How to Cancel a Sunrun Contract: Beginner’s Guide

Quick Answer: A homeowner can cancel a Sunrun contract at no cost by sending written notice before midnight of the third business day after signing, when a salesperson sold the agreement at the home. After that window closes, the exit path depends on the agreement type: a buyout, a service transfer to a home buyer, or a dispute based on the contract’s terms and how it was sold.

Can You Cancel a Sunrun Contract?

Yes, but the method depends on timing and on which agreement the homeowner signed. A homeowner can cancel a Sunrun contract for free during the federal right of rescission, which lasts three business days. After that, the agreement usually stays in force until it ends, is bought out, or is transferred to a new owner.

A Sunrun solar lease is an agreement in which Sunrun owns the panels, and the homeowner pays a monthly fee to use them. A Sunrun PPA (power purchase agreement) is similar, except the homeowner pays for the electricity the system produces. Both are long-term commitments, which is why cancellation after installation works very differently from cancellation the week after signing.

What Type of Agreement Do You Have?

The agreement type decides who holds the obligation and which exit paths exist. Check the first pages of the contract for the words “lease,” “power purchase,” “loan,” or “purchase.”

Sunrun’s FAQ says a customer who started on a lease or PPA can switch to a purchase, with timing rules that depend on where the customer is in the process.

How Does the Three-Day Cancellation Window Work?

The FTC Cooling-Off Rule gives buyers three business days to cancel qualifying sales made at their home. The seller must give the buyer a Notice of Cancellation, and a timely cancellation returns the buyer’s payments and cancels any security interest arising from the transaction. The full text sits in the federal regulations at 16 CFR Part 429. 

Three details decide whether a homeowner can use this right:

• Where the sale happened: The rule covers sales, leases, and rentals of $25 or more made away from the seller’s normal place of business, but not sales made entirely online, by mail, or by phone. A salesperson who presented the agreement at the kitchen table triggers the rule. An agreement signed remotely after an online quote may not.
• How business days are counted: Saturdays count as business days. Sundays and federal holidays do not. A homeowner who signs on a Friday generally has until midnight on the following Tuesday, unless a holiday intervenes.
• What the seller had to provide: The seller must hand over two copies of the cancellation form and explain the right to cancel. When the seller skips this notice, some state laws extend the cancellation period. Consumer groups told the FTC during its rule review that many state statutes include this continuing right, so homeowners should check their own state’s home solicitation law.

The Sunrun cooling-off period ends at midnight of the third business day. Homeowners who financed through a lender should also notify that lender in writing, since the financing may be tied to the sale.

How Do You Cancel a Sunrun Contract Within the Window?

The homeowner cancels by delivering a signed, dated written notice before the deadline. Phone calls alone do not protect the right.

1. Find the signing date and the cancellation form: The Notice of Cancellation should come with the contract packet. The contract also lists the address where Sunrun accepts notice.
2. Sign and date the form: If the form is missing, write a short letter stating the homeowner’s name, service address, contract number, signing date, and intent to cancel.
3. Send it by certified mail with return receipt: Mail it to the address in the contract, early enough that the notice goes out before midnight of the third business day.
4. Send copies by email and call as a backup: Sunrun’s published terms list 855-478-6786 for account requests, but the call supplements the written notice and does not replace it.
5. Track the refund: The rule requires the seller to return payments and cancel security interests within ten business days after receiving the notice. ecfrsvg

A homeowner who rescinds under the rule is not required to pay for work performed during the cooling-off period, except in emergency repair situations that follow separate requirements.

What Are Your Options After the Window Closes?

After the rescission window, the Sunrun cancellation policy is set by the contract itself, and long-term agreements do not come with a standard “cancel” button. Homeowners typically choose among four paths.

A homeowner who is selling should compare transfer and buyout first, because each interacts with the closing timeline.

How Does a Sunrun Service Transfer Work When You Sell Your Home?

The transfer moves the agreement to the home buyer, who then takes over the payments and responsibilities. Sunrun’s process has the seller gather contact details for the buyer and the escrow company, then all parties sign the transfer agreement through DocuSign while the buyer completes a soft credit check. Sunrun’s own moving guide describes each step. 

Timing matters more than most sellers expect. The homeowner should start the transfer before listing the property, because buyers and their lenders often want to review the transferred terms during escrow. A buyer who assumes the agreement typically inherits the escalator clause, which raises the monthly rate on a set schedule, so the seller should share the actual payment history.

If the buyer does not want the agreement, the fallback is prepayment. Sunrun says a seller can prepay the remainder of the service and bundle that cost into the home’s price. A title company may also flag a UCC-1 fixture filing, which is a public record that lists the solar provider’s interest in equipment attached to the property. Ask the title company to confirm whether one exists. 

What Does a Sunrun Buyout Involve?

A buyout means the homeowner pays Sunrun to end the payment stream and take ownership of the system. The price comes from the contract’s purchase option or a quote from Sunrun, so the homeowner should request the number in writing rather than accept a verbal estimate.

At the end of a lease, the choices are simpler. Sunrun states that the homeowner can buy the system at fair market value, renew annually, or have Sunrun remove it. Those options appear on the Sunrun FAQ. 

Before agreeing to a buyout, compare four numbers:

• The buyout quote from Sunrun
• The total remaining payments, including escalator increases
• The expected electricity savings after ownership begins
• Any Sunrun early termination charge the contract may apply outside an approved buyout or transfer

A homeowner who lacks the cash can ask a lender about a home equity loan or refinance. That decision belongs with a financial professional, since interest and fees change the math.

Can You Cancel a Sunrun Contract After Installation for Misrepresentation?

Some homeowners can cancel a Sunrun contract after installation when the facts show a legal problem, but the outcome is never guaranteed. Grounds that homeowners commonly raise include savings projections that differed from what the contract said, missing or altered disclosures, and cancellation forms that were never provided.

A strong file makes any of these arguments possible to evaluate. Gather the following:

• The full signed contract, every addendum, and any financing paperwork
• Electricity bills from before and after installation
• Screenshots, emails, or notes showing what the salesperson promised
• Records of complaints and every response from Sunrun

A state attorney general or consumer protection office can accept complaints, and a consumer protection attorney can assess whether the facts support a claim. An independent solar agreement review can also help a homeowner organize the paperwork before choosing a path.

What Mistakes Should Homeowners Avoid?

A homeowner trying to cancel a Sunrun contract should avoid three mistakes. Each one is preventable with early action.

• Missing the deadline: The window closes at midnight on the third business day, so the notice should go out on day one.
• Relying on a phone call: A verbal request leaves no proof. Homeowners should also never stop paying without a written resolution. Sunrun’s terms say the company may suspend access to its online service and pursue other remedies if it does not receive payment.
• Skipping the contract: The cancellation clause, the notice address, and the Sunrun contract termination terms control every option. A summary from a salesperson does not.

What Should Homeowners Do First?

Start with the contract, then the calendar. The homeowner should identify the agreement type, the signing date, and where the sale happened. Those three facts show whether a free cancellation is still possible or whether a buyout, transfer, or dispute is the realistic route.

The safest sequence to cancel Sunrun solar contract obligations is short: send written notice if the window is open, request written quotes if it is closed, and keep every record.

Get Your Sunrun Agreement Reviewed

Every homeowner who wants to cancel a Sunrun contract faces the same problem: the answer sits inside the contract, and the contract is long. Solar Exit Plan helps homeowners understand and review problematic solar agreements and explore potential resolution options.

We have reviewed 2,000+ solar contracts, successfully resolved 91% of eligible cases, and averaged a 42-day resolution timeline. Results depend on each agreement, and Solar Exit Plan cannot promise that every homeowner can exit. A review shows which of the paths above fit the actual paperwork, so the homeowner can decide the next step with facts instead of guesses.

Frequently Asked Questions

Can I cancel a Sunrun contract before the solar panels are installed?

Yes. If you are still within an applicable cancellation or rescission period, you may be able to cancel without penalty. After that period, your options depend on the contract terms and how far the installation process has progressed.

Does Sunrun charge a fee for early contract termination?

A Sunrun early termination cost depends on the type of agreement and its specific terms. Some contracts may provide a buyout, prepayment, transfer, or other termination option rather than a standard fixed cancellation fee.

What happens to a Sunrun contract if I sell my house?

A Sunrun lease or PPA can often be transferred to the buyer if the buyer meets the required conditions. Homeowners may also have options such as prepaying the remaining agreement or purchasing the solar system, depending on their contract.

Can Sunrun remove the solar panels if I cancel the contract?

Panel removal depends on the agreement and when cancellation occurs. A cancellation before installation is different from ending a long-term agreement after the system is operating. Homeowners should review the removal, termination, and end-of-term provisions in their contract before making a decision.