Delaware Solar Panel Laws: Your Rights & How to Exit a Solar Contract

Delaware homeowners who sign solar contracts generally have at least 3 federal business days to cancel under the FTC Cooling-Off Rule if the sale occurred at their home. Beyond that window, the Delaware Consumer Fraud Act (6 Del. C. Section 2511 et seq.) and Delaware's Home Solicitation Sales Act (6 Del. C. §§ 4401-4407, with the operative cancellation provisions at 6 Del. C. § 4404) may provide additional grounds for cancellation. Delaware's own door-to-door cancellation right generally runs until midnight of the third business day after the transaction. Delaware's net metering requirements and PSC oversight create a favorable regulatory environment for solar consumers. We always recommend consulting a qualified Delaware attorney before taking action.

Right to Cancel / Cooling-Off Period in Delaware

If you recently signed a solar contract in Delaware, your most immediate protection is the cooling-off period. Delaware law provides specific protections that work alongside the federal FTC rule.

Federal FTC Cooling-Off Rule (3 Business Days)

The FTC's Cooling-Off Rule (16 CFR Part 429) generally provides Delaware homeowners with 3 business days to cancel a sale that occurred at your home or away from the seller's permanent place of business. Door-to-door solar sales are common throughout Delaware: in the Wilmington, Dover, and Newark areas as well as Sussex County beach communities.

Under this rule, the solar company is generally required to:

• Provide you with two copies of a cancellation form at the time of sale
• Inform you of your right to cancel within 3 business days
• Process your cancellation and refund any payments within 10 business days

Delaware Home Solicitation Sales Act

Delaware's Home Solicitation Sales Act (6 Del. C. §§ 4401-4407) provides a separate, state-law cancellation right for door-to-door transactions. The operative provisions are at 6 Del. C. § 4404, which makes it an unlawful practice for a seller to fail to honor the buyer's cancellation. Key points as we read the statute:

• Window and cutoff: the buyer may generally cancel at any time prior to midnight of the third business day after the date of the transaction. The cutoff is midnight, not an earlier hour.
• How days are counted: 6 Del. C. § 4403 defines a "business day" as any calendar day except Saturdays, Sundays, and legal holidays, so weekends and holidays generally do not count against your window.
• Dollar threshold: the definition of a "door-to-door sale" in § 4403 generally reaches consumer goods or services with a purchase price of $25 or more, which a residential solar agreement would typically exceed.
• Cash or credit: the statute is not limited to credit sales. It does, however, generally exclude transactions in which the federal Consumer Credit Protection Act already supplies a right of rescission, so a solar loan secured by your home may fall under federal rescission rules instead.
• Required notice: under § 4404 the seller must generally give you two completed copies of a detachable "Notice of Cancellation" form in 10-point bold type, filled in with the seller's name and address, the transaction date, and a deadline date no earlier than the third business day after the transaction. The seller must also tell you orally of the right to cancel.
• After you cancel: the seller generally has 10 business days after receiving your notice to refund payments, return any trade-in, cancel and return any negotiable instrument, and terminate any security interest created in the transaction.
• Financing assignment: § 4404 also generally bars the seller from selling or assigning your note to a finance company before midnight of the fifth business day after the contract was signed.

Delaware's Home Solicitation Sales Act does not appear to contain a senior-citizen or other age-based extension of the cancellation window. Failure to provide the required cancellation notice may extend the practical cancellation period and may constitute a violation of Delaware law. This is not legal advice, and results vary by individual situation.

Delaware Statute of Limitations

For breach of contract claims in Delaware, the statute of limitations is generally 3 years under 10 Del. C. Section 8106. For fraud claims, the limitation is typically 3 years from discovery. For Consumer Fraud Act claims, consult an attorney about applicable deadlines. Act promptly to preserve your legal options.

Delaware Consumer Protection Laws Relevant to Solar

Delaware Consumer Fraud Act (CFA)

The Delaware Consumer Fraud Act (6 Del. C. Section 2511 et seq.) is the state's primary consumer protection statute and may apply to solar contract disputes. Under the CFA, homeowners may have grounds for legal action if the solar company engaged in:

• Deception, fraud, false pretense, misrepresentation, or concealment: such as overstating energy production, misrepresenting savings, or concealing material contract terms
• Use of unfair or deceptive trade practices: including misleading sales presentations about solar economics or available incentives
• Violation of regulations promulgated under the CFA: the Delaware Attorney General may establish specific regulations that apply to solar sales practices

Under the CFA, the Delaware Attorney General may investigate complaints, seek injunctive relief, and impose civil penalties. Individual consumers may also pursue private actions: 6 Del. C. § 2525 makes a private cause of action available to a victim of a violation of the Consumer Fraud Act, without waiting for the Attorney General to act. The Consumer Fraud Act itself does not, in our reading, supply treble damages or attorney's fees. Those enhanced remedies generally come from Delaware's separate Uniform Deceptive Trade Practices Act at 6 Del. C. § 2533, under which damages awarded under the common law or other Delaware statutes are trebled, and a court may in exceptional cases award reasonable attorney's fees where the defendant willfully engaged in a deceptive trade practice. Whether both statutes apply to a given solar dispute is a question for a Delaware attorney.

Delaware Contractor Licensing

Delaware requires certain contractors to be licensed. The Division of Professional Regulation oversees contractor licensing in the state. If your solar installer was not properly licensed in Delaware, this may provide additional grounds for a consumer protection claim or contract rescission.

Federal Truth in Lending Act (TILA)

If your solar agreement involves financing, TILA may provide additional protections including the right to rescind within 3 years if proper disclosures were not provided.

Solar-Specific Regulations in Delaware

Net Metering in Delaware

Delaware has net metering requirements for electric utilities. Under Delaware's net metering law (26 Del. C. Section 1014), qualifying customers with distributed generation systems (including residential solar) may receive credits for excess energy sent to the grid:

• Net metering availability: Delaware's electric utilities, including Delmarva Power and Delaware Electric Cooperative, are generally required to offer net metering
• Credit structure: excess generation is typically credited at the retail rate, though specific terms may vary
• System size limits: residential systems are generally eligible for net metering up to 25 kW
• Annual true-up: excess credits may be trued up annually, with the utility compensating for any remaining balance at an avoided-cost rate

Delaware Public Service Commission (PSC)

The Delaware PSC regulates electric utilities and has jurisdiction over interconnection, rate structures, and distributed generation policies:

• Interconnection standards: the PSC has established standards for connecting residential solar to the grid
• Rate design: PSC proceedings affect how solar customers are billed and credited
• Renewable Portfolio Standard (RPS): Delaware requires a percentage of electricity to come from renewable sources, including a solar-specific carve-out

Delaware Solar Renewable Energy Credits (SRECs)

Delaware's RPS includes a solar carve-out that creates demand for Solar Renewable Energy Credits (SRECs). Homeowners with solar systems may generate SRECs that can be sold for additional income. If the solar company made specific promises about SREC income that have not materialized, this could be relevant to a consumer protection claim.

Delaware Property Tax and Solar

Delaware does not impose a state property tax (property taxes are assessed at the local/county level). Some local jurisdictions may have provisions affecting how solar installations are assessed. If the solar company made specific property tax claims that were inaccurate, this could support a consumer protection claim.

HOA Restrictions in Delaware

Delaware does not currently have a broad statewide solar access law that prevents all HOAs from restricting solar installations. However, specific HOA covenants may vary. If the solar company failed to verify HOA compliance before signing your contract, this may affect your obligations.

Common Solar Contract Issues in Delaware

How to Exit a Solar Contract in Delaware. Step by Step

Below is a general framework for Delaware homeowners. We always recommend consulting a qualified Delaware attorney before taking action.

Step 1: Gather Your Documents

• Your original solar contract (lease, PPA, or loan agreement)
• Marketing materials and written estimates
• Records of verbal promises during the sales presentation
• Electricity bills from before and after installation
• Correspondence with the solar company
• Actual energy production data from your inverter portal

Step 2: Determine Your Cancellation Window

• Within 3 business days (home solicitation): Delaware's window generally runs until midnight of the third business day after the transaction, counting only days other than Saturdays, Sundays, and legal holidays. Send your written cancellation notice via certified mail with return receipt requested, and reference both the FTC Cooling-Off Rule (16 CFR Part 429) and Delaware's Home Solicitation Sales Act, 6 Del. C. § 4404
• Before installation: Check for pre-installation cancellation clause. Pre-installation cancellation guide →
• After installation: Proceed to Steps 3-5

Step 3: Review Your Contract for Exit Provisions

• Termination clause: early termination with buyout fee
• Performance guarantees: grounds for relief if underperforming
• SREC ownership: verify who owns the SRECs your system generates
• Transfer provisions: options if selling your home

Step 4: Evaluate CFA Claims

Consult a Delaware attorney about potential Consumer Fraud Act claims. Common bases include:

• Overstated energy production or savings
• Misrepresented SREC income potential
• Failure to disclose escalator clauses
• Misrepresentation of net metering rates
• Failure to disclose UCC-1 lien filings
• Unlicensed installer

Step 5: Send a Formal Demand

Your attorney will send a demand letter. The potential for treble damages under Delaware's Deceptive Trade Practices Act (6 Del. C. § 2533), alongside a Consumer Fraud Act private action under 6 Del. C. § 2525, may create incentive for companies to negotiate. Outcomes vary by individual situation.

Step 6: Consider Professional Exit Services

Compare solar cancellation companies →

Delaware Consumer Protection Agencies & Resources

Frequently Asked Questions About Delaware Solar Panel Laws