Terminating a Broken Solar Lease or PPA for Material Breach & Failure of Consideration
Your leased solar inverter has been blinking red (dead) for 8 months, your electric utility bill is $450/month, AND the solar company is still auto-drafting $195/month for a broken system! Here is how to serve a 30-Day Cure or Terminate Notice for Material Breach.
1. Step-by-Step Legal & Escrow Execution Protocol
Why Solar Companies Ignore Service Tickets While Auto-Pay Is Turned On: As long as your ACH auto-pay keeps sending them $200 every month, a dead inverter is your problem, not theirs. Meanwhile, their "Production Guarantee True-Up" only pays out once every 12 to 24 months at a low kWh rate that doesn’t cover your utility Peak charges!
Step 1 — Document 100% of Zero-Generation Days: Screenshot your inverter app (Enphase, SolarEdge, Tesla, Sunrun) and download 6 months of electric utility bills showing 0 kWh exported to the grid.
Step 2 — Serve a Formal 30-Day "Notice of Default, Material Breach & Demand for Assurance of Performance" (UCC § 2A-401): Notify the lessor via Certified Mail that failing to maintain the leased equipment in operable condition constitutes a Material Breach and Failure of Consideration, and demand full repair within 30 days or mutual termination and system removal.
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.
NOTICE OF LESSOR DEFAULT, MATERIAL BREACH & 30-DAY DEMAND TO CURE OR TERMINATE To: Legal Department & Asset Operations Lessor: [Insert Solar Lease / PPA Company] Account Number: [Insert Account #] | Service Tickets: #[Insert Ticket Numbers] Property Address: [Insert Homeowner Address] Dear Legal Department, PLEASE TAKE FORMAL NOTICE that [Insert Lessor Name] is in Material Breach and Default of its maintenance, repair, and operational obligations under our Solar Lease / Power Purchase Agreement. Specifically, the solar photovoltaic system at my property has been inoperable since [Insert Date Failure Started — e.g., 6 months ago] due to a failed [inverter / roof component]. Despite opening Service Tickets #[Insert #] on [Insert Dates], you have failed to repair the system for over [Insert Number] days while continuing to draft $[Insert Monthly Payment]/month from my bank account—forcing me to pay both your lease payment AND full retail utility bills of $[Insert Utility Bill]/month. Pursuant to Uniform Commercial Code § 2A-401 and general contract law governing Failure of Consideration, DEMAND IS HEREBY MADE that within thirty (30) calendar days of receipt of this notice you either: 1. Dispatch a licensed electrician to restore the system to 100% operational capacity AND refund all monthly lease payments collected during the period of non-operation ($[Insert Refund Amount]) plus utility overage damages; OR 2. Execute a full Mutual Termination & Release of the Agreement, file a UCC-3 Termination Statement, and schedule removal of your inoperable equipment at your sole expense. Please be advised that I have revoked ACH Auto-Pay authorization pending cure of your default, and payments will be held in a disputed escrow account until the system is restored. Sincerely, [Homeowner Name]
Solar PPA & Lease Exit FAQ
Can I revoke ACH Auto-Pay when my leased solar system has been broken for months?
Yes, under federal Regulation E (12 CFR § 1005.10), you have an absolute legal right to revoke ACH preauthorized electronic fund transfers by notifying your bank and the biller. To protect your credit score while disputing a dead system, send a Certified Notice of Lessor Default and offer to place disputed payments into escrow until repaired.
What if my Production Guarantee only reimburses 12¢/kWh when my utility charges 48¢/kWh?
While the contract attempts to limit remedies to the Production Guarantee rate for minor weather shortfalls, complete refusal to repair a dead inverter for 6–12+ months is an independent breach of the express maintenance covenant.