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

Louisiana 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 Louisiana Unfair Trade Practices and Consumer Protection Law (La. R.S. 51:1401 et seq.) — one of the broadest consumer protection statutes in the South — may provide additional grounds for relief. Louisiana's net metering policies, regulated by the Louisiana Public Service Commission, also play a key role. We always recommend consulting a qualified Louisiana attorney before taking action.

Right to Cancel / Cooling-Off Period in Louisiana

Louisiana provides cooling-off protections for homeowners who signed solar contracts through door-to-door sales or other home solicitation methods. Given the high volume of door-to-door solar sales in Louisiana, these protections are critically important.

Louisiana Home Solicitation Sales (La. R.S. 51:731-741)

Under the Louisiana Home Solicitation Sales Act (La. R.S. 51:731 et seq.), if a solar contract was signed at your home or at a location other than the seller's regular place of business, 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 at the time of the sale
• Include a cancellation form as part of the contract
• Clearly state the 3-business-day cancellation window in the contract
• Not collect any payment or negotiate any note before the cancellation period expires

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 protection operates alongside Louisiana's state law, providing dual protection for homeowners who were solicited at their homes.

Louisiana Civil Code — Vice of Consent

Louisiana's unique civil law tradition (rooted in the Napoleonic Code) provides additional protections through the concept of "vice of consent." Under Louisiana Civil Code Articles 1948-1958, a contract may be voidable if consent was obtained through error (mistake), fraud, or duress. If a solar company obtained your signature through material misrepresentations about savings, costs, or contract terms, the contract may be rescindable under Louisiana's civil code — independent of the cooling-off period.

Louisiana Consumer Protection Laws Relevant to Solar

Louisiana Unfair Trade Practices and Consumer Protection Law (La. R.S. 51:1401-1430)

The Louisiana Unfair Trade Practices and Consumer Protection Law (LUTPA) is one of the broadest consumer protection statutes in the region. Under La. R.S. 51:1405, it declares unlawful "unfair or deceptive acts or practices in the conduct of any trade or commerce." For solar homeowners, actionable practices may include:

• Misrepresenting the characteristics, benefits, or quality of a solar system — such as overstating energy production or financial savings
• Misrepresenting the terms of a financing arrangement — including disguising a lease or PPA as ownership, hiding escalator clauses, or understating total costs
• Using deceptive sales tactics — such as claiming to represent the utility company, falsely stating that incentives are about to expire, or pressuring homeowners to sign immediately
• Failing to disclose material facts — such as net metering limitations, dealer fees in financing, or the impact of rate changes on savings projections

Under LUTPA, consumers may recover actual damages, treble damages (up to three times actual damages) if the court finds the practice was intentional, and attorney's fees. The availability of treble damages makes LUTPA claims particularly powerful in solar contract disputes.

Louisiana Civil Code — Redhibition (La. C.C. Art. 2520-2548)

Louisiana's unique redhibition law provides remedies when a product has defects that make it unfit for its intended use or that diminish its usefulness to the extent that the buyer would not have purchased it at the same price. If your solar system is defective, underperforming, or was misrepresented, redhibition may provide grounds for rescission (return) of the sale or a reduction in price. This remedy is unique to Louisiana's civil law tradition and may be available even if other consumer protection claims are not.

Louisiana Contractor Licensing

Louisiana requires contractors performing work valued at $50,000 or more (including labor and materials) to be licensed by the Louisiana State Licensing Board for Contractors (LSLBC). Many residential solar installations exceed this threshold. Under La. R.S. 37:2160, it is unlawful to perform or offer to perform contracting work without a license. If your solar installer was not properly licensed, the contract may be unenforceable and you may have grounds for a complaint with the LSLBC.

Solar-Specific Regulations in Louisiana

Louisiana Net Metering Rules

Louisiana's net metering policy is governed by the Louisiana Public Service Commission (LPSC) and has undergone significant changes. Key aspects include:

• System size: Net metering is generally available for residential systems up to 25 kW
• Credit rate: The LPSC has approved modifications to net metering rates over time. Newer customers may receive credits at a rate lower than full retail, depending on their utility and the applicable tariff
• Utilities: Major investor-owned utilities include Entergy Louisiana and SWEPCO, each with their own LPSC-approved net metering tariffs
• Cooperatives and municipals: Electric cooperatives and municipal utilities may have different policies

The net metering landscape in Louisiana is important for solar contract disputes because:

• Changes to net metering credit rates can significantly affect savings projections made at the time of sale
• Solar companies that projected savings based on rates that were subject to change may have provided misleading information
• Different utilities have different tariffs, and a one-size-fits-all sales approach may not account for these differences

Louisiana Solar Tax Credit (Expired)

Louisiana previously offered a generous state solar tax credit of up to 50% of the first $25,000 of the system cost (capped at $12,500) under La. R.S. 47:6030. This state credit expired for systems installed after December 31, 2017. If a solar company represented that you would receive this credit for a system installed after the expiration date, this may constitute a material misrepresentation under LUTPA. The expiration of this credit significantly changed the economics of solar in Louisiana.

Louisiana Public Service Commission (LPSC) Oversight

The LPSC regulates investor-owned utilities in Louisiana and has authority over net metering, interconnection, and rate structures. Key LPSC rules relevant to solar include:

• General Order R-31417 and subsequent orders governing net metering policies and rates
• Interconnection standards for distributed generation
• Rate proceedings that can affect the economics of existing solar contracts

Louisiana Property Tax Considerations

Louisiana does not currently offer a specific property tax exemption for residential solar systems. Under Louisiana's homestead exemption, the first $7,500 of assessed value is exempt from property taxes, but a solar installation may increase assessed value beyond this threshold. If a solar company misrepresented the property tax implications, this may support a LUTPA claim.

Hurricane and Storm Damage Considerations

Louisiana's exposure to hurricanes and severe storms creates unique risks for solar installations. Solar panels and mounting systems can be damaged by high winds, flying debris, and flooding. If your solar company failed to disclose these risks, did not install the system to withstand Louisiana's wind speed requirements, or misrepresented the insurance implications of a solar installation, these failures may be relevant to a contract dispute.

Common Solar Contract Issues in Louisiana

Louisiana has seen a significant increase in solar consumer complaints in recent years. Based on reports filed with the Louisiana Attorney General's Office and the LPSC, these are the most common issues:

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

If you're a Louisiana 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 Louisiana 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 — especially regarding the state tax credit
• Your electricity bills from before and after solar installation
• Your solar system's actual production data
• Your utility interconnection agreement and net metering arrangement
• Any correspondence with the solar company
• The installer's LSLBC license number

Step 2: Determine Your Cancellation Window

• Within 3 business days of signing (home solicitation): Send a cancellation notice via certified mail. Reference La. R.S. 51:731 and the FTC Cooling-Off Rule
• Past cooling-off but before installation: Check your contract for pre-installation cancellation provisions. Pre-installation guide →
• After installation: Proceed to Steps 3-5 below

Step 3: Check for Licensing Violations

Verify the installer's license with the LSLBC. If the installation was valued at $50,000 or more and the contractor was unlicensed, this is a criminal violation under Louisiana law and may render the contract unenforceable.

Step 4: Evaluate LUTPA and Redhibition Claims

Consult a Louisiana attorney about potential claims under LUTPA and redhibition. Common bases include:

• Misrepresentation of the expired Louisiana state solar tax credit
• Savings projections based on incorrect net metering rates
• Failure to disclose dealer fees or total financing costs
• Defective system or underperformance (redhibition claim)
• Failure to disclose hurricane/storm damage risks
• Failure to provide required cancellation notices

Step 5: File Complaints with Relevant Agencies

File complaints with the Louisiana Attorney General's Consumer Protection Section and the LPSC. The availability of treble damages under LUTPA makes these claims particularly significant.

Step 6: Consider Professional Exit Services

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

Louisiana Consumer Protection Agencies & Resources

Frequently Asked Questions About Louisiana Solar Panel Laws