Feeling locked in by your solar lease? Many savvy people find handing it off as a clever solution. This guide offers insight on concluding your solar lease, presenting you with choices such as buyouts or transferring it, helping you decide on the ideal option. Dive into discovering the insights and strategies that transform you into a proficient lease-manager. Stick with us to unveil the secrets that put you in control.

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Understanding Solar Lease Contracts

A rooftop with solar panels in a diverse urban city.

A solar lease contract, also known as a Solar Power Purchase Agreement (PPA), typically locks customers into a long-term agreement with fixed monthly payments. Early termination of the lease may come with penalties, making it essential to fully understand the terms and conditions before signing.

Solar Power Purchase Agreement (PPA)

A Solar Power Purchase Agreement, or PPA, is a deal between you and a solar company. In this deal, they put solar panels on your house for free. You then buy the electricity they make at a set price per kilowatt-hour.

This means you know how much you’ll pay for power from the panels every time. The cost is often less than what your electric company charges. People like PPAs because they can save money on their bills without paying a lot of money upfront to get started with solar energy.

Sometimes people want to stop their lease early but find it hard. Next, we will talk about how you can leave a solar lease before it ends.

Early Termination of a Solar Lease

You can end a solar lease early, but it may cost you extra money. Some contracts have an early termination fee. This means if you want to stop the lease before your time is up, you need to pay.

Check your contract for an “early termination clause” to learn how this works.

If you’ve had the solar panels for at least 5 to 7 years, you might be able to buy them out. Paying off the rest of your lease all at once can free you from monthly payments and let you own the panels right away.

But remember that buying out will depend on what your contract says and might involve some negotiations with the company that leased them to you.

Reasons for Cancelling a Solar Lease

A man with a frown in front of a solar panel installation.

Lack of savings, moving to a new house, and buyer’s remorse are common reasons for wanting to cancel a solar lease. These factors can lead homeowners to explore their options for getting out of their solar lease agreements.

Lack of Savings

Sometimes people get a solar lease hoping to cut down on their energy bills. Yet, they may not save as much money as they thought they would. One reason could be the yearly increase in the cost of the lease, known as an escalator clause.

This can make payments go up each year.

If you have a solar power system and expected big savings that didn’t happen, you might want to cancel your lease. It’s good to know this before you sign any papers because it can affect whether or not you will really save on your energy costs in the long run.

Moving to a New House

When you move to a new house, you can transfer the solar lease to the new homeowner. This allows them to take over the agreement and enjoy the benefits of solar energy without any hassle.

Another option is relocating the solar panel system to your new home, which is a viable way to cancel the lease while still benefiting from renewable energy.

By transferring the lease or moving the solar panels, you can seamlessly transition your renewable energy investment when moving houses without losing out on its advantages.

Buyer’s Remorse

If you signed a solar lease but now regret it, you may be experiencing buyer’s remorse. This often happens when someone feels they made a hasty decision or didn’t fully understand what they were getting into.

According to the Federal Trade Commission (FTC), federal law gives consumers up to three days to cancel a contract for goods or services over $25 made at their home, workplace, or seller’s temporary location, like a hotel room booking at any time on an iOS device.

How to Get Out of a Solar Lease?

To get out of a solar lease, homeowners can consider options such as a lease buyout, transferring the lease to a new homeowner, or removing the solar panels altogether. Each option comes with its own set of considerations and potential challenges.

Lease Buyout

You can buy out a solar energy system lease and own it outright, along with all its benefits, like solar production and potential increase in home value. This involves prepaying the balance of what you owe on the solar lease.

After that, you have the option to remove the solar panels or use the system independently. It’s an effective way to gain full ownership and control over your residential solar energy system.

Negotiating an early termination of your solar lease contract is also possible. The leasing company may allow you to buy out the lease, giving you more flexibility and freedom in managing your solar energy system.

Transfer of Lease to New Homeowner

To transfer a solar lease to a new homeowner, there is a process that needs to be followed. The homebuyer must complete a transfer of ownership form and submit a credit application to the solar company for lease transfer.

Upon approval and completion of the necessary paperwork, the lease can be transferred to the new property owner, subject to credit approval. Both parties involved in the sale of the property need to understand the terms and conditions outlined in the solar lease agreement regarding this process.

Solar Panel Removal

After transferring the solar lease to a new homeowner, the next step is to consider what happens at the end of the lease term. When it comes to solar panel removal, it’s essential to know that when a solar lease ends, the company responsible for owning and maintaining the equipment is also responsible for decommissioning and removing the solar panels.

This cleanup phase typically occurs after around 25 years of use. It’s important to understand these responsibilities and processes before entering into a solar lease agreement.

One potential challenge in this phase could be ensuring that the removal process is carried out efficiently and safely. Additionally, understanding who holds responsibility for any potential damages or issues during removal can be crucial.

Potential Challenges in Cancelling a Solar Lease

One potential challenge in canceling a solar lease is the lack of a clear buyout option in the contract. This can make it difficult for consumers to exit the agreement without facing financial penalties or legal issues.

Another challenge arises if a solar company becomes insolvent, as this can complicate the process of terminating the lease and may leave consumers in a precarious position regarding their solar panels and financial obligations.

There might also be challenges related to transferring the lease to a new homeowner. Some potential buyers may not be willing to take on an existing solar lease, making it harder for current homeowners to sell their property.

Additionally, navigating through complex legal terms and understanding one’s rights and responsibilities within the contract can pose significant challenges for consumers looking to cancel their solar leases.


In conclusion, there are several ways to get out of a solar lease. You can transfer the lease to a new homeowner or negotiate an early termination. Another option is to consider the buyout method by prepaying the remaining balance.

Seeking legal advice and understanding the pros and cons of each option is crucial when attempting to exit a solar lease contract. By exploring these methods, you can make an informed decision that aligns with your specific circumstances and financial goals.

Interested in safeguarding your solar investment? Learn how to protect your solar panels from hail.


Can I buy my way out of a solar lease?

Yes, you can choose a solar lease buyout option, paying the present value or fair market value to own the PV system outright.

What happens if my leasing company goes bankrupt?

If the leasing company faces insolvency or bankruptcy, lessees may face risks like breach of contract and should talk with lawyers about their interests and guarantees.

Are there any risks in getting out of a power purchase agreement?

Getting out of power purchase agreements may include financial risk, so understand all terms related to warranties, insurance, and profit before making decisions.

If I have problems with my leased solar system who do I tell?

You should fill in a solar complaint form provided by your leasing company or homeowners association to report issues related to habitability and electricity generation performance.

Should I think about green energy savings when leaving my lease?

Definitely! Consider energy savings benefits from clean energy sources like rooftop solar against costs when evaluating financing options for investment in renewable energy.

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