How to Get Out of a Solar Contract in California: What Homeowners Need to Know

How to Get Out of a Solar Contract in California: What Homeowners Need to Know

Read time: 6 min

If you're a California homeowner who signed a solar agreement and now regrets it, you're not alone. Complaints about deceptive solar sales practices have surged across Los Angeles County, the Inland Empire, San Diego, and the Central Valley — and many homeowners who thought they were locked in forever are finding out they have more options than they realized.

This guide breaks down what you need to know about getting out of a solar contract in California, including what qualifies, what the process looks like, and what rights you have under California law.

Why So Many California Homeowners Want Out

The solar industry exploded across California over the past decade, and with rapid growth came aggressive — and often deceptive — sales tactics. Homeowners in Riverside, San Bernardino, Fresno, and communities throughout the state were approached door-to-door by sales reps promising significant savings on their utility bills. Many were told the system would pay for itself within a few years. Others were told there were no upfront costs and minimal risk.

What they weren't told: loan terms stretching 20 to 25 years, annual payment escalators buried in the fine print, UCC liens placed on their property, and systems that rarely delivered the promised savings.

What Are Your Options?

California homeowners in bad solar contracts generally have a few paths available depending on the specifics of their situation. The first is rescission — if you're within the cancellation window (typically 3 business days for door-to-door sales under California law), you can cancel without penalty. Most homeowners reading this are past that window, which brings us to the more relevant options.

The second path is cancellation through misrepresentation. If your sales rep made promises that weren't reflected in your contract — inflated savings projections, undisclosed fees, fabricated utility bill estimates — you may have legal grounds to challenge the contract directly. California's Consumer Legal Remedies Act and Business and Professions Code Section 17200 provide significant protections against deceptive business practices.

The third path is negotiation. In some cases, solar companies and lenders will negotiate a settlement, particularly when faced with documented evidence of misrepresentation. This can result in contract cancellation, a reduced balance, or a refund of payments already made.

What Qualifies as Misrepresentation?

Courts and consumer protection advocates in California have identified several common patterns of solar misrepresentation. These include savings projections based on inflated energy usage, failure to disclose the full cost of the loan including interest, verbal promises about tax credits or rebates that were never honored, systems sized incorrectly for the home, and high-pressure tactics that prevented homeowners from reading the contract carefully.

If any of these sound familiar, your contract may be challengeable.

What to Do Next

The first step is to pull out your solar agreement and review what you actually signed versus what you were told. Document every discrepancy you can identify. Then seek a professional review — a solar contract cancellation specialist can identify violations you may have missed and tell you clearly whether you have a viable case.

California Solar Exit offers a free contract review for homeowners across California. We'll tell you exactly where you stand.