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

Minnesota homeowners who signed solar contracts through home solicitation generally have until midnight of the third business day to cancel under Minnesota's Home Solicitation Sales Act (Minn. Stat. § 325G.07) and the parallel federal rule. Beyond that window, Minnesota's Consumer Fraud Act (Minn. Stat. Section 325F.69) and Deceptive Trade Practices Act (Minn. Stat. Section 325D.44) may provide additional grounds for relief. Minnesota's relatively strong net metering program and growing community solar market add important considerations. We always recommend consulting a qualified Minnesota attorney before taking action.

Right to Cancel / Cooling-Off Period in Minnesota

Minnesota provides important cooling-off protections for homeowners who signed solar contracts through door-to-door or home solicitation sales. As solar companies increasingly target Minnesota communities, these protections are essential.

Minnesota Home Solicitation Sales Act (Minn. Stat. §§ 325G.06 to 325G.11)

Under the Minnesota Home Solicitation Sales Act, if a solar contract was signed at your home or a location other than the seller's regular place of business, the operative right-to-cancel provision is Minn. Stat. § 325G.07. It generally gives the buyer until midnight of the third business day after the day the home solicitation sale occurs. A few points that typically matter:

• The Act generally applies to sales with a purchase price of more than $25 that are primarily for personal, family, or household purposes, and it is not limited to credit sales, so a cash purchase may also be covered
• Cancellation is generally made by written notice to the seller at the address stated in the agreement. The notice need not take a particular form, and if mailed it is generally effective on deposit in the mail, properly addressed and postage prepaid, not on the seller's receipt of it
• Under Minn. Stat. § 325G.08, the seller must orally inform you of your cancellation right at the time of sale and furnish a completed receipt or contract plus a detachable, duplicate NOTICE OF CANCELLATION form
• Under Minn. Stat. § 325G.09, if the seller performed services before cancellation, the seller is generally entitled to no compensation for that work

Federal FTC Cooling-Off Rule

The federal FTC Cooling-Off Rule (16 CFR Part 429) provides a parallel three-business-day window that generally runs alongside Minnesota's state protections rather than adding to it. Where both apply, a buyer may typically rely on whichever gives the stronger right.

Minnesota Specific Notice Requirements

Minnesota law requires specific language in the cancellation notice. Under Minn. Stat. § 325G.08, the statement of cancellation rights in the contract or receipt, and the NOTICE OF CANCELLATION form itself, must generally appear in boldface type of a minimum size of ten points, and the cancellation form must be attached to the contract or receipt and easily detachable. If the cancellation notice was buried in fine print, omitted, or not presented as the statute requires, your cancellation rights may be extended under Minn. Stat. § 325G.08, subd. 2.

Minnesota Consumer Protection Laws Relevant to Solar

Minnesota Consumer Fraud Act (Minn. Stat. Section 325F.69)

The Minnesota Consumer Fraud Act prohibits "the act, use, or employment by any person of any fraud, false pretense, false promise, misrepresentation, misleading statement or deceptive practice, with the intent that others rely thereon in connection with the sale of any merchandise." For solar homeowners:

• Misrepresenting energy savings or production: using inflated or unrealistic projections for Minnesota's climate
• False promises about financial benefits: including guaranteed returns, tax credit misrepresentations, or overstated incentive values
• Misleading statements about contract terms: such as calling a lease "ownership" or hiding escalator clauses
• Deceptive practices: including impersonating utility representatives or creating false urgency

Under the Consumer Fraud Act, the Minnesota Attorney General may seek injunctive relief, civil penalties up to $25,000 per violation, and restitution. Private individuals may also bring actions under Minn. Stat. Section 8.31 (Private AG statute), which allows any person injured by a violation to bring an action for damages, injunctive relief, and attorney's fees.

Minnesota Deceptive Trade Practices Act (Minn. Stat. Section 325D.44)

The DTPA provides additional protections against specific deceptive practices, including misrepresenting the characteristics or quality of goods, advertising with intent not to sell as advertised, and making false or misleading statements of fact concerning reasons for price reductions. Solar companies that advertise "free solar" or misleading pricing may violate this statute.

Minnesota Contractor Licensing

Minnesota requires residential contractors to be licensed by the Minnesota Department of Labor and Industry (DLI). Under Minn. Stat. Section 326B.805, performing residential building work without a license is a misdemeanor. Solar installations that involve structural modifications typically require contractor licensing. Additionally, electrical work must be performed by licensed electricians under Minn. Stat. Chapter 326B.

Solar-Specific Regulations in Minnesota

Minnesota Net Metering

Minnesota's net metering program, established under Minn. Stat. Section 216B.164, provides relatively favorable terms for solar homeowners:

• System size: Net metering is generally available for systems up to 40 kW for residential customers
• Credit rate: Excess generation is typically credited at the retail rate for systems under 40 kW
• Rollover: Credits generally roll over from month to month, with annual reconciliation
• Utilities: Applies to investor-owned utilities (Xcel Energy, Minnesota Power, Otter Tail Power) and cooperatives

Xcel Energy Solar*Rewards Program

Xcel Energy, Minnesota's largest utility, has offered various solar incentive programs over the years, including performance-based incentives and community solar gardens. If your solar contract was sold in part based on Xcel Solar*Rewards incentives, verify that the promised incentives were actually available and correctly calculated. Changes to incentive programs are a common source of disputes.

Minnesota Community Solar Gardens

Minnesota has one of the most developed community solar markets in the country. Under Minn. Stat. Section 216B.1641, community solar garden subscribers can receive credits on their utility bills. If you subscribed to a community solar garden:

• Your subscription agreement has specific terms regarding cancellation, credit allocation, and contract duration
• Some community solar subscriptions have been sold with misleading claims about savings
• The value of community solar credits can change based on rate proceedings before the MPUC

Minnesota Solar Energy Standard

Minnesota's Solar Energy Standard (Minn. Stat. Section 216B.1691, subd. 2f) requires Xcel Energy to generate 1.5% of its retail sales from solar by 2020, with goals for other utilities as well. While this affects utilities rather than individual homeowners, solar companies sometimes misrepresent these requirements as mandating that homeowners install solar.

Minnesota Property Tax Exemption

Under Minn. Stat. Section 272.02, subd. 24, solar energy systems are exempt from property tax in Minnesota. This means the value added by a solar installation should not increase your property tax assessment. If a solar company misrepresented the property tax implications or promised additional tax benefits beyond this exemption, this may be relevant to a dispute.

Minnesota Solar Access Rights

Under Minn. Stat. Section 500.30, Minnesota recognizes solar easements as voluntary agreements between property owners to protect solar access. However, Minnesota does not have a mandatory solar access law that prevents HOAs from restricting solar. The state does prohibit unreasonable restrictions on solar installations under certain circumstances.

Common Solar Contract Issues in Minnesota

As Minnesota's solar market grows, consumer complaints have increased. Based on reports filed with the Minnesota AG and MPUC:

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

If you're a Minnesota homeowner looking to exit your solar contract, the approach depends on your circumstances. Below is a general framework. We always recommend consulting a qualified Minnesota attorney.

Step 1: Gather Your Documents

• Your original solar contract or community solar subscription agreement
• All marketing materials, savings projections, and proposals
• Records of verbal promises about savings or incentives
• Electricity bills from before and after solar
• Solar system production data or community solar credit statements
• Utility interconnection agreement
• Any correspondence with the solar company
• Installer's DLI license information

Step 2: Determine Your Cancellation Window

• Before midnight of the third business day (home solicitation): Send written cancellation. Certified mail with return receipt is generally the best proof, though under Minn. Stat. § 325G.07 a mailed notice is generally effective on deposit in the mail. Reference Minn. Stat. § 325G.07 and the FTC Cooling-Off Rule
• Past cooling-off but before installation: Check contract provisions. Pre-installation guide →
• After installation: Proceed to Steps 3-5

Step 3: Check Licensing

Verify the installer's residential contractor and electrical licenses through the Minnesota DLI. Unlicensed work may void the contract.

Step 4: Evaluate Consumer Fraud Act Claims

• Savings projections that don't account for Minnesota's winter climate
• Misrepresentation of Xcel Solar*Rewards or community solar benefits
• Failure to disclose dealer fees or total financing costs
• Impersonation of utility representatives
• Failure to provide required cancellation notices
• Community solar subscription misrepresentations

Step 5: File Complaints

File with the Minnesota AG and MPUC. Minnesota's Private AG statute (Minn. Stat. Section 8.31) is particularly powerful, allowing private individuals to enforce consumer protection laws.

Step 6: Consider Professional Exit Services

Compare solar cancellation companies →

Minnesota Consumer Protection Agencies & Resources

Frequently Asked Questions About Minnesota Solar Panel Laws