How to Cancel a Sunrun Solar Contract: Options & Costs
Learn your options for canceling a Sunrun solar lease or PPA. Understand buyout costs, transfer options, and legal remedies available to you.
Can You Cancel a Sunrun Solar Lease?
Canceling a Sunrun solar lease is difficult but not impossible. Sunrun's standard lease agreement is a 20-25 year contract, and the company does not offer a simple cancellation option once the rescission period has passed. However, homeowners have several potential paths depending on their specific situation and the grounds for wanting to cancel.
The most straightforward option is the system buyout — purchasing the solar panels outright at their current fair market value. Sunrun calculates this based on the system's age, size, and remaining lease term. Buyout prices typically range from $8,000 to $25,000 depending on system size and age. Once you own the system, you're no longer bound by the lease terms.
If you're selling your home, Sunrun offers a lease transfer option where the new buyer assumes the remaining lease. This requires Sunrun's approval and the buyer's agreement, which can complicate real estate transactions significantly.
Legal Grounds to Challenge Your Sunrun Contract
If Sunrun made material misrepresentations during the sales process, you may have grounds to void the contract entirely rather than paying a buyout. Common misrepresentations include: overstated savings projections (claiming the system would eliminate your electric bill when it doesn't), incorrect information about federal tax credit eligibility, failure to disclose annual payment escalators, and promises about system performance that weren't included in the written contract.
The FTC's Cooling-Off Rule gives you 3 business days to cancel any contract signed at your home. If Sunrun failed to provide you with the required cancellation notice and two copies of the cancellation form at the time of signing, your rescission period may still be open — even years later. This is a significant consumer protection right that many homeowners don't know about.
State-specific protections may provide additional remedies. California's Solar Rights Act and various state consumer protection statutes have been used successfully to challenge solar contracts where the company failed to meet its obligations.
Steps to Take If You Want Out of Your Sunrun Contract
Start by requesting your complete contract file from Sunrun in writing. This should include the original signed agreement, all addenda, the installation permit, and any performance guarantees. Review every document carefully for discrepancies between what you were promised verbally and what's in writing.
Contact Sunrun's customer service and formally document your complaint in writing. Request a response in writing. If Sunrun is unresponsive or refuses to work with you, escalate to the BBB, your state attorney general, and the FTC simultaneously.
Consult with a consumer protection attorney who specializes in solar contracts. Many offer free initial consultations and some work on contingency. An attorney can review your contract for potential grounds to challenge it and advise you on the most cost-effective path forward — whether that's negotiating a reduced buyout, pursuing arbitration, or filing a lawsuit.
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