Cancellation for solar loans: what consumers should know
Photovoltaic systems are now no longer a rarity on German house roofs. To finance the high acquisition costs, many consumers take out a loan. But what happens if they change their mind or find a cheaper offer?
Contrary to many assumptions, consumers of solar loans also have a right of withdrawal. This is what the German Federal Supreme Court (BGH) ruled in 2018. This means that you can withdraw from your loan agreement within 14 days of the conclusion of the agreement without giving any reason.
However, there are a few pitfalls to be aware of. For example, the consumer must have received the credit agreement in writing and have been informed in writing of his or her right of cancellation. In addition, the revocation is only effective if it is declared clearly and in due time.
Consumer advocates advise to consult a lawyer in case of doubt and to inform oneself in detail about the conditions of the credit agreement as well as the right of withdrawal.
Cancellation of solar loans – What does it mean??
As a borrower you have the right to revoke your contractual declaration within 14 days. This also applies to solar loans. What exactly does this mean?
A revocation means that the contract is cancelled retroactively. You then no longer have any obligations under this contract. The bank must reimburse you for installments and interest already paid. In return, you will have to return the solar system.
There can be several reasons why you may want to withdraw from your solar system loan. You may have found that the solar system is not as efficient as you thought it would be. Or you have received a better offer from another credit institution.
It is important that you adhere to the 14-day revocation period if you wish to withdraw from your solar loan. It is best to send a registered letter with the cancellation notice to the bank to have a proof.
Consumers benefit from right of withdrawal also for solar loans
Should a consumer wish to revoke the solar loan, they have the right to do so. This also applies if a photovoltaic system has already been installed. Thus, consumers have the advantage of being able to exercise their right of cancellation at any time and thus withdraw from unfavorable loan agreements.
Another advantage for consumers is that they can reclaim all payments made if the revocation is successful. In addition, they may gain a significant financial advantage by obtaining better credit terms from another lender and thus saving interest.
- Time advantage: Even after years, the revocation can still be exercised
- Financial advantage: All amounts paid can be reclaimed
- Freedom of contract: consumers can opt for better credit conditions
It is important for consumers to know that revoking their solar loan can be a sensible step to protect themselves financially and save money in the long run. Expert advice can help to have the loan agreement reviewed for its legality.