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. Follow the advice below to exit your Sunrun agreement smoothly and find the ideal solar solution for your home.

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:

• You’re moving to a new home. If you’re putting your current house on the market, you likely don’t want to be stuck with solar lease payments on a home you no longer own. Canceling the contract outright is one option.
• You found a better solar deal. After signing with Sunrun, you may have received quotes from other installers offering cheaper pricing, better equipment, or more favorable contract terms. Cancelling with Sunrun allows you to take advantage of the better offer.
• You can no longer afford the payments. If your financial situation has changed since signing the contract, the 20-year payment commitment may now be unaffordable. Canceling the solar agreement is the prudent choice.
• You’re concerned about the contract terms. Upon further review, you may realize the contract length, payment escalators, fees, or other terms aren’t what you expected or are no longer favorable.
• Roof issues prevent installation. Problems with your roof’s structural integrity or the need for roof repairs can make installing panels impossible. This may allow you to cancel the contract.
• You found bad reviews of the company. After reading negative customer reviews about the installer’s service quality, you may have second thoughts about proceeding.

No matter what 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.

How to Cancel a Sunrun Contract Before Solar Installation?

Follow this proven process if you need to cancel your Sunrun system order prior to installation:

Step 1: Carefully Review Your Entire Contract

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

• 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 thousands of dollars.
• 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 cancelling under the terms of your contract. Be ready to provide your full name, address, account number, and reason for cancellation.
• Email [email protected] with your account details and a brief explanation. Retain the emailed notice for your records.
• Send a letter through registered mail re-stating your intent to cancel the solar agreement.

Sunrun may try persuading you to not 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 youGot 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 for any reason 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.

Frequently Asked Questions About Canceling a Sunrun Contract

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 equipment was installed, there should be no reporting to the credit bureaus. But request written confirmation of this from Sunrun to be sure.

Key Takeaways on Cancelling a Sunrun Solar Contract

• Review your contract thoroughly to understand the cancellation policy, fees, process, and timeline. There is often a short period after signing where you can exit without penalty.
• Act quickly to formally notify Sunrun of the cancellation once you’ve decided. Delaying can result in installation occurring as scheduled.
• Document all communication with Sunrun in writing. Keep records of phone calls, emails, letters, and the confirmation of cancellation for proof.
• Be prepared to forfeit any deposit paid and pay any additional cancellation fees per the contract terms. Understand the financial impacts before finalizing cancellation.
• Consider transferring the contract to the new home buyer instead of outright cancellation if selling your home. This avoids fees and complications.
• Seek legal counsel if Sunrun resists the cancellation or disputes arise. An attorney can advise you on the best options.
• Cancellation prior to installation should not impact your credit score since no solar equipment was ultimately provided. But confirm this with Sunrun.
• Weigh your reasons for cancellation against losing your initial investment and any progress made. Is there an alternative that still meets your needs?
• If cancelling due to a better offer, confirm the new company’s contract terms and services are superior before terminating your Sunrun agreement.

Conclusion

Canceling 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.