Cancelling a community solar contract: What's involved?

Community solar plans can be a great way to offset your fossil fuel consumption and lower your electric bill. Essentially, you sign up for a share in a local solar farm, which results in an electric bill that's lower than it would be with standard utility service. Like many ongoing service agreements, community solar plans require a service contract. As with other service contracts, you’d be wise to ask what happens if you want to cancel a community solar subscription.  

While cancellation policies can differ from one community solar project to the next, there are some common factors you can keep an eye out for. Let’s review the most common details and terms you’ll encounter in community solar cancellation policies and what to look for as you compare your options. 

First, check if your community solar agreement requires minimum notice to cancel. Community solar companies want a heads-up before you opt out so they have enough time to find someone else to fill your vacated spot. Some projects let you cancel at any time, others will stipulate a 60-day or 90-day minimum notice. 

Often, you will still need to pay for any bill credits from your share when you ask to cancel. For example, if you cancel your subscription on April 1st and there's a 60-day notice period, you'll likely need to pay for any bill credits that your share of the solar farm generates until May 31st.

Next, review your contract to see if the company charges a cancellation fee. Community solar cancellation fees are far less standard than they used to be, but you should watch for them just in case.  

 If your service requires a cancellation fee, it should be less than $250 (New York State instituted a $200 fee cap).  Also note that even with a fee, many community solar providers will waive it under certain circumstances, such as providing sufficient notice if you're moving or finding someone to take over your subscription.

Have a friend looking to join a community solar program? Some plans let you skirt specific minimum notice requirements or early termination fees if you find a replacement subscriber. The replacement you find will likely need to live in the same utility service area, agree to take over your full subscription share and meet any other requirements for the project, like a credit check. Having a friend or neighbor take over your community solar subscription isn’t always an option. Some companies have an ongoing waitlist of customers seeking to join a specific project they'll tap into first, and others prefer to find new subscribers themselves.

Lastly, review your community solar agreement for any fine print around moving. If your new home is in the same service area, you can likely transfer your subscription to your new utility account. If you move out of the service area, you’ll probably need to cancel your subscription and find a new community solar program. 

If you anticipate a move in your future, check your subscriber agreement to see if it offers more flexible minimum notice requirements or termination fees for customers who move out of the service range. While not particularly common, the cancellation terms might be different for subscribers who are no longer customers of an eligible utility than those who cancel for other reasons.

Want to compare community solar options in your area? Check out the EnergySage Community Solar Marketplace, where you can see a list of open community projects near you and get a quick estimate of potential savings. You can also find the cancellation terms for each project listed in its details. If there aren't community solar projects in your region yet, sign up to receive updates as new projects go live on the Marketplace.