and-trade program, it was designed to route up to $100 million per year toward solar installation on affordable apartment buildings, with a stated goal of 300 megawatts of capacity and one million solar-powered renters by 2030.

After nearly a decade, the California Public Utilities Commission reports the program has installed or reserved 129 megawatts for approximately 65,600 residents. More than $700 million of the collected budget sits unspent. More than 400 applications — roughly one-third of the total — have been cancelled or withdrawn. Projects that survive the process take an average of three and a half years to complete. Some finished systems sat idle for over a year waiting for permission to operate.

The CPUC's own auditors found the program so buried in paperwork and bureaucracy that even enthusiastic property owners walked away. One major contractor put it plainly: people started out excited and ended the process far less so.

This is the agency that also oversees net energy metering policy, sets the rules governing how your solar system connects to the grid, and determines the rate structure that dictates whether your solar contract ever delivers what you were promised. Keep that in mind.

Step Two: Follow the Contractor

Of the projects SOMAH did complete, one company handled 78 percent of them: Sunrun Inc., headquartered in San Francisco, and self-described as the largest residential solar provider in the United States.

That concentration alone is worth pausing on. A state program designed to democratize solar access effectively became a single-vendor operation — and that vendor happens to be the same company whose leases and power purchase agreements dominate the California solar cancellation cases we review at California Solar Exit.

Sunrun's dominance in SOMAH didn't happen by accident. According to the City Journal investigation, Sunrun representatives met with government regulators to discuss the program — including a December meeting where the company actively supported expanding SOMAH's scope and funding. An army of lobbyists supports that access in Sacramento.

And then there are the donations.

Step Three: Follow the Money

California campaign finance records show Sunrun has donated hundreds of thousands of dollars to political candidates in California. The City Journal report identified $50,000 in contributions to Gavin Newsom's campaigns specifically.

Newsom, now governor, has returned the relationship in concrete ways. His administration appointed Sunrun's former public policy manager to the California Energy Commission — the body that sets statewide energy policy and oversees solar program design. He separately appointed Sunrun's former chief policy officer to a regional water quality control board.

These aren't entry-level positions. The California Energy Commission directly influences the rules that govern how residential solar systems are credited, compensated, and regulated. The same commission plays a role in net energy metering policy — including the NEM 3.0 transition that blindsided hundreds of thousands of California solar customers who were sold systems under the promise of full bill elimination that the new rate structure made impossible.

If you signed a solar contract before NEM 3.0 took effect and your savings evaporated when the policy changed, that policy was shaped in part by an agency now staffed with former executives from the company on your roof.

Step Four: What This Means for Your Contract

The paper trail matters because it explains something homeowners in Los Angeles, San Diego, Orange County, the Inland Empire, Sacramento, and the Bay Area keep running into: the system is not neutral.

When you signed a solar lease or power purchase agreement with Sunrun, SunPower, Sunnova, Vivint Solar, or Tesla Energy, you signed a contract drafted by a legal team whose entire job is to make exit difficult. When you financed through GoodLeap, Mosaic, or GreenSky, you took on a loan that may have placed a UCC-1 lien on your home's title without anyone explaining what that meant for your ability to sell or refinance. When the savings projections turned out to be wrong, you discovered that verbal commitments from a sales rep and written contract terms are treated as two entirely different things.

The companies writing those contracts operate in a regulatory environment shaped by their own former executives. The program administrators who were supposed to protect affordable housing solar customers — the same customers who should have benefited from $900 million in public funds — couldn't get a third of applications through the process.

None of that means you're out of options. It means you need to use the options that actually exist — not the ones the system was designed to give you.

What California Law Puts in Your Corner

California's consumer protection framework is among the strongest in the country, and it applies directly to residential solar contracts.

The California Consumer Legal Remedies Act (CLRA) prohibits deceptive representations in consumer transactions. If your sales rep showed you production estimates that overstated what the system would generate, that may constitute a CLRA violation. The California Home Solicitation Sales Act provides specific protections for contracts signed at your residence — which covers the overwhelming majority of residential solar sales. The FTC's cooling-off rule gives you a right of rescission for contracts signed away from the seller's place of business.

And under the FTC Holder Rule , your claims don't necessarily stop at the solar company. If your loan was originated through a third-party lender like Mosaic or GreenSky, the Holder Rule may allow you to assert your claims against the lender directly — even if the original installer has gone out of business, changed its name, or filed for bankruptcy, as Freedom Forever recently did .

These are the tools California Solar Exit works with on every case. The paper trail in Sacramento doesn't close them off — it's just the reason you need someone in your corner who knows how to use them.

The Free Review That Starts the Process

You don't need to decode regulatory filings or track campaign donations to know your situation isn't working. You know it when you're paying both a solar loan and a full utility bill. You know it when a Riverside County title officer finds a lien you didn't know existed. You know it when the numbers your sales rep showed you have no relationship to your actual monthly costs.

What you may not know is exactly where your contract is vulnerable — and that's what the review is for.

California Solar Exit offers a free, no-obligation case review to homeowners across Los Angeles County, Orange County, San Diego, the Inland Empire, the Bay Area, Sacramento, and the Central Valley. We read your contract, identify the misrepresentation or disclosure failures, and tell you plainly what your options are and what it would take to act on them.

The $900 million that was supposed to help California solar customers is still sitting in an account, unspent, while the contractors and lobbyists who shaped the program move on to the next one. Your situation doesn't have to wait for the state to fix itself.

Call (213) 579-5156 or get your free contract review here — no obligation, no pressure, just the paper trail and your options.

Sources: City Journal, "Inside Gavin Newsom's Solar Scam," May 27, 2026 (Christopher F. Rufo and Austen Hufford); California Public Utilities Commission SOMAH Third Triennial Report Draft, 2026; California Energy Center SOMAH program data; California campaign finance records.

Solar Contract Exit Scams Targeting California Homeowners — What You Need to Know in 2026

Tue, 09 Jun 2026 19:19:49 GMT

Solar Contract Exit Scams Targeting California Homeowners — What You Need to Know in 2026

Quick Answer: Solar contract exit scams typically involve third-party companies demanding large upfront payments, guaranteeing cancellations no one can legally guarantee, and disappearing before delivering results. In California — the country's largest solar market — these scams have become more sophisticated since NEM 3.0 took effect and the federal tax credit landscape shifted. Knowing what to look for is the first step to protecting yourself.

Why Are Solar Exit Scams Surging in California Right Now?

California homeowners are uniquely vulnerable to this growing class of fraud. The state has more than 1.5 million residential solar installations — more than any other state in the country — and the regulatory environment has shifted dramatically over the past two years.

When the California Public Utilities Commission (CPUC) replaced the legacy Net Energy Metering program with the Net Billing Tariff (commonly known as NEM 3.0 ) in 2023, export credits dropped from near-retail rates to roughly 2–8 cents per kilowatt-hour for most customers. Homeowners who signed leases or power purchase agreements (PPAs) based on the old economics suddenly found themselves in contracts that no longer penciled out — and they started looking for exits.

That demand created the opportunity scammers needed.

Between 2018 and 2023, solar contract complaints climbed by more than 500% , based on data compiled from the FTC, state attorneys general, and the Better Business Bureau. The problem became serious enough that federal regulators at the FTC and CFPB launched a coordinated enforcement initiative specifically targeting deceptive solar sales and financing practices.

The scam operations followed right behind the legitimate services. Here's how to tell them apart.

What Is a Solar Contract Exit Service — and When Is One Legitimate?

A solar contract exit firm is a company that helps homeowners legally terminate solar leases, power purchase agreements, or solar loans — typically by identifying misrepresentation in the original sale, documenting contract violations, and negotiating directly with the solar company or lender.

When operated honestly, these services have real value. A homeowner locked into a 25-year solar lease with an annual payment escalator clause and falsified savings projections may have genuine consumer protection options under California law — including protections available through the California Consumer Legal Remedies Act (CLRA), the California Home Solicitation Sales Act, and FTC cooling-off rules. A qualified firm can help navigate those options.

The problem is that the solar contract exit space is largely unregulated. There is no licensing body that certifies solar contract consultants the way the Contractors State License Board (CSLB) licenses solar installers. That gap is exactly where bad actors operate.

What Are the Most Common Solar Exit Scams in California?

1. The Upfront Fee Vanishing Act

This is the most widespread scam in the solar exit space, and California homeowners are primary targets given the high volume of signed contracts in the state.

The setup: a company collects a substantial fee — often between $1,500 and $5,000 — promising to cancel your solar contract within a specific window. After payment, communication stops. Calls go to voicemail, emails get no response, and the company sometimes rebrands under a new name and runs the same scheme elsewhere.

Red flag: Any company requiring full payment before reviewing your contract, documenting your case, or doing any identifiable work on your behalf.

2. The Guaranteed Exit Promise

No legitimate solar contract exit firm can guarantee cancellation in every case. The outcome depends on your specific contract language, which solar company or lender is involved, what documentation exists of misrepresentation, and which California or federal consumer protections apply to your situation.

A company that promises guaranteed cancellation — regardless of your circumstances, your contract type, or the strength of your case — is making a promise it cannot legally keep. It's either a deliberate deception or a sign the company does not understand the process it's selling.

Red flag: Any phrase like "100% guaranteed exit," "we always get results," or "your contract will definitely be cancelled" without qualification.

3. Fake Legal Representation

Some scam operators present themselves as law firms or claim to employ solar contract attorneys. They use formal-sounding names and may display fabricated credentials. In some cases they reference real legal statutes — like the Truth in Lending Act (TILA) or the CLRA — to appear knowledgeable.

Before paying any company claiming legal expertise, verify the attorneys through the California State Bar's official license lookup at calbar.ca.gov . A legitimate law firm can provide verifiable bar numbers. A scam operation cannot.

Red flag: A "law firm" that cannot name its licensed attorneys or refuses to provide verifiable California State Bar information.

4. NEM 3.0 and Tax Credit Panic Tactics

This scam type is specific to California's current environment. With the transition to NEM 3.0 and the expiration of the 30% federal Residential Clean Energy Credit at the end of 2025, scammers have built urgent pitches around these real regulatory changes.

A typical version: "Your window to cancel under the old rules is closing. You must act now or lose your rights." The urgency is manufactured. Consumer protection rights under California law do not expire because a federal tax credit changes. The CPUC and FTC have both warned that homeowners should be skeptical of any pitch that creates time pressure around policy deadlines.

Red flag: Any company using regulatory changes — NEM 3.0, tax credit expiration, Freedom Forever's recent bankruptcy — as a reason you must sign and pay immediately.

5. The "Free Consultation" Data Harvest

Some operations advertise no-cost consultations that are actually designed to collect personal and financial data. During the call, they may ask for your Social Security number, banking details, loan account numbers, or a full copy of your solar contract before any engagement is established.

This information can be sold to third-party marketers, used to target you with additional scam offers, or exploited for identity theft. A legitimate free consultation should tell you whether you likely have a case and what the process looks like — nothing more. Financial details come after a formal service agreement is signed.

Red flag: Any initial consultation that requires sensitive financial data — SSN, bank information, or full loan account numbers — before a written agreement is in place.

6. The "We'll Buy Your Contract" Pitch

A newer scheme involves companies claiming they can purchase your solar obligation outright — removing you from the contract entirely by taking it on themselves. This is almost never legally possible without the explicit cooperation of the original solar company and lender, which is rarely granted.

These pitches are typically designed to collect fees or gather contract information. The "buyer" has no actual mechanism to assume your lease, and you remain liable once you've paid their fee and they've disappeared. If you're dealing with a UCC-1 lien on your property , this pitch is especially dangerous — no third party can remove that lien without lender authorization.

Red flag: Any company claiming it will purchase or assume your solar contract without mentioning the solar company's required participation.

7. Elder Financial Targeting

The Consumer Financial Protection Bureau (CFPB) has documented that California homeowners aged 65 and older are disproportionately targeted by both deceptive solar sales operations and the scam companies that prey on their aftermath. A 2025 AARP analysis found that homeowners over 65 were more than twice as likely to be approached by door-to-door solar sales teams — and also far less likely to seek legal help after realizing they had been misled.

Solar exit scammers know this. They specifically target older homeowners who feel isolated from the process and are hesitant to report fraud. If a family member or neighbor is being pressured to pay upfront for solar contract help, that is a serious warning sign that should not be dismissed.

Red flag: High-pressure outreach targeting seniors, particularly by phone or door-to-door, demanding quick payment for solar exit services.

Quick Reference: Red Flag Summary

Warning Signs

-Large upfront fee before any case review

-Guaranteed cancellation promise

-No verifiable attorney credentials

-Urgency around NEM 3.0 or tax credit changes

-Requests for SSN or banking info upfront

-"We buy solar contracts" offer

-No written fee agreement before payment

What It Likely Means

-High risk of disappearing after payment

-Deceptive or legally uninformed

-Fake legal representation

-Manufactured panic tactic

-Potential identity or financial fraud

-Legally impossible without solar company consent

-No accountability if they vanish.

What Government Agencies Say — And Where to Report

Multiple federal and California agencies have issued direct guidance on solar-related fraud. Knowing where to go is important both for reporting scams and for verifying whether a company you're considering is legitimate.

Federal Trade Commission (FTC): The FTC warns that legitimate solar and solar exit businesses must be truthful about services, outcomes, and fees. Its Impersonation Rule specifically targets solar companies that falsely claim government or utility affiliation. Report fraud at ReportFraud.ftc.gov .

Consumer Financial Protection Bureau (CFPB): In August 2024, the CFPB issued a formal report finding that some solar lenders were misleading homeowners about loan terms, inflating fees by 30% or more above the cash price, and misrepresenting the impact of the federal tax credit. If your solar loan was structured around a tax credit assumption that was never clearly explained, you may have grounds under the FTC Holder Rule or TILA. File a complaint at consumerfinance.gov/complaint or call 855-411-2372.

California Public Utilities Commission (CPUC): The CPUC publishes the California Solar Consumer Protection Guide (Version 4, updated October 2025), which solar providers are required to have customers sign before interconnection. If you never received or signed this guide, that is a documented violation and potential grounds for contract challenge.

Contractors State License Board (CSLB): Before signing with any solar installer or solar exit firm with contractor involvement, verify their license at cslb.ca.gov . Solar installation in California requires a C-10 (Electrical) or C-46 (Solar) license. File solar-specific complaints through CSLB's dedicated Solar Complaint Form or by calling 800-321-2752.

California Department of Financial Protection and Innovation (DFPI): If fraud involves a financing company — a solar lender, PACE loan provider, or third-party financing firm — file at dfpi.ca.gov/file-a-complaint .

How to Evaluate a Solar Contract Exit Company

If you've decided you need professional help exiting your solar agreement , here is a practical checklist for vetting any company before you pay them anything:

Search their business name on the California Secretary of State's business lookup and the BBB. A real company has a verifiable registration history.
Verify any attorney credentials through the California State Bar at calbar.ca.gov . No real bar number? Walk away.
Ask for a written fee agreement before any payment. Legitimate firms will explain exactly what you're paying for, when you pay it, and what happens if they cannot deliver results.
Get a realistic timeline in writing. Cases involving lenders like GoodLeap, Mosaic, or GreenSky often take several months. Any company promising cancellation in weeks without knowing your contract type is either uninformed or lying.
Never share your Social Security number or bank details before a formal service agreement is in place.
Check for documented outcomes. A credible exit firm should be able to point to real case results — not testimonials without names, not vague success claims.
Report anything suspicious. If you were defrauded, file with the FTC, CFPB, CSLB, DFPI, and California Attorney General's office. Your report helps protect other homeowners.

Can You Exit a Solar Contract Without Paying a Service Company?

In some situations, yes. If your solar company violated specific contract terms, failed to deliver promised installation quality, or engaged in documented misrepresentation — particularly around NEM credits, utility savings projections, or UCC-1 lien disclosure — you may have grounds to challenge the contract directly.

California's three-day right of rescission under the Home Solicitation Sales Act applies to contracts signed in your home. Federal TILA rescission rights may apply to certain solar loan structures where proper disclosures were not made — and as we cover in detail in our FTC Holder Rule guide , those rights can extend significantly further than most homeowners realize.

That said, "free cancellation" is the exception, not the rule. Anyone who tells you solar contract cancellation is always simple or always free is giving you incomplete information. Each contract is different, each solar company responds differently, and each case requires its own evaluation.

If you're a California homeowner with questions about your specific agreement, California Solar Exit offers a no-obligation case review. We evaluate your contract, your original sales documentation, and your options under California consumer protection law before you commit to anything.

(213) 579-5156 | Get Your Free Case Review →

Frequently Asked Questions

Are solar exit companies legal in California?

Yes, solar contract exit firms operating in good faith are legal. They are not licensed by a specific state board the way contractors are, which means consumers must do their own vetting. Look for verifiable business registration, written fee agreements, documented case outcomes, and no pressure to pay before any case work is done.

What should I do if I already paid a solar exit scam?

Stop all contact with the company immediately. Document every payment you made and every communication you had with them. Then file complaints with the FTC at ReportFraud.ftc.gov , the CFPB at consumerfinance.gov/complaint , the California Attorney General's consumer protection division, the BBB, and CSLB if contractor activity was involved. If significant money was lost, consult a California consumer protection attorney.

Does NEM 3.0 affect my ability to cancel a solar contract?

NEM 3.0 changes the economics of your system but does not directly create new cancellation rights on its own. However, if your contract was sold using NEM 2.0 savings projections after NEM 3.0 had already taken effect, that misrepresentation may strengthen a case under California consumer protection law. This is exactly the kind of detail a free contract review will identify.

Can I verify a solar contractor's license in California?

Yes. The Contractors State License Board (CSLB) maintains a public license lookup at cslb.ca.gov . Solar installation legally requires a C-10 (Electrical Contractor) or C-46 (Solar Contractor) license in California. Unlicensed installation is itself grounds for a complaint and may affect your contract's enforceability.

How long does it realistically take to exit a solar contract in California?

It depends on your contract type, the solar company involved, your lender, and the strength of the misrepresentation evidence. Some negotiations resolve in weeks. Cases involving major lenders — GoodLeap, Mosaic, GreenSky, Dividend Finance — often take several months. Any company guaranteeing a fast resolution without first reviewing your contract is not being honest about the process.

Disclaimer: This article is for general informational purposes only and does not constitute legal or financial advice. Every solar contract situation is unique. Consult with a qualified professional before making any decisions. California Solar Exit is a consumer advocacy firm working with general counsel and a specialized solar contract cancellation team.

Freedom Forever Filed for Bankruptcy. If You Have Their Solar Panels, Here's What to Do.

Mon, 08 Jun 2026 17:56:42 GMT

Freedom Forever Filed for Bankruptcy. If You Have Their Solar Panels, Here's What to Do.

One of the largest residential solar installers in the United States has filed for Chapter 11 bankruptcy reorganization — and the homeowners left holding unactivated systems, failed inspections, and unanswered phones are now asking the same urgent question: What happens to me?

California-based Freedom Forever paused normal operations as part of its filing, according to a recorded message on the company's main line. For customers in the middle of installation, waiting on final inspection, or hoping to claim a federal solar tax credit, that pause isn't just an inconvenience — it's a financial emergency.

This situation is unfolding right now, and it reflects a pattern California Solar Exit has seen play out with Sunrun, SunPower, Sunnova, and other major installers over the past several years. When a solar company stumbles, it's always the homeowner who absorbs the blow first.

What Happened to Freedom Forever

According to reporting by WFLA's Better Call Behnken, Freedom Forever filed for Chapter 11 bankruptcy reorganization and placed some normal operations on hold. Customers attempting to reach the company were met with a recorded message explaining the filing.

One Tampa-area homeowner described having his solar panels installed in March, only to learn about the bankruptcy shortly after. His Hillsborough County inspection failed because no company representative appeared. For weeks, he was unable to reach anyone at Freedom Forever. He's now uncertain about warranty coverage and whether he'll be able to claim the federal solar tax credit he was told he was entitled to.

This homeowner's situation — panels on the roof, system not activated, money already committed — mirrors what thousands of California homeowners face when solar companies overpromise, underdeliver, or collapse entirely.

What Chapter 11 Bankruptcy Means for Solar Customers

Chapter 11 is a reorganization bankruptcy, not a full liquidation. That means Freedom Forever intends to continue operating in some form while it restructures its debts. In practice, here's what that typically means for customers:

Active projects may be delayed or abandoned. During reorganization, companies prioritize their obligations based on court-supervised agreements. Pending installations and inspections often stall with no guaranteed timeline for completion.

Warranties become harder to enforce. Your panel manufacturer's warranty may remain valid independently, but any installation warranty or workmanship guarantee from Freedom Forever is now subject to the bankruptcy proceedings.

Tax credits may be at risk. The federal solar Investment Tax Credit (ITC) requires the system to be "placed in service" — meaning fully operational. If your system was installed but never activated due to the bankruptcy, you may not qualify for the 30% credit until the system is officially commissioned. Consult a tax professional immediately.

You may still owe on your solar loan. If you financed through GreenSky, Mosaic, GoodLeap, or another lender, that obligation remains separate from Freedom Forever's bankruptcy. You may be making payments on a system that doesn't work.

California Homeowners Face a Compounding Problem

For California homeowners specifically, the Freedom Forever situation doesn't occur in a vacuum. It lands on top of an already complicated solar landscape.

Under NEM 3.0 — the net energy metering policy that took effect for new California solar customers in April 2023 — the economics of solar have shifted dramatically against homeowners. Export rates dropped by roughly 75% compared to NEM 2.0, meaning systems that were sold with projections based on older billing models are now wildly underperforming against the savings homeowners were promised. If you were sold a Freedom Forever system using outdated savings projections, you may have grounds for a misrepresentation claim independent of the bankruptcy.

Additionally, many solar contracts include financing statements recorded against your home's title — a UCC-1 lien. If Freedom Forever placed a lien on your title and is now in bankruptcy, resolving that lien before selling or refinancing your home becomes significantly more complicated. Understanding what your solar contract actually placed on your property title is an urgent first step.

What to Do Right Now If You're a Freedom Forever Customer

1. Document everything immediately. Pull your signed contract, your original sales presentation, any written communications about savings projections, and all receipts. Photograph your system as it currently stands — activated or not. Note the date of installation and any inspection results.

2. Contact the bankruptcy court. Chapter 11 cases are public record. You can file a proof of claim to preserve your right to any refund or compensation. The case number should be findable through PACER (Public Access to Court Electronic Records at pacer.gov). An attorney can help you navigate this.

3. Call your solar lender directly. If you're financing through Mosaic, GreenSky, GoodLeap, or another lender, contact them to explain the situation. Document who you spoke to and when. Some lenders have hardship provisions for exactly this kind of scenario.

4. Contact your state contractor licensing board. In California, that's the Contractors State License Board (CSLB). If Freedom Forever's license is active, you may be able to file a complaint. The CSLB's Contractor's State License Bond can sometimes provide recovery for homeowners harmed by licensed contractors. If you're in Florida or another state, check your equivalent licensing authority.

5. Talk to a solar contract specialist. If your system was sold using inflated savings projections, NEM 2.0 assumptions on a post-NEM 3.0 system, or if the contract contains terms you weren't fully disclosed, you may have grounds for cancellation that exist separately from the bankruptcy .

The Pattern Behind the Headlines

Freedom Forever isn't the first major solar installer to file for bankruptcy, and it won't be the last. The residential solar industry grew explosively during a period of cheap money, aggressive door-to-door sales tactics, and generous net metering policies. As interest rates rose and states like California restructured NEM, the economics cracked for both companies and homeowners.

SunPower filed for Chapter 11 in 2024. Sunnova followed in 2025. Now Freedom Forever. Each time, homeowners are left navigating bankruptcy proceedings while their panels sit on the roof doing nothing — and their loan payments keep coming.

If you're currently in a solar contract with any company, not just Freedom Forever, the right move is to fully understand what you signed. That means reading the escalator clauses, the production guarantees (or lack thereof), and what your solar PPA's escalator clause will actually cost you over 25 years . It means understanding whether NEM 3.0 has already gutted the savings projections you were sold. And it means knowing your California consumer protection rights before something like this happens to your installer.

If You Were Sold a Solar System in California and Something Went Wrong

Whether your installer is in bankruptcy, your system isn't producing what you were promised, or you signed a contract under pressure and didn't fully understand what you were agreeing to — California homeowners have real legal leverage under state consumer protection law.

The California Consumer Legal Remedies Act, the Home Solicitation Sales Act, and FTC cooling-off rules all create pathways to challenge solar contracts that were deceptive, misrepresented, or improperly sold. California Solar Exit has helped more than 500 California homeowners pursue cancellations, refunds, and settlements against Sunrun, Tesla/SolarCity , Vivint , and GoodLeap .

If your system was installed but never activated, if your bill hasn't dropped the way you were told it would, or if you're now making payments on a warranty that no longer has a company behind it — let's review your contract. The consultation is free, and there's no obligation.

→ Get a free contract review — (213) 579-5156

Frequently Asked Questions

My Freedom Forever panels are installed but not turned on. Can I still claim the tax credit? Not yet. The federal ITC requires the system to be placed in service — fully operational. If Freedom Forever's bankruptcy has stalled your final inspection or activation, you cannot claim the credit until the system is commissioned. If the bankruptcy prevents activation entirely, consult a tax attorney about your options.

Do I still have to pay my solar loan if the company went bankrupt? Yes. Your loan obligation is with your lender (Mosaic, GreenSky, GoodLeap, etc.), not with Freedom Forever. The two are separate contracts. The installer's bankruptcy does not cancel your financing agreement.

What happens to my warranty? Panel manufacturer warranties (LG, REC, Qcells, etc.) generally remain valid because they're issued by the manufacturer, not the installer. Installation and workmanship warranties from Freedom Forever are now subject to the bankruptcy proceedings, which means they may be difficult or impossible to enforce.

Can I get out of my solar contract if Freedom Forever can't fulfill it? Possibly. If Freedom Forever's inability to complete your installation or honor its warranty terms constitutes a material breach of contract, you may have grounds to cancel. A solar contract specialist can review your specific agreement.

I signed a contract in California before Freedom Forever went bankrupt. Do I have any rights? Yes, potentially significant ones. California's consumer protection framework is among the strongest in the country. Depending on how your contract was sold, what you were promised, and how the company performed against those promises, you may have independent grounds for cancellation or damages that exist outside of the bankruptcy proceedings.

California Solar Exit is a consumer advocacy firm helping California homeowners understand and challenge solar contracts. This article is for informational purposes only and does not constitute legal advice. For legal counsel specific to your situation, consult a licensed California attorney.

The FTC Holder Rule: What California Solar Homeowners Need to Know Before They Give Up

Sat, 06 Jun 2026 00:53:25 GMT

The FTC Holder Rule: What California Solar Homeowners Need to Know Before They Give Up

You signed a solar agreement with a company that promised you savings. A lender you'd never heard of paid the installer, and now your monthly payments go to that lender — not the company that knocked on your door. The installer may have gone bankrupt, changed names, or simply stopped returning calls. But the loan? Still very much alive.

What most California homeowners don't realize is that the transfer of your loan to a third-party lender does not wipe out your legal rights against the original seller. A federal regulation called the FTC Holder Rule says the lender that holds your credit contract inherits the same claims you had against the company that sold you the system.

If you were misled, if your system doesn't perform as promised, or if your installer disappeared before the job was done, the lender is not off the hook. If you're not sure whether your situation qualifies, start with our free solar contract review .

What exactly is the FTC Holder Rule?

The FTC Holder Rule — officially 16 C.F.R. Part 433, adopted by the Federal Trade Commission in 1976 — exists because of a trick that sellers routinely used to insulate themselves and their lenders from consumer fraud claims.

Before the rule, a salesperson could sign you up for financing, immediately sell your credit contract to a bank or finance company, and both parties would walk away protected. Courts recognized the bank as a "holder in due course," which cut off any claims you had against the seller once the contract was assigned. The FTC closed that loophole. Today, any company that holds your consumer credit contract — the original lender, a bank that bought the loan, a servicer collecting your payments — is subject to every claim and defense you had against the original seller.

Your rights don't disappear when the contract changes hands. That's the entire point of the rule.

Why does this matter so much for California solar homeowners specifically?

California has more residential solar installations than any other state — over 1.5 million as of 2024, according to the California Energy Commission. That volume came with aggressive sales tactics, inflated savings projections, and a wave of installer bankruptcies that left homeowners from the San Fernando Valley to San Diego's East County making payments on systems that were never finished, never performed as promised, or were never properly permitted.

We covered the scope of that collapse in detail in our post on the 2026 California solar installer bankruptcy wave — if your installer is on that list, the Holder Rule is likely your most direct path to relief.

The solar financing model almost guarantees the rule applies to your situation. Installers like SunPower, Sunnova, Freedom Forever, and regional California dealers don't lend their own money. They partner with solar-specific lenders — Mosaic, GoodLeap, GreenSky, Sunlight Financial, Dividend Finance — who fund the installation and collect your payments for the next two decades. When the installer sold you the system and handed you that lender's application at your kitchen table in Riverside County, Temecula, or the South Bay, they were arranging consumer credit connected to a sale. The FTC Holder Rule applies to that transaction.

And if that installer has since filed for bankruptcy or disappeared — which describes a significant portion of California's solar market between 2024 and 2026 — the lender cannot use that as a shield. You can still assert your claims against whoever is collecting your payments today.

What claims can you raise against your solar lender?

Under the Holder Rule, you can raise against the lender any claim you could have raised against the original seller. In California solar disputes, those most commonly include:

Misrepresentation. If a rep in Orange County, the Inland Empire, or Sacramento told you your electric bill would drop to near zero and it hasn't budged — or went up — that false promise doesn't become the lender's clean slate. The misrepresentation travels with the contract. We see this constantly in cases tied to NEM 3.0 , where homeowners were sold systems under old net metering assumptions that the new rate structure made obsolete almost immediately.

Breach of contract. If your agreement included a production guarantee and your system consistently underdelivers, the entity collecting your monthly payment is subject to that breach claim.

Failure to complete the installation. Homeowners across Los Angeles County and the Bay Area were left with half-installed systems when SunPower collapsed in 2024. The Holder Rule means GreenSky or Mosaic can't respond with "not our problem."

Undisclosed liens. Many California homeowners — particularly those trying to sell or refinance in competitive markets like Orange County or the Sacramento suburbs — discovered a UCC-1 financing statement on their home's title that was never disclosed at the time of sale. That failure to disclose is a misrepresentation claim that travels to the holder. If you're in this situation, read our breakdown of solar UCC-1 liens and how they affect your property before you do anything else.

Rescission. When a seller's misconduct is serious enough, courts can grant complete cancellation of the loan — not just a damages award — through a remedy called rescission. Your financial recovery from the lender is otherwise capped at the total amount you've paid under the contract, but rescission is a separate remedy that goes beyond that ceiling.

How do you know if the Holder Rule applies to your loan?

The FTC requires sellers to include a specific all-caps notice in every covered consumer credit contract. Look for this language in your GoodLeap, Mosaic, or GreenSky paperwork:

NOTICE: ANY HOLDER OF THIS CONSUMER CREDIT CONTRACT IS SUBJECT TO ALL CLAIMS AND DEFENSES WHICH THE DEBTOR COULD ASSERT AGAINST THE SELLER OF GOODS OR SERVICES OBTAINED PURSUANT HERETO OR WITH THE PROCEEDS HEREOF. RECOVERY HEREUNDER BY THE DEBTOR SHALL NOT EXCEED AMOUNTS PAID BY THE DEBTOR HEREUNDER.

If that notice is present, the Holder Rule is explicitly incorporated into your contract. If it's missing, the seller was already in violation of federal law when you signed — and that violation itself can support a claim.

Not sure what you're looking at in your documents? Our team reviews contracts for free — submit yours here .

Does the Holder Rule cover solar leases and PPAs?

Generally, no. The rule was built for consumer credit transactions — situations where you financed a purchase through a third-party lender. A solar lease or power purchase agreement works differently: you're paying for a service or for the electricity generated, not purchasing equipment on credit. Leases and PPAs still have strong consumer protection options under California law — the California Consumer Legal Remedies Act, the Home Solicitation Sales Act, and CPUC regulations — but the Holder Rule's direct application is to financed solar loans.

If your contract is with Sunrun, Sunnova, or Vivint Solar and it's structured as a lease or PPA, your path out looks different. It still exists — and you can learn more about how solar contract cancellation works in California regardless of your contract type.

What steps should you take right now?

Gather your original solar loan agreement — every page of it — along with any sales presentation materials, emails, or text messages from the time of sale. Look for the Holder Rule notice. Write down every promise that was made: savings projections, production estimates, bill reduction figures, timeline commitments. Then compare those promises against what's actually happened. The gap between what was promised and what was delivered is the core of your case.

Once you have that documented, put your claims in writing to the lender. Reference the FTC Holder Rule by name — 16 C.F.R. Part 433. Do not simply stop paying — that creates credit and legal risk without building leverage. The goal is to formally assert your rights in a way that creates a record and opens a negotiation.

If that feels like too much to take on against a company like Mosaic or GreenSky on your own, that's a reasonable assessment. These lenders have legal teams that handle consumer disputes every day. Most homeowners in Los Angeles, San Diego, Riverside, and throughout California don't.

California Solar Exit handles all communications with solar companies and lenders on behalf of the homeowners we work with. We've helped more than 500 California families get out of contracts that trapped them. Read about what's driving the surge in solar complaints if you want to understand how widespread this problem has become — and then contact us for a free case review when you're ready.

Call (213) 579-5156 or submit your contract for a free review — no commitment required.

Frequently Asked Questions

Does the FTC Holder Rule apply to my Mosaic or GoodLeap solar loan? In most cases, yes. If a solar company arranged your financing — even by sitting with you while you completed a lender's application — the transaction falls under the rule. Pull your loan documents and look for the all-caps Holder Rule notice to confirm. If you're unsure, submit your contract for a free review .

My installer went bankrupt. Can I still use the Holder Rule? Yes — and this is exactly when the rule is most valuable. The lender that holds your loan cannot use the installer's bankruptcy as a reason to refuse your claims. You assert those claims directly against whoever is collecting your payments today. See our full breakdown of the 2026 California solar installer bankruptcy wave for more on how this works.

What if my system works fine, but I was misled about savings projections or a lien on my home? Performance is only one type of claim. Misrepresentation about savings, utility costs, escalator clauses, or the existence of a UCC-1 lien on your property are all valid grounds — regardless of whether your panels are generating electricity.

Is there a time limit to assert these claims? The Holder Rule doesn't set a hard deadline, but California's statutes of limitations on fraud and breach of contract do. Waiting reduces your options. If you think you have a claim, the right time to review it is now.

Can I cancel my solar loan entirely, or only reduce what I owe? Rescission — full cancellation of the loan — is a remedy courts can grant when the seller's misconduct is serious enough. Your financial recovery from the lender is otherwise limited to what you've paid, but rescission is a separate, more complete remedy. Learn more about how solar contract cancellation works .

How is a UCC-1 lien different from a mortgage lien? A UCC-1 financing statement is filed by the solar lender to secure their interest in the equipment on your property. It's not the same as your mortgage, but it sits on your title and must be resolved before most real estate transactions — sales, refinances, HELOCs — can close. Homeowners in competitive markets like Orange County and the Sacramento suburbs have had home sales derailed because of undisclosed solar UCC-1 filings. If this is your situation, contact us before you list or refinance .

This article is for general informational purposes only and does not constitute legal advice. California Solar Exit is a consumer advocacy firm, not a law firm. Individual results vary. Contact our team for a review of your specific contract and circumstances.

Solar Contract Complaints Are Surging — What California Homeowners Need to Know

Tue, 02 Jun 2026 23:49:12 GMT

Solar Contract Complaints Are Surging — What California Homeowners Need to Know

Something is quietly breaking down inside the residential solar industry, and the numbers are starting to show it.

Consumer complaints against solar companies have climbed significantly over the past few years. The Federal Trade Commission recorded over 7,000 solar-related fraud complaints in 2025 alone — a figure that barely scratches the surface of how many homeowners are struggling with solar agreements they didn't fully understand when they signed them. From Fresno to San Diego, from the Inland Empire to the Bay Area, Californians are finding themselves trapped in 20- and 25-year financial obligations that bear little resemblance to what a salesperson promised at the front door.

This isn't a fringe problem. It's a systemic one — and it's getting harder to ignore.

Why Solar Contracts Are Generating So Many Complaints

The issues vary, but they tend to cluster around a few recurring themes that our team here at California Solar Exit sees constantly.

Payments are higher than quoted. A salesperson presents one monthly figure during a pitch, often compared favorably to a current electric bill. After signing, the actual loan or lease payments come in higher — sometimes significantly so — especially once dealer fees, interest rate structures, and escalator clauses are factored in. If you've ever wondered how GoodLeap dealer fees work or why your loan balance seems disconnected from the system's actual value, you're not alone.

Panels stop working, but the loan doesn't. System failures and inverter issues are more common than installers admit. When a system goes offline, homeowners are often still on the hook for the full loan payment — even while paying their regular utility bill on top of it. The installer may have gone out of business, or simply stopped returning calls after installation.

PPA and lease escalator clauses compound the problem over time. Many California homeowners signed power purchase agreements (PPAs) or solar leases without fully understanding that their payments are designed to increase annually, often by 2–3% per year. Over a 20-year agreement, that compounding escalation can turn a seemingly affordable deal into a genuinely expensive one. We've written about how PPA escalator clauses trap California homeowners in detail — it's one of the most misunderstood aspects of the solar sales process.

The company becomes unreachable after installation. Post-installation support is where many solar companies fall apart. Once the system is in and the commission is paid, customer service often evaporates. Homeowners with performance issues, monitoring problems, or billing discrepancies can spend months trying to reach anyone who will actually help.

The Legal Landscape Is Starting to Shift

For most of the last decade, homeowners who felt misled by solar companies had few clear options. The contracts were long, the arbitration clauses were buried, and the path to resolution wasn't well mapped.

That's beginning to change.

Several states have moved to strengthen consumer protections for solar buyers, including expanded cancellation windows and stricter disclosure requirements. California — which leads the nation in residential solar installations — has been a focus for this kind of legislative attention, including SB 784 and its implications for California solar buyers . Consumer advocacy law firms are increasingly specializing in solar contract disputes, and class action litigation against some of the industry's largest players has put companies on notice.

What this means practically: if you signed a solar agreement under circumstances that felt rushed, unclear, or misleading, the legal landscape is more favorable to you today than it was even two or three years ago.

What "Misrepresentation" Actually Looks Like

There's sometimes confusion about what qualifies as grounds to pursue a solar contract exit. You don't need to prove that a company defrauded you in a dramatic, obvious way. The bar is often lower than homeowners realize.

Common misrepresentations that consumer protection attorneys examine include:

Savings projections that weren't put in writing, or that assumed utility rate increases that never materialized. Omission of key terms — like the fact that a PPA will escalate annually, or that a Mosaic or GoodLeap loan carries a dealer fee that inflates the system's financed cost. Failure to disclose how the agreement affects a future home sale. Verbal promises about system performance or coverage that weren't included in the contract. If any of these sound familiar, it may be worth having your agreement reviewed. Understanding what a Mosaic loan transfer means for your home sale is one area where many homeowners realize too late that disclosures were missing at the point of sale.

The Role NEM 3.0 Is Playing

California's shift to NEM 3.0 — the new net metering framework that dramatically reduced the export rates homeowners receive for excess solar energy sent to the grid — has added another layer of frustration. Homeowners who signed agreements under NEM 2.0 economics are increasingly finding that their projected savings don't hold under the new rate structure. Salespeople who pitched systems before the NEM 3.0 transition often presented savings figures that no longer apply. For newer buyers who signed after April 2023, the economics of solar in California look materially different than what many were shown. We've covered the NEM 3.0 impact on California solar savings in depth — it's essential reading if your savings projections haven't materialized.

What California Solar Exit Does

California Solar Exit exists specifically to help homeowners who are in the situation described above — locked into a solar agreement that isn't delivering what was promised, and unsure of their options.

We review solar contracts across all major agreement types: GoodLeap loans, Mosaic loans, Sunrun leases and PPAs, Tesla Energy agreements, and others. Our process begins with a contract review, after which we can advise on what grounds may exist for cancellation, restructuring, or legal escalation. For homeowners where there's clear evidence of misrepresentation, we connect cases to consumer protection legal resources that specialize in solar contract disputes.

The goal in every case is the same: get you out of an agreement that isn't serving you, and do it through a process that's documented, defensible, and complete.

If you've been dealing with inflated payments, a non-functional system, or a contract that doesn't match what you were sold, the first step is a review. The longer a bad agreement sits, the more it costs — and the more it can complicate things like refinancing or selling your home.

Frequently Asked Questions

Why are solar contract complaints rising? The rapid growth of residential solar installations — combined with aggressive, commission-driven sales practices — has produced a large number of contracts signed without full disclosure of terms. As more homeowners discover discrepancies between what they were promised and what they're experiencing, complaint volumes have climbed. Regulatory bodies including the FTC and California's CPUC have documented the trend.

What is misrepresentation in a solar contract? Misrepresentation occurs when a salesperson provides false, incomplete, or misleading information during the sales process that influences a homeowner's decision to sign. This can include overstated savings projections, failure to disclose annual escalation clauses, omission of dealer fees, or verbal promises that don't appear in the written contract.

Can I exit a solar contract I signed years ago? Potentially, yes. The grounds for cancellation depend on the specific terms of your agreement and the circumstances under which it was signed. Consumer protection laws in California provide certain rights to homeowners who were misled, and the statute of limitations for contract misrepresentation claims gives more runway than many people assume. A contract review is the only way to know what your options are.

How does NEM 3.0 affect existing solar agreements? NEM 3.0 reduced the compensation rate that California utilities pay for excess solar energy exported to the grid. Homeowners who signed agreements under the older NEM 2.0 rate structure — with savings projections based on higher export rates — may be experiencing lower-than-promised returns. Those who signed after the April 2023 NEM 3.0 implementation should verify whether their salesperson accurately represented the new economics.

What types of solar agreements can be reviewed for cancellation? Solar loans (GoodLeap, Mosaic, Dividend Finance), solar leases, and power purchase agreements (PPAs) can all be reviewed. The grounds and process differ depending on the agreement type, the lender or leasing company, and the specifics of what was disclosed at signing.

What Happens When Your California Solar Installer Files for Chapter 11? The 2026 Bankruptcy Wave Explained

Mon, 01 Jun 2026 05:22:37 GMT

What Happens When Your California Solar Installer Files for Chapter 11? The 2026 Bankruptcy Wave Explained

If you signed a 20- or 25-year residential solar contract in California between 2018 and 2023, there's a meaningful chance the company you signed with no longer exists in the form it did when the ink dried. The residential solar industry has gone through a structural collapse over the past 24 months that hasn't received the public attention it deserves — and the people most affected are homeowners who are still making monthly payments to entities they've never heard of, on systems that nobody is contractually obligated to service the way the original sales rep promised.

Here's what actually happened, what it means for your specific contract, and what California consumer protection law says about it.

Just How Many California Solar Companies Have Filed Bankruptcy Since 2024?

The list is significantly longer than most homeowners realize. Major solar bankruptcies as of January 2026 include Sunnova, SunPower, Pink Energy, Harness Power (California), ASA – American Solar Advantage (California), Kuubix Energy (California), Infinity Energy (California), Suntuity Renewables (operating in California), ADT Solar, Vision Solar, Solcius (operating in California), Sunworks Inc. (California), Kayo Energy (operating in California), Lumio Solar, Posigen, Pure Light Power, and Freedom Forever — and that list doesn't include the smaller regional installers that simply closed their doors without formal bankruptcy proceedings. Solar Insure

A snapshot of the largest filings:

SunPower Corporation — filed Chapter 11 in August 2024. Complete Solaria purchased key SunPower assets in September 2024, including the Blue Raven Solar business, its New Homes division, and its dealer network. In April 2025, Complete Solaria rebranded as SunPower and reclaimed the SPWR ticker on Nasdaq. In October 2025, the company formally changed its legal name to SunPower Inc. The legal entity that signed pre-September-2024 California contracts no longer exists in its original form. EnergySage
Sunnova Energy International — filed Chapter 11 on June 8, 2025. Assets ultimately acquired by Solaris Assets LLC, with customer servicing transitioning to SunStrong Management. Our Sunnova bankruptcy deep-dive for California customers covers the contract-specific implications.
Freedom Forever — in 2026, Freedom Forever, one of the largest residential solar installers in the country, filed for Chapter 11 bankruptcy. This is the most recent and arguably the most consequential filing for California homeowners because Freedom Forever was a high-volume California installer in the 2020-2023 window. Solarcc
Vivint Solar — acquired by Sunrun in October 2020. Not a bankruptcy in the strict sense, but the legal entity that signed pre-2020 California contracts no longer operates independently. The Vivint Solar settlement covers a specific window of California customers; see our Vivint Solar contract guide .
Lumio Solar — converted from Chapter 11 to Chapter 7 and the assets were sold to Zeo Energy.
ADT Solar, Vision Solar, Pink Energy, Titan Solar Power — multi-state installers that operated in California and either filed bankruptcy or wound down.

The cumulative effect: tens of thousands of California homeowners are now servicing contracts with entities other than the companies they originally signed with.

What Happens to My Contract When My Solar Installer Files Chapter 11?

Your contract almost certainly still exists and is still enforceable — but it's now in the hands of a different operating entity than the one that sold it to you. Under U.S. Bankruptcy Code § 365, executory contracts like solar leases, PPAs, and service agreements can be assumed (kept), assigned (transferred to a buyer), or rejected (terminated) during a Chapter 11 proceeding. Courts almost always approve assumption or assignment of residential solar contracts because the predictable revenue stream is valuable to creditors and the underlying assets need to be maintained.

What this looks like in practice for California homeowners:

Payment obligations continue. Whether the original company restructured, sold assets to a new entity, or wound down, your monthly payment is generally still due to the entity that ended up servicing the contract.
Servicing changes hands. Billing, payment processing, monitoring, and customer service shift to whoever acquired the assets. For SunPower contracts, that's the new SunPower Inc. (formerly Complete Solaria). For Sunnova contracts, that's SunStrong Management. For Lumio contracts, that's Zeo Energy. The phone number, online portal, and ACH instructions in your original paperwork may be obsolete.
Workmanship warranties are often the weakest link. Panel manufacturer warranties (Waaree, LG, Q Cells, Maxeon, etc.) and inverter warranties (Enphase, SolarEdge, etc.) generally survive the installer's bankruptcy because they're separate contracts with the manufacturer. The labor and workmanship warranty from the original installer is the part that often gets compromised — and most homeowners don't realize this until something fails.
Production guarantees become harder to enforce. Many California solar contracts included production guarantees ("we promise the system will produce X kWh per year, and if it doesn't, you get a credit"). Enforcing those guarantees against a successor entity that didn't write the original contract is often slow, frustrating, and partial.

Is My SunPower Warranty Still Valid After the 2024 Bankruptcy?

The answer depends on three things: when your system was installed, who installed it under what entity, and what specific component you're trying to claim under warranty. If your system was installed and energized after September 30, 2024, your warranties are valid and SunPower Inc. can service your system. Pre-September-2024 systems are more complicated. EnergySage

For systems installed before September 30, 2024:

The original SunPower Corporation no longer exists as the warranty-holding entity
Complete Solaria/the new SunPower Inc. acquired certain assets and is honoring certain warranties, but coverage is not uniform across all pre-2024 customers
Panel manufacturer warranties (Maxeon for many SunPower installations) are separate and remain in force per the manufacturer's original terms
Inverter warranties (Enphase for most SunPower microinverter installations) are separate and Enphase has stated it will honor those warranties directly
Battery warranties (SunVault) are a known gap area where coverage has been inconsistent

The Bloomberg Law reporting from February 2025 documented specific California homeowner cases where pre-bankruptcy SunPower customers were unable to obtain warranty service even after escalating to the bankruptcy court, consumer protection agencies, and the panel manufacturer. Those situations exist; how widespread they are depends on the specifics of each contract and which entity ended up holding the obligation.

What Does the Sunnova Bankruptcy Mean for California Customers?

The Sunnova story is structurally similar to the SunPower story but with key differences in how the asset transfer was structured and which entity now services customers. Sunnova filed Chapter 11 on June 8, 2025, with approximately 500,000 customers nationally and roughly $8.9 billion in long-term debt. Asset acquisition was completed by Solaris Assets LLC for approximately $118 million, with customer servicing transitioning to SunStrong Management.

For California Sunnova customers specifically, this means:

Your lease, PPA, or loan contract is still in force, now serviced by SunStrong Management
Billing routing, ACH instructions, and customer service contacts have changed
Warranty coverage on the original contract should continue, but service responsiveness has been a moving target during the transition
The fundamental misrepresentation grounds that existed before the bankruptcy still exist after the bankruptcy — they travel with the contract

Our Sunnova bankruptcy guide for California customers covers the specifics in detail.

Why Are So Many Residential Solar Companies Collapsing at Once?

The wave of California solar installer bankruptcies isn't random — it's the result of several pressures hitting the industry simultaneously between 2023 and 2026:

NEM 3.0 cratered new-installation economics. The April 2023 net metering reform cut export compensation by roughly 75% for new systems, collapsing the savings projections that solar sales reps had been pitching for years
Interest rates more than doubled between 2021 and 2024, which destroyed the residential solar financing model where dealer fees of 15-30% were baked into loan principals
Sales-channel collapse. Door-to-door sales channels that drove growth in 2018-2022 became economically unviable as customer acquisition costs climbed and conversion rates fell
The federal residential solar tax credit phase-down signaled the end of the underwriting environment that supported aggressive growth-stage investment in residential solar companies
Consumer complaint backlogs from aggressive 2020-2022 sales practices produced regulatory exposure, litigation costs, and brand damage that compounded the financial pressure
Capital markets closed. Investors and lenders pulled back from residential solar simultaneously, leaving even fundamentally viable companies unable to refinance debt as it came due

The Department of Energy's termination of a $3 billion Sunnova loan guarantee in early 2025 was a signal to the broader capital markets that federal underwriting was no longer reliable — and accelerated the bankruptcy cascade.

What If My Installer Was a Smaller Regional Company That Just Shut Down?

This is the harder case. Larger bankruptcies like SunPower and Sunnova went through formal Chapter 11 proceedings, which means there's an identifiable successor entity holding the contracts. Smaller regional California installers — Harness Power, ASA, Kuubix Energy, Infinity Energy, Sunworks, Altair Solar, and dozens of similar — often simply closed without a formal proceeding or asset sale. The customer is left without a counterparty.

What typically happens in these scenarios:

The financing entity (the loan servicer or lease assignee) continues collecting payments because they're separate from the installer
The panel manufacturer still honors the panel warranty if you can find the original equipment documentation
The inverter manufacturer still honors the inverter warranty
Workmanship and labor warranty from the original installer is functionally dead
Production guarantees attached to the original installer are functionally dead
Any service or maintenance commitments that were part of the original sale are functionally dead

For California homeowners in this position, the financing contract often becomes the entire focus — because the installation contract has effectively evaporated while the loan obligation is still very much in force. If your loan was financed through GoodLeap, Mosaic, Sunlight Financial, LightReach, GreenSky, or Dividend Finance, see our GoodLeap solar loan exit guide — the same framework applies across these lenders.

Does an Installer Bankruptcy Give Me Grounds to Cancel My Solar Contract?

The bankruptcy itself is generally not standalone grounds for cancellation in California, but the operational reality that follows a bankruptcy often does create real legal exposure. The stronger grounds usually come from how the original sale was conducted, how the contract was structured, and whether material obligations are no longer being performed.

The California consumer protection statutes that apply:

Home Solicitation Sales Act (HSSA) — Civil Code §§ 1689.5–1689.15. Defective cancellation disclosures at the original sale extend the cancellation window indefinitely
Consumer Legal Remedies Act (CLRA) — Civil Code §§ 1750–1784. Misrepresentation during the sales process creates a cause of action regardless of what happened to the installer later
Unfair Competition Law (UCL) — Business & Professions Code § 17200. Deceptive business practices, including false savings projections, are actionable
Solar Contract Disclosure Law — Business & Professions Code § 7169. Specific disclosure failures can invalidate the contract or extend cancellation rights
Material breach — when the contract isn't being performed as promised (production guarantees ignored, service calls unanswered, warranty claims unprocessed), rescission may be available

A bankruptcy that results in degraded service often gives California homeowners stronger documentation of material non-performance than they had before. The original sales-side misrepresentation claim doesn't disappear; it travels with the contract. Our step-by-step guide to canceling a California solar contract after signing covers the procedural framework.

What Should I Do Right Now If My Solar Installer No Longer Exists?

Five concrete steps:

Identify who currently holds your contract. Pull your last three monthly statements and confirm which entity is billing you, where ACH is routed, and what their relationship is to your original installer. The change in contact information is often the first sign that ownership has shifted.
Pull your original contract and your original savings projection. Compare the actual savings being delivered against what was promised. Document the gap month by month — utility bill, solar payment, total cost — for the past 12 months minimum.
Document any non-performance. Service calls ignored, warranty claims unprocessed, production guarantees unmet, monitoring access lost. Email confirmations, phone logs, and dated screenshots all matter.
Inventory your warranty coverage by component. Identify your panel manufacturer, inverter manufacturer, and battery manufacturer separately, and confirm whether their warranties are still in force independent of your installer's status. Often the manufacturer-level coverage is the only meaningful protection left.
Get a contract review. California Solar Exit reviews material at no cost and walks you through what your situation looks like under California law — what the strongest exit path is, what realistic outcomes are, and what the process involves. Our solar savings calculator gives a starting estimate of how far off your contract's original projections are from reality.

The Bigger Picture

The 2024-2026 California solar bankruptcy wave isn't a series of isolated company failures — it's a structural correction in an industry that grew faster than its underwriting could support. The companies that sold 20- and 25-year contracts in 2018-2022 priced those contracts on assumptions that proved wrong. The homeowners holding those contracts are paying for the mistake.

If you're in that position, you're not stuck because you signed a bad contract by accident. You're stuck because the company that sold it to you isn't around to honor what it promised, and the entity now holding the obligation isn't the one you trusted at the kitchen table. California consumer protection law was written for exactly this kind of gap.

Call (213) 579-5156 for a free contract review. We serve all of California — Los Angeles, San Diego, Orange County, the Inland Empire, the Bay Area, Sacramento, and the Central Valley — from our office at 617 W 7th St in downtown Los Angeles. Remote consultations available statewide.

About the author: Daniel Merritt spent over a decade inside the residential solar industry before founding California Solar Exit. He has reviewed thousands of California solar contracts and has watched the 2024-2026 bankruptcy wave unfold from the customer side of the table.

Disclosure: This article is for general informational purposes only and does not constitute legal advice. California Solar Exit is a consumer advocacy firm that works with general counsel and a specialized team focused on solar contract cancellation. Reading this article does not create an attorney-client relationship. Individual results vary by contract, contract date, sales channel, and documentation available. Not all contracts qualify for cancellation. If you are experiencing financial hardship and cannot make your solar payments, contact your solar company or lender directly first to ask about hardship programs.

NEM 3.0 Killed Your Solar Savings in California: Here's What to Do in 2026

Wed, 27 May 2026 17:34:18 GMT

NEM 3.0 Killed Your Solar Savings in California: Here's What to Do in 2026

You went solar. You were promised a bill near zero, maybe a small monthly credit, and decades of "free" electricity from your roof. Then your true-up arrived — or your monthly statement crept past $200, $300, sometimes more — and the math your salesperson sketched on a clipboard stopped matching reality.

If you signed a solar contract in California after April 15, 2023 , you're on the Net Billing Tariff — what almost everyone calls NEM 3.0 . And the savings gap you're feeling isn't a glitch. It's the policy working exactly as the California Public Utilities Commission designed it. The question is whether your installer told you that — and whether what they did tell you crosses into the kind of misrepresentation that gives you a legal way out.

What Changed When NEM 3.0 Took Effect

Under the old policy (NEM 2.0), when your panels pushed extra electricity onto the grid, your utility credited you at roughly the full retail rate — around $0.30/kWh in most of California. Send a kilowatt-hour out, pull a kilowatt-hour back later, and it was close to a wash. That's the math that made solar an obvious win for fifteen years of California homeowners across PG&E, SCE, and SDG&E territory.

NEM 3.0 broke that math. Export credits are now tied to the CPUC's Avoided Cost Calculator (ACC) — wholesale-style rates that change by month, day, and hour. The average export rate dropped roughly 75%, from $0.30/kWh down to around $0.05–$0.08/kWh . Mid-day exports (when most rooftop systems are pushing the most power) are credited at the lowest values of the entire schedule, because the grid is already swimming in cheap solar at noon.

Self-consumed solar still saves you the full retail rate. But anything your panels send out — and on a typical undersized residential system, that's most of your production during work hours — is now worth pennies. Meanwhile, the same utilities that credit you $0.06/kWh for exports will charge you $0.45–$0.55/kWh for the power you pull back during 6–9 PM peak hours.

That's the trap. You produce when power is cheap. You consume when power is expensive. Without a battery, the spread eats your savings — and if you're on a PPA with an escalator clause on top of it, that gap widens every single year.

Why Your Salesperson's Numbers Don't Match Your Bill

Here's where things get legally interesting. NEM 3.0 was approved by the CPUC in December 2022 and took effect April 15, 2023. By the time most homeowners signed contracts in late 2023, 2024, and 2025, the new rules had been in effect for months — sometimes years.

But the sales pitch didn't always update.

California Solar Exit has reviewed hundreds of contracts from homeowners across Los Angeles, the Inland Empire, the Central Valley, Orange County, and the Bay Area. The same patterns keep showing up:

Savings projections built on NEM 2.0 assumptions. Sales decks quoted "average savings of $1,800–$2,500 per year" using export credits that no longer exist for new customers.
No mention of TOU rate plans being mandatory. Under NEM 3.0, you're required to be on a time-of-use plan like E-ELEC (PG&E), TOU-D-PRIME (SCE), or EV-TOU-5 (SDG&E). These plans punish evening usage in ways homeowners weren't warned about.
Battery storage pitched as "optional." Under NEM 3.0, a battery isn't a nice-to-have. Battery attachment rates in California jumped from around 11% before 2023 to nearly 70% by the end of 2024 — because solar-only economics don't pencil anymore. Customers sold a solar-only system in this market were sold an underperforming product.
No disclosure of the 75% export rate cut. A sales rep showing you a 25-year savings projection has an obligation to know the actual current rules. Some did. Many didn't.
Inflated production estimates to backfill the missing savings. If the kWh-to-dollar math doesn't work, some installers padded the production side — overstating annual generation to make the payback chart look right.

A solar contract in California is governed by the Home Solicitation Sales Act , the Consumers Legal Remedies Act , and a specific solar-disclosure statute (Business & Professions Code §§ 7169–7170) that requires installers to give homeowners a standardized Solar Energy System Disclosure Document in 12-point font, in the homeowner's preferred language, with specific cost and savings information. If your installer skipped that document, used pre-NEM 3.0 figures in it, or never had you sign it — those are concrete violations, not vibes. (For more on the rescission window and post-signing rights, see our guide on how to cancel a solar contract after signing in California .)

The Legal Picture Just Got More Complicated

NEM 3.0 has been in court since the day it took effect. The Environmental Working Group, Center for Biological Diversity, and Protect Our Communities Foundation filed suit in 2023 arguing the CPUC failed to consider all the benefits rooftop solar provides — to the grid, to disadvantaged communities, and to California's climate goals.

The timeline so far:

August 2025: The California Supreme Court unanimously ruled that the lower Court of Appeal had used the wrong legal standard and ordered it to reconsider whether NEM 3.0 is legal.
November 2025: Plaintiffs re-filed briefs at the Court of Appeal.
March 10, 2026: The Court of Appeal sided with the CPUC a second time, affirming NEM 3.0.
April 20, 2026: Solar plaintiffs filed a fresh appeal back to the California Supreme Court.

What this means in practice: NEM 3.0 is still the law right now. If the Supreme Court eventually overturns it, that ruling will most likely apply to future installs and possibly to currently-pending interconnections. It is not a magic wand that retroactively fixes your existing solar contract. The bill you're getting today isn't going to be refunded by a court order next year.

That's why the homeowners who get relief are the ones who pursue contract-level cancellation through California consumer-protection law — not the ones waiting for state policy to change.

Who's Most Likely to Have Real Cancellation Grounds

Not every disappointed solar customer has a case. California Solar Exit's contract reviews tend to surface qualifying patterns most often in homeowners who:

Signed a lease, PPA, or solar loan after April 15, 2023 and were given savings projections that match NEM 2.0 economics.
Received documents that missed or improperly executed the Solar Energy System Disclosure required by §§ 7169–7170.
Were sold a solar-only system (no battery) with promises of bill-zeroing or near-zero bills under PG&E, SCE, or SDG&E.
Had a salesperson handle the entire transaction through DocuSign or in-home pressure tactics without a clear three-day rescission notice or HSSA-compliant disclosures.
Are now seeing monthly bills that exceed what they paid before going solar , despite a system that's producing the kWh the contract promised.
Are paying through a third-party lender — and dealer fees got rolled into the principal without clear disclosure. This is especially common with GoodLeap solar loans , along with Sunlight Financial, Mosaic, Dividend, and Service Finance.

If two or more of those describe your situation, your contract probably deserves a closer look than a casual reading by a friend or a Reddit thread can give it.

What "Getting Out" Actually Looks Like

There's no single exit. The right path depends on your contract type, who financed it, and what your installer actually did.

For solar loans (most homeowners through GoodLeap, Mosaic, Sunlight, Dividend, Service Finance): cancellation typically targets the underlying installation contract and the installer's disclosure violations. When the installation contract unwinds, the financing connected to it often unwinds with it.

For leases and PPAs: the path usually involves voiding the long-term agreement based on misrepresentation, missing disclosures, or HSSA violations rather than buying out at the lessor's inflated buyout figure. The specifics differ by company — we've broken down the most common ones in dedicated guides:

For homeowners trying to sell: a non-cancellable solar lease or UCC-1 fixture filing on your title is one of the most common deal-killers in California real estate right now. Cancellation pre-sale often saves the transaction.

What cancellation does not include: walking away with the panels free, getting a refund of every payment ever made, or any guarantee about your specific case. California Solar Exit doesn't advise homeowners to stop paying their solar bills, and any honest advocacy firm will tell you the same thing. What it can do is force a contract to be evaluated against the laws that actually govern it — and in a meaningful percentage of post-April-2023 cases, the contract doesn't survive that evaluation.

Frequently Asked Questions

Is NEM 3.0 still in effect in 2026? Yes. NEM 3.0 (officially the Net Billing Tariff) remains the active policy for all new solar interconnections in PG&E, SCE, and SDG&E territory. A second appeal is pending at the California Supreme Court as of April 2026, but the current rules apply while that case proceeds.

Does NEM 3.0 apply to LADWP customers? No. NEM 3.0 only applies to the three investor-owned utilities (PG&E, SCE, SDG&E). LADWP, SMUD, and other municipal utilities have separate net metering programs with currently more favorable terms.

If I'm on NEM 2.0, am I safe? Mostly. If you interconnected before April 15, 2023, you're grandfathered into NEM 2.0 for 20 years from your Permission to Operate (PTO) date. Adding a battery to an existing NEM 2.0 system doesn't change that, as long as the modification doesn't increase system size by more than 10% or 1 kW.

Can I cancel my solar contract just because NEM 3.0 reduced my savings? Not on its own. NEM 3.0 is a regulatory change, not a contract breach by your installer. But if your installer's sales materials, disclosures, or savings projections didn't reflect NEM 3.0 even though they were prepared after April 2023, that's a misrepresentation issue under California consumer-protection law — and that's actionable. Our post-signing cancellation guide walks through the specific grounds.

How long does a solar contract cancellation take in California? Cases vary. A clean rescission case with strong disclosure violations can resolve in weeks. Cases involving leases, third-party financing, or older contracts typically take longer. Most homeowners get clarity within a free contract review.

What does a contract review cost? California Solar Exit reviews contracts at no charge. There's no obligation to engage further after the review — the goal is to tell you whether you have a real path forward or not.

If You're Stuck, Get an Actual Read on Your Contract

NEM 3.0 didn't just lower export credits. It exposed every solar contract signed since April 2023 to a level of scrutiny the industry isn't used to. The installers who quoted honest, NEM 3.0-compliant numbers and steered customers toward batteries have nothing to fear. The ones who copy-pasted 2020 sales decks onto 2024 customers do.

If your monthly statement isn't matching the projection you signed, the right next step isn't another call to your installer's customer service line. It's a free review of the contract itself, against California law as it actually exists in 2026.

California Solar Exit — Serving all of California, remote consultations available. �� (213) 579-5156 �� 617 W 7th St, Los Angeles, CA 90017 Book a Free Contract Review →

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.

What California Regulators Have Actually Found

The enforcement record in California isn't speculative. It's documented.

In February 2026, the Riverside County District Attorney's office released a settlement involving Vivint Solar — which became a wholly owned subsidiary of Sunrun on October 8, 2020 — detailing alleged consumer protection violations in residential solar sales across California. The Riverside County DA's office noted that Sunrun was not a named party in that action. But the conduct the settlement cited is the same conduct California regulators continue to scrutinize across the industry:

Misrepresenting relationships with utility companies including Pacific Gas & Electric (PG&E), Southern California Edison (SCE), and San Diego Gas & Electric (SDG&E)
Misrepresenting projected energy savings or total costs over the life of the agreement
Misrepresenting cancellation rights at the time of signing
Obtaining credit reports or creating solar-related accounts without written customer consent
Failing to provide written contract translations in the language used to negotiate the contract
Enforcing liquidated-damages provisions alleged to be noncompliant with California law

If any of those categories match what happened during your solar sale — a rep claiming to work "with SCE," a savings projection that never materialized, a tablet signing where no one mentioned you had three days to cancel — your situation falls within a documented enforcement framework, not just a general complaint.

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.

Where to File a Solar Complaint in California

Filing a complaint — with the right agency — is one of the most effective tools California homeowners have. Solar companies respond differently to formal regulatory complaints than they do to phone calls or BBB submissions. A documented complaint creates a paper trail that strengthens any subsequent negotiation or legal action.

California has four primary complaint channels for residential solar disputes:

CSLB (Contractors State License Board) handles complaints against licensed solar installers and their subcontractors. If your system was improperly permitted, installed by an unlicensed crew, or the contractor violated disclosure requirements, the CSLB solar complaint form is your starting point. Many large solar companies use regional installation subcontractors — the CSLB has jurisdiction over each one.

CPUC (California Public Utilities Commission) oversees solar consumer protection standards and required disclosures, including the Solar Consumer Protection Guide that every installer is required to provide before signing. CPUC complaint procedures specifically cover "free solar" claims, rushed tablet signing, missing disclosures, PPA escalator terms, and interconnection or PTO delays.

California Attorney General (AG) accepts consumer complaints against businesses operating in California. Solar companies with patterns of misrepresentation — inflated savings, utility company impersonation, hidden liquidated damages clauses — fall within the AG's consumer protection enforcement authority.

DFPI (California Department of Financial Protection and Innovation) handles complaints involving solar financing: loan origination, interest rate disclosures, PPA structures, and undisclosed dealer fees. If your complaint involves how the system was financed, DFPI is the right filing channel.

You can file with more than one agency. Homeowners who reach resolution most often do so after filing across multiple agencies simultaneously — creating a documented regulatory record that solar companies and lenders take far more seriously than a single complaint.

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

⚠️ Editorial Note: Senate Bill 784 was signed into law during the 2025–26 California legislative session and took effect January 1, 2026. Some third-party websites may still describe SB 784 as "pending" — those pages were written before the bill was chaptered and have not been updated. The information on this page reflects the law as enacted. This article is for general informational purposes only and does not constitute legal advice. For questions about your specific contract, [request a free review →] .

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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