How to get out of a solar lease
A solar lease or PPA usually runs about 20 years. Here's what your options are before then, and what to look for in the contract.
Your options are set by the contract, not by law: buy the system out, transfer the contract to the buyer when you sell, move the system if the contract allows, or pay the early termination fee. The FTC warns that, depending on the contract, it may be difficult and expensive to end a lease before the end of the term (FTC).
Find these clauses first
The FTC says the contract should spell out:
- whether there are early termination fees or other charges to end it early;
- whether you can buy the system, renew, or have it removed when the contract ends, and what each costs;
- what you must do to keep the contract in good standing, such as notifying the company if you plan to sell;
- whether monthly payments increase, when and by how much.
If you're selling the house
- Transfer to the buyer. Check whether the contract allows it, whether you must give written notice first, and whether the buyer must pass a credit check or pay fees (FTC).
- Buy out, then sell. An owned system is simpler to sell with than a contract the buyer must take over. See do solar panels increase home value.
- Move the system. Some contracts allow it; ask what it costs.
At the end of the term
For a lease, the FTC says the company must remove the system and put your roof back in its original condition after the contract ends. Many contracts also offer renewal or a purchase; the price should be in the contract.
If there's a problem
Try the company first. If that fails, report it to the FTC at ReportFraud.ftc.gov and to your state attorney general.
How common leases are, by city
Share of home solar systems owned by a third party (lease or PPA) in the utility records I collected:
| City | Years covered | Leased or PPA |
|---|---|---|
| Elizabeth, NJ | 2022–2023 | 56% |
| Toms River, NJ | 2022–2023 | 47% |
| New York, NY | 2022–2024 | 43% |
| Yonkers, NY | 2022–2024 | 38% |
| Chula Vista, CA | 2022–2023 | 31% |
| Fresno, CA | 2022–2023 | 29% |
| Surprise, AZ | 2022–2023 | 29% |
| Clovis, CA | 2022–2023 | 28% |
| Oceanside, CA | 2022–2023 | 26% |
| Bakersfield, CA | 2022–2023 | 24% |
| San Diego, CA | 2022–2023 | 18% |
| San Jose, CA | 2022–2023 | 18% |
| Carlsbad, CA | 2022–2023 | 13% |
| Phoenix, AZ | 2022–2023 | 11% |
| Peoria, AZ | 2022–2023 | 10% |
| Scottsdale, AZ | 2022–2023 | 8% |
| Glendale, AZ | 2022–2023 | 4% |
| Chandler, AZ | 2022–2023 | 4% |
| Gilbert, AZ | 2022–2023 | 2% |
| Tempe, AZ | 2022–2023 | 0% |
| Austin, TX | 2022–2024 | 0% |
LBNL Tracking the Sun. How I count.
Before you sign a new lease
Compare it with buying: solar lease vs buy. With a lease or PPA you don't own the system, so the owner, not you, gets the tax credits and incentives.
Run your own numbers
Enter your ZIP and bill to compare what buying a system would cost and save.
Keep reading
- Disadvantages of solar panels — Nine downsides to weigh before you sign, with numbers from real tariffs.
- Solar lease vs buying — Cash, loan, lease or PPA: who owns the panels, who gets the credits, and what escalators cost.
- Do solar panels increase home value? — What the largest US study found, why it only covers owned systems, and what a lease does to a sale.
Installer records by city: solar companies in Phoenix, solar companies in Tucson, solar companies in San Antonio, solar companies in Austin, solar companies in San Diego, solar companies in Fresno, solar companies in Chandler, solar companies in Scottsdale, solar companies in Gilbert, solar companies in Glendale, solar companies in Tempe, solar companies in Peoria, solar companies in Surprise, solar companies in San Jose, solar companies in Bakersfield, solar companies in Clovis, solar companies in Chula Vista, solar companies in Oceanside, solar companies in Carlsbad, solar companies in Toms River, solar companies in New York, solar companies in Elizabeth, solar companies in Yonkers.
Updated 2026-09-22.