How to Cancel a Sunrun Contract Before Installation

Have you signed a contract with Sunrun to install solar panels on your home but are now having second thoughts? You’re not alone. Many homeowners face unexpected life changes or find better solar deals after signing a Sunrun agreement. The good news is that canceling a Sunrun solar contract is possible if done correctly. But how exactly do you break a contract with one of the nation’s largest solar providers?

In this comprehensive guide, you’ll learn everything you need to know about canceling a Sunrun solar contract before your system is installed. We’ll walk through the reasons for cancellation, the step-by-step cancellation process, potential fees, documentation tips, and much more. 

How to Cancel a Sunrun Contract Before Solar Installation?

If you need to cancel your Sunrun solar contract before the installation, follow this detailed process:

Step 1: Carefully Review Your Entire Contract

The first critical step is to thoroughly read your entire Sunrun solar contract, word for word. Key items to review include:

  • Cancellation policy: Understand your rights and timing to cancel. There is often a short window after signing where you can exit the contract without penalty.
  • Cancellation fees: Check for any defined fees you’ll incur for canceling the agreement after the initial cancellation period. These vary but can be substantial.
  • Deposit refunds: Determine if your upfront payment is refundable and under what conditions. Many contracts forfeit deposits if you cancel.
  • Notification process: Look for how you must formally notify Sunrun of the cancellation – phone, email, writing, etc.

Your contract will outline the solar provider’s policies, procedures, and your obligations for cancellation. Familiarize yourself with these before proceeding.

Step 2: Immediately Notify Sunrun of Contract Cancellation

Once you decide to cancel, immediately contact Sunrun by phone and in writing:

  • Call Sunrun customer service at 1-855-478-6786 to explain you are canceling under the terms of your contract. Be ready to provide your full name, address, account number, and reason for cancellation.
  • Email customercare@sunrun.com with your account details and a brief explanation. Retain the emailed notice for your records.
  • Send a letter through registered mail restating your intent to cancel the solar agreement.

Sunrun may try persuading you not to cancel, so be firm in stating your decision. Document every communication for evidence you acted properly. Acting quickly also minimizes any installation costs Sunrun may try charging you.

Step 3: Talk to Your Solar Consultant

If you worked with a specific Sunrun solar consultant for your contract, also reach out to them directly about your cancellation.

Explain why you need to cancel the agreement and get their expert perspective. They may suggest alternative solutions that still meet your needs, like a contract transfer. If not, ensure they understand your cancellation wishes so the message reaches the proper channels.

Step 4: Understand Financial Implications of Cancellation

Canceling a signed solar contract will likely involve financial consequences spelled out in the agreement – be prepared for these:

  • You will forfeit any deposit paid if within the contract’s cancellation period. If beyond that period, additional fees may apply.
  • Be ready to pay any specified cancellation fees, which can range from hundreds to thousands of dollars depending on timing.
  • You no longer qualify for cost savings like bill credits or the federal tax credit since Sunrun will not be installing the system.
  • If you got a solar loan, you’ll still need to pay the remaining balance per your loan’s terms.

While disappointing, accepting these cancellation costs may still be the best path forward for many homeowners. Just be sure you can shoulder the impact before moving forward.

Step 5: Get the Cancellation in Writing from Sunrun

Once you’ve submitted your cancellation request to Sunrun by phone and writing, wait for official written confirmation the contract has been terminated:

  • Specifically request written confirmation of the cancellation from Sunrun.
  • If you don’t receive confirmation within a week, follow up again in writing seeking verification.
  • Maintain a copy of the written cancellation notice from Sunrun for your personal records. This protects you if any disputes arise down the road.

Step 6: Consult Legal Counsel If Needed

If Sunrun pushes back on your cancellation request or disputes arise, engage legal counsel to advise you. An attorney can provide guidance on the best path forward to exit the contract smoothly. They can also represent you in the process if needed. Don’t hesitate to involve legal counsel if things get contentious.

Why Do Homeowners Cancel Solar Contracts Before Installation?

There are many valid reasons a homeowner may need to cancel their Sunrun solar agreement prior to installation:

  • Moving to a new home: If you’re selling your house, you likely don’t want to be stuck with solar lease payments on a home you no longer own.
  • Found a better solar deal: After signing with Sunrun, you may have received better offers from other installers.
  • Financial changes: If your financial situation has changed, the 20-year payment commitment may now be unaffordable.
  • Contract concerns: Upon further review, the contract terms may not be favorable.
  • Roof issues: Structural issues or needed roof repairs may prevent installation.
  • Bad reviews: Negative customer reviews about the installer’s service quality may cause second thoughts.

No matter the reason, canceling a signed solar contract is possible if done properly. The keys are acting promptly, following protocol, and documenting everything in writing.

How Do Solar Leasing Contracts Work?

Before diving into cancellation details, let’s review how Sunrun’s solar lease contracts work:

  • Sunrun offers both solar lease agreements and power purchase agreements (PPAs). They allow $0 down installation of solar panels on your roof.
  • With a solar lease, you pay a fixed monthly rate for the equipment. With a PPA, you pay for the system’s electricity generation only.
  • Contract lengths are typically 20-25 years – much longer commitment than a system purchase.
  • The monthly payment often has an annual escalator clause to increase the rate by a set percentage each year.
  • At the end of the initial term, you can renew the contract or have the panels removed. Either party can terminate as outlined in the agreement.
  • Leased systems must stay with the home if you sell it. The new owner can transfer the contract and take over payments.

Understanding these key aspects will help you make informed decisions if seeking contract cancellation. Now let’s get into the step-by-step process for proper cancellation.

Conclusion

Cancelling a solar contract before installation with industry leader Sunrun is a major decision with considerable implications. However, by following the recommendations in this guide, you can exit your agreement smoothly and find a solar solution better suited to your changing needs. Just be sure to act promptly, document everything, and work positively with Sunrun to finalize the cancellation.

Frequently Asked Questions

Below are answers to some of the most common questions homeowners have about canceling a Sunrun solar contract pre-installation:

  • How Soon After Signing Can I Cancel My Sunrun Contract? Most Sunrun contracts allow penalty-free cancellation within 3 business days of signing. Some contracts may allow up to 30 days. Check your specific agreement for details.
  • What Are the Fees for Canceling a Sunrun Contract Early? Beyond the initial cancellation period, you may need to pay the contract’s specified cancellation fees. These can range from a few hundred dollars to over $2,000. Your solar consultant can clarify the exact amounts for your situation. Just be sure to get fee details in writing.
  • Can I Transfer My Sunrun Contract to the New Home Buyer? Yes – transferring your solar lease to the buyer is often a good solution if you’re selling your home. Sunrun will need to approve the new owner. Make sure the buyer understands the full terms of the contract they’re inheriting.
  • What If Sunrun Refuses to Let Me Out of the Contract? First escalate your request within Sunrun’s management chain in writing to exert added pressure. If you still face resistance, engage legal counsel to represent you in the process. They can deploy the necessary resources to get the contract terminated.
  • How Does Cancelling a Sunrun Contract Early Impact My Credit? Canceling prior to installation typically does not negatively impact your credit score, since no solar equipment was ultimately provided. But confirm this with Sunrun. Ensure you have written documentation of the cancellation to protect your credit record.

Leave a Comment