Can You Cancel a Solar Contract in Texas?

The salesperson leaves. The paperwork is signed. Maybe the panels have not even gone up yet.

Then you start reading.

The loan is longer than you thought. The payment may increase. The savings projections suddenly look optimistic. Or you discover that something the salesperson promised you is nowhere in the agreement.

Now the question is simple: Can I cancel this solar contract?

Sometimes the answer may be yes. But there is no universal cancellation rule that applies to every solar transaction in Texas. The timing matters. The way the contract was signed matters. The contract itself matters. And if financing has already been arranged, there may be more than one agreement that needs to be addressed.

Start With the Contract You Actually Signed

One of the first problems in a solar dispute is figuring out exactly what the homeowner agreed to.

There may be an installation agreement with the solar company and a separate financing agreement with a lender. There may also be warranty documents, equipment agreements, electronic disclosures, and other documents signed during the same sales process.

Those agreements can contain different cancellation provisions.

Look for language addressing cancellation, termination, notice, financing, installation, arbitration, and default. Pay particular attention to where a cancellation notice must be sent and whether the contract specifies a deadline.

The important point is that cancelling an installation agreement does not necessarily mean a separate financing agreement disappears automatically.

Do You Have Three Days to Cancel?

This is where homeowners need to be careful with broad statements they may find online.

The Federal Trade Commission's Cooling-Off Rule gives consumers three business days to cancel certain sales made at their home or at certain locations away from the seller's permanent place of business. The FTC specifically notes that the rule can apply even when the consumer invited the salesperson into the home. But the rule has exceptions and does not cover every transaction.

Texas also has statutory provisions governing certain consumer transactions and cancellation rights. Whether a particular solar sale falls within a state or federal cancellation provision depends on the circumstances.

That is why the real question is not simply, "Is there a three-day rule?"

It is: What cancellation rights apply to this particular transaction?

What If the Cancellation Period Has Already Passed?

Missing an initial cancellation period does not necessarily answer every other legal question.

Suppose the homeowner was told:

• "Your electric bill will disappear."
• "This won't affect your ability to sell your house."
• "The battery is included."
• "You will definitely receive enough in tax benefits to cover this payment."
• "You can cancel whenever you want."

Then the documents say something very different.

At that point, the issue may no longer be ordinary buyer's remorse. The question may become whether there was misrepresentation, deceptive conduct, breach of contract, or some other problem with the transaction.

The FTC has specifically warned consumers about solar sellers making misleading claims about costs, savings, government programs, and financing.

What If the Panels Are Already Installed?

Installation makes the situation more complicated, but the facts still matter.

There is a big difference between a homeowner who simply changes their mind after a completed, functioning installation and a homeowner whose system was installed but never activated, failed inspection, is missing promised equipment, or does not work.

You need to determine what the company promised to do and what it actually did.

That means looking beyond the panels on the roof.

Was the system connected? Did it receive permission to operate? Did it pass inspection? Was all promised equipment installed? Is it producing electricity?

Those facts can matter considerably in a dispute.

What Happens to the Solar Loan?

This is often the bigger problem.

Solar sales and financing can feel like one transaction to the homeowner, even when separate companies are involved. The CFPB has noted that solar-specific financing frequently blends the sales, installation, and financing process into a single interaction.

But legally, there may still be separate agreements.

A homeowner should not assume that telling the installer, "I cancel," automatically eliminates an obligation to the lender.

Both agreements need to be reviewed.

Do Not Simply Stop Paying Without Understanding the Consequences

A homeowner may think: If they won't cancel, I'll just stop paying.

That can create a second problem.

Depending on the agreement, missed payments can lead to late fees, collection activity, negative credit reporting, or other consequences. If you believe the underlying transaction was improper, it is generally better to understand your contractual and legal position before creating a payment default.

Gather the Documents Now

If you are trying to cancel or challenge a solar agreement, preserve:

• The installation contract
• The financing agreement
• Cancellation forms or notices
• Emails and text messages
• Sales presentations
• Savings projections
• Advertisements
• Installation records
• Inspection or activation documents
• Payment records
• Communications with the installer and lender

Also save evidence showing when and where the agreement was signed.

Those details can matter.

When to Talk to a Solar Contract Attorney

Consider having the transaction reviewed if you tried to cancel and were refused, the installation was never completed, financing was activated despite installation problems, important sales promises were false, or you are already receiving collection notices.

The goal is not simply to find a reason to dislike the contract.

The goal is to determine what you actually agreed to, what the solar companies actually did, and what rights may exist under the particular facts.

Talk to McMillan & Black About a Texas Solar Contract Dispute

McMillan & Black represents clients in Texas disputes involving solar sales, financing agreements, alleged misrepresentations, defective or incomplete systems, and related consumer claims.

If you signed a solar agreement and now believe the transaction was not what you were promised, contact McMillan & Black to discuss the contracts and your options under Texas law.

Sources

FTC Cooling-Off Rule 

 FTC Consumer Guide to the Cooling-Off Rule 

 CFPB Solar Financing Issue Spotlight 

 Texas Business & Commerce Code Chapter 601