At a Glance: To cancel a solar contract in Texas, start with the signing date. Agreements signed on or after September 1, 2025, can be canceled without penalty by written notice within five business days. Older home sales usually carry a three-day cancellation right. After that, contract terms, sales conduct, and Texas consumer law shape the options.
Texas homeowners have stronger protections today than they did a few years ago. Senate Bill 1036 created the Residential Solar Retailer Regulatory Act, now Chapter 1806 of the Texas Occupations Code. The best way to exit a solar agreement in Texas depends heavily on when the homeowner signed.
The sections below cover the cancellation windows, the exact steps, and the paths that remain once a deadline passes. They also explain which documents matter and where Texas homeowners can file complaints.
What Does Texas Law Say About Canceling a Solar Contract?
Texas law gives most homeowners a short, penalty-free window to cancel a residential solar agreement. The length of that window depends on the contract date and how the system was sold.
Contracts Signed on or After September 1, 2025
Section 1806.156 of the Occupations Code lets a buyer or lessee cancel without penalty or further obligation. The homeowner must give written notice on or before the fifth business day after signing. Under this law, business days exclude Saturdays, Sundays, and legal holidays.
The agreement must list the last calendar date of the Texas solar cancellation period. It must also give a mailing or email address for the notice. If that address is missing, the homeowner may send notice by any reasonable method.
Every residential solar retailer must also register with the Texas Department of Licensing and Regulation. Registration and enforcement provisions took effect on September 1, 2026.
Contracts Signed Before September 1, 2025
Chapter 1806 does not reach older agreements. Those contracts follow the law in effect on the day they were signed. For door-to-door sales, Chapter 601 of the Texas Business and Commerce Code generally allows cancellation within three business days.
The FTC Cooling-Off Rule also gives three days for many sales made at home. One detail trips people up. The federal rule counts Saturday as a business day, while the newer Texas solar law does not.
| Factor | Signed on or after Sept. 1, 2025 | Signed before Sept. 1, 2025 |
| Main law | Occupations Code Chapter 1806 | Business and Commerce Code Chapter 601, FTC Cooling-Off Rule |
| Cancellation window | Five business days after signing | Usually three business days for home sales |
| Saturdays | Not counted | Counted under the FTC rule |
| Affiliated loan | Contract must require the lender to cancel it | Depends on the loan documents |
| Main regulator | TDLR, plus the Office of the Attorney General | Office of the Attorney General |
How Do You Cancel Within the Texas Deadline?
To cancel a solar contract in Texas, send written notice before the deadline and keep proof of delivery. A phone call alone does not create a reliable record.
- Find the signing date: Use the date the homeowner signed, not the installation date or the first payment date.
- Count business days: Skip weekends and legal holidays when counting to the fifth business day.
- Locate the notice address: The agreement should list a mailing or email address for cancellation.
- Write the notice: Include your name, property address, contract date, and a plain statement that you cancel.
- Send it two ways: Email plus certified mail with a return receipt creates a strong delivery record.
- Copy the lender: If the retailer arranged financing, send the same notice to the lender.
- Keep everything: Save copies, receipts, screenshots, and any reply from the solar company.
A solar contract cancellation letter does not need legal language. It needs to be dated, specific, and delivered on time.
What Happens to the Solar Loan When You Cancel?
Chapter 1806 addresses linked financing directly. When the retailer refers or is affiliated with the lender, the agreement must require that lender to cancel the loan. That solar loan cancellation applies when the homeowner cancels within the five-day window.
Financing the homeowner arranged independently may follow separate rules. Knowing whether the deal is a lease, PPA, or loan clarifies who holds the obligation and who must receive notice.
What Are Your Options After the Cancellation Window Closes?
Once the window closes, ending the agreement usually depends on contract terms, seller conduct, or a negotiated deal. Homeowners whose systems are already running often have options after the panels go up, though each path has trade-offs.
Review the Termination, Buyout, and Transfer Clauses
Many solar agreements include termination, buyout, or transfer provisions. A solar lease in Texas may allow a transfer to a new homeowner or an early buyout. Power purchase agreements often include a payment escalator that raises the rate each year.
The buyout clause usually explains how the price is calculated. Some agreements also allow early payoff of a loan without a prepayment penalty. Reading these clauses first prevents surprise costs later.
Check Whether Required Disclosures Were Provided
Texas Business and Commerce Code Chapter 115 requires written disclosures for solar sales, leases, and power purchase agreements. Leases must state whether the lease and warranties transfer to a future buyer. PPAs must disclose the term, the rate, and any payment escalators.
Missing or inaccurate disclosures can strengthen a homeowner’s position during negotiation. They also matter in a formal complaint or dispute.
Can Deceptive Sales Practices Help You Cancel?
Deceptive sales practices can open additional paths in Texas, especially for newer contracts. Chapter 1806 bans false, misleading, or deceptive statements during residential solar retail.
The law also bans falsely implying an affiliation with a utility or government agency. Salespeople may not ignore posted no-soliciting signs unless an occupant invites them in. These patterns often match common solar scams reported in other states.
What TDLR Can Order
For agreements covered by Chapter 1806, TDLR may order cancellation and a refund after notice and a hearing. The commission must first find a violation. Any refund cannot exceed the amount the homeowner paid under the agreement.
Civil penalties can reach $2,500 per violation. When a violation harms someone over 65, the cap rises to $10,000 per violation.
Using the Texas Deceptive Trade Practices Act
The Texas Deceptive Trade Practices-Consumer Protection Act covers false, misleading, or deceptive business practices. A Texas DTPA solar claim generally requires written notice at least 60 days before filing suit. The notice describes the specific complaint and the damages claimed.
Filing a lawsuit usually comes after negotiation and complaints fail. A Texas consumer attorney can explain deadlines that apply to each claim.
What Documents Should You Gather Before Taking Action?
A strong document file makes every option easier, from a cancellation notice to a regulatory complaint. Gather these items before contacting the solar company.
- Signed agreement: Include every page, addendum, and change order.
- Disclosure statements: Look for the Chapter 115 disclosures and any TDLR-required forms.
- Loan paperwork: Keep the promissory note and the Truth in Lending Act disclosure.
- Sales materials: Save proposals, savings estimates, texts, and emails from the salesperson.
- Registration numbers: Newer agreements must list the retailer’s and salesperson’s TDLR registration numbers.
- Installation records: Collect permits, the electrical contractor’s license number, and the interconnection approval.
- Utility bills: Compare bills from before and after installation.
- County records: Check for a UCC-1 fixture filing on the property with the county clerk.
What Mistakes Make Canceling Harder?
Small procedural errors can turn a simple cancellation into a long dispute. These mistakes come up often with Texas homeowners.
- Counting calendar days: The Texas solar law counts business days only, so weekends do not shorten the window.
- Canceling by phone only: A verbal request leaves no proof that notice arrived on time.
- Stopping payments abruptly: Missed payments can trigger late fees, default notices, and credit reporting.
- Ignoring the lender: The solar company and the lender may be separate parties with separate records.
- Signing new paperwork: A revised contract or completion certificate may restart or waive certain rights.
Where Can Texas Homeowners File a Solar Complaint?
Texas homeowners can file a complaint with more than one agency, depending on the contract date and the issue. A TDLR solar complaint fits agreements covered by Chapter 1806.
- TDLR: Handles registration and conduct issues involving solar retailers and salespeople.
- Office of the Attorney General: The Consumer Protection Division accepts complaints about deceptive business practices.
- Consumer Financial Protection Bureau: Accepts complaints about solar loans and lender conduct.
- Better Business Bureau: Creates a public record and sometimes prompts a company response.
A complaint does not replace a cancellation notice. Homeowners still inside the window should send written notice first.
Why Timing Shapes Every Texas Solar Decision
Texas now splits homeowners into two tracks based on one date.
If you signed after September 1, 2025, a five-business-day right and TDLR oversight work in your favor. If you signed earlier, the path to cancel a solar contract in Texas looks different. It runs through older home solicitation rules, disclosures, and your contract’s own clauses.
At Solar Exit Plan, we help Texas homeowners figure out which track they are on before they act. Our team reads your agreement, checks the disclosures and registration details, and maps the termination, buyout, and transfer terms.
We then walk you through the realistic choices for your situation. Every agreement reads differently, so outcomes depend on its terms and your facts. A solar agreement review is a practical first step if your deadline is close or already behind you.
Frequently Asked Questions
Can I cancel a solar contract in Texas after five business days?
Possibly, but the penalty-free statutory right usually ends after five business days. After that, options depend on termination clauses, missing disclosures, deceptive sales conduct, or a negotiated buyout. Older contracts follow the rules in effect when they were signed.
Does Texas have a cooling-off period for solar panels?
Yes. Texas gives five business days for solar agreements signed on or after September 1, 2025. Many older home sales carry a three-day right under Chapter 601 and the FTC Cooling-Off Rule.
Do I owe anything if I cancel within the five-day window?
No penalty or further obligation applies under Chapter 1806 when written notice arrives on time. If the retailer arranged financing through an affiliated lender, the contract must require that lender to cancel the loan.
Can I get out of a solar lease if I sell my Texas home?
Usually the lease is transferred to the buyer or paid off through a buyout. Chapter 115 requires leases to disclose whether the lease and warranties can transfer. The buyer’s lender and title company often review those terms.
Does a solar company need a license to sell in Texas?
Yes. Since September 1, 2026, solar retailers and salespeople must register with TDLR. Newer agreements must list both registration numbers, and homeowners can request them from the seller.