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

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.

Right to Cancel: North Dakota's Cooling-Off Period

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.

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.

North Dakota Home Solicitation Sales (NDCC Chapter 51-18)

North Dakota's Home Solicitation Sales chapter (NDCC Chapter 51-18) provides protections for consumers who sign contracts as a result of door-to-door or telephone solicitation. The operative right-to-cancel provision is NDCC § 51-18-02, which generally allows a buyer to cancel a "personal solicitation sale" until midnight of the third business day after the day on which the buyer signs an agreement that complies with the chapter. The chapter defines a personal solicitation sale as one where the seller or the seller's representative solicits the sale by telephone or in person and the buyer's agreement is made somewhere other than the seller's place of business, which typically describes an in-home solar pitch.

The statute is not limited to credit sales, so a cash purchase of a solar system may still be covered. Sales with a purchase price of less than twenty-five dollars are generally excepted under NDCC § 51-18-08.

What Counts as a Door-to-Door Sale in North Dakota

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
• Transactions completed at temporary locations like trade shows 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.

North Dakota Consumer Protection Laws for Solar

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

North Dakota Consumer Fraud (NDCC 51-15)

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:

• 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, you may have grounds for contract rescission or damages under NDCC Chapter 51-15, whose core prohibition is at NDCC § 51-15-02. In our assessment, this is one of the most important tools available to North Dakota solar consumers who believe they were misled.

Contractor Licensing in North Dakota

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.

North Dakota Public Service Commission (PSC)

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.

Solar-Specific Regulations in North Dakota

Net Metering in North Dakota

North Dakota's net metering framework comes from ND Public Service Commission rules rather than from the Century Code. The operative provision is generally NDAC § 69-09-07-09, within the PSC's Small Power Production and Cogeneration chapter, which provides that qualifying facilities with a design capacity of one hundred kilowatts or less are entitled to net energy billing. The framework allows qualifying solar customers to receive credits for excess electricity they export to the grid.

Under current North Dakota net metering rules:

• Residential systems up to 100 kW may qualify for net energy billing with investor-owned utilities
• Net excess generation is typically purchased by the utility at its avoided-cost rate
• Credits for excess generation are typically provided, with specific terms set by the PSC
• Monthly credits carry forward and may be subject to annual true-up
• Rural electric cooperatives may have separate net metering policies
• Terms may vary by utility and when you interconnected

Interconnection Standards

North Dakota'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
• System size limitations
• Insurance and liability provisions

Property Tax Exemption for Renewable Energy

North Dakota offers a property tax exemption for renewable energy systems under NDCC § 57-02-08(27). 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.

Solar Easements

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.

Common Solar Contract Issues in North Dakota

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

How to Exit a Solar Contract in North Dakota

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:

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

If you signed your contract within the last 3 business days through a door-to-door or telephone-solicited in-home sale, you may still be able to cancel at no cost under NDCC § 51-18-02. The deadline is generally midnight of the third business day after the day you signed. If the buyer is 65 or older and the purchase price is more than $50, the window is generally midnight of the fifteenth business day. Send a written cancellation notice immediately by delivery, mail, or email to the address the seller specified, and use certified mail with return receipt where you can for proof. Do not wait. Cancellation guide →

Step 3: Document Everything

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).

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 required cancellation notices (NDCC § 51-18-04), which may mean the cancellation clock in NDCC § 51-18-02 never started
• Consumer fraud under NDCC Chapter 51-15, generally NDCC § 51-15-02
• 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 North Dakota Attorney General

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.

Step 6: Explore Your Exit Options

Based on your contract terms and circumstances, your primary exit options in North Dakota 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 North Dakota courts (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 North Dakota-licensed attorney who has experience with solar contract disputes before taking significant action. Find a solar panel lawyer →

North Dakota Attorney General and Consumer Protection Resources

Frequently Asked Questions