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

Maryland homeowners who signed solar contracts through door-to-door sales generally have 3 business days to cancel under both state and federal law. Beyond that window, the Maryland Consumer Protection Act (Md. Code, Commercial Law Section 13-101 et seq.) provides strong protections against deceptive solar sales practices. Maryland's net metering program, SREC market, and MHIC licensing requirements add additional layers of regulation. We always recommend consulting a qualified Maryland attorney before taking action.

Right to Cancel / Cooling-Off Period in Maryland

Maryland provides important cooling-off protections for homeowners who signed solar contracts through door-to-door sales. With the high volume of solar sales activity in suburban Maryland communities, these protections are essential.

Maryland Door-to-Door Sales Act (Md. Code, Commercial Law Section 14-301 et seq.)

Under Maryland's Door-to-Door Sales Act, 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 must:

• Provide you with a written notice of your right to cancel
• Include a cancellation form that can be easily detached from the contract
• Clearly state the cancellation deadline in the contract
• Not begin any work or installation until the cancellation period has expired

Maryland Home Improvement Commission (MHIC) Cancellation Rights

Solar installations are generally classified as home improvements in Maryland, bringing them under the jurisdiction of the MHIC. Under COMAR 09.08.01.21, home improvement contracts must include specific cancellation provisions. If the solar company is registered as a home improvement contractor, additional cancellation rights and disclosure requirements may apply.

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. This federal protection operates alongside Maryland's state protections.

Maryland Consumer Protection Laws Relevant to Solar

Maryland Consumer Protection Act (Md. Code, Commercial Law Section 13-101 et seq.)

The Maryland Consumer Protection Act (MCPA) provides broad protections against unfair, abusive, or deceptive trade practices. Under Section 13-301, prohibited practices include:

• False or misleading oral or written statements — such as overstating solar savings, misrepresenting system performance, or making false claims about incentives
• Failure to state a material fact — such as omitting dealer fees, future rate changes affecting savings, or SREC ownership terms
• Deception, fraud, or misrepresentation — including presenting a lease as ownership, disguising escalator clauses, or misrepresenting utility affiliation
• False claims about government endorsement — such as implying that the solar company is endorsed by or affiliated with Maryland state agencies

Under the MCPA, the Attorney General may seek injunctive relief, civil penalties up to $10,000 per violation, and restitution. Individual consumers may bring private actions under the MCPA for actual damages, and the court may award attorney's fees.

Maryland Home Improvement Commission (MHIC) Requirements

Maryland requires home improvement contractors — including solar installers — to register with the MHIC. Under Md. Code, Business Regulation Section 8-301, it is unlawful to act as a home improvement contractor without MHIC registration. If your solar installer was not registered with the MHIC, this is a serious violation that may render the contract unenforceable and provides grounds for a complaint.

Maryland Guaranty Fund

Maryland's Home Improvement Guaranty Fund, administered by the MHIC, may provide financial relief to homeowners who have suffered actual losses due to the acts of a licensed home improvement contractor. If your MHIC-registered solar contractor caused you financial harm through deceptive practices or poor workmanship, you may be eligible to file a claim with the Guaranty Fund.

Solar-Specific Regulations in Maryland

Maryland Net Metering

Maryland's net metering program, codified in Md. Code, Public Utilities Section 7-306, allows eligible customer-generators to receive credits for excess energy. Key aspects include:

• System size: Residential systems up to 200% of the customer's baseline annual usage may qualify
• Credit rate: Excess generation is generally credited at the full retail rate
• Rollover: Excess credits roll over month to month, with annual reconciliation typically in April
• Utilities: Applies to all Maryland investor-owned utilities including BGE, Pepco, Delmarva Power, and Potomac Edison

Maryland Solar Renewable Energy Credits (SRECs)

Maryland's Renewable Portfolio Standard (RPS) creates a market for Solar Renewable Energy Credits (SRECs). For every 1,000 kWh your solar system generates, you earn one SREC, which can be sold on the market. Key considerations:

• SREC values fluctuate based on market supply and demand — they are not guaranteed at any specific price
• Solar companies that projected SREC income at inflated or guaranteed rates may have provided misleading information
• Your contract should clearly specify who owns the SRECs — the homeowner or the solar company. If SREC ownership was not clearly disclosed, this may be a material omission
• Under some lease and PPA arrangements, the solar company retains SREC ownership — this should have been disclosed at the time of sale

Maryland Public Service Commission (MPSC) Oversight

The MPSC regulates electric utilities in Maryland and oversees net metering, interconnection, and community solar programs. Key MPSC roles relevant to solar:

• Net metering administration — the MPSC sets rules and rates for net metering
• Community solar program — Maryland's community solar pilot program is administered through the MPSC
• Consumer complaints — the MPSC accepts complaints about utility billing and solar-related issues

Maryland Clean Energy Incentives

Maryland offers various clean energy incentives through the Maryland Energy Administration (MEA), including grants and programs that may reduce the cost of solar. If a solar company overstated available incentives, represented expired programs as current, or failed to pass through incentives that were included in the sales price, this may be a basis for a complaint.

Maryland Property Tax Exemption

Under Md. Code, Tax-Property Section 7-242, Maryland provides a property tax credit for residential solar energy systems. The credit equals 100% of the assessed value attributable to the solar system for the first taxable year and phases down over subsequent years. Misrepresentation of this tax benefit — such as claiming a permanent 100% exemption — is a common complaint.

Common Solar Contract Issues in Maryland

Maryland has seen growing solar consumer complaints. Based on reports filed with the Maryland Attorney General, MHIC, and MPSC, these are the most common issues:

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

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

Step 1: Gather Your Documents

• Your original solar contract (lease, PPA, or loan agreement)
• All marketing materials, savings projections, and SREC income estimates
• Records of verbal promises about savings, SRECs, or incentives
• Electricity bills from before and after solar installation
• Solar system production data and SREC generation records
• Utility interconnection agreement and net metering arrangement
• Any correspondence with the solar company
• The installer's MHIC registration number

Step 2: Determine Your Cancellation Window

• Within 3 business days (door-to-door sale): Send cancellation via certified mail. Reference Md. Code, Commercial Law Section 14-301 and the FTC Cooling-Off Rule
• Past cooling-off but before installation: Check MHIC contract provisions. Pre-installation guide →
• After installation: Proceed to Steps 3-5

Step 3: Check MHIC Registration

Verify the installer's MHIC registration. If unregistered, this is a criminal violation that may void the contract.

Step 4: Evaluate MCPA Claims

• SREC income projections that were inflated or guaranteed
• Savings projections based on incorrect net metering assumptions
• Failure to disclose dealer fees or SREC ownership
• Misrepresentation of utility affiliation
• Failure to provide required cancellation notices
• Misrepresentation of property tax benefits

Step 5: File Complaints

File complaints with the Maryland AG Consumer Protection Division, MHIC, and MPSC.

Step 6: Consider Professional Exit Services

Compare solar cancellation companies →

Maryland Consumer Protection Agencies & Resources

Frequently Asked Questions About Maryland Solar Panel Laws