Your California Solar Contract Is Costing You More Than You Were Told. Here's How to Fix It.
The short version: Most California solar leases have an escalator clause. It raises your payment 2.9% every year. Over 25 years, a $150 payment grows to more than $300. California prosecutors won a $4.3M settlement against a solar company. Big solar companies that worked in California have gone bankrupt. Titan Solar Power is one of them. If your solar panels aren't saving what you were told, you have real rights. Start with a free Solar Relief Assessment to see what's actually in your contract.
California changed the economics of rooftop solar on April 15, 2023. It's called NEM 3.0 - officially the Net Billing Tariff - and it cut the value of the electricity your panels send back to the grid.
If your solar company sold you a system based on NEM 2.0 savings projections and your application went in after that cutoff, the numbers you were shown don't match the rates you're getting. The savings your salesperson promised were built on a program that no longer applies to you.
If you're a homeowner in Los Angeles, San Diego, the Bay Area, Sacramento, or anywhere in California and your solar panels aren't delivering what you were promised, your contract is the place to start looking.
Your payments are going up. Your savings aren't coming through. And the company that knocked on your door and made those promises? They might not exist anymore.
The California Attorney General Is Watching Solar
Five California county DAs teamed up against Vivint Solar. The counties were San Diego, Riverside, Alameda, Fresno, and San Francisco. Vivint is now owned by Sunrun. The DAs won a $4.3 million settlement. That includes $3 million in refunds for California homeowners. The settlement covers Vivint contracts signed between August 2016 and October 2020.
This matters to you. State enforcement agencies have put it on the record. The same sales tactics used on California homeowners are now named in court filings. If what your salesperson told you doesn't match your contract, you're not alone. You're not crazy. And you have options.
What's actually in your California solar contract
Here's what most California homeowners don't find out until they've been paying for a year or two: the deal you signed isn't the deal you were sold.
Your salesperson told you solar would lower your electric bill. But did they mention the escalator clause buried in your lease agreement? That's the line that raises your payment every year - by as much as 2.9%. On a 25-year lease, that turns a $150 monthly payment into more than $300!
Did they explain what NEM 3.0 actually means for your savings? California's shift to the Net Billing Tariff (effective April 15, 2023) changed everything. If you're on NEM 2.0, you're grandfathered for 20 years. But if your system was sold based on NEM 2.0 savings projections and your application was submitted after the cutoff, those numbers are wrong. The rate you receive for exported electricity is lower - and your savings projections don't reflect that.
Did your salesperson mention Freedom Forever? Freedom Forever was one of the biggest solar installers in the country. They put in about 2 gigawatts of solar across 35 states. On April 15, 2026, they filed Chapter 11 bankruptcy in Delaware. They owe $500 million to $1 billion. Between 50,000 and 100,000 people are owed money. Freedom Forever was still installing in California when they filed. If Freedom Forever installed your system, your contract is still active. But the company behind your warranty is now in bankruptcy limbo.
Freedom Forever isn't alone. SolarInsure counted more than 100 solar company bankruptcies in 2024. SunPower filed Chapter 11 in August 2024. A company called Complete Solaria bought them. Sunnova Energy filed Chapter 11 in June 2025. Titan Solar Power filed Chapter 7 in June 2024. Pink Energy, Lumio Holdings, and Vision Solar are on the same list. When your installer goes bankrupt, your payments don't stop. Your contract doesn't cancel. But your warranty usually disappears.
Your rights under California law
California gives you some of the strongest consumer protections in the country when it comes to solar contracts. Here's what your salesperson almost certainly didn't explain.
Your cancellation rights under California law. Cal. Civ. Code §1689.5 et seq. - the Home Solicitation Sales Act - gives you 3 business days to cancel a solar contract signed at your home. This is in addition to the federal FTC Cooling-Off Rule. Here's the part that matters most: if your salesperson didn't provide proper cancellation notice, your cancellation window can extend indefinitely. Not 3 days. Indefinitely. How do you know if you were told? Pull out your contract. If there's no cancellation notice on the front page, that's your answer.
CPUC oversight and complaints. The California Public Utilities Commission regulates solar companies operating in the state. You can file a complaint directly with the CPUC, and they investigate. This is a tool most California homeowners don't know about - and it's one of the most effective regulatory bodies in the country for solar complaints. If you're a homeowner in Los Angeles, San Diego, the Bay Area, or Sacramento who signed based on promises that didn't hold up, the CPUC is where to go.
NEM 3.0 and your savings projections. California's shift to the Net Billing Tariff (NEM 3.0, effective April 15, 2023) changed the economics of rooftop solar. If you're on NEM 2.0, you're grandfathered for 20 years - that's real protection. But if your system was sold based on NEM 2.0 rates and your interconnection application went in after April 15, 2023, the savings you were shown are based on a program you're not enrolled in. Did your salesperson explain the difference? If not, the savings picture they painted was built on rates you're not getting.
C-46 contractor licensing. Solar installers in California must hold a C-46 license from the Contractors State License Board. If your installer wasn't properly licensed at the time of installation, that affects the enforceability of your contract. You can verify any installer's license status through the CSLB website.
The loan law question for California homeowners. Did you finance your solar system instead of leasing it? Look at your loan closely. Most solar loans have a dealer fee hidden in the balance. These fees usually run 15 to 30 percent of the loan. The federal Truth in Lending Act says every fee must be shown clearly. A hidden fee can be a federal violation. You're paying interest on money that went to the solar company's profit. Not to your panels.
What you can do right now
You don't have to figure this out alone. Here are the first steps for California homeowners.
File a complaint with the California Attorney General. Go to https://oag.ca.gov/report. Or call 1-800-952-5225. Filing is free. The AG's office reads every complaint.
Compare what the salesperson told you to what's in your contract. In most cases, the two don't match. That gap is what makes a case.
Pull your utility bills from the last 12 months. Add up what you're paying the utility plus what you're paying for solar. Compare that to what you'd pay the utility alone. If the numbers don't work, that's a real gap — not just a feeling.
Find the escalator clause and the dealer fee in your contract. These two lines cause the biggest gap between what you were sold and what you're paying. You can spot both by reading your own paperwork.
Every contract is different. But the first step is the same for everyone. Understand what you signed. Solar Home Advocate built the free Solar Relief Assessment for this exact moment. Someone walks through your contract with you in plain English. They tell you your options.
You Signed a Solar Contract in California. Find Out What It's Actually Costing You.
California homeowners have some of the strongest solar consumer protections in the country - including cancellation rights that can extend indefinitely if proper disclosures weren't made. A free Solar Relief Assessment helps you understand what's in your contract, what went wrong, and what you can do about it for you and your family.
[Get free Solar Relief Assessment →](https://solarhomeadvocate.com/free-assessment?utm_source=substack&utm_medium=article&utm_campaign=state-guide&utm_content=california)Get free Solar Relief Assessment →**
No charge. No obligation. No high-pressure pitch.
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"Sal says: A 2.9% escalator clause nearly doubles your payment over 25 years. The California AG won a settlement against a solar company. Freedom Forever filed Chapter 11 in April 2026. If you signed a solar contract in California, these facts hit your math and your warranty."
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Frequently Asked Questions
What are my rights if I signed a solar contract in California?
Did a salesperson come to your home? If yes, you have a 3-day right to cancel. That's under Cal. Civ. Code §1689.5 et seq. (Home Solicitation Sales Act) and the federal FTC Cooling-Off Rule. California also has California Business and Professions Code §17200 (Unfair Competition Law). That law covers unfair or deceptive sales tactics. You can file a complaint with the California Attorney General. Go to https://oag.ca.gov/report or call 1-800-952-5225. If your salesperson didn't tell you about the 3-day cancel rule, that can affect your contract.
Has California sued any solar companies?
Yes. Five California county DAs teamed up against Vivint Solar. The counties were San Diego, Riverside, Alameda, Fresno, and San Francisco. Vivint is now owned by Sunrun. The DAs won a $4.3 million settlement. That includes $3 million in refunds for California homeowners. The settlement covers Vivint contracts signed between August 2016 and October 2020.
How does the escalator clause affect my California solar contract?
Most California solar leases have an escalator clause. It raises your payment about 2.9% every year. On a 25-year lease, a $150 payment grows to more than $300. California's average electricity rate is about 30.29 cents per kilowatt-hour in early 2026. That's well above the national average of 17.45 cents. California's utility rates are climbing fast. That makes your solar math a close call. Utility rates haven't always gone up 2.9% a year. So your solar payment can climb faster than your would-be utility bill. Your savings shrink instead of grow.
What happens if my California solar company went bankrupt?
SolarInsure counted more than 100 solar company bankruptcies in 2024. Big names include SunPower (Aug 2024), Sunnova Energy (June 2025), Titan Solar Power (June 2024), Freedom Forever (April 15, 2026), Pink Energy (Oct 2022), and Vision Solar (Dec 2023). If your installer went bankrupt, your contract still stands. Your payments still go out. But the workmanship warranty usually dies with the company. The panel maker's warranty (often 25 years) still exists. But filing a claim without an active installer is hard.
Can I cancel my California solar contract?
Did the salesperson come to your home? Then California law gives you 3 business days to cancel. That's under Cal. Civ. Code §1689.5 et seq. (Home Solicitation Sales Act) and the federal FTC Cooling-Off Rule. If those 3 days have passed, you may still have options. Did they skip the cancel notice? Did they use deceptive sales tactics? Did your loan hide fees? Any of those can open a path to cancel. It depends on your specific contract and how it was sold.
What are hidden dealer fees on a California solar loan?
Solar finance companies add dealer fees of 15 to 30 percent to your loan. They roll the fee into the principal. They don't list it separately. That means you pay interest on fee money that went to the solar company. Not to your panels. The federal Truth in Lending Act says every fee must be listed clearly. A hidden fee can be a federal violation. That's one of the strongest paths to renegotiate or exit a solar loan.
How do I file a solar complaint in California?
Go to the California Attorney General's website at https://oag.ca.gov/report. Or call 1-800-952-5225. Filing is free. Write down what the salesperson told you at the sale. Save your contract. Save any texts, emails, and voicemails with the installer. If you have a solar loan, keep your loan paperwork. A formal complaint creates a record. That record strengthens any legal review later.