More and more homeowners are opting for alternative energy options to save money and help contribute to a healthier environment, solar power being one of the most viable and publicized options. However, not all solar contracts are created equal, and some companies engage in unscrupulous practices.
If you find yourself dissatisfied with a solar contract or suspect you’re stuck in a questionable agreement or even caught up in a solar scam, it’s important to understand your options and consumer rights.
So, can you cancel a solar panel contract after installation? Or are homeowners powerless to defend themselves against these bad solar companies? Let’s cover some of the details.
Unscrupulous Practices and Solar Panel Contracts
While the majority of solar panel companies operate ethically and provide reliable services, it is important to acknowledge that there are instances where unscrupulous practices occur. No matter the market sector, there’s always someone willing to bend the rules/laws for their own gain, and solar is no exception.
Some of the common issues homeowners face include:
- Misleading Sales Tactics: Some solar companies may use high-pressure sales tactics, misrepresent the benefits of solar panels, or provide false promises to persuade homeowners to sign contracts. Sales representatives may show up on your doorstep and get your digital signature on a tablet before the homeowner realizes what they’re committing to. There are also a shocking number of outright forgeries, where they just signed your name without your knowledge or consent.
- Hidden Fees and Escalating Costs: Hidden fees, such as maintenance charges or monitoring fees, which were not fully disclosed during the contract signing process, may be charged to the consumer. Additionally, they may raise the declared system’s cost after installation, resulting in unexpected financial burdens for homeowners.
- Poor System Performance or Installation: Homeowners may experience subpar system performance or improper installation, leading to underwhelming energy production or system malfunctions, diminishing the expected benefits of solar panels. In the worst cases, the system may be installed so haphazardly that it creates structural issues with the roof and home.
Canceling a Solar Panel Contract – Is It Possible?
Whether or not you can cancel a solar panel contract after installation depends on the terms and conditions outlined in the contract itself, whether the company has breached any of these terms, and whether they have complied with federal, state, and local laws. It is crucial to carefully review the contract and seek legal advice, particularly from a solar attorney, who can provide guidance tailored to your situation.
Some options to consider include:
- Cooling-Off Period: Many states have cooling-off periods during which consumers can cancel contracts within a specified timeframe after signing. For example, Maryland observers the 3-day right of rescission for door-to-door sales contracts.
- Contract Termination Clause: Review the contract for any termination clauses that may allow cancellation. However, be aware that termination clauses may include penalties or fees.
- Breach of Contract: If the solar company has failed to fulfill its obligations as outlined in the contract, such as poor installation or misleading information, you may have grounds for a breach of contract claim. Consulting with an experienced solar attorney is the best route to take if you believe a breach of contract has been committed.
- Take Legal Action: Legal action can be necessary for severe contractual breaches or fraudulent practices. A solar attorney can guide you through the process, gather evidence, and advocate for your rights.
While canceling a solar panel contract after installation can be challenging, it is not impossible. If you find yourself caught in a problematic agreement due to unscrupulous practices, don’t feel powerless; help is available.
Companies that take advantage of this burgeoning market should be held accountable. Understand your options and take action to defend yourself and get what you deserve.