Are you unsure about how to terminate a solar lease after the installation procedure is complete?

The majority of homes that had solar systems installed more than five years ago did so through leasing.

Due to the dearth of suitable funding choices on the market, this was done.

Today, we have the opportunity to purchase solar panels with cash or a loan and still benefit from all of its many advantages.

The buyer choose whether to purchase or lease solar.

Before we continue, you may be curious:

A Solar Panel Lease: What Is It?

In a solar panel lease, you rent a solar system for your house for a certain amount of time; the system remains the property of the solar supplier during that time.

How do solar leases operate? You will sign a solar leasing agreement as the purchaser to specify the conditions of usage.

As a homeowner considering to invest in solar, you should be aware of both the benefits and drawbacks of solar leasing.

To determine the value of the lease, it is crucial to employ a solar leasing calculator.

Most purchasers are aware of the disadvantage compared to purchasing a solar system, and eventually you could feel like ending the solar leasing.

Keep in mind that there is a precise way to achieve it.

We’ll talk about how to get out of a solar lease in this post.

Let’s look at:

  • What causes homeowners to break their solar lease?
  • What You Need to Know About Solar Lease Termination
  • When relocating to a new place
  • Cancelling Your Solar Lease Before Installation

What Causes Homeowners to Break a Solar Lease?

A lot of people are seeking for strategies to escape solar leases.

Users of solar panels may desire to break their solar lease for a variety of reasons.

It can be the case that purchasing a solar system is far more lucrative than leasing one.

Recent global advancements have made it possible for homeowners to utilize a solar leasing calculator to assess the value it adds to their homes.

Keep in mind that having access to the best solar for your house is the main objective.

Let’s look at some of the drawbacks of solar leases that homeowners can consider before deciding whether to cancel their solar lease.

#1. Difficult Economic Conditions

Many individuals have lost their jobs or are seeing significant reductions in the amount of hours they used to work.

It’s not exactly the best time to be locked into a lease right now with the economy still fighting to recover.

Even though you are probably saving a considerable amount of money compared to what you would typically be paying your energy provider, buying your system is always preferable than renting one.

It makes reasonable to wish to terminate the lease if you realize that your solar panel system isn’t providing the value and savings you expected.

After all, paying your leasing company more than your energy bill will cost is sort of silly.

Due to a cheap introductory rate, some consumers could have signed up but then find out they are paying more over the course of their lease.

#2. You’re Transferring to a New House

One reason you could be relocating to a new house is a work change.

This is a valid justification for your desire to break your present lease.

But if you decide to relocate with your solar panels, there are a few solutions that might help.

If so, choices are often available in this situation.

The leasing firm will often provide a choice that allows you to move the solar panels to your new house.

As an alternative, the leasing firm can let the new owner to pick up the balance of your lease.

The leasing business may potentially let you purchase the solar panels entirely.

You may not have to break the lease if you are satisfied with your solar panel system and wish to keep using it in your new address.

It’s better to find out about your alternatives and then go forward from there.

#3. Service From The Leasing Company Was Subpar.

You may have come to the conclusion that your lease company’s service isn’t fair or satisfactory at some time.

Numerous clients have subsequently discovered that the continued service and support don’t satisfy their expectations.

It seems sense that you would wish to break your lease if this is the case with your existing leasing business.

The best course of action is to express your dissatisfaction with their service, provided that it is appropriate and justified.

For this reason, I suggest working with a reputable solar company that is skilled and knowledgeable.

You won’t have to make expensive alterations in the midst of the lease.

You could discover that you have solid justification for breaking your lease early.

Keep track of the difficulties you have had since signing the lease if you discover that this is the case with your leasing firm.

It will be simpler to explain why you wish to break the lease if you do this.

Keep in mind that there were those who withdrew before you; you won’t be the first.

The Need to Terminate Following Installation

It’s still OK to end the lease if your solar panels have already been installed.

There are several potential causes for this.

It’s possible that the solar system won’t be included when you sell your house to the new owner or that you just wish to choose another supplier.

Anyhow, it shouldn’t be difficult to transfer your lease to the new owner.

If the new homeowner isn’t interested in that, you might buy the equipment for its residual worth.

This could be an option stated in your lease, depending on where you are in it.

Additionally, many leasing businesses will allow you to cancel the agreement by purchasing the equipment at fair market value provided there is no specified deadline for doing so.

If you choose this, you may anticipate that the cost will decrease the longer the lease is in effect.

The amount of time the system has been in operation is taken into account in addition to the market pricing.

You may not have to spend as much as you think since both of these factors into the ultimate buy-out option cost.

Before Installation, Cancel

You may be able to terminate your contract with the leasing business if your solar panel system hasn’t been installed yet.

A lot of these businesses provide windows that let you end your contract before the installation process starts.

Furthermore, you shouldn’t have to be concerned about getting punished in any manner if you respond promptly.

The deadlines vary depending on the lease business.

However, generally speaking, you have 30 days from the day you signed the lease agreement to break it.

It’s also crucial to note that the contracts with the majority of leasing firms often outline the consequences of breaking your lease early.

Always read your contract carefully before you sign it so you know what to anticipate.

It’s possible that you have legal recourse to break your lease early.

The second concern is how to exit a solar leasing arrangement after learning your reasons for wanting to do so.

What You Need to Know About Solar Lease Termination

In this section, we’ll outline several circumstances and the choices that will benefit you if you choose to opt out.

#1. When Relocating to a New Place

You may have a few choices for fulfilling the lease obligation prior to the contract’s expiration while you’re selling your home, depending on the contract agreement you sign when you negotiate a solar lease.

Among them are the following:

Buying the Solar Panel at the Price in the Market

Are you aware that purchasing solar panels is the best course of action? Although it may cost a lot up front, it ultimately saves you a lot of money.

The fair market value at the time of purchase will be determined by an expert examiner, according to many lease contracts, which do not specifically stipulate the price of purchase.

Therefore, it’s important to consider both the current market possibilities and the whole time that your solar system has been in operation.

Please be aware that because your system is dependent on a source of producing electricity, the purchase price can be greater.

If you think it’s good, proceed with the purchase.

Keep in mind that buying a solar system will cost you significantly less money than renting one.

#2. Purchase of a Solar Lease Agreement

If your solar lease is about to expire in a few years, you could think about paying the remaining sum in advance and having the solar panels either left at the property or removed from it.

Your solar company’s contract must have included a buyout price and time frame.

But maybe this isn’t always the case.

A buyout is often offered five to seven years into the lease.

For further details, we advise you to thoroughly read your lease agreement.

It also results from the recruiting procedure for the leasing firm in the first place.

Buyers often make blunders that lead them to choose untrustworthy service providers.

It is best to err on the side of caution.

#3. Transferring a Solar Panel System Between Homes

Some leasing companies provide an option to moving a solar panel system from one home to another if you are moving.

However, in order to strengthen a rooftop solar system safely, you need first make sure the new rooftop is in perfect functioning condition.

Many solar leases include an extra fee for the system’s removal and reinstallation.

In order to install a solar system on a new rooftop, you will fundamentally need the approval of your homeowners’ association, utility company, or local government agency.

#4. Selling a Solar Lease

As an alternative, you may think about giving the lease to a different homeowner in order to cancel the solar agreement.

So, how do you go about doing this? A service transfer expert is available at some solar providers that will help you through the full process of making sure your lease is transferred to the new homeowner.

However, some customers have a hard time accepting this approach.

The good news is that you may complete the deal by reducing the property’s selling price by the transfer money.

In general, if you’re planning to sell your house soon, you may want to consider a buyout first.

You may end your lease and take ownership of the solar panel system if you have the possibility of a speedy buyback.

See why it makes sense to spend extra money to get your own solar panel? When you need change, it will save you the hassle.

Additionally, having solar panels increases the value of your house, which is advantageous for you if you ever decide to sell.

In order to avoid the hassle of self-installation, consumers often opt to buy properties that have solar panels installed.

In the meanwhile, choosing a buyout is a financially viable alternative if the buyout sum is much less costly than the monthly payments for the lease duration.

#5. Cancelling Your Solar Lease Before Installation

You may be possible to cancel a solar lease before the installation of the solar panel system if you regret signing one and want to do so.

The time frame for canceling a lease without incurring any fees mostly depends on the solar company’s policies.

Because of this, you should carefully read the contract’s conditions before signing.

Keep in mind that using renewable energy from the sun may help you reduce your need for electricity.

Most purchasers inquire about solar leases while making a purchase.

We want you to know that signing a lease is not the greatest long-term decision, even if you could be tricked into doing so.

Your decision as a buyer should determine whether you lease or purchase solar.

The time period for terminating your lease is 30 days after you sign the solar leasing contract.

What should you do if, after signing the solar leasing agreement, you subsequently learn that the roofing has to be fixed? In this instance, the solar company permits the termination of the contract due to “unforeseen and unplanned extra charges.”

Consider all your alternatives carefully before signing a solar lease, to put it mildly.

Make sure you carefully review all the information so you can compare all your alternatives and make an educated decision about if going solar is the best option for you.


It’s crucial to compare prices as much as you can.

Often, all it takes is finding the proper business to partner with.

You may be pleased with your service and won’t want to break your contract early if you have a reliable installation, outstanding solar panels, and excellent financing.

Finding out how to exit a solar lease is crucial in case anything goes wrong and you decide to stop using solar energy.

It will assist you in analyzing the solar leasing contract and determining which choice is best for you.

In contrast to the benefits, we discover that there are several solar lease downsides.

You should be given all your alternatives when choosing a solar supplier whether it comes to whether to purchase solar or lease it.

The objective is to purchase premium solar for yourself, which will be enough for your energy needs and reduce your electricity costs.

You may use a solar leasing calculator to help you decide whether to buy or lease your solar panels.

You should first be able to comprehend how the solar leasing works.

Don’t seek any farther if you need a dependable solar supplier since Enlightened Solar is here! Our services are dependable, and we have developed our reputation through time.

The top services that we provide have been attested to by our customers in Orange County, California.

We are experts in all things solar, and we’ll provide you with the greatest recommendations and installation services at a fair price.

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Written by Bob Matsuoka
Bob Matsuoka is a blogger and founder of RVing Beginner blog. He has been blogging for over five years, writing about his own family’s RV adventures, tips for people who are interested in buying an RV or taking their family on an adventure by RV.