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California Solar Contract Help

Having Problems With a Solar Contract in California?

If your solar payment increased, your electric bill stayed high, the savings did not match the proposal, your installer stopped responding, or solar is interfering with a home sale or refinance, Solar Exit California can help you review the complete situation and understand the strongest next steps available.

  • Solar loans, leases, and power purchase agreements
  • Unexpected payments and high utility bills
  • NEM and Solar Billing Plan questions
  • Tax-credit and savings representations
  • Solar contractor or salesperson issues
  • PACE, UCC, home-sale, transfer, and refinance problems
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Solar Exit California will guide you through the process from the moment you become a client, coordinating with the legal professionals supporting your case as appropriate. We know solar contract disputes can be confusing, especially when financing, credit, installers, and utility issues overlap. You will have a team helping you understand what comes next and working toward the best available resolution for your situation.

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Find the Help You Need

Jump Directly to the Part of Your Solar Problem That Matters Most

California solar problems can involve several different billing programs, disclosure rules, financing structures, and regulators. Use the shortcuts below to jump directly to the issue you are dealing with.

Common California Solar Problems

Does Any of This Sound Familiar?

Solar problems do not always begin and end with the installer. The salesperson, dealer, lender, loan servicer, electric utility, equipment manufacturer, and installation contractor may all play different roles.

Your Solar Payment Increased

The loan may have been structured around an expected tax-credit payment, a future re-amortization, financing costs, or other terms that were not clear during the sales presentation.

  • Compare the cash price with the amount financed
  • Review any expected lump-sum prepayment
  • Check re-amortization and payment-change language
  • Compare the loan documents with the sales proposal

Your Electric Bill Is Still High

California solar customers can still buy electricity from the grid, pay charges solar does not eliminate, and receive export credits that differ from the retail price of electricity.

  • NEM and Solar Billing Plan treatment can differ
  • Time-of-use periods can affect costs and credits
  • Base Services Charges can remain after solar
  • CCA generation and utility delivery can appear together

The Savings Do Not Match the Proposal

California requires solar-specific disclosures with standardized financial and bill-savings information. Those documents give homeowners something concrete to compare with the original pitch and actual bills.

  • Compare proposal and disclosure documents
  • Review the assumptions used in the savings estimate
  • Compare actual utility bills with projected bills
  • Savings estimates are not guaranteed outcomes

You Expected to Be on NEM 2

Some NEM 2 transition projects had to complete final utility requirements by April 14, 2026. A project that missed the applicable deadline may have moved to the Solar Billing Plan.

  • Check the interconnection application
  • Review inspection and final-clearance dates
  • Locate Permission to Operate
  • Compare the final billing program with the original sales assumptions

The Installer Closed or Stopped Responding

The installer may not be the lender, loan servicer, equipment manufacturer, monitoring provider, or warranty provider. Company closure does not automatically eliminate financing or other contractual obligations.

  • Identify the current lender or servicer
  • Check CSLB license records
  • Locate manufacturer warranties
  • Preserve monitoring and service records

Solar Is Blocking a Sale or Refinance

A conventional solar loan, lease, PPA, UCC filing, or PACE assessment can create very different payoff, transfer, title, and underwriting questions.

  • Determine whether the obligation is a loan, lease, PPA, or PACE
  • Review transfer and payoff terms
  • Check UCC records when relevant
  • Identify any PACE property-tax assessment

How It Works

Start With a Clear Review of Your Situation

You do not need to know the correct legal, financial, or utility terminology. Tell us what happened and provide the documents you have.

01

Tell Us What Happened

Provide the basic details of the contract, payment, utility, installation, company-closure, or home-sale problem.

02

Gather the Important Documents

The agreement, financing paperwork, California disclosure documents, utility bills, proposal, production records, and communications help show what was signed, promised, installed, financed, and billed.

03

Understand the Strongest Next Step

The review helps identify the issues requiring closer attention and the appropriate company, utility, regulator, or qualified professional that may need to be involved.

What Makes Solar Different in California?

Your Utility and Solar Billing Program Can Change the Entire Analysis

California has one of the largest customer-sited solar markets in the country. The California Public Utilities Commission has reported that the state represented more than one-third of U.S. customer-sited solar capacity as of September 2023 and averaged roughly 137,000 solar installations per year over the prior decade.

For a homeowner already dealing with a solar problem, the key issue is that California does not have one experience for every solar customer. Utility jurisdiction, NEM or Solar Billing Plan status, interconnection timing, Community Choice Aggregation, battery operation, and financing structure can all change the analysis.

April 15, 2023New qualifying IOU interconnection applications generally began taking service under the Net Billing Tariff
Legacy NEM RemainsMany existing customers continue under NEM until their applicable eligibility period expires or is lost
Multiple Utility SystemsPublic utilities such as LADWP and SMUD do not use the same CPUC-regulated rate structure as the large IOUs

Start With Your Electric Utility

California Solar Rules Are Not the Same Everywhere

Before deciding why the solar savings, credits, or utility bill do not match what you expected, identify the utility serving the home and the solar billing program attached to the account.

PG&E, SCE, and SDG&E

California's three large investor-owned utilities are regulated by the CPUC. Their residential customer-generation programs include legacy NEM customers and newer customers on the Net Billing Tariff, which the utilities call the Solar Billing Plan.

LADWP

The Los Angeles Department of Water and Power is a publicly owned utility and is not rate-regulated by the CPUC. LADWP maintains its own residential rate and net-energy-metering framework.

SMUD

Sacramento Municipal Utility District is publicly owned. Certain legacy NEM customers can remain on their older rate through December 31, 2030, while newer customers use the Solar and Storage Rate.

Why this matters:Do not assume advice about PG&E, SCE, or SDG&E applies if your home is served by LADWP, SMUD, another public utility, or a different regulated utility.

NEM 1, NEM 2, or Solar Billing Plan?

Your Billing Program Can Change the Value of the Electricity You Export

Since April 15, 2023, qualifying new interconnection applicants in PG&E, SCE, and SDG&E territory generally take service under the Net Billing Tariff, which the utilities call the Solar Billing Plan. Many existing customers continue under legacy NEM.

Legacy NEM

Many California homeowners remain under NEM 1.0 or NEM 2.0. Under those legacy tariffs, customer generation and electricity consumption are credited according to the applicable NEM and retail-rate structure.

SCE states that an existing NEM account continues under its current NEM program until the 20-year legacy period expires or the account otherwise becomes ineligible.

Solar Billing Plan

Under the Solar Billing Plan, solar used directly by the home offsets energy that otherwise would have been purchased from the grid. Excess electricity exported to the grid earns Energy Export Credits based on the value of that generation to the grid.

The CPUC states that export compensation is usually below the retail rate but can rise above retail during some late-summer evening periods. Battery storage can change the economics by shifting energy into higher-value periods.

To Identify the Billing Program and Compare the Sales Assumptions, Review:

  • Original solar proposal
  • Savings calculation
  • Interconnection application
  • Permission to Operate notice
  • Utility enrollment or tariff information
  • Current utility bill
  • Time-of-use rate plan
  • Battery configuration, if any

A Current 2026 California Issue

Did Your NEM 2 Project Miss the April 14, 2026 Deadline?

PG&E states that NEM 2 interconnection customers who did not submit final electrical clearance on or before 11:59 p.m. April 14, 2026 generally moved to the Solar Billing Plan unless an approved utility-related extension applied.

SCE likewise identifies April 14, 2026 as the deadline for active NEM 2.0 projects to submit required final documentation free of deficiencies, with separate treatment for certain VNEM and NEM-A projects.

A transition from an expected NEM 2 project to the Solar Billing Plan does not by itself establish liability or a right to cancel. It can be highly relevant when comparing what was represented during the sale with what ultimately occurred.

Gather These Records

  • Original proposal and projected savings
  • Interconnection application
  • Permit and inspection history
  • Final electrical clearance
  • Utility correspondence
  • Permission to Operate
  • Communications explaining project delays
  • Any representation that NEM 2 eligibility was guaranteed

Why Is the Electric Bill Still High?

Solar Production Is Only One Part of a California Utility Bill

A higher-than-expected electric bill does not automatically mean the panels failed. The applicable billing program, imports from the grid, export-credit values, time-of-use periods, rate plan, battery operation, household consumption, Community Choice Aggregation, and fixed charges can all matter.

California residential billing has also been restructured to include a Base Services Charge for customers of the large investor-owned utilities. Solar customers pay the charge too, and some generation credits cannot offset it.

If the bill includes a Community Choice Aggregator, the IOU may still provide delivery and billing while the CCA supplies the generation portion. Review both parts of the bill when comparing actual savings with the proposal.

Compare These Items

  • Electricity generated
  • Electricity used directly in the home
  • Electricity exported
  • Electricity purchased from the grid
  • NEM or Solar Billing Plan status
  • Time-of-use rate
  • Base Services Charge and other fixed charges
  • CCA generation charges or credits
  • Battery operation
  • Original savings assumptions

California Solar Disclosures

Compare the Sales Pitch With the Required California Documents

California requires residential solar providers to provide a completed Solar Energy System Disclosure Document containing key cost and consumer information.

The longer Solar Energy System Supporting Information document has been in effect since November 1, 2025. It adds standardized financial obligations, bill-savings information, and calculation assumptions.

California also protects access to documents in the language used during the sales process. The current Solar Consumer Protection Guide states that a customer has the right to receive the solar contract and financing agreement in the language in which the salesperson spoke to the customer.

The CPUC currently limits the electricity-rate escalation assumption used in certain standardized savings calculations to a maximum of 10%. That does not make savings guaranteed, but it gives homeowners another concrete comparison point.

Compare These Documents

  • Original proposal
  • Solar Energy System Disclosure Document
  • Solar Energy System Supporting Information, when applicable
  • Solar Consumer Protection Guide acknowledgment
  • Signed home-improvement contract
  • Financing agreement
  • Utility savings estimate
  • Actual utility bills and payments
A missing, incomplete, or conflicting disclosure can be important to a review, but it does not automatically mean a contract is void or that a specific remedy is available.

California Solar Cancellation Rights

Check the Cancellation Notice Immediately

California's current Solar Consumer Protection Guide states that homeowners generally have at least three business days to cancel a covered solar contract for any reason.

Consumers age 65 or older generally receive five business days. Different rules can apply in some circumstances, including certain contracts negotiated at a company's place of business.

If the transaction is recent, do not rely only on a website summary. The signed contract and cancellation notice should be reviewed immediately.

What to Look For

  • Date the contract was signed
  • Date a signed, dated copy was received
  • Cancellation notice
  • Method for delivering cancellation
  • Seller address and contact information
  • Where the negotiations occurred
  • Any separate financing agreement
If you may still be within a cancellation period, treat the issue as time-sensitive and review the signed documents immediately.

Contractor and Salesperson Verification

California Lets You Check Both the Contractor and the Salesperson

The California Contractors State License Board licenses contractors and maintains public lookup tools. California solar guidance identifies classifications such as C-46 Solar, C-10 Electrical, and B General Building that can apply depending on the work performed.

CSLB also states that people who solicit, sell, negotiate, or execute home-improvement contracts for licensed contractors generally must be registered as Home Improvement Salespersons, subject to limited exceptions.

CSLB currently states that down payments for covered residential solar home-improvement work generally may not exceed $1,000 or 10% of the contract price, whichever is less. Progress payments generally cannot exceed the value of work performed or materials delivered.

Check the People and Companies Behind the Project

  • Solar contractor license
  • Home Improvement Salesperson registration
  • Business name on the signed contract
  • Electrical or building classification when relevant
  • Company that actually performed the installation
  • Finance company or PACE administrator

Do not assume the salesperson, dealer, installation company, licensed contractor, and finance company are the same business.

Solar Financing in California

First Determine Whether You Have a Conventional Solar Loan or PACE

A conventional solar loan and Property Assessed Clean Energy financing are not the same thing.

A conventional solar loan may involve a UCC financing statement identifying a security interest in named collateral. That does not automatically make every UCC filing a traditional mortgage lien against the entire house.

DFPI explains that PACE improvements are repaid through increased property-tax assessments and that a lien is placed on the home until the PACE contract is paid off. DFPI specifically warns that PACE can complicate selling or refinancing.

  • Cash price and amount financed
  • Loan, lease, PPA, or PACE agreement
  • Interest rate and APR
  • Dealer or financing fees
  • Expected lump-sum prepayment
  • Re-amortization date
  • PACE property-tax assessment, if any
  • UCC filing, if any
  • Current lender or servicer
Do not use the terms loan, lien, PACE, and UCC interchangeably. The financing structure determines which documents and regulators may matter.

Federal and California Tax Expectations

Were You Promised a 30% Federal Solar Tax Credit?

For qualifying residential clean-energy property installed from 2022 through December 31, 2025, the federal Residential Clean Energy Credit was generally 30% of qualified costs.

The IRS currently states that the residential credit is not available for property placed in service after December 31, 2025. The credit is nonrefundable, so the usable benefit also depends on the taxpayer's tax situation.

California separately has an active solar energy system new-construction exclusion for qualifying property-tax assessment purposes. The California Board of Equalization explains that it is an exclusion, not an income-tax credit or general property-tax exemption. Under current law, it is scheduled to sunset January 1, 2027.

  • Original proposal
  • Tax-credit worksheets or screenshots
  • Loan payment schedule
  • Re-amortization language
  • Sales emails or texts
  • Installation date
  • Placed-in-service date
Solar Exit California does not determine individual tax eligibility. Questions about a specific tax situation should be reviewed with a qualified tax professional.

Selling or Refinancing With Solar

Identify the Obligation Before Trying to Clear the Transaction

Solar can create sale or refinance problems when the system is financed, leased, subject to a PPA, tied to a UCC financing statement, or financed through a PACE assessment.

California's Secretary of State describes a UCC-1 financing statement as a filing used to perfect a security interest in named collateral. DFPI explains that PACE is repaid through property-tax assessments and creates a lien on the property until paid off.

Those are different financing structures and may require different payoff, transfer, release, or underwriting steps.

  • Ownership or financing type
  • Loan payoff amount
  • Lease or PPA transfer requirements
  • Buyer assumption requirements
  • UCC records
  • PACE property-tax assessment
  • Early termination or buyout terms
  • Buyer, title-company, or mortgage-lender requests

Solar Company Closed or Stopped Responding

Separate the Companies Before Deciding What Changed

A California residential solar transaction can involve separate entities for sales, installation, financing, loan servicing, lease or PPA ownership, equipment manufacturing, monitoring, and warranty service.

If the installer closes, the other companies may still exist. Company closure does not automatically cancel a loan, lease, PPA, PACE assessment, warranty, or other contractual obligation.

  • Signed contract
  • Finance agreement
  • Current payment recipient
  • Servicer notices
  • CSLB license record
  • Manufacturer warranties
  • Monitoring access
  • Permit and inspection records
  • Permission to Operate
  • Utility enrollment status

California Complaint and Assistance Guide

Who Handles What in California?

California has several strong consumer resources, but the correct one depends on whether the problem involves the contractor, salesperson, utility, financing company, PACE administrator, or a filing record.

Contractor, installation, or salesperson issueCalifornia Contractors State License Board

CSLB licenses contractors, registers Home Improvement Salespersons, maintains public lookup tools, and accepts solar-related complaints.

Important: CSLB may investigate, mediate, cite, or discipline within its authority, but restitution or a particular homeowner remedy is not guaranteed.

Official Resource
General consumer or business-conduct complaintCalifornia Attorney General

The Attorney General accepts consumer complaints and uses complaint information in its broader consumer-protection and enforcement work.

Important: The Attorney General does not provide individual legal advice or act as the homeowner's private attorney.

Official Resource
PG&E, SCE, or SDG&E utility problemUtility first, then CPUC Consumer Affairs when appropriate

The CPUC provides an informal utility complaint process for utilities within its jurisdiction.

Important: The CPUC does not regulate the rates of public utilities such as LADWP and SMUD in the same manner.

Official Resource
LADWP, SMUD, or another public utilityThe public utility and its local complaint or governance process

Publicly owned utilities maintain their own customer-service, billing, rate, and governance processes.

Important: The CPUC's normal regulated-utility complaint process does not control the rates of municipal utilities such as LADWP or SMUD.

Official Resource
PACE financing problemCalifornia Department of Financial Protection and Innovation

DFPI regulates PACE program administrators and provides consumer information and a complaint process.

Important: DFPI does not act as the homeowner's private attorney and cannot guarantee a particular result.

Official Resource
Solar lender or loan-servicer problemDFPI when the company falls within its jurisdiction

DFPI handles complaints involving many regulated financial companies and finance lenders.

Important: The correct regulator depends on the legal lender, servicer, charter, and type of institution.

Official Resource
UCC filing questionCalifornia Secretary of State

The Secretary of State is California's central filing office for UCC financing statements and related filings.

Important: A UCC filing identifies a security interest in named collateral and should not automatically be described as a mortgage lien against the entire home.

Official Resource
Federal solar tax-credit eligibilityInternal Revenue Service and a qualified tax professional

The IRS publishes the current federal Residential Clean Energy Credit rules.

Important: Solar Exit California does not determine individual tax eligibility or provide tax advice.

Official Resource
Current Status

Solar Energy System Restitution Program

Older resources may still tell homeowners to apply. CSLB currently states that it is no longer accepting new claims in order to preserve remaining funds for claims already received.

Verify With Official Source
Current Status

CPUC Public Watch List

The CPUC currently states that the public Watch List process is paused while revisions are implemented. It should not be presented as a complete current blacklist of solar providers.

Verify With Official Source

What We Review

Your Complete Solar Situation

  • Review cancellation, transfer, payoff, and termination language.
  • Identify the contractor, salesperson, dealer, lender, servicer, utility, and equipment manufacturer involved.
  • Compare the sales proposal with California disclosure documents and the signed contract.
  • Determine whether the account is on legacy NEM, the Solar Billing Plan, or a public-utility program.
  • Review the loan, lease, PPA, or PACE financing structure.
  • Gather production data, utility bills, payment statements, and communications.
  • Verify contractor licensing and Home Improvement Salesperson registration.
  • Check UCC or PACE information when a home sale or refinance is involved.
  • Contact the appropriate regulator or qualified professional when needed.

Prepare the Record

Documents to Gather

  • Signed solar contract
  • Loan, lease, PPA, or PACE agreement
  • Solar Energy System Disclosure Document
  • Solar Energy System Supporting Information, when applicable
  • Solar Consumer Protection Guide acknowledgment
  • Original proposal and savings estimates
  • Tax-credit representations
  • Solar payment statements
  • Utility bills
  • NEM or Solar Billing Plan records
  • Interconnection application
  • Permission to Operate
  • Production and monitoring records
  • Permit and inspection records
  • Contractor and salesperson information
  • Warranty documents
  • Emails, texts, and advertisements
  • UCC records
  • PACE property-tax information, if applicable
  • Home-sale or refinance correspondence

California Solar Contract FAQs

Questions California Homeowners Are Asking

The answer often depends on the agreement, financing, timing, utility, project status, and specific facts.

Start My Free Review
How long do I have to cancel a solar contract in California?

California's current Solar Consumer Protection Guide says homeowners generally have at least three business days to cancel a covered solar contract for any reason. Consumers age 65 or older generally receive five business days. Different rules can apply in some circumstances, including certain contracts negotiated at a company's place of business, so review the actual cancellation notice and signed documents immediately.

What is the difference between NEM 2 and California's Solar Billing Plan?

NEM 2 is a legacy net-energy-metering tariff. New qualifying PG&E, SCE, and SDG&E interconnection applications have generally entered the Net Billing Tariff, called the Solar Billing Plan by the utilities, since April 15, 2023. Under the Solar Billing Plan, excess electricity is credited based on its grid value rather than ordinary retail-rate netting. Existing qualifying NEM customers can remain under legacy treatment until their eligibility expires or is lost.

Why is my California electric bill still high after solar?

The answer may involve household consumption, solar production, electricity imported from the grid, export-credit values, time-of-use rates, Base Services Charges, other non-bypassable or fixed charges, battery operation, Community Choice Aggregation, or the billing program applied to the account. A remaining bill does not automatically prove that the system failed or that the sales estimate was improper.

How can I check whether my California solar contractor or salesperson was properly licensed or registered?

California's CSLB public lookup system lets homeowners verify contractor licenses and Home Improvement Salesperson registrations. Solar salespeople generally must have an HIS registration when they solicit, sell, negotiate, or execute home-improvement contracts for a licensed contractor, subject to limited exceptions.

Can solar cause problems when selling or refinancing a California home?

Yes. A buyer or mortgage lender may need information concerning a solar loan, lease, PPA, UCC filing, or PACE assessment. A UCC financing statement and a PACE lien are not the same thing. The financing structure determines what payoff, transfer, release, or title information may be required.

Where can I file a complaint about a solar company in California?

It depends on the problem. Contractor, installation, and salesperson issues may belong with CSLB. General business-conduct complaints may be submitted to the California Attorney General. Utility complaints involving PG&E, SCE, or SDG&E may be appropriate for the CPUC after working with the utility. PACE and certain financing complaints may fall under DFPI. Public utility complaints such as LADWP or SMUD generally require the utility's local process rather than the CPUC's normal rate-jurisdiction process.

Start With a Free Review

Understand What Actually Happened With Your California Solar Agreement

California solar problems can involve the contract, financing, required disclosures, utility program, interconnection timeline, salesperson, contractor, and billing structure at the same time. The first step is identifying what was signed, what was represented, which billing program applies, what was installed, how it was financed, and what the homeowner is actually paying now.

Official Sources and California Resources

Verify the Rules That Apply to Your Situation

These government, regulator, utility, and first-party resources support the state-specific information on this page.

California Public Utilities Commission: Net Energy Metering and Net Billing

NEM, Net Billing Tariff, Solar Billing Plan, export-credit, and customer-generation framework.

Official Resource

California Solar Consumer Protection Guide

Current California solar consumer rights, cancellation information, disclosures, and installation requirements.

Official Resource

CPUC CSLB Disclosure Documents

Solar Energy System Disclosure Document and Supporting Information requirements.

Official Resource

California Contractors State License Board: Solar Smart

Solar contractor, salesperson, contract, payment, complaint, and consumer-protection resources.

Official Resource

CSLB License and Home Improvement Salesperson Search

Public contractor-license and salesperson-registration verification.

Official Resource

PG&E Electric Generation Interconnection

Current 2026 NEM 2 transition and Solar Billing Plan interconnection information.

Official Resource

Southern California Edison NEM FAQ

Legacy NEM eligibility and April 14, 2026 NEM 2 final-document information.

Official Resource

SMUD Solar and Storage Rate

SMUD legacy NEM treatment and current Solar and Storage Rate export compensation.

Official Resource

California Department of Financial Protection and Innovation: PACE

PACE financing, property-tax assessment, lien, sale, refinance, and complaint information.

Official Resource

California DFPI Complaint Portal

Consumer complaint process for financial companies and PACE matters within DFPI jurisdiction.

Official Resource

California Secretary of State: UCC

UCC financing-statement information and state filing resources.

Official Resource

California Board of Equalization: Active Solar Energy System Exclusion

Current California property-tax new-construction exclusion for qualifying active solar systems.

Official Resource

California Attorney General Consumer Resources

General California consumer-protection information and complaint resources.

Official Resource

Internal Revenue Service: Residential Clean Energy Credit

Current federal residential clean-energy credit rules, including termination after 2025.

Official Resource

CPUC Public Watch List of Non-Compliant Solar Providers

Current status of the Watch List process, which the CPUC states is paused while revisions are implemented.

Official Resource

State information reviewed August 18, 2026. Laws, regulations, incentive programs, utility policies, agency responsibilities, and solar billing rules may change. Homeowners should verify current requirements with the appropriate agency, utility, lender, tax professional, attorney, or licensed contractor.