The 3-day cooling-off rule (and why it isn't your only option)

Federal protections · 5 min read · Updated May 5, 2026

The FTC’s “Cooling-Off Rule” gives you 3 business days to cancel certain consumer purchases without penalty. It’s the single most-cited consumer right in solar sales. It’s also the most misunderstood.

What the rule actually covers

The federal Cooling-Off Rule applies when:

• The sale is for goods or services costing $25 or more (or $130+ at temporary locations).
• The sale takes place at a location other than the seller’s permanent place of business — including your home.

If the salesperson came to your house and you signed in your kitchen, you’re covered. The seller is required to give you two copies of a “Notice of Cancellation” form at the time of sale.

How to exercise the right

Mail or deliver the cancellation notice before midnight of the third business day after you signed. Keep proof — certified mail return receipt is the gold standard. The seller must refund all money within 10 days.

When 3 days isn’t enough

Most solar problems aren’t apparent within 72 hours. Production shortfalls take months to surface. Hidden fees show up on the first or second monthly statement. A “free” panel sale may not feel wrong until the system is on the roof and not producing.

What you still have after the 3 days

Extended state cooling-off periods

Several states give you longer:

• California — extended right of cancellation under the Home Solicitation Sales Act, with Spanish-language disclosure requirements. Details here →
• Connecticut, Massachusetts, North Carolina, others — varying state-specific home-solicitation rules.

TILA right of rescission

Loans secured by your principal dwelling carry a separate 3-day rescission right that can extend up to 3 years if disclosures are defective. More on TILA →

Deceptive-trade-practice (UDAP) statutes

Every state has a consumer-protection statute prohibiting unfair or deceptive acts. These aren’t time-limited to 3 days — typical statutes of limitations run 2 to 6 years from discovery of the violation.

Fraud, misrepresentation, contract-formation defenses

If the contract you signed differs materially from what was represented verbally — or you weren’t given a full chance to read it — common-law claims may apply with their own (longer) limitation periods.

Bottom line

The 3-day rule is your fastest, cleanest exit. After that, the path is harder but the door isn’t closed. Don’t let an installer tell you the 3-day window was your “only chance.” Free attorney review →