Navigating Termination of Sunrun Solar Leases: Options and Considerations

For many homeowners, a Sunrun solar lease can be an effective way to harness renewable energy and reduce utility costs. However, several situational factors can arise that may necessitate the need to exit a solar lease agreement. This article explores the various options available for terminating a Sunrun solar lease and the potential actions to take.

Understanding Your Lease Agreement

Before considering any steps to terminate your Sunrun solar lease, it is crucial to review the terms and conditions thoroughly. Many lease agreements contain specific clauses regarding early termination, buyout options, and transfer procedures. Taking the time to understand these terms can provide you with valuable insights into your rights and obligations.

Exploring Early Termination Options

One of the primary ways to exit a Sunrun solar lease agreement is through early termination. Review the contract to see if there are any clauses that allow for early cancellation. If such options exist, they will typically come with a fee. This fee is usually designed to compensate Sunrun for the remaining lease term and any associated costs.

Transferring the Lease

If you are relocating or no longer wish to keep the system, another option is to transfer the lease to a new homeowner or tenant. Each leasing company has specific procedures for transferring leases, and Sunrun is no exception. It is important to follow the specified process to ensure a smooth transfer without affecting your financial obligations.

Buying Out the System

Many Sunrun leases include a buyout option that allows you to purchase the system outright. The buyout amount is usually determined based on the remaining lease term and the system's current value. This option can be appealing if you wish to maintain ownership of the system or if the buyout value is reasonable.

Seeking Assistance from Customer Service

If you find the process of exiting the lease agreement complex or overwhelming, it is wise to contact Sunrun's customer service. They can provide guidance tailored to your specific circumstances and explain the available options and any associated costs or obligations.

Considering Legal Advice

In certain situations, such as a perceived breach of contract or other legal grounds for termination, consulting with a legal professional may be necessary. A lawyer can review your lease agreement and provide advice on your rights and potential courses of action.

Understanding Legal and Financial Implications

Before taking any action to terminate a Sunrun solar lease, it is important to understand the legal and financial implications. For example, if Sunrun has not misrepresented the product or service, there may be limited options available to you. In some extreme cases, transferring the home with the full lease amount paid off can be a viable option, though this is usually not the most practical solution.

Time Frames for Cancellation

Leasing contracts with Sunrun, Vivint, or other third-party providers generally allow for cancellation without penalty during an initial trial period, usually 30 days after signing the contract. However, this period and other cancellation options can vary. Unforeseen circumstances, such as the need for an additional roofing project, can also allow for a cancellation, as specified in the contract.

Buyout Periods and Options

Most solar leasing agreements include a buyout period after a certain number of years, typically 5 to 7 years. During this period, you can prepay the remaining balance of the lease to either have the solar panels removed or left on the house. Always ensure that the buyout option is included in your agreement, as this is not always the case.

Final Resort: Bankruptcy

In the event that all other options have been exhausted, filing for bankruptcy can be a last resort. A bankruptcy court can potentially terminate a lease, and although this solution may not be viable for all situations, it can end your obligation to continue making lease payments. Consulting with a local attorney is crucial to understand the specific circumstances under which this approach might be appropriate.

Conclusion

Exiting a Sunrun solar lease agreement can be complex, but there are several options available to you. By reviewing your lease agreement, seeking advice from customer service, and considering legal options, you can make an informed decision that best suits your circumstances.