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

Pennsylvania is one of the largest solar markets in the Mid-Atlantic region, driven by its Alternative Energy Portfolio Standard, solar renewable energy credits (SRECs), and a deregulated electricity market that allows consumer choice. As residential solar installations have grown across the Keystone State, so have disputes over contract terms, savings projections, and exit options. Pennsylvania also has multiple layers of consumer protection, including the powerful Home Improvement Consumer Protection Act. This guide covers the key Pennsylvania laws that affect your solar contract and your options for getting out of a solar agreement.

Right to Cancel: Pennsylvania's Cooling-Off Period

If you signed a solar contract in Pennsylvania through a door-to-door or in-home sales transaction, you generally have a right to cancel 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. The cancellation period runs until midnight of the third business day after signing.

Pennsylvania's Own 3-Day Right to Cancel (73 P.S. §201-7)

Pennsylvania does not rely on the federal rule alone. Under the Unfair Trade Practices and Consumer Protection Law at 73 P.S. §201-7, where goods or services of $25 or more are sold as a result of a contact with the buyer at their residence, whether in person or by telephone, the buyer may cancel by notifying the seller in writing within three full business days after the sale. Two practical points. First, notice is generally effective when you deposit it in the mail, not when the seller receives it, so a letter posted on the third day counts. Second, because the section reaches telephone contacts as well as in-person visits, a solar sale that began with a cold call to your home may fall inside it even though nobody knocked on your door. The contract itself is required to carry a notice stating that you may cancel prior to midnight of the third business day.

Pennsylvania Home Improvement Consumer Protection Act (73 P.S. 517.1 et seq.)

Pennsylvania's Home Improvement Consumer Protection Act (HICPA) is particularly important for solar consumers. HICPA requires home improvement contractors to be registered with the PA Attorney General's office, provide written contracts for work exceeding $500, and comply with specific disclosure requirements. Solar installations generally qualify as home improvements under this act. HICPA provides additional protections including a right to cancel for certain transactions.

Pennsylvania Unfair Trade Practices and Consumer Protection Law (73 P.S. 201-1 et seq.)

Pennsylvania's consumer protection law provides broad protections against unfair or deceptive business practices, including door-to-door sales practices. This statute reinforces cancellation rights and provides additional remedies for consumers who were misled.

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

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

Pennsylvania Consumer Protection Laws for Solar

Unfair Trade Practices and Consumer Protection Law (73 P.S. 201-1 et seq.)

Pennsylvania's consumer protection statute prohibits unfair or deceptive acts or practices in 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 value or availability of SRECs
• Misrepresenting how solar interacts with Pennsylvania's deregulated electricity market

Pennsylvania courts have interpreted this statute to allow private causes of action, and successful plaintiffs may recover treble damages plus attorney fees. In our assessment, this makes Pennsylvania one of the stronger states for solar consumer protection claims.

Home Improvement Consumer Protection Act (HICPA)

HICPA imposes specific requirements on home improvement contractors, including:

• Mandatory registration with the PA Attorney General
• Written contracts for work exceeding $500
• Specific contract terms that must be included
• Prohibitions against accepting more than one-third of the contract price as a deposit before work begins
• Requirements for change orders and modifications

If your solar installer violated any HICPA requirements, this may provide additional grounds for contract rescission or damages.

Contractor Registration

Under HICPA, home improvement contractors must register with the PA Attorney General's office. Solar installers who perform work classified as home improvement are subject to this requirement. Unregistered contractors face criminal penalties, and contracts entered into by unregistered contractors may be voidable.

Pennsylvania Public Utility Commission (PUC)

The PA PUC regulates the state's electric distribution companies (EDCs), including PECO, PPL Electric, Duquesne Light, Met-Ed, Penelec, Penn Power, and West Penn Power. The PUC oversees net metering, interconnection, and aspects of retail electricity competition.

Solar-Specific Regulations in Pennsylvania

Net Metering in Pennsylvania

Pennsylvania has net metering under the Alternative Energy Portfolio Standards Act and PUC regulations. In Pennsylvania's deregulated market, net metering interacts with both your distribution utility and your generation supplier.

Under current Pennsylvania net metering rules:

• Residential systems up to 50 kW may qualify for net metering
• Credits for excess generation are generally applied at the generation rate
• Monthly credits carry forward and are typically trued up annually
• The value of credits depends on your generation supply rate, which varies by supplier
• Virtual net metering and community solar options may be available in some areas

Solar Renewable Energy Credits (SRECs)

Pennsylvania's Alternative Energy Portfolio Standard creates a market for Solar Renewable Energy Credits (SRECs). Solar system owners may earn SRECs for each megawatt-hour of solar electricity produced, which can be sold on the SREC market. The value of SRECs fluctuates based on supply and demand. If your solar company made representations about SREC income that were inaccurate, this may support a consumer protection claim.

Interconnection Standards

Pennsylvania's interconnection standards establish the technical and procedural requirements for connecting a solar system to the grid through your electric distribution company.

Property Tax Exemption

Pennsylvania local municipalities may offer property tax incentives for solar installations, though there is no statewide mandatory exemption. If a solar company represented that your system would be exempt from property taxes, verify this with your local tax assessor.

Common Solar Contract Issues in Pennsylvania

Based on our research, the most common solar contract disputes in Pennsylvania involve:

How to Exit a Solar Contract in Pennsylvania

If you need to get out of a solar contract in Pennsylvania, here is a general step-by-step framework:

Step 1: Review Your Contract Thoroughly

Read your entire solar contract. Pay attention to cancellation clauses, buyout provisions, escalator terms, performance guarantees, and HICPA-required terms.

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

If you signed within the last 3 business days through a door-to-door sale, you may cancel at no cost. Send written notice via certified mail immediately. Cancellation guide →

Step 3: Document Everything

Gather all documentation including the contract, amendments, sales materials, correspondence, utility bills, and recordings (Pennsylvania is a two-party consent state. Do not record conversations without the other party's knowledge under 18 Pa.C.S. 5703).

Step 4: Identify Potential Legal Grounds

• Misrepresentation of savings, system performance, or SREC values
• Failure to provide required cancellation notices
• Deceptive practices under 73 P.S. 201-1 et seq.
• HICPA violations (unregistered contractor, improper contract, excessive deposit)
• 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 PA Attorney General

File with the PA Attorney General's Bureau of Consumer Protection. If HICPA violations are involved, specifically reference the Home Improvement Consumer Protection Act in your complaint.

Step 6: Explore Your Exit Options

1. Contract buyout: purchasing the system per your contract terms
2. Transfer to a new homeowner: the buyer may assume the agreement (selling with solar guide →)
3. Negotiated settlement: working directly with the solar company
4. Legal action: pursuing rescission or treble damages through Pennsylvania courts (find a solar lawyer →)
5. Professional exit service: hiring a solar contract exit specialist (see our rankings →)

Step 7: Consult a Qualified Attorney

We recommend consulting with a Pennsylvania-licensed attorney experienced in consumer protection. Pennsylvania's multiple layers of protection (UTPCPL, HICPA, PUC regulations) create strong options for consumers. Find a solar panel lawyer →

Pennsylvania Attorney General and Consumer Protection Resources

Frequently Asked Questions