Solar Contract Rescission: Understanding Your Right to Cancel
Understand your solar contract rescission rights. The FTC Cooling-Off Rule, state laws, and how to exercise your right to cancel.
The FTC Cooling-Off Rule and Solar Contracts
The Federal Trade Commission's Cooling-Off Rule gives consumers the right to cancel certain contracts within 3 business days without penalty. This rule applies to contracts signed at your home, workplace, or any location that is not the seller's permanent place of business — which covers virtually all solar contracts signed during in-home sales presentations.
Under the Cooling-Off Rule, the solar company is required to give you two copies of a cancellation form and a written notice of your right to cancel at the time of signing. If the company fails to provide these documents, your rescission period may remain open indefinitely — even years after signing. This is a significant consumer protection right that many homeowners don't know about and that solar companies don't always disclose properly.
To exercise your rescission rights, you must provide written notice of cancellation to the seller by midnight of the third business day after signing. The notice must be in writing — a phone call is not sufficient. Send it via certified mail with return receipt requested to create a paper trail.
State-Level Rescission Rights Beyond the Federal Rule
Many states have enacted solar-specific consumer protection laws that provide rescission rights beyond the federal 3-day window. California's Home Solicitation Sales Act provides a 3-day right to cancel for in-home sales, with additional protections for solar specifically. Florida's Door-to-Door Sales Act provides similar protections. Texas, Arizona, and Nevada have also enacted solar consumer protection legislation in recent years.
Some states extend the rescission period to 5, 7, or even 10 days. Others provide rescission rights for a longer period if the seller failed to make required disclosures. An attorney familiar with your state's consumer protection laws can advise you on the specific rights available in your jurisdiction.
State laws may also provide rescission rights in cases of misrepresentation, regardless of how long ago you signed. If a solar company made material false statements to induce you to sign, you may be able to rescind the contract even years later under state consumer protection statutes.
How to Exercise Your Rescission Rights Effectively
If you're within the rescission period and want to cancel, act immediately. Write a clear, concise cancellation notice that includes your name, address, the date of the contract, and a statement that you are exercising your right to cancel under the FTC Cooling-Off Rule (or applicable state law). Do not explain your reasons — you don't have to justify your decision to cancel.
Send the notice via certified mail with return receipt requested to the solar company's address as listed in the contract. Also send a copy via email to create an additional record. Keep copies of everything.
After canceling, the company is required to return any payments you've made within 10 business days and to remove any equipment installed on your property at no cost to you. If the company fails to comply with these obligations, file complaints with the FTC, your state attorney general, and the BBB.
If you believe your rescission period is still open because the company failed to provide required disclosures, consult with a consumer protection attorney before sending a cancellation notice. An attorney can advise you on the strength of your position and help you navigate any dispute that arises.
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