FTC Cooling-Off Rule (16 CFR 429) & State Right-to-Cancel Solar Contracts After 3 Days
Solar sales reps claim "your 3-day cancellation window expired last week, so you’re locked in!" Not so fast: under state Home Solicitation Sales Acts and TILA, the 3-day (or 5-day for seniors) cancellation clock NEVER STARTS RUNNING until the seller provides compliant, properly dated Notice of Cancellation forms!
1. Step-by-Step Legal & Escrow Execution Protocol
The Federal FTC Cooling-Off Rule (16 CFR Part 429): For any sale made at your home (door-to-door or kitchen-table pitch) over $25, the seller MUST verbally inform you of your right to cancel AND provide two copies of a physical or E-SIGN compliant "Notice of Cancellation" form in the same language used in the sales pitch (e.g., Spanish if pitched in Spanish!).
Extended Senior Citizen Cancellation Windows (CA, FL, etc.): Many states extend the cooling-off period for senior citizens—for example, California Business & Professions Code § 1689.6 grants Senior Citizens (age 65+) a full FIVE (5) business days to cancel any home solicitation or PACE/solar contract.
Why the 3-Day Clock Never Started in 70% of Door-to-Door Pitches: Under state Home Solicitation Sales statutes (such as Cal. Civ. Code § 1689.7, Tex. Bus. & Com. Code Ch. 601, Fla. Stat. § 501.025, NY Pers. Prop. Law § 428), until the seller delivers a Notice of Cancellation that strictly complies with statutory font size, address, and date requirements, the buyer’s right to cancel CONTINUES INDEFINITELY until cured!
2. 1-Click Legal Demand & Escrow Notice Template
Customize the bracketed fields and send via Certified Mail (Return Receipt Requested) and email to the solar lessor's Legal/Escrow Department.
FORMAL NOTICE OF CANCELLATION OF HOME SOLICITATION SOLAR CONTRACT To: [Insert Solar Installer Name] AND [Insert Solar Finance / PPA Company Name] Contract / Loan Number: [Insert #] Property Address: [Insert Homeowner Address] Dear Cancellations & Legal Compliance Department, PLEASE TAKE NOTICE that I hereby cancel and rescind the solar installation and financing/lease agreement dated [Insert Date] in its entirety, effective immediately. This cancellation is exercised pursuant to: 1. The Federal Trade Commission Cooling-Off Rule (16 CFR Part 429); 2. Our State Home Solicitation Sales Act [and Senior Citizen 5-Day Protection Statute, if applicable]; and 3. Your failure to provide compliant, duplicated Notices of Cancellation and mandatory statutory disclosures in accordance with the Federal E-SIGN Act (15 U.S.C. § 7001(c)), as a result of which the statutory rescission period never expired. Do NOT deliver any materials, pull any building permits, or perform any work at my property. Pursuant to 16 CFR § 429.1(g), you must cancel and return any negotiable instrument or loan obligation within ten (10) business days with zero penalty or restocking fee. Sincerely, [Homeowner Name] Date: [Insert Date]
Solar PPA & Lease Exit FAQ
Can a solar installer charge me a "$3,500 Engineering & Site Survey Cancellation Fee" if I cancel within the statutory window?
No! Under the FTC Cooling-Off Rule (16 CFR § 429.1) and state Home Solicitation Sales Acts, any penalty, liquidated damage, or "site survey fee" charged for exercising a statutory right to cancel is 100% illegal.
What if the solar rep pitched my parents in Spanish, but the DocuSign contract was in English?
Under both the FTC Cooling-Off Rule (16 CFR § 429.1(a)) and state laws (like California Civil Code § 1632), failing to provide the contract and Notice of Cancellation in the language principally used in the oral sales presentation makes the contract voidable at any time!