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How to get out of a solar contract or PACE loan (honest options, no false promises)

You signed for solar panels and now regret it — the savings were overstated, the financing was never fully explained, or the payment is crushing your budget. Whether you have a solar lease, an unsecured personal loan, or a PACE lien on your home, your options are different and the stakes are not equal. This page explains each path honestly.

By Dana Whitfield — Personal finance writer

Solar panel financing comes in three distinct legal forms, and the exit strategies are almost entirely different depending on which one you have. Mixing them up is the most common mistake homeowners make — and a solar debt company that treats your PACE assessment the same as a personal loan is either uninformed or misleading you.

Step 1 — Identify exactly what type of financing you have

Before calling anyone, pull out your contract and answer these questions:

Is the payment collected with your property taxes? If yes, you almost certainly have a PACE (Property Assessed Clean Energy) loan — a tax assessment secured by your home title. Read the PACE section below carefully before doing anything else.
Is there a UCC or mortgage lien recorded against your property? Check your county recorder's office. If a lien exists, the debt is secured and settlement programs for unsecured debt do not apply.
Does the financing appear as a personal installment loan on your credit report from a lender like Goodleap, Mosaic, Loanpal, or a regional bank? If yes, it is likely an unsecured personal loan and different options apply.
Are you renting the panels rather than owning them? If you pay a monthly fee to a company that owns the panels, you have a solar lease, not a loan.

PACE loans: the secured risk most homeowners don't understand

A PACE assessment is fundamentally different from a credit card or personal loan. It is attached to your home as a property-tax assessment. The good news: PACE servicers generally cannot foreclose quickly, and many states have added consumer protections after widespread complaints about predatory PACE sales. The bad news: defaulting on a PACE assessment does ultimately put your home at risk through the property-tax collection system — a risk that does not exist with credit card or personal loan defaults.

Your realistic PACE options:

File a complaint immediately if the PACE lien was placed without proper disclosure. California, Florida, and Missouri have specific PACE consumer protections; several states require the lender to verify your ability to repay. File with the CFPB and your state attorney general. Document everything — these complaints create an official record and may trigger a settlement offer from the servicer.
Contact the PACE servicer directly about a hardship forbearance or modified payment schedule before missing a payment. PACE servicers have financial incentive to work with you; a foreclosure process is expensive for them too.
Consult a real estate attorney about rescission if the sale involved material misrepresentations — for example, if you were told the assessment was optional, was fully transferable to buyers, or would not affect your mortgage. Some PACE agreements have been voided in court on these grounds.
Factor the payoff into a home sale. If you are selling, a PACE lien typically must be paid at closing. A real estate attorney can help negotiate a payoff discount with the servicer before listing.

Do not stop paying a PACE assessment without speaking to a housing counselor or real estate attorney first. The consequences — tax penalties, accumulating interest, and eventually a lien action — are more severe and faster than most people expect.

Step 2 — Free first steps before any paid service

Regardless of your financing type, start here at no cost:

File a CFPB complaint at consumerfinance.gov/complaint. The CFPB forwards complaints to the company and typically requires a response within 15 days. This costs nothing and creates a documented record.
File a complaint with your state attorney general. Search "[your state] attorney general consumer complaint" — every state has an online portal. State AGs have taken enforcement actions against solar dealers in multiple states and sometimes intervene directly in consumer disputes.
Contact a nonprofit HUD-approved housing counselor (free at hud.gov/counseling) if you have a PACE lien. They can advise on protecting your home and connecting you with state PACE relief programs where available.
Consult a consumer protection attorney for a free case evaluation. If the dealer made misrepresentations, many attorneys handle solar fraud cases on contingency — meaning no upfront fee. Start with your state bar's referral service.

Step 3 — Rescission and contract cancellation

If you are within 3 business days of signing at your home, the FTC Cooling-Off Rule gives you the right to cancel without penalty. Send written notice immediately by certified mail — keep the receipt. This is the cleanest exit and costs nothing.

Beyond that window, cancellation depends on:

Material misrepresentations in the sale. If the salesperson made specific promises about savings, system output, or financing terms that differ substantially from the written contract, you may have grounds to rescind under state consumer protection law. Document every discrepancy.
Permit and installation problems. If the installer failed to pull required permits, the work failed inspection, or the system underperforms significantly relative to what was specified in writing, those are contract breaches that can support cancellation or price reduction claims.
PACE non-disclosure. Several states have ruled that PACE assessments placed without adequate disclosure of the home-lien nature of the financing are voidable. A real estate attorney in your state can assess whether this applies.

Unsecured solar personal loans: settlement as one option

If your solar financing is a personal installment loan not secured by any property lien, it is legally similar to a credit card or medical loan. You have more flexibility than a PACE borrower, but the trade-offs are real:

Debt settlement involves negotiating with the lender to accept less than the full balance as payment in full. It is not guaranteed — lenders are not required to accept a settlement. It will damage your credit score while enrolled and typically requires you to fall behind on payments before a lender will consider settlement. Any forgiven balance may be reported to the IRS on Form 1099-C as taxable income in the year forgiven.
Refinancing to a lower-rate personal loan from a credit union or online lender is worth exploring if your credit score is still intact — this lowers your rate without the credit damage of settlement.
Direct negotiation with the servicer for a hardship modification, forbearance, or extended term is available before you default and avoids the credit-score consequences of settlement.

Solar personal loan settlement programs from for-profit companies carry the same consumer protections as any debt settlement engagement: under the FTC's Telemarketing Sales Rule, no fees can be collected before a debt is actually settled. Any company demanding upfront payment is a red flag.

Getting out of a solar lease

A solar lease is a long-term contract (typically 20–25 years) where you pay to use panels the company owns. You do not own the system and do not receive any tax credits. Exit paths include:

Negotiate a buyout. If you can pay the present value of remaining lease payments at a discount, the leasing company may agree — especially if you are already behind. Get any buyout offer in writing and have an attorney review the release language.
Transfer to a home buyer. Many solar leases are assumable by a buyer who meets the leasing company's credit requirements. Not all buyers are willing to assume a lease, and some mortgage lenders will not approve a purchase with an unresolved lease transfer in place.
Assert breach of contract. If the system has not performed as specified in the lease agreement (output guarantees, maintenance obligations), the company's breach may give you grounds to terminate. Consult a consumer protection attorney.

What to avoid: solar debt-relief scams

The same desperation that predatory solar companies exploit at the front end has created a secondary scam market around "solar contract exit" and "solar debt relief" services. Specific warning signs:

Upfront fees before any result. Legitimate debt settlement companies cannot charge a fee until they have settled your debt. "Cancel your PACE lien for $2,500 upfront" is not legal.
Promises to completely erase secured PACE liens through debt settlement. No debt settlement program has that authority — a property lien requires a real estate transaction or legal proceeding, not a negotiated payoff.
Guarantees of specific savings percentages. No company can guarantee the outcome of a debt negotiation. Any firm that promises you will settle for a specific percentage is not being truthful.

Free resources

CFPB Complaint Portal — file against your solar company or PACE servicer; free and tracked
Find your state attorney general — for state-level consumer protection complaints
HUD-approved housing counselors — free counseling if you have a PACE lien on your home
NFCC.org — nonprofit credit counseling for unsecured debt alongside a solar loan
LawHelp.org — free and low-cost legal aid by state for contract disputes

Is debt relief the right move for your situation?

Debt relief isn't right for everyone, and it has real trade-offs (it can affect your credit and may have tax consequences). Here's an honest read before you talk to anyone.

It may be worth a look if…

Your solar financing is an unsecured personal installment loan (not a PACE lien) and the balance is $7,500 or more.
You also carry other unsecured balances — credit cards, medical bills, or personal loans — totaling $7,500+ combined.
Your income is stable enough to fund a dedicated savings account each month while enrolled.
You understand that settlement affects your credit score and that forgiven amounts may be reported as taxable income on a Form 1099-C.

It's probably not the fit if…

Your financing is a PACE assessment (paid through your property taxes) — PACE is a secured lien and does not qualify for unsecured debt settlement.
You have a solar lease rather than a purchase loan — lease defaults follow a different legal path.
Your total qualifying unsecured debt is below $7,500 — a different resolution approach is more practical.
You need to preserve your credit score intact for a near-term mortgage application.

Excluded states for our main partner: CT, OR, VT, WV, WI. We surface other vetted options where it can't serve you.

Carrying other unsecured debt alongside your solar loan?

Free, no-obligation estimate on the provider's site — credit cards, personal loans, and medical bills may qualify for a settlement program. Unsecured solar personal loans may also qualify. PACE assessments and secured liens do not.

Unsecured debt ≥ $7,500 · not available in CT/OR/VT/WV/WI

See if you qualify →

Frequently asked questions

What is a PACE loan and how does it work?

A PACE (Property Assessed Clean Energy) loan is not a personal loan — it is a property-tax assessment attached to your home title. You repay it through your property-tax bill rather than a separate monthly payment, and the assessment is secured by the property itself. That means defaulting on a PACE assessment can ultimately threaten your home through a tax lien or, in some states, a lien foreclosure process. Before exploring any debt-relief option, understand that PACE balances cannot be settled through a standard unsecured debt settlement program; the lien must be resolved directly with the PACE servicer or through a real estate attorney.

Can I cancel a solar panel contract after signing?

Most states give you a 3-business-day right of rescission under the FTC Cooling-Off Rule when a sale is made at your home. If you are within that window, send a written cancellation notice (dated and delivered — certified mail or the method the contract specifies) immediately. If that window has closed, your cancellation options depend on the specific contract language, whether the installer has already begun work, and whether the dealer made any material misrepresentations during the sale. State consumer protection laws sometimes allow rescission beyond the federal window if fraud or deception is involved — contact your state attorney general's office to ask.

Is my solar panel deal a scam or predatory sale?

Red flags for predatory solar sales include: verbal promises that differ from what the written contract says (especially about bill savings, system output, or tax credits); high-pressure same-day signing pressure; failure to disclose that the financing is a PACE lien rather than a personal loan; inflated system prices that exceed fair market value by 30% or more; and contractors who disappear after installation or fail to complete permit work. If you experienced any of these, file a complaint with the CFPB (consumerfinance.gov/complaint) and your state attorney general before taking any other action. Both agencies track complaint patterns and may already have active investigations relevant to your dealer.

Can you sell a house with a PACE loan on it?

Yes, but it complicates the sale. The PACE lien attaches to the property and typically must be paid off at closing — either by the seller from sale proceeds or sometimes assumed by the buyer (though many buyers' mortgage lenders will not allow assumption). Fannie Mae and Freddie Mac prohibit PACE lien assumption on conforming loans. If you are trying to sell and the PACE balance exceeds available equity, you may need to negotiate a payoff discount directly with the PACE servicer or consult a real estate attorney about your options.

Is there a class action lawsuit against solar panel companies?

Several class action suits have been filed or settled against large solar dealers in recent years — including cases involving inflated prices, misrepresented savings, and PACE loan non-disclosure. Check PACER (federal court records) or search your state court's online records for your specific dealer's name. The CFPB and state AGs have also taken enforcement actions against solar financiers in California, Florida, and other states. If you believe you were defrauded, consulting a consumer protection attorney for a free case evaluation is worth doing before anything else — many take solar fraud cases on contingency.

How do I get out of a solar lease?

A solar lease (where you pay monthly to use panels owned by the company) is legally distinct from a purchase loan. Most solar leases run 20–25 years and include escalator clauses that increase your monthly payment annually. Exit options include: negotiating a buyout of the remaining lease at a discount (the leasing company may agree if you are behind on payments); transferring the lease to a home buyer when you sell (some leasing companies permit this); or pursuing rescission if the lease was signed under misrepresentations. Unlike a purchase loan, a lease default generally does not trigger a property lien — the company may instead remove the panels and pursue you for remaining payments in civil court.

Can I settle a solar dealer personal loan through a debt settlement program?

Only if the loan is genuinely unsecured — that is, not backed by a property lien. A personal loan from a solar dealer (or a third-party finance company like Goodleap, Mosaic, or Loanpal) that appears as a personal installment loan on your credit report is typically unsecured and may qualify for settlement. Settlement is not guaranteed, will affect your credit score, and any forgiven amount may be reported to the IRS on Form 1099-C as taxable income. A PACE assessment is secured by your home and does not qualify. Always confirm the loan type in your contract and with your servicer before enrolling.

What happens if I stop paying a PACE assessment?

Because a PACE assessment is collected alongside your property taxes, non-payment triggers the same consequences as unpaid property taxes in your state. Depending on state law, this can include penalties, interest accrual, a tax lien placed on your property, and — in the most serious cases — a tax lien foreclosure proceeding. The timeline varies widely: some states give homeowners two or more years before a lien becomes actionable; others move faster. Do not stop paying a PACE assessment without first speaking with a housing counselor or real estate attorney who can tell you the specific consequences in your state.

Do I need a lawyer for my solar panel contract problem?

Not always, but often yes. A consumer protection attorney is worth consulting if: the dealer made verbal misrepresentations; you signed a PACE agreement without fully understanding it was a property lien; the system was installed without proper permits; or the dealer has gone out of business. Many consumer protection attorneys offer free initial consultations and take solar fraud cases on contingency (no upfront fee). Start with a free complaint to the CFPB and your state AG regardless — that creates a documented record that strengthens any later legal action.