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

Kentucky homeowners who signed solar contracts through home solicitation generally have 3 business days to cancel under both state and federal law. Beyond that window, the Kentucky Consumer Protection Act (KRS 367.110 et seq.) may provide additional grounds for relief. Kentucky's net metering landscape changed significantly in 2019 when the legislature passed SB 100, which reduced the rate paid for excess solar generation. We always recommend consulting a qualified Kentucky attorney before taking action.

Right to Cancel / Cooling-Off Period in Kentucky

Kentucky provides cooling-off protections for homeowners who signed solar contracts through door-to-door sales. These protections are essential as solar companies increasingly target Kentucky communities with in-home sales presentations.

Kentucky Home Solicitation Sales Act (KRS 367.410-367.470)

Under the Kentucky Home Solicitation Sales Act (KRS 367.410 et seq.), if a solar contract was signed at your home or at a location other than the seller's regular place of business, and the purchase price is $25 or more, you generally have 3 business days to cancel the transaction. The seller is required to:

• Provide you with a written notice of your right to cancel in the same language as the oral sales presentation
• Include a detachable cancellation form (KRS 367.420)
• Provide a duplicate copy of the contract or receipt at the time of the sale
• Not negotiate any note or contract before midnight of the third business day after the sale

Federal FTC Cooling-Off Rule

The federal FTC Cooling-Off Rule (16 CFR Part 429) provides an additional 3 business days to cancel home solicitation sales of $25 or more. This federal rule operates alongside Kentucky's state law, providing dual protection. If the solar company failed to inform you of your federal cancellation rights, this constitutes a separate violation.

Kentucky Specific Notice Requirements

Kentucky law requires that the cancellation notice be clearly and conspicuously disclosed in the contract. Under KRS 367.420, the notice must inform the buyer of their right to cancel within 3 business days and must include a cancellation form. If the notice was buried in fine print, was in a different language than the sales presentation, or was not included at all, your cancellation rights may be extended.

Kentucky Consumer Protection Laws Relevant to Solar

Kentucky Consumer Protection Act (KRS 367.110-367.300)

The Kentucky Consumer Protection Act (KCPA) is the state's primary consumer protection statute. Under KRS 367.170, it prohibits "unfair, false, misleading, or deceptive acts or practices in the conduct of any trade or commerce." For solar homeowners, this means the following practices may be actionable:

• Misrepresenting energy savings or production — such as overstating the amount of electricity the solar system will generate or the dollar savings the homeowner will experience
• Misrepresenting the financial terms — including disguising a lease as ownership, hiding escalator clauses, or failing to disclose the total cost over the contract term
• False or misleading advertising — such as "free solar panels," "zero cost solar," or misleading claims about government programs
• Unconscionable practices — taking advantage of a consumer's lack of understanding of solar contracts, financing, or net metering

Under the KCPA, the Attorney General may seek injunctive relief, civil penalties of up to $2,000 per violation, and restitution. Individual consumers may bring private actions for actual damages, and the court has discretion to award attorney's fees and costs.

Kentucky Unfair Trade Practices (KRS 365.020)

Kentucky's unfair trade practices statute prohibits various forms of commercial deception. If a solar company used false or misleading representations to sell you a system — such as inflated savings projections or misrepresented equipment specifications — this statute may provide additional remedies beyond the KCPA.

Kentucky Electrical Contractor Licensing

Kentucky requires electrical contractors to be licensed by the Kentucky Department of Housing, Buildings and Construction. Solar installations typically require electrical work that must be performed by or under the supervision of a licensed electrical contractor. Under KRS 227A, performing electrical work without a license is a violation. If your solar installer was not properly licensed, this may affect the enforceability of the contract and provide grounds for a complaint.

Solar-Specific Regulations in Kentucky

Kentucky Net Metering — The Impact of SB 100 (2019)

Kentucky's net metering landscape changed dramatically in 2019 with the passage of Senate Bill 100, which fundamentally altered how solar homeowners are compensated for excess energy. Key changes include:

• Pre-SB 100 (legacy customers): Homeowners who interconnected before SB 100 took effect generally receive retail-rate credits for excess generation, grandfathered for 25 years from their interconnection date
• Post-SB 100 (new customers): New solar customers are compensated at a rate determined by the Kentucky Public Service Commission (PSC), which is typically lower than the retail rate — often at or near the utility's avoided cost
• System size cap: Net metering is generally available for systems up to 45 kW for residential customers

The SB 100 changes are critically important for solar contract disputes because:

• Solar companies that sold systems after SB 100 using pre-SB 100 savings projections may have provided materially misleading information
• The reduced compensation rates under SB 100 can significantly affect the payback period and overall economics of a solar system
• Homeowners who were told they would receive retail-rate credits but were actually placed on the new, lower rate may have grounds for a misrepresentation claim

Kentucky Public Service Commission (PSC) Oversight

The Kentucky PSC regulates investor-owned utilities in the state, including Louisville Gas & Electric (LG&E), Kentucky Utilities (KU), Duke Energy Kentucky, and Kentucky Power. Key PSC rules relevant to solar include:

• Net metering tariffs — each regulated utility files net metering tariffs with the PSC that establish compensation rates for customer-owned solar generation
• Interconnection standards — utilities must follow PSC-approved procedures for connecting distributed solar systems to the grid
• Rate proceedings — the PSC conducts rate cases that can affect the economics of existing solar contracts

Kentucky Property Tax Treatment

Kentucky does not currently provide a specific property tax exemption for residential solar energy systems. This means that a solar installation may increase your property's assessed value and potentially raise your property taxes. If a solar company represented that your solar system would not affect your property taxes or that it would be exempt, this may constitute a misrepresentation under the KCPA.

Kentucky TVA Territory

A significant portion of western Kentucky is served by the Tennessee Valley Authority (TVA) through local distribution cooperatives. TVA has its own distributed generation policies that differ from those regulated by the Kentucky PSC. If your home is in TVA territory, the net metering rules and compensation rates may be different from what was represented by the solar company. Verify which utility serves your home and which policies apply.

Kentucky Solar Easements

Under KRS 381.200, Kentucky recognizes solar easements — voluntary agreements that protect a property owner's access to sunlight. However, Kentucky does not have a mandatory solar access law that prevents neighbors or HOAs from blocking sunlight. If a solar company failed to inform you about potential shading issues or HOA restrictions, this may be relevant to a misrepresentation claim.

Common Solar Contract Issues in Kentucky

As solar installations increase across Kentucky, consumer complaints are growing. Based on reports filed with the Kentucky Attorney General's Office and the PSC, these are the most common issues:

How to Exit a Solar Contract in Kentucky — Step by Step

If you're a Kentucky homeowner looking to exit your solar contract, the approach depends on your specific circumstances. Below is a general framework — we always recommend consulting a qualified Kentucky attorney before taking action.

Step 1: Gather Your Documents

Collect the following before taking any action:

• Your original solar contract (lease, PPA, or loan agreement)
• All marketing materials, savings projections, and proposals you received
• Records of any verbal promises made during the sales process
• Your electricity bills from before and after solar installation
• Your solar system's actual production data (from your monitoring app)
• Your utility interconnection agreement and net metering arrangement
• Whether you're on pre-SB 100 or post-SB 100 net metering rates
• Any correspondence with the solar company

Step 2: Determine Your Cancellation Window

• Within 3 business days of signing (home solicitation): Send a cancellation notice via certified mail immediately. Reference KRS 367.410 and the FTC Cooling-Off Rule
• Past cooling-off but before installation: Check your contract for a pre-installation cancellation clause. Pre-installation guide →
• After installation: Proceed to Steps 3-5 below

Step 3: Check for Licensing Violations

Verify the installer's electrical contractor license through the Kentucky Department of Housing, Buildings and Construction. If the installer was not properly licensed, this may provide grounds for voiding the contract and filing a complaint with state authorities.

Step 4: Evaluate KCPA Claims

If you believe the solar company made misrepresentations, review your situation against the Kentucky Consumer Protection Act (KRS 367.170). Common bases include:

• Savings projections based on pre-SB 100 net metering rates when you're on the new rate
• Failure to disclose dealer fees or total financing costs
• Overstated energy production estimates
• Misrepresentation of property tax implications
• False claims about TVA territory policies
• Failure to provide required cancellation notices

Step 5: File Complaints with Relevant Agencies

File complaints with the Kentucky Attorney General's Consumer Protection Division and the Kentucky PSC. Creating a paper trail strengthens your position and may trigger investigations.

Step 6: Consider Professional Exit Services

Professional solar contract exit services can help navigate the process. Compare solar cancellation companies →

Kentucky Consumer Protection Agencies & Resources

Frequently Asked Questions About Kentucky Solar Panel Laws