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

Maine homeowners who signed solar contracts through home solicitation generally have 3 business days to cancel under both state and federal law. For a financed purchase the operative provision is generally 9-A M.R.S.A. § 3-502(1), which runs until midnight of the third business day after signing; for a cash purchase it is generally 32 M.R.S.A. § 4664. Beyond that window, Maine's Unfair Trade Practices Act (5 M.R.S.A. Section 205-A et seq.) may provide additional grounds for relief. Maine's transition to Net Energy Billing (NEB) under LD 1711 (2019) has changed the solar landscape significantly. We always recommend consulting a qualified Maine attorney before taking action.

Right to Cancel / Cooling-Off Period in Maine

Maine provides cooling-off protections for homeowners who signed solar contracts through door-to-door sales or other home solicitation methods. These protections are important given the growth of solar sales activity across Maine.

Maine's Two Cooling-Off Statutes (9-A M.R.S.A. § 3-501 et seq. and 32 M.R.S.A. § 4661 et seq.)

Maine generally splits home-solicitation cancellation rights across two statutes, and which one applies typically depends on how the system was paid for:

• Financed solar (a solar loan or other consumer credit sale): Maine's Home Solicitation Sales law in the Maine Consumer Credit Code, 9-A M.R.S.A. § 3-501 et seq., generally applies. Under 9-A M.R.S.A. § 3-502(1), the buyer generally has the right to cancel until midnight of the third business day after the day the buyer signs an agreement or offer to purchase that complies with that Part.
• Cash purchases: Maine's Consumer Solicitation Sales subchapter, 32 M.R.S.A. § 4661 et seq., generally applies. Under 32 M.R.S.A. § 4664, the consumer may avoid the contract by giving written notice of avoidance to the seller by ordinary mail, postage prepaid, within 3 full business days following the day on which the contract or sale was made. Under 32 M.R.S.A. § 4668, this subchapter generally does not reach sales with a gross sales price under $25, and it generally does not apply to transactions already governed by 9-A M.R.S.A. §§ 3-501 to 3-507.

Because most residential solar is financed, the 9-A provisions are typically the operative ones. Under either statute the seller is generally required to:

• Give you a written agreement stating your right to cancel, with the date you actually signed (9-A M.R.S.A. § 3-503; for cash sales, 32 M.R.S.A. § 4662)
• Include the statutory "BUYER'S RIGHT TO CANCEL" notice telling you the date by which you may cancel by mail
• Clearly inform you that you may cancel within the 3 business day window
• Not begin work if the contract requires the seller to affix equipment permanently to your real estate, for as long as you still have the right to cancel (9-A M.R.S.A. § 3-502(5); 32 M.R.S.A. § 4664-A)

Federal FTC Cooling-Off Rule

The federal FTC Cooling-Off Rule (16 CFR Part 429) also provides 3 business days to cancel home solicitation sales. This federal protection operates alongside Maine's state law, providing dual protection for homeowners solicited at their homes.

Maine Specific Considerations

Maine's relatively small population and tight-knit communities mean that solar sales teams often move through towns systematically. If a solar company used high-pressure tactics, misrepresented themselves as being affiliated with a local utility (such as CMP or Versant Power), or failed to leave proper cancellation paperwork, these failures may extend your cancellation rights under Maine law.

Maine Consumer Protection Laws Relevant to Solar

Maine Unfair Trade Practices Act (5 M.R.S.A. Section 205-A et seq.)

The Maine Unfair Trade Practices Act (UTPA) is the state's primary consumer protection statute. Under 5 M.R.S.A. Section 207, it prohibits "unfair or deceptive acts or practices in the conduct of any trade or commerce." For solar homeowners, actionable practices may include:

• Misrepresenting energy savings or production: such as overstating how much electricity the system will generate given Maine's climate and seasonal variations
• Misrepresenting financial terms: including disguising a lease as ownership, hiding escalator clauses, or understating the total cost over the contract term
• Deceptive advertising: such as "free solar panels," "zero cost," or misleading claims about government incentive programs
• Omitting material facts: such as failing to disclose the impact of NEB rate changes on future savings

Under the UTPA's private right of action, 5 M.R.S.A. § 213, a consumer who purchases goods or services for personal, family or household use and suffers a loss because of an unfair or deceptive act may generally bring an action for actual damages, restitution, and such other equitable relief, including an injunction, as the court determines to be necessary and proper. The court may also award reasonable attorney's fees and costs to a prevailing plaintiff. Maine's statute does not appear to provide a fixed minimum statutory award or automatic treble damages. Separately, a violation of the consumer solicitation sales rules is itself declared an unfair trade practice under 32 M.R.S.A. § 4670. The Maine Attorney General may also bring enforcement actions seeking civil penalties.

Maine Lemon Law and Implied Warranties

While Maine's Lemon Law (10 M.R.S.A. Section 1161 et seq.) primarily applies to motor vehicles, Maine's implied warranty protections under the Uniform Commercial Code (UCC) may apply to the sale of solar equipment. If the solar system is defective or fails to perform as warranted, you may have claims under UCC Article 2 for breach of implied warranty of merchantability or fitness for a particular purpose.

Maine Electrical Contractor Licensing

Maine requires electrical work to be performed by licensed electricians under 32 M.R.S.A. Chapter 17. Solar installations involve electrical work that must comply with Maine's electrical licensing requirements. If your solar installer was not properly licensed, or used unlicensed workers for electrical components, this may affect the enforceability of the contract and provide grounds for a complaint with the Maine Electricians' Examining Board.

Solar-Specific Regulations in Maine

Maine Net Energy Billing (NEB). LD 1711

Maine's solar compensation framework changed significantly with the passage of LD 1711 in 2019, which established the Net Energy Billing (NEB) program. Key aspects include:

• Kilowatt-hour credits: Under NEB, eligible customers receive kilowatt-hour credits on their electric bills for energy generated by their solar system, effectively at or near the retail rate
• System size: Residential customers may participate with systems generally sized to offset their annual consumption
• Community solar: LD 1711 also expanded community solar options, allowing customers to subscribe to shared solar projects
• Rate adjustments: The Maine PUC has authority to adjust NEB rates over time, which can affect long-term savings projections

The NEB framework is important for solar contract disputes because:

• Solar companies that made savings projections before the NEB rules were finalized may have used incorrect assumptions
• Changes to NEB rates over time can affect whether projected savings materialize
• Community solar subscriptions involve different contractual arrangements than rooftop installations

Maine Public Utilities Commission (MPUC) Oversight

The MPUC regulates electric utilities in Maine, including Central Maine Power (CMP) and Versant Power (formerly Emera Maine). Key MPUC roles relevant to solar include:

• NEB program administration: the MPUC oversees the NEB program and approves rates and rules
• Interconnection standards: the MPUC establishes standards for connecting distributed solar to the grid
• Consumer complaints: the MPUC accepts and investigates complaints related to utility service and solar issues

Maine Property Tax Exemption for Solar

Maine's personal property tax exemption for solar equipment is found at 36 M.R.S.A. § 655(1). Paragraph (U) generally covers solar and wind energy equipment that generates heat or electricity used on site or transmitted through utility facilities, and paragraph (V) applies to solar energy equipment for property tax years beginning on or after April 1, 2025. This is generally a statewide exemption rather than a local opt-in, but it is typically not self-executing: the taxpayer usually must file a report or application with the municipal assessor to claim it. If a solar company represented that no filing was needed, or misstated how the exemption applies to your equipment, that may be relevant to a misrepresentation claim. Confirm the current filing requirements with your local assessor.

Maine Solar Access Rights

Maine does not have a comprehensive solar access or solar rights law that would prevent HOAs or neighbors from obstructing sunlight to your solar panels. However, Maine does recognize solar easements as voluntary agreements between property owners. If a solar company failed to disclose potential shading issues or HOA restrictions before installation, this may be relevant to a contract dispute.

Maine Community Solar Considerations

Maine's community solar market has grown significantly under NEB. If you subscribed to a community solar project rather than installing rooftop panels, your contract structure and exit options may differ. Community solar contracts typically involve subscription agreements with specific terms, cancellation provisions, and credit allocation rules that are distinct from rooftop solar lease or PPA agreements.

Common Solar Contract Issues in Maine

As Maine's solar market grows, consumer complaints have increased. Based on reports filed with the Maine Attorney General's Office and the MPUC, these are the most common issues:

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

If you're a Maine 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 Maine attorney before taking action.

Step 1: Gather Your Documents

Collect the following before taking any action:

• Your original solar contract (lease, PPA, loan, or community solar subscription)
• All marketing materials, savings projections, and proposals
• Records of any verbal promises about savings or production
• Your electricity bills from before and after solar (or subscription)
• Your solar system's actual production data
• NEB credit statements from your utility
• Any correspondence with the solar company
• The installer's license information

Step 2: Determine Your Cancellation Window

• Within 3 business days of signing (home solicitation): Send written cancellation by mail to the address in the agreement. Reference 9-A M.R.S.A. § 3-502 for a financed purchase, or 32 M.R.S.A. § 4664 for a cash purchase, plus the FTC Cooling-Off Rule. Certified mail is not required but is generally worth using for proof of mailing
• 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 electrical license through the Maine Electricians' Examining Board. If electrical work was performed by unlicensed individuals, this may provide grounds for a complaint and strengthen your contract dispute.

Step 4: Evaluate UTPA Claims

If you believe the solar company made misrepresentations, review your situation against the Maine UTPA. Common bases include:

• Savings projections that didn't account for Maine's winter climate
• Misrepresentation of NEB credit rates or future rate changes
• Failure to disclose financing costs or dealer fees
• Misrepresentation of property tax exemption availability
• False claims about utility affiliation
• Community solar subscription misrepresentations

Step 5: File Complaints

File complaints with the Maine Attorney General's Consumer Protection Division and the MPUC. Maine's relatively small regulatory community means complaints may receive more individual attention.

Step 6: Consider Professional Exit Services

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

Maine Consumer Protection Agencies & Resources

Frequently Asked Questions About Maine Solar Panel Laws