Quick Answer: The solar contract rescission period is usually 3 business days after signing when the sale happens at the homeowner’s residence, under the FTC Cooling-Off Rule and most state home solicitation laws. Some states give more time. Texas requires 5 business days for residential solar contracts, California gives 5 business days to buyers 65 or older in many in-home sales, and North Dakota allows up to 15 business days for qualifying buyers 65 or older.
What Is a Solar Contract Rescission Period?
A solar contract rescission period is a short, legally protected window after signing during which a homeowner can cancel a solar agreement without penalty and receive a refund of money paid. The rescission period is sometimes called the cooling-off period or the solar right to cancel.
These windows exist because many solar systems are sold through door-to-door solar sales or kitchen-table presentations. Lawmakers created these windows so a homeowner who signed under pressure can review the agreement calmly and change their mind.
Which Solar Agreements Are Covered?
Rescission rights can apply to all four common contract types, depending on the law and how the sale happened:
- Solar lease: The homeowner pays a monthly fee to use panels owned by a third party.
- Solar PPA: A power purchase agreement is a contract in which the homeowner pays for the electricity a solar system produces rather than buying the panels.
- Solar loan: The homeowner owns the system and repays a lender over time.
- Cash purchase: The homeowner pays the installer directly for the system.
How Does the Federal 3-Day Rule Apply to Solar?
The federal baseline is the FTC Cooling-Off Rule, which gives buyers 3 business days to cancel covered sales made at their home or at temporary locations away from the seller’s permanent place of business.
For sales made at a buyer’s residence, the rule covers purchases of $25 or more, and the FTC kept that low threshold specifically because of concerns about high-pressure in-home sales.
Under the FTC Cooling-Off Rule, the seller must tell the buyer about the right to cancel at the time of sale and provide a written notice of cancellation form. The homeowner can cancel until midnight of the third business day after the sale.
What Counts as a Business Day?
Under the federal rule, Saturdays count as business days, while Sundays and federal holidays do not. A homeowner who signs on a Friday generally has until midnight the following Tuesday, absent a federal holiday. State laws can define business days differently, so the definition printed in the actual contract matters.
When Does the Federal Rule Not Apply?
The FTC Cooling-Off Rule does not cover a sale finalized at the seller’s permanent place of business. A homeowner who walked into a solar company’s office and signed there may not have the federal 3-day right, though state law or the contract itself may still provide one.
Solar Contract Rescission Period by State
State law can extend or add to the federal minimum. The table below summarizes rescission windows in states with solar-specific statutes or longer windows for certain buyers.
| State | Standard Rescission Period | Extended or Special Rule | Governing Law |
| Federal baseline (all states) | 3 business days for covered in-home sales | None at the federal level | FTC Cooling-Off Rule (16 CFR Part 429) |
| California | 3 business days for home solicitation and home improvement contracts | 5 business days for buyers 65 or older when the contract was not negotiated at the contractor’s place of business | Business and Professions Code 7159; Civil Code 1689.5 to 1689.7 |
| Texas | 5 business days for residential solar contracts | Runs from the later of contract execution or receipt of required disclosures | Occupations Code Chapter 1806 (SB 1036), effective September 1, 2025 |
| Nevada | 3 business days after execution | Solar-specific rule; the cover page must list an email address for cancellation | NRS 598.98216 and NRS 598.9809 to 598.9816 |
| New Mexico | At least 3 business days after signing | Solar-specific disclosure statute for purchases, leases, and PPAs | Distributed Energy Generation System Disclosure Act (NMSA 57-31) |
| North Dakota | 3 business days | 15 business days for buyers 65 or older on qualifying purchases | N.D. Century Code Chapter 51-18 |
| Florida | 3 business days for home solicitation sales | General consumer law; no solar-specific extension | Fla. Stat. 501.021 to 501.055 |
| Arizona | 3 business days for home solicitation sales | General consumer law; no solar-specific extension | A.R.S. 44-5001 to 44-5008 |
This table is a general summary, not legal advice. Statutes change and exemptions apply, so the cancellation notice in the homeowner’s own contract is the first document to check.
Why Texas and California Stand Out
Texas now has one of the longest standard solar windows. The Texas Department of Licensing and Regulation confirms that residential solar contracts must include a five-business-day cancellation right for contracts entered into on or after September 1, 2025.
California requires a solar disclosure document on the front of residential solar contracts. The California Contractors State License Board form explains the Five-Day Right to Cancel for buyers 65 or older when the contract was signed away from the contractor’s business.
When Does the Solar Contract Rescission Period Start?
The rescission clock usually starts on the day the homeowner signs the agreement, but the exact trigger depends on the law. Some statutes start the clock when the buyer receives a signed copy, and Texas starts the clock on the later of signing or receiving the required disclosures.
Many homeowners sign on a tablet and receive the full contract by email later, which can push the deadline back.
What If the Cancellation Notice Was Missing?
A missing or defective notice of cancellation can affect the deadline. Under federal and many state laws, the seller must provide a proper cancellation notice, and courts and regulators in some states treat the window as not having started until a compliant notice was given. Results vary by state, so a homeowner who never received the form should have the contract reviewed quickly rather than assume the window is still open.
Is There a Separate Rescission Right for Solar Loans?
A solar loan right of rescission can exist separately from the contract window. The Truth in Lending Act gives borrowers 3 business days to rescind certain credit transactions secured by their principal dwelling, measured from consummation, delivery of the rescission notice, or delivery of material disclosures, whichever happens last.
Whether the Truth in Lending Act rescission right applies depends on how the loan is secured. Many solar loans are unsecured or use a UCC-1 fixture filing on the equipment rather than a mortgage on the home, which can change the analysis. When disclosures are missing or materially wrong on a covered loan, the loan rescission right can extend up to 3 years.
Two Clocks Can Run at Once
A homeowner who financed solar may have one deadline for the installation contract and another for the loan agreement. Canceling the installation contract does not automatically cancel the loan, and Texas SB 1036 addresses this by requiring lender cancellation provisions. Homeowners should send written notice to both the installer and the lender when both agreements were signed.
How to Cancel a Solar Contract Within 3 Days
To cancel a solar contract within 3 days (or within a longer state window), the homeowner should send written notice before midnight of the final business day and keep proof of delivery. Phone calls to a sales representative usually do not count as valid cancellation.
- Find the signing date: Locate the date on the signed agreement and the date the copy and disclosures were received.
- Read the notice of cancellation: Confirm the address, email, and method the contract lists for cancellation.
- Count business days: Use the definition in the contract and the state law that applies.
- Sign and send the form: Complete the cancellation form or write a dated letter that names the contract and states the intent to cancel.
- Use trackable delivery: Send by certified mail with return receipt, and also send by email if the contract allows it.
- Notify the lender: Send a separate written notice to any finance company named in the paperwork.
- Keep records: Save copies, receipts, emails, and screenshots of every step.
Common Mistakes That Cost Homeowners the Window
- Relying on a verbal promise: A sales representative saying “just call me if you change your mind” does not replace written notice.
- Canceling only one agreement: Notifying the installer but not the lender can leave a loan in place.
What Happens After a Valid Cancellation?
After a valid cancellation under the FTC Cooling-Off Rule, the seller must cancel and return payments within 10 days. State laws set similar refund timelines, and solar-specific statutes like those in Nevada and Texas add their own procedures.
If a solar company refuses a timely cancellation, the homeowner can complain to the state attorney general, the licensing board, and the FTC.
What If the Solar Contract Rescission Period Has Already Passed?
Once the solar contract rescission period ends, the homeowner usually cannot cancel for any reason without penalty. Exit options may still exist through the contract’s own termination or transfer clauses, a buyout, a negotiated solar lease cancellation, or claims based on misrepresentation, missing disclosures, or licensing violations. None of these routes is guaranteed, and each depends on the specific contract and state.
Get Your Solar Contract Reviewed Before the Window Closes
Cancellation windows are short, and every day counts. At HowtoCancelSolar, our team reviews solar contracts so homeowners can see exactly what their agreement says about cancellation, which deadlines apply, and what realistic options remain if the window has closed.
We review leases, PPAs, loans, and cash purchase agreements, and we cover state-specific rules, so we can help you see how your state’s law fits your agreement.
We cannot promise that every contract can be canceled, and we are not a law firm. What we can do is help you read the fine print clearly and decide your next step with confidence. Start with a solar contract review from our team before your solar contract rescission period runs out.
Frequently Asked Questions About the Solar Contract Rescission Period
These answers cover common questions homeowners ask about cancellation deadlines for solar agreements.
Can I cancel a solar contract after signing it online?
Possibly, but the answer depends on where the sale happened. The FTC Cooling-Off Rule mainly covers in-person sales away from the seller’s place of business, while solar-specific laws like Texas SB 1036 apply to residential solar contracts more broadly. The contract’s own cancellation clause should be checked first.
Do Saturdays count in the 3-day solar cancellation window?
Under the federal FTC Cooling-Off Rule, Saturdays count as business days, while Sundays and federal holidays do not. Some state laws use different definitions, so homeowners should check the definition in their contract and state statute.
Does canceling the solar contract also cancel my solar loan?
Not automatically. The installation contract and loan agreement are often separate, so homeowners should send written notice to both the installer and the lender.
Can I cancel solar after installation has started?
Starting installation does not always end a valid rescission right, but it can complicate the refund. If the window is still open, send written notice immediately.
Is the solar rescission period longer for seniors?
In some states, yes. California gives buyers 65 or older 5 business days for many in-home contracts, and North Dakota allows up to 15 business days for qualifying purchases by buyers 65 or older. Other states use the same window for all ages.
