STATE SOLAR LAWS
North Dakota's solar market may be smaller than sun-belt states, but contract disputes still arise. Here's what Peace Garden State law says about your solar consumer rights.
Updated March 2026 · Not legal advice · Our methodology
North Dakota may not be the first state that comes to mind for solar energy, but the state actually receives substantial solar radiation — comparable to many southern states during summer months. As solar technology costs have declined and national solar companies have expanded into North Dakota, residential solar installations have grown. With that growth come potential contract disputes. This guide covers key North Dakota laws affecting your solar contract, your cancellation rights, and your options if you need to exit a solar agreement.
If you signed a solar contract in North Dakota through a door-to-door or in-home sales transaction, you generally have a right to cancel within a specific timeframe under both federal and state law.
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.
North Dakota's Home Solicitation Sales statute (NDCC Chapter 51-18) provides protections for consumers who sign contracts as a result of door-to-door solicitation. Under this statute, if a sale was solicited at your home and the purchase price exceeds $25, you generally have the right to cancel the transaction within three business days. The seller is required to furnish a written notice of your right to cancel at the time of the sale.
Key detail: Under North Dakota law (NDCC 51-18), the seller must provide you with a notice of your right to cancel, along with a cancellation form. If the seller failed to provide this notice, or if the notice was deficient, your cancellation period may not have started running, potentially extending your right to cancel. Consult a qualified attorney to evaluate your specific situation.
The cooling-off period typically applies when the sale was initiated through an unsolicited visit to your home. This generally includes:
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.
Important: If you are within the cooling-off period, act immediately. Send your cancellation notice via certified mail and keep a copy for your records. Do not rely solely on phone calls or verbal cancellations. Pre-installation cancellation guide →
Beyond the cooling-off period, North Dakota has consumer protection laws that may apply to solar contracts and sales practices.
North Dakota's consumer fraud statute (NDCC Chapter 51-15) prohibits the act, use, or employment of any deceptive act or practice, fraud, false pretense, false promise, or misrepresentation in the conduct of any business. In the solar context, this may include:
If a solar company engaged in deceptive practices, you may have grounds for contract rescission or damages under NDCC 51-15. In our assessment, this is one of the most important tools available to North Dakota solar consumers who believe they were misled.
North Dakota requires electrical contractors to be licensed through the North Dakota State Electrical Board. Solar installation work generally requires appropriate electrical licensing. You can verify a contractor's license status through the Electrical Board's website. If your solar installer was not properly licensed, this may affect the enforceability of your contract.
The ND PSC regulates utilities in the state, including investor-owned utilities like Montana-Dakota Utilities (MDU), Otter Tail Power, and Xcel Energy (Northern States Power). The PSC oversees net metering policies, interconnection standards, and rate structures. Rural electric cooperatives and municipal utilities operate under different regulatory frameworks.
North Dakota has net metering provisions under NDCC 49-02-24 and ND PSC regulations. The net metering framework allows qualifying solar customers to receive credits for excess electricity they export to the grid.
Under current North Dakota net metering rules:
Net metering terms vary by utility. Rural electric cooperatives have their own policies. Contact your provider or the ND PSC for specific details.
North Dakota's interconnection standards establish the technical and procedural requirements for connecting a solar system to the grid. Key aspects include:
North Dakota offers a property tax exemption for renewable energy systems under NDCC 57-02-08(28). Qualifying solar installations may be exempt from the increase in property tax that would otherwise result from the added value of the system. This exemption is typically available for a specified period after installation.
North Dakota law (NDCC 47-05-01.1) provides for solar easements, allowing property owners to secure access to sunlight for their solar energy systems through voluntary agreements. This may be relevant if shading from neighboring properties is affecting your system's performance.
Based on our research, the most common solar contract disputes in North Dakota typically involve the following issues:
Some North Dakota homeowners report savings that fall significantly short of what was promised. North Dakota's extreme winter temperatures, shorter winter days, heavy snowfall, and relatively moderate electricity rates can all affect actual solar savings. If the sales representative made specific guarantees that have not materialized, this may constitute consumer fraud under NDCC 51-15.
Solar leases and PPAs may result in a UCC-1 financing statement being filed with the North Dakota Secretary of State. If the solar company did not clearly disclose the UCC filing, this may support a claim for rescission. UCC lien removal guide →
As national solar companies have expanded into North Dakota, door-to-door sales have increased, particularly in Fargo, Bismarck, Grand Forks, and Minot. Common violations include failure to provide required cancellation notices under NDCC 51-18, misrepresenting savings potential given ND's climate, and using high-pressure tactics. These violations may extend your cancellation rights.
North Dakota's harsh winters — with heavy snowfall, extreme cold, and short daylight hours — can significantly affect solar production. Some homeowners report that their systems produce far less energy than promised during winter months due to snow coverage, reduced sunlight, and temperature effects on panel efficiency. If the sales company did not account for these factors, this may provide grounds for a complaint.
Solar PPAs and leases commonly include annual price escalators. Given North Dakota's relatively moderate electricity rates, these escalators may cause your solar payments to exceed grid electricity costs more quickly. If the escalator was not clearly disclosed, you may have grounds for relief. PPA exit guide →
Dealing with a solar contract issue in North Dakota? Get a free preliminary review of your contract and options.
If you need to get out of a solar contract in North Dakota, the approach depends on your specific situation and how far into the contract you are. Here is a general step-by-step framework:
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.
If you signed your contract within the last 3 business days through a door-to-door sale, you may still be able to cancel at no cost. Send a written cancellation notice immediately via certified mail. Do not wait. Cancellation guide →
Gather all documentation related to your solar purchase, including the original contract, any amendments, sales materials, email correspondence, text messages with sales representatives, utility bills before and after installation, and any recordings of phone conversations (North Dakota is a one-party consent state for recordings under NDCC 12.1-15-02).
Review whether any of the following may apply to your situation:
File a formal complaint with the North Dakota Attorney General's Consumer Protection Division. This creates an official record and may prompt the solar company to negotiate.
Based on your contract terms and circumstances, your primary exit options in North Dakota include:
We always recommend consulting with a North Dakota-licensed attorney who has experience with solar contract disputes before taking significant action. Find a solar panel lawyer →
Important: We do not advise homeowners to stop making payments or breach contractual obligations. Failing to make payments could result in damage to your credit, collection actions, or acceleration of the full contract balance. Continue making payments while you explore your legal options.
North Dakota follows the federal FTC Cooling-Off Rule and has its own Home Solicitation Sales statute (NDCC 51-18), both providing a 3-business-day right to cancel for door-to-door sales. If the seller failed to provide required cancellation notices, the window may be extended. Cancellation guide →
After the cooling-off period, direct cancellation is generally not available without cost. Options include a contract buyout, transferring the agreement, or pursuing legal remedies. NDCC 51-15 (Consumer Fraud) may provide grounds if deceptive practices were involved. Full exit guide →
Yes. North Dakota has net metering under NDCC 49-02-24 and PSC regulations. Qualifying solar customers may receive credits for excess electricity. Terms vary by utility — MDU, Otter Tail Power, and Xcel Energy are the main investor-owned utilities. Rural cooperatives have separate policies. Contact your provider for specifics.
North Dakota does not have extensive solar-specific consumer protection statutes, but general consumer protection laws apply. NDCC 51-15 prohibits consumer fraud and deceptive practices. The ND PSC regulates utility-related solar policies. Electrical contractors must be licensed through the State Electrical Board.
File complaints with the ND Attorney General's Consumer Protection Division at (701) 328-3404 or (800) 472-2600. For utility issues, contact the ND PSC at (701) 328-2400. The State Electrical Board handles licensing complaints at (701) 328-9522. File with all relevant agencies.
Get a free preliminary contract review or see which companies our editorial team recommends for solar exits.
Disclaimer: This guide is for informational purposes only and is not legal advice. Solar contract terms and exit options vary by contract, company, and individual circumstances. Results vary by individual situation. We do not advise homeowners to stop making payments or breach contractual obligations. SolarPanelExit.com and TRU Solar Cancellation share common ownership. Consult a qualified North Dakota-licensed attorney before taking action. See our Ownership Disclosure, Advertiser Disclosure, and Methodology.