Montana Solar Panel Laws: Your Rights and How to Cancel a Solar Contract

Montana may not be the first state that comes to mind for solar energy, but the Treasure State's abundant sunshine, particularly in the eastern plains and western valleys, has fueled a growing residential solar market. With that growth come contract disputes, especially as solar sales companies expand into Montana. This guide covers the key Montana laws that affect your solar contract, your cancellation rights, and your options if you need to exit a solar agreement in Montana.

Right to Cancel: Montana's Cooling-Off Period

If you signed a solar contract in Montana through a door-to-door or in-home sales transaction, you generally have a right to cancel within a specific timeframe. This right is grounded in both federal and state law.

Federal FTC Cooling-Off Rule

The Federal Trade Commission's Cooling-Off Rule (16 CFR Part 429) provides a 3-business-day right to cancel for sales made at your home. This applies to most door-to-door solar sales where a salesperson visited your residence. The cancellation period runs until midnight of the third business day after the contract was signed.

Montana Personal Solicitation Sales Law (MCA § 30-14-501 through § 30-14-508)

Montana's version of the door-to-door sales statute is titled Personal Solicitation Sales and appears at MCA § 30-14-501 through § 30-14-508. The operative right-to-cancel provision is MCA § 30-14-504, which generally allows the buyer, or anyone else obligated for part of the purchase price, to cancel a personal solicitation sale until midnight of the third business day after the day the buyer signed the agreement or offer to purchase.

A few details of the Montana statute are worth knowing:

• A "personal solicitation" is generally defined at MCA § 30-14-502 as a seller contacting the buyer by telephone or in person somewhere other than the seller's place of business. It generally does not include contacts the buyer initiated, or situations where the buyer already knew the seller's identity and business.
• The statute generally reaches transactions where the buyer must give consideration of more than $25, in cash or credit, so a cash solar purchase is typically not excluded.
• Cancellation generally occurs when written notice is given to the seller. Under MCA § 30-14-504, notice sent by mail is generally considered given when it is deposited in a mailbox, properly addressed with postage prepaid, rather than when the seller receives it.
• The notice of cancellation need not follow any prescribed form and is generally sufficient if it shows the buyer's intention not to be bound.

What Counts as a Door-to-Door Sale in Montana

The cooling-off period typically applies when the sale was initiated through an unsolicited visit to your home. This generally includes:

• A solar salesperson knocking on your door without a prior appointment
• A sales presentation conducted in your home, even if you initially responded to an advertisement (note that the Montana statute at MCA § 30-14-502 generally excludes contacts the buyer initiated, so in that situation the federal rule may be the stronger protection)
• Transactions completed at temporary locations like trade shows, fairs, or hotel presentations

Sales completed entirely online or at a permanent business location may not be covered by the same cooling-off protections. However, some solar companies include voluntary cancellation windows in their contracts regardless of how the sale was made.

Montana Consumer Protection Laws for Solar

Beyond the cooling-off period, Montana has several consumer protection laws that may apply to solar contracts and sales practices.

Montana Unfair Trade Practices and Consumer Protection Act (MCA § 30-14-103)

Montana's primary consumer protection statute, the Unfair Trade Practices and Consumer Protection Act (MCA § 30-14-103), prohibits unfair or deceptive acts or practices in the conduct of trade or commerce. In the solar context, this may include:

• Making false or misleading claims about energy savings or system performance
• Misrepresenting the terms of a solar lease, PPA, or loan agreement
• Failing to disclose material information such as escalator clauses, lien filings, or maintenance responsibilities
• Using high-pressure sales tactics or bait-and-switch methods
• Misrepresenting the company's licensing status or certifications

If a solar company engaged in deceptive practices during the sales process, you may have grounds for contract rescission, damages, or other relief under Montana's consumer protection laws. In our assessment, this is one of the strongest tools available to Montana solar consumers who were misled.

Montana Contractor Licensing and Regulation

Montana requires electrical contractors to be licensed through the Montana Department of Labor and Industry. Solar installation work generally requires appropriate electrical licensing. You can verify a contractor's license status through the Department's website. If your solar installer was not properly licensed at the time of installation, this may affect the enforceability of your contract and could provide additional grounds for a complaint.

Montana Public Service Commission (PSC) Oversight

The Montana Public Service Commission regulates utilities in the state, including NorthWestern Energy, which serves a large portion of Montana's residential customers. The PSC oversees net metering policies, interconnection standards, and utility rate structures that affect solar customers. If you are experiencing utility-related issues with your solar system, the PSC may be able to assist.

Solar-Specific Regulations in Montana

Net Metering in Montana

Montana's net metering policy allows qualifying solar customers to receive credits for excess electricity they export to the grid. Net metering in Montana has been the subject of ongoing regulatory proceedings, and the terms have evolved over time.

Under current Montana net metering rules:

• Residential solar customers with systems up to a certain capacity may qualify for net metering
• Excess generation credits are typically carried forward on a monthly basis
• NorthWestern Energy administers the net metering program for most Montana residential customers
• The credit rate and terms may depend on your system size and when you interconnected
• Recent legislative and regulatory proceedings have modified some aspects of net metering, so current terms may differ from what was in place when your system was installed

Interconnection Standards

Montana's interconnection standards establish the technical and procedural requirements for connecting a solar system to the grid. Key aspects include:

• Application and approval process through your utility provider
• Technical requirements for inverters, metering, and safety equipment
• Timelines for utility review and approval
• Insurance and liability provisions

Property Tax Exemption for Solar

Montana offers a property tax exemption for residential nonfossil energy systems under MCA § 15-6-224. For a single-family residential dwelling, up to $20,000 of the appraised value added by a recognized nonfossil form of energy generation is generally exempt for 10 years following installation. A separate exemption at MCA § 15-6-225 generally covers small electrical generation equipment under 1 megawatt for 5 years, which typically matters more for larger systems than for a typical rooftop array. While this is a benefit for solar owners, it's worth noting because it factors into the overall economics of keeping or exiting a solar agreement.

Solar Access and Easements

Montana law (MCA § 70-17-301 and § 70-17-302) provides for solar easements, which must generally be created in writing and recorded like other easements on real property. They allow property owners to secure access to sunlight for their solar energy systems. While these provisions primarily protect solar access, they may be relevant in disputes involving shading or obstructions that affect system performance.

Common Solar Contract Issues in Montana

Based on our research, the most common solar contract disputes in Montana typically involve the following issues:

How to Exit a Solar Contract in Montana

If you need to get out of a solar contract in Montana, the approach depends on your specific situation and how far into the contract you are. Here is a general step-by-step framework:

Step 1: Review Your Contract Thoroughly

Start by reading your entire solar contract, including all addendums and attachments. Pay particular attention to the cancellation clause, buyout provisions, escalator terms, and any performance guarantees. Note all deadlines and required notice procedures.

Step 2: Determine If You Are Within the Cooling-Off Period

Under MCA § 30-14-504, the window generally runs until midnight of the third business day after the day you signed. If you are still inside that window and the sale was solicited at your home, you may be able to cancel at no cost. Send a written cancellation notice immediately via certified mail, and keep proof of the mailing date. Do not wait. If the seller never gave you the notice required by MCA § 30-14-505, the window may not have started running at all. Cancellation guide →

Step 3: Document Everything

Gather all documentation related to your solar purchase, including the original contract, any amendments, sales materials and brochures, email correspondence, text messages with sales representatives, utility bills before and after solar installation, and any recordings of phone conversations. Be careful here: under MCA § 45-8-213, Montana generally requires that all parties know a conversation is being recorded, so recording a call without telling the other party may itself be an offense. Consult a qualified attorney before recording.

Step 4: Identify Potential Legal Grounds

Review whether any of the following may apply to your situation:

• Misrepresentation of savings, system performance, or contract terms
• Failure to provide the cancellation notice required by MCA § 30-14-505, which may extend your cancellation window under MCA § 30-14-504
• Deceptive trade practices under MCA § 30-14-103
• Contractor licensing violations
• Breach of contract (failure to deliver promised performance)
• Failure to disclose UCC lien filings or other material terms

Step 5: File a Complaint with the Montana Attorney General

File a formal complaint with the Montana Attorney General's Office of Consumer Protection. While this may not directly cancel your contract, it creates an official record of the dispute and may prompt the solar company to negotiate. The AG's office may also investigate patterns of complaints against a specific company.

Step 6: Explore Your Exit Options

Based on your contract terms and circumstances, your primary exit options in Montana include:

1. Contract buyout: purchasing the system at fair market value or a scheduled price per your contract terms
2. Transfer to a new homeowner: if you are selling your home, the buyer may assume the solar agreement (selling with solar guide →)
3. Negotiated settlement: working directly with the solar company to reach a mutually agreeable resolution
4. Legal action: pursuing rescission or damages through Montana courts if you have valid legal grounds (find a solar lawyer →)
5. Professional exit service: hiring a company that specializes in solar contract exits (see our rankings →)

Step 7: Consult a Qualified Attorney

We always recommend consulting with a Montana-licensed attorney who has experience with solar contract disputes before taking significant action. An attorney can evaluate the strength of your legal claims and advise you on the most effective strategy for your specific situation. Find a solar panel lawyer →

Montana Attorney General and Consumer Protection Resources

Frequently Asked Questions