Your Legal Rights Against Solar Companies: Complete Consumer Protection Guide

Homeowners have significant legal rights when dealing with solar companies, including contract cancellation rights, consumer protection laws, and remedies for fraud. Understanding these rights can help you avoid scams, cancel bad contracts, and recover losses if you've been victimized.

This guide explains your legal rights against solar companies under federal and state laws, how to exercise those rights, and what remedies are available when solar companies violate consumer protection laws.

Federal Consumer Protection Rights

Three-Day Cooling-Off Rule (Door-to-Door Sales)

The FTC's Cooling-Off Rule gives you the right to cancel most solar contracts signed in your home within three business days:

When it applies:

Contract signed at your home (door-to-door sales)
Contract signed at seller's temporary location (trade show, fair)
Sale over $25
Solar leases, PPAs, and purchase contracts

How to exercise:

Written cancellation notice (not just phone call)
Delivered by midnight of the third business day
Send by certified mail (for proof)
Email backup to company representative

What happens:

Company must refund all payments within 10 days
Must return any trade-in items
Must cancel any financing
Cannot charge cancellation fees

Important: Many solar salespeople won't tell you about this right. Exercise it immediately if you have regrets.

Truth in Lending Act (TILA)

TILA requires clear disclosure of solar financing terms:

Lenders must disclose:

Annual Percentage Rate (APR) – true cost including fees
Finance charges – total interest and fees
Amount financed – principal after down payment
Total of payments – you'll pay over loan term
Payment schedule – amount and number of payments
Prepayment penalties – if any

Your TILA rights:

Right of rescission: 3 days to cancel home-secured loans
Accurate disclosures: Errors may give you rescission rights
Advertising accuracy: teaser rates must be available

TILA violations are serious and may allow you to rescind the loan and recover damages.

Fair Credit Reporting Act (FCRA)

FCRA protects you when solar companies check your credit:

Requirements:

Written permission required for credit checks
Adverse action notice if denied financing
Credit score disclosure if used in decision
Identity verification requirements

Your FCRA rights:

Know what's in your credit file
Dispute inaccurate information
Free annual credit report
Seek damages for violations

Telephone Consumer Protection Act (TCPA)

TCPA restricts how solar companies can call you:

Prohibited practices:

Robocalls to cell phones without consent
Calls before 8 AM or after 9 PM
Calls to numbers on Do Not Call Registry
Failing to honor opt-out requests

TCPA penalties:

$500-$1,500 per illegal call
Class action lawsuit potential
State attorney general enforcement

Document illegal calls – log date, time, number, and message content for potential claims.

Electronic Fund Transfer Act (EFTA)

EFTA protects automatic payments for solar loans:

Your rights:

Stop payment on pre-authorized transfers
Error resolution procedures
Limited liability for unauthorized transfers
Written receipts for electronic transfers

State Consumer Protection Laws

State Consumer Protection Acts (DTPA/UDAP)

Most states have consumer protection laws prohibiting unfair and deceptive practices:

Common prohibited practices:

False or misleading representations – Lies about savings, incentives, or terms
Failure to disclose material facts – Hiding important information
Unconscionable practices – Grossly unfair terms or conduct
Breach of warranty – Failing to honor guarantees

DTPA/UDAP remedies typically include:

Actual damages (money lost)
Attorney fees (often recoverable)
Court costs
In some states: treble damages (3x actual damages)
In some states: minimum statutory damages ($500-$5,000)

Time limits:

Usually 2-4 years from violation
May extend if fraud concealed
Varies by state

State Contractor Protection Laws

Licensed solar contractors must comply with:

Licensing requirements:

Valid contractor license for your state
Proper classification (electrical, solar, general)
Insurance and bonding requirements
Continuing education requirements

Your rights:

Verify license status online
File complaints with licensing board
Recover from contractor bond
Report unlicensed activity

Many states offer additional protections:

Recovery funds for victims of licensed contractors
Expedited complaint handling
Automatic license suspension for fraud

State-Specific Enhanced Protections

Some states have stronger consumer protections:

California:

Solar Consumer Protection Guide required
Strong DTPA with 3x damages for willful violations
Enhanced elderly protections (over 65)

South Carolina:

Unfair Trade Practices Act with treble damages for willful violations
Enhanced protections for elderly consumers (65+)
Home solicitation sales protections

Florida:

Strong consumer protection statutes
Hurricane and storm-related solar protections
Cooling-off period for home solicitation sales

New York:

General Business Law Article 22-A
$500 minimum statutory damages
Enhanced protections for seniors

Contract Rights and Remedies

Breach of Contract Claims

When solar companies breach agreements:

Material breaches:

Failure to install system
Installation of different equipment
Abandoning project after payment
Failing to meet performance guarantees
Refusing to honor warranty

Your remedies:

Damages: Cost to repair or complete
Rescission: Cancel contract, get refund
Specific performance: Force completion
Consequential damages: Secondary losses

Contract Rescission Rights

Grounds for rescinding solar contracts:

Fraudulent inducement:

Misrepresentation of material facts
False promises about savings
Hidden terms or costs
Misrepresentation of government programs

Mutual mistake:

Both parties mistaken about material fact
Unworkable site conditions
Misunderstanding of scope

Unconscionability:

Grossly unfair terms
No meaningful choice
Oppressive provisions

Rescission effect:

Both parties restored to pre-contract position
Refund of payments
Return of any benefits received
As if contract never existed

Warranty Rights

Solar companies must honor warranties:

Types of warranties:

Manufacturer warranties – Equipment defects
Workmanship warranties – Installation quality
Performance warranties – Energy production
Roof penetration warranties – Leak protection

Warranty claim process:

Notify company of defect
Provide documentation
Allow reasonable inspection
Demand repair or replacement

If warranty denied:

Document the denial
Get second opinion
File consumer protection complaint
Consider legal action

Property and Lien Rights

UCC-1 Financing Statement Rights

Understanding solar financing liens:

What UCC-1 filings mean:

Lender has security interest in solar equipment
Filed with Secretary of State
Not a mortgage on your home
Can complicate refinancing or sale

Your rights:

Must be authorized in contract
Must be filed properly
Must be released upon payoff
Can be disputed if improper

Mechanic's Lien Rights

Contractors may file liens for unpaid work:

Requirements for valid lien:

Work actually performed
Proper notice given
Filed within statutory deadline
Amount claimed is accurate

Challenging invalid liens:

Bond around the lien
File lien foreclosure lawsuit
Negotiate release
Seek damages for wrongful lien

Property Transfer Rights

Your rights when selling home with solar:

Lease/PPA transfers:

Buyer's credit approval often required
Transfer fees may apply
Remaining payments buyer's responsibility
Some buyers refuse to assume

Loan payoff:

UCC-1 lien must be released
Lender must provide payoff statement
Escrow can handle payment
Verify release filed

Remedies and Damages

Types of Available Damages

Actual damages (compensatory):

Money paid to solar company
Repair costs
Lost energy savings
Property damage
Attorney fees (sometimes)

Consequential damages:

Damage to roof or home
Increased utility costs
Relocation costs during repairs
Mental anguish (limited in contract cases)

Punitive damages:

For willful misconduct
Gross negligence
Fraudulent intent
Statutory caps may apply

Statutory damages:

Set amounts in consumer protection laws
Often $500-$5,000
May not require proving actual damages
Attorney fees may be added

Attorney Fee Provisions

Many consumer laws allow fee recovery:

When attorney fees are recoverable:

State consumer protection act violations (many states)
Promissory note terms
Contractual provisions
Successful defense of frivolous claims

Why this matters:

Attorneys take cases they might otherwise decline
Shifts cost of enforcement to violators
Encourages compliance

Enforcement and Complaint Procedures

Administrative Complaints

File complaints with:

State Attorney General:

Consumer protection division
Pattern of practice investigations
Restitution programs

State Licensing Boards:

Contractor violations
License suspension/revocation
Recovery fund claims

Better Business Bureau:

Mediation services
Public complaint record
Company rating impact

Federal Trade Commission:

reportfraud.ftc.gov
Pattern analysis
Potential enforcement

Small Claims Court

For smaller disputes ($3,000-$10,000 typical limits):

Advantages:

No attorney required
Faster than regular court
Lower costs
Informal procedures

Process:

File complaint with court clerk
Pay filing fee ($50-$300)
Serve defendant
Present evidence at hearing
Obtain judgment
Collect (garnishment, liens)

Civil Litigation

For larger disputes or complex cases:

When to litigate:

Losses exceed $10,000
Complex legal issues
Precedent-setting importance
Defendant has assets

Process:

Hire attorney (often contingency)
File complaint
Discovery (evidence exchange)
Settlement negotiations
Trial (if no settlement)
Appeal (if necessary)

Timeline:

Settlement: 3-12 months
Trial: 1-3 years
Appeal: +1-2 years

Protecting and Exercising Your Rights

Documentation Best Practices

Preserve all evidence:

Keep all contracts and amendments
Save all emails and texts
Record phone calls (if legal in your state)
Take photos of installation/problems
Log all interactions
Save marketing materials

Timeline Considerations

Act promptly:

Cooling-off periods: 3 days
TILA rescission: 3 days
Credit card disputes: 60 days
Contract claims: 4-6 years typically
State consumer protection claims: 2-4 years typically

Don't delay – waiting can forfeit rights.

Getting Legal Help

When to consult an attorney:

Losses exceed $5,000
Complex contract issues
Multiple violations
Company unresponsive
Criminal conduct suspected

Types of attorneys:

Consumer protection attorneys
Contract litigation attorneys
Construction defect attorneys
Class action attorneys

State-Specific Rights Guides

For detailed information on your state's specific laws:

Related Resources

Believe your rights have been violated? Our consumer research team can help you understand your options and point you toward appropriate resources. We don't provide legal advice, but we can share research and information.

Got scammed? Get help from our team

This article is for informational purposes only and does not constitute legal advice. Laws vary by state and situation. Consult with a qualified attorney for advice about your specific circumstances.