Installation Contracts and Your Cancellation Rights

Most home energy work is sold in the home, on the phone or online, and that single fact decides whether a household can walk away. Where an installation contract is agreed away from the trader's premises, the Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013 give a 14-day cancellation period, and the cancellation period begins when the contract is entered into¹. Trading Standards Wales states the position plainly: "You have the right to cancel most distance and off-premises contracts and the cancellation period is 14 days."²

The right is not universal. A contract signed at the trader's own place of business carries no automatic right to cancel, and a household in that position depends on whatever the company's own terms allow³. Where the right does apply, it is a cooling-off right, not a trial period: the household can cancel without giving a reason, but what happens to money already paid, and to work already done, depends on whether the trader gave the required information and whether the household asked for an early start.

This page sets out when the right arises, when the clock starts, what written consent to an early start means, what can be deducted from a refund, how deposits are protected under the Renewable Energy Consumer Code, and where complaints go. It also covers what happens when an installer stops trading, because that is the point at which a contract's protections are tested hardest.

When you can cancel an installation contract

The right to cancel turns on where the contract was made, not on what is being installed. Work arranged away from the business's premises, by phone, internet, mail order or elsewhere outside their business carries a 14-day cooling-off period to cancel and get a refund⁴. Work arranged on the business's premises, before work starts, can be cancelled as long as no contract has been made, and nothing is owed⁴.

That distinction is the whole of the statutory right. A boiler installation contracts signed at the trader's place of business carries no automatic right to cancel, and the household must check whether the company will allow cancellation and whether any money would be forfeited³. The same logic applies to a showroom sale, a quote signed at a merchant's counter, or an agreement concluded at a trade counter.

Where the contract is off-premises or distance, the cancellation period begins when the contract is entered into¹. The period is 14 days for most off-premises and distance contracts, and the right does not apply to on-premises contracts⁸. The Anglesey trading standards guidance puts the same rule in the same terms: "You have the right to cancel most off-premises and distance contracts and the cancellation period is 14 days."²

Two further points matter for energy work specifically. First, the Renewable Energy Consumer Code, which covers the selling or leasing of small-scale heat and power generators to domestic consumers, states that under the Consumer Contracts Regulations 2013 and the E-Commerce Regulations 2002 consumers have the unconditional right to cancel an order fourteen working days after receipt of the last item of goods for telephone, mail order, fax, digital TV and internet purchases⁵. Second, the Code's scope is not limited to the sale itself: it covers marketing, pre-contractual information, quotations, deposits, contracts, guarantees and after-sales service⁹.

For a household, the practical consequence is that the route by which the deal was struck should be recorded. A doorstep survey, a telephone follow-up and an online checkout all sit inside the cooling-off regime. A signature in a showroom does not.

The 14-day cooling-off period: when it starts and what it covers

The period runs for 14 days and begins when the contract is entered into¹. It covers the contract as a whole, not just the equipment, and it applies to most distance and off-premises contracts⁸.

The clock can be extended, but only in the household's favour. If the trader does not provide details of how to cancel, the cooling-off period is extended by 14 days from the date the consumer receives those details, up to a maximum⁴. That extension is the sanction for a trader that fails to give the pre-contract information the Regulations require.

A notice of cancellation sent at any time during the cooling-off period is valid even if it is actually received by the trader after the 14-day period has expired¹⁰. That rule matters in practice: a letter posted on day 13, or an email sent late on day 14, does not fail because it lands on the trader's desk on day 16.

The Regulations also treat the required information as part of the bargain. Any information provided under regulation 9, 10 or 13 of the Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013 is treated as a term of the contract, and a change to it is not effective unless expressly agreed between the consumer and the trader¹¹. Where the provisions of regulation 34 apply to cancellation, the contract is treated as including those provisions as terms¹².

For energy supply contracts, Ofgem's own research found that domestic consumers can cancel an energy contract within 14 days of signing up without incurring a financial penalty¹³. Its later consumer journey work describes a 30 day grace period to sign up with a new supplier after cooling off without deemed contract exit fees, in the scenario where the customer does not sign up with a new supplier¹⁴. Those figures relate to supply contracts rather than installation contracts, but they show how the same 14-day principle is applied across the energy market.

Installing during the cooling-off period: what your written consent means

A household that wants the work done quickly can ask for it to start before the 14 days expire. That request changes the financial position if the household then cancels.

Under the Renewable Energy Consumer Code, Code Members must not install an Energy Generator at a Consumer's home during the Cancellation Period unless they have first obtained the Consumer's express written permission⁵. The requirement is for written permission, not a verbal agreement on the doorstep.

Where work has started at the household's request and the business provided the cancellation information, the household will have to pay a part of the agreed price, depending on how much was completed when the request to cancel was made⁴. Where the business begins work during the cooling-off period without the household's approval, the position reverses: the household is entitled to a full refund of all costs⁴.

The same logic runs through the grant-funded schemes. Under the Green Homes Wales installation grant, the offer letter is only valid where the installer is the particular installer described in the Project Information Summary, and it ceases to be valid on cancellation by Welsh Ministers or once payment has been made following redemption¹⁵. Before installation works start, a change of installer or eligible measure requires contact with the Development Bank of Wales and re-validation, with no guarantee of approval, particularly if the change would result in an additional amount of Installation Grant being payable¹⁵.

Cancelling a finance agreement separately from the installation

Installation work is often financed, and the finance agreement is a separate contract with a separate lender. The link between the two is nonetheless direct.

Where a company arranges finance for the work, any finance agreement that the company arranges automatically comes to an end if the household exercises its right to cancel³. The household does not have to cancel the credit separately, and it should not be left paying instalments for an installation that will not proceed.

That automatic termination is a protection worth understanding, because it is not how every credit agreement behaves. It applies to finance arranged by the company selling the installation, which is the common pattern for boiler, solar and heat pump work sold in the home.

Where the installation is grant-funded rather than financed, the equivalent protection sits in the scheme rules. The Green Homes Wales loan standard terms provide that where Welsh Ministers have reasonable grounds regarding a false statement, fraud, collusion, unmet eligibility requirements or serious non-compliance after payment, they may recover the amount from the borrower, who must pay the Development Bank of Wales within 14 days of being told, with late payment interest at 2.5% above the Bank of England base rate from the end of the 14-day period until repayment in full¹⁵.

For a household weighing up how to pay, the wider question of credit, chargeback and card protection is covered in finance for boilers, solar, batteries and heat pumps and Section 75, chargeback and paying for installation work safely.

If the installer misled you or used pressure selling

The cooling-off right is not the only route out of a bad contract. Where a trader misled a consumer or used an aggressive commercial practice, the Consumer Protection from Unfair Trading Regulations 2008 give the right to unwind the contract, the right to a discount and the right to damages⁸. The Anglesey guidance states the same three remedies for a misleading action or aggressive practice².

Those provisions are in transition. The CPRs' provisions on rights of redress will be replaced by similar ones in the Digital Markets, Competition and Consumers Act 2024, which is not yet in force⁸. Until commencement, the 2008 Regulations remain the operative route.

Complaints about pressure selling have a defined escalation path. The Energy Ombudsman can be contacted on 0330 440 1624 to register a dispute regarding products or services provided by a Green Deal supplier⁷. Where a supplier has handled a complaint poorly, the Ombudsman is the next step¹⁷. Complaints about an ECO installation follow Ofgem's complaints process¹⁸.

Where an installer is a member of a consumer code, the code route runs alongside the statutory one. The Renewable Energy Consumer Code was formed in 2006, is administered by Renewable Energy Assurance Ltd, and is a CTSI-approved Consumer Code whose administrator is assessed against core criteria established by CTSI⁹. Its legal basis includes the Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013, the Consumer Rights Act 2015, the Alternative Dispute Resolution for Consumer Disputes (Competent Authorities and Information) Regulations 2015 and the Digital Markets, Competition and Consumers Act 2024⁵. The Code also dovetails with the MCS⁹.

Getting your money back: refunds, deductions and deadlines

The refund rules are set out in regulation 34 of the Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013, which was up to date with all changes known to be in force on or before 17 September 2026¹².

The trader must reimburse all payments, other than payments for delivery, received from the consumer, subject to paragraph (10)¹². Reimbursement must be without undue delay, and in any event not later than the time specified in paragraph (5) or (6)¹². For a sales contract where the trader has not offered to collect the goods, that time is the end of 14 days after the day on which the trader receives the goods back, or if earlier, the day on which the consumer supplies evidence of having sent the goods back¹². Otherwise, it is the end of 14 days after the day on which the trader is informed of the consumer's decision to withdraw the offer or cancel the contract¹².

Deductions are permitted in narrow circumstances. Where the value of goods is diminished by handling beyond what is necessary to establish their nature, characteristics and functioning, an amount may be deducted from the reimbursement, up to the contract price, or otherwise must be paid by the consumer to the trader¹². Handling goes beyond what is necessary if, in particular, it goes beyond the sort of handling that might reasonably be allowed in a shop¹².

That deduction does not apply if the trader has failed to provide the consumer with the information on the right to cancel required by paragraph (l) of Schedule 2, in accordance with Part 2¹². A trader that withheld the cancellation information loses the diminished goods deduction.

Where work has already started, a different set of costs can arise. A business may ask for labour costs up until the time of cancellation, items installed that cannot be removed without damage, the return of delivered items, and loss of profit⁴. Where items were installed or fitted as part of the work and can be uninstalled, the household may have to pay for their return if the pre-contract information states this and includes a cost⁴. Where items cannot be physically removed without damaging them, the business could argue that the right to cancel is lost, or that the refund is reduced⁴.

Separately, the Consumer Rights Act 2015 provides that a refund under the price reduction right must be given without undue delay and within 14 days beginning with the day on which the trader agrees that the consumer is entitled to a refund⁶.

Deposits and advance payments: how RECC members must protect them

A deposit paid before work starts is the household's main exposure if the installer fails. The Renewable Energy Consumer Code addresses this directly.

Code Members must arrange for all deposits and any further Advance Payments to be insured, such that, if they should become insolvent or cease to trade, the Contract can be completed at no additional cost by another Code Member⁵. The protection is not a refund of the deposit; it is completion of the work by another member of the scheme.

Code Members will repay a consumer's deposit within 14 days if the Contract is cancelled in line with the conditions set out in the Code⁵. If Code Members make a significant change to the agreed timetable set out in the Contract, the Consumer will be entitled to cancel and receive a full refund of any deposit or Advance Payment⁵.

The Code's insolvency triggers are drawn widely. "Become insolvent or ceased to trade" includes suspension or threat of suspension of debt payments, or being deemed unable to pay debts within the meaning of section 123 of the Insolvency Act 1986, or section 268 for individuals⁵. It also covers commencing negotiations with creditors to reschedule debts, an application to court or order for the appointment of an administrator, a qualifying floating charge holder becoming entitled to appoint or having appointed an administrative receiver, a person becoming entitled to appoint a receiver or a receiver being appointed, and, for an individual member, a bankruptcy petition or order, death, or incapacity through illness⁵. A winding-up petition, notice, resolution or order is a further trigger⁵.

The Code is not a party to the contracts it covers: neither the Code Sponsor nor the Code Administrator is a party to any Contract covered by the Code⁵. That is why the deposit insurance requirement, rather than the Code itself, is the household's protection.

The Code's role in funded work is visible in the official statistics. Before registering, an investor must be a member of the Renewable Energy Consumer Code or the Home Insulation and Energy Systems Quality Assured Contractors Scheme, both CTSI approved consumer protection codes²⁰. Membership is therefore a condition of participation in at least one government scheme, not merely a marketing badge.

For more on how deposits are handled across the sector, see deposits and staged payments for home energy work and the HIES Consumer Code and its deposit and guarantee protection.

The Renewable Energy Consumer Code and where to complain

The Renewable Energy Consumer Code sets out the standards applicable to the selling or leasing of small-scale heat and power generators, whether from renewable or other low carbon sources, to domestic consumers⁹. Its technology scope covers renewable energy sources, low carbon small-scale heat and power generators and fuel cells⁵. It is sponsored by the REA, which developed the Code to help Code Members achieve high standards⁵.

The Code is monitored and updated regularly to reflect appropriate business practice, and the Code Administrator publishes the results of its monitoring in an annual report made available to Code Members, CTSI and on the website⁵. That monitoring is the mechanism by which a member's conduct is reviewed after the sale.

Complaints routes differ by scheme:

• Renewable Energy Consumer Code members: complain to the Code, which is a CTSI-approved Consumer Code⁹.
• ECO installations: Ofgem publishes a complaints process page for complaints about an installation¹⁸.
• Green Deal suppliers: the Energy Ombudsman registers disputes on 0330 440 1624⁷.
• Feed-in Tariff disputes: Ofgem publishes dispute resolution contacts and guidance²².
• Installers who fail to adhere to building regulations: the local authority may serve an enforcement notice²³.

Where a complaint concerns the standard of the work rather than the contract, the routes overlap with those set out in complaining about an installer: the escalation route and your consumer rights when installation work is faulty.

What happens if the installer goes out of business

An installer ceasing to trade is the event that tests every protection described above. The first question is whether the deposit was insured under the Code, because that determines whether the work can be completed by another member at no additional cost⁵.

Where the installation is registered under a government scheme, the administrative consequences have deadlines. For the Domestic RHI, a change of MMSP installer after scheme closure is allowed if the current installer has ceased trading, provided Ofgem is told within 28 days from the date the household became aware that they have ceased trading²⁴. For Feed-in Tariff installations, accredited installations may be suspended or withdrawn from the scheme, or payments may be withheld²⁵. Generators may temporarily remove an accredited installation from site without affecting its compliance, for example during roof repairs²⁶. Once an installation has been removed from the Central FIT Register, it cannot re-join the scheme at a later date due to scheme closure²⁷.

Building regulations add a separate layer. A registered installer will be approved to carry out the work to comply with building regulations without involving local authority building control, and a certificate is issued on completion²⁸. Installing or replacing a heating system is covered alteration work requiring building regulations approval²⁹. If the installer does not adhere to building regulations, the local authority may serve an enforcement notice²³.

In Northern Ireland, the position is set out in separate legislation. If the remedial works specified in a distributor's notice are not carried out by the end of the specified period, the distributor may disconnect or refuse to connect the supply¹⁵.

For the practical steps after a failure, see when your installer goes bust: deposits, warranties and unfinished work and what to do if your installer has stopped trading.

What if the installer failed to tell me about my cancellation rights?

A trader that omits the cancellation information does not simply escape the consequences. The cooling-off period is extended by 14 days from the date the consumer receives the cancellation details, up to a maximum⁴. The diminished goods deduction under regulation 34 does not apply where the trader failed to provide the information on the right to cancel required by paragraph (l) of Schedule 2¹².

The information itself is treated as a contract term. Any information provided under regulation 9, 10 or 13 of the Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013 is treated as a term of the contract, and a change to it is not effective unless expressly agreed between the consumer and the trader¹¹.

Where a scheme administrator audits installer conduct, the correction deadlines are defined. For minor non-compliance, major non-compliance and Category 1 non-compliance alike, the installer is required to provide evidence of correction within 8 weeks, and if not remediated by that point, Certification Bodies should inform the installer of the implications of not having done so by 12 weeks from the audit³⁰.

The wider point for a household is that the paperwork given before signing is not background material. It is the record against which the trader's conduct is measured, and its absence shifts the financial risk back onto the trader.

Where the rules differ across the UK

The Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013 apply across England, Scotland, Wales and Northern Ireland, and the 14-day period is the same in each². The differences lie in the building control and scheme layers that sit on top.

In Scotland, the draft Buildings (Heating and Energy Performance) and Heat Networks (Scotland) Bill provides for the Regulator to revoke an installation and maintenance licence³¹. That is a distinct enforcement mechanism from the building regulations approval route used in England and Wales, where installing or replacing a heating system is covered alteration work²⁹ and a registered installer can self-certify without involving local authority building control²⁸.

In Northern Ireland, the enforcement route runs through the distributor. If the remedial works specified in a notice are not carried out by the end of the specified period, the distributor may disconnect or refuse to connect the supply¹⁵.

In Wales, the Green Homes Wales scheme adds its own contractual conditions, including the requirement that the installer named in the Project Information Summary is the one who carries out the work, and the re-validation requirement before any change of installer or measure¹⁵.

For the registration and notification rules in each nation, see using an installer in England, using an installer in Scotland, using an installer in Wales and using an installer in Northern Ireland.

What this means for a household's energy independence

A cancellation right is a form of control, and control is what energy independence at household level rests on. A home that can cancel a contract it did not want, recover a deposit that was not earned, and end linked finance without penalty keeps its money and its options. A home that cannot do those things is tied to a decision made on a doorstep.

The limits are equally clear. The statutory right depends on where the contract was made, so a showroom signature removes it. The deposit protection depends on the installer being a Code Member, so a household that did not check membership has no insured completion to fall back on. The finance protection depends on the finance having been arranged by the company selling the installation. And the whole structure depends on the installer remaining solvent long enough to be pursued: where a company has failed, its warranty is not something a buyer can rely on, and the household's route is the deposit insurance, the scheme administrator or the building control enforcement notice, not the defunct firm.

Independence from the grid, a supplier or a fuel is a separate question from independence from a bad contract, but the two meet at the same point. The household that reads the pre-contract information, keeps the cancellation notice, and checks the installer's code membership before paying a deposit is the household that can still change its mind. The pages on checking an installer before you sign and the Renewable Energy Consumer Code (RECC): protections and complaints set out how that check is done.