STATE SOLAR LAWS
South Carolina's landmark Energy Freedom Act transformed the state's solar landscape, but navigating contract exits still requires understanding key consumer protections. Here is what South Carolina law says about your solar rights.
Updated March 2026 · Not legal advice · Our methodology
South Carolina's solar market has grown substantially since the passage of the Energy Freedom Act in 2019, which opened the door to third-party solar leases and PPAs. While this legislation expanded solar access for Palmetto State homeowners, it also created a wave of new solar contracts — and with them, new consumer disputes. This guide covers the key South Carolina laws affecting solar consumers, your cancellation rights, and your options if you need to exit a solar contract.
If you signed a solar contract in South Carolina through a door-to-door or in-home sales transaction, you generally have a right to cancel within a limited window under both federal and state law.
The FTC'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 representative visited your residence. The cancellation window extends until midnight of the third business day after signing.
South Carolina's regulation of home solicitation sales under the Consumer Protection Code provides protections for buyers who purchase goods or services through door-to-door sales. Under S.C. Code 37-2-502, buyers generally have a 3-business-day right to cancel a home solicitation sale. The seller is required to:
Key detail: If the solar company failed to provide the required cancellation notice under South Carolina law, the cancellation period may not have started running. This is a critical legal point — consult a South Carolina-licensed attorney to determine whether your cancellation rights remain preserved due to the seller's failure to comply with statutory notice requirements.
South Carolina's door-to-door sales regulations generally apply to sales solicited at your home through personal contact. This typically includes:
Sales completed at the seller's permanent business location or transactions initiated entirely by the buyer online may not qualify. However, many solar contracts involve in-home presentations even when the initial contact originated differently.
Time-sensitive: If you are within the cooling-off period, send a written cancellation notice immediately via certified mail with return receipt requested. Do not rely on phone calls or verbal promises to cancel. Pre-installation cancellation guide →
The South Carolina Unfair Trade Practices Act (SCUTPA) is the state's primary consumer protection statute and is considered one of the stronger consumer protection laws in the Southeast. It prohibits unfair or deceptive acts or practices in trade or commerce. In the solar context, violations may include:
Critically, the SCUTPA provides for treble damages (triple the actual damages) in cases where a violation is willful or knowing. This significantly increases the potential cost to solar companies that engage in deceptive practices and provides meaningful leverage for South Carolina consumers pursuing contract exits.
In our assessment, South Carolina's Unfair Trade Practices Act provides relatively strong consumer protection compared to many other southeastern states. The treble damages provision is particularly valuable as a negotiating tool when documented evidence of deceptive sales practices exists.
The South Carolina Department of Consumer Affairs (SCDCA) is the primary state agency responsible for consumer protection. The SCDCA can investigate complaints, mediate disputes, and take enforcement action against businesses engaging in unfair or deceptive practices. Filing a complaint with the SCDCA creates an official record that may strengthen your position in negotiations with a solar company.
South Carolina requires contractors performing residential construction or improvements to be licensed through the South Carolina Residential Builders Commission (a division of the SC Department of Labor, Licensing and Regulation). Electrical work associated with solar installation typically requires an appropriate electrical license. Key points:
South Carolina recognizes both express and implied warranties under the Uniform Commercial Code (S.C. Code Title 36). If your solar system was sold with express warranties regarding performance, output, or quality that have not been met, you may have claims for breach of warranty. Additionally, implied warranties of merchantability and fitness for a particular purpose may apply to solar equipment sales.
The South Carolina Energy Freedom Act, signed into law in 2019, was a landmark piece of legislation that fundamentally changed the solar landscape in the state. Key provisions include:
Investor-owned utilities in SC offer net metering under the Energy Freedom Act framework. Rates and program terms have been subject to regulatory proceedings and may change over time.
South Carolina electric cooperatives and municipal utilities have their own net metering or solar credit programs. Santee Cooper and various co-ops offer programs with varying terms.
Net metering rates in South Carolina have been evolving as the state transitions from initial rates established under the Energy Freedom Act. Check with your specific utility for current program terms.
The South Carolina Public Service Commission (PSC) regulates investor-owned utilities in the state, including Duke Energy Carolinas, Duke Energy Progress, and Dominion Energy South Carolina. The PSC oversees:
Since the Energy Freedom Act of 2019, third-party solar ownership through leases and PPAs is explicitly legal in South Carolina. This has led to a significant increase in solar sales activity across the state, particularly in rapidly growing areas like Charleston, Greenville, and the Myrtle Beach corridor. While legalization expanded consumer access to solar, it also introduced the same types of solar contract disputes seen in other states with active third-party markets.
South Carolina enacted solar access legislation (S.C. Code 27-1-60) that limits the ability of homeowners' associations to prohibit solar energy systems. Under this law, HOA restrictions that effectively prohibit solar installations are generally unenforceable, though HOAs may establish reasonable aesthetic guidelines regarding placement and appearance. This protection helps ensure homeowners can install solar but does not address disputes arising from the financial terms of solar contracts.
Based on our research, the most common solar contract disputes in South Carolina typically involve these issues:
South Carolina homeowners frequently report that actual energy savings fall short of projections presented during the sales process. This is particularly common where sales representatives failed to account for the specific net metering rate structure, seasonal variations, or the homeowner's actual energy usage patterns. If specific savings figures were guaranteed, this may constitute a violation of the SCUTPA.
Some South Carolina solar leases and PPAs include annual price escalators of 1-3% or more that were not clearly explained during the sales process. Over a 20-25 year contract, these escalators can result in solar payments that significantly exceed utility rates, undermining the primary economic rationale for the agreement. Failure to clearly disclose escalator clauses may support claims under state consumer protection law.
Solar leases and PPAs in South Carolina often result in UCC-1 financing statements filed with the South Carolina Secretary of State's office. These liens can complicate home sales and refinancing, and many homeowners report they were not adequately informed about these filings before signing. UCC lien removal guide →
The passage of the Energy Freedom Act led to a rapid influx of solar companies into the South Carolina market, some of which employed aggressive and potentially misleading sales tactics. Homeowners in high-growth areas like Charleston and Greenville have reported particular issues with out-of-state companies entering the market quickly without adequate local knowledge or customer support infrastructure.
Some South Carolina homeowners have experienced roof leaks, electrical issues, or underperforming systems. The state's hot and humid climate, combined with frequent severe weather events including hurricanes, places additional stress on solar installations. Performance guarantees and workmanship warranties should be carefully reviewed and enforced.
Dealing with a solar contract issue in South Carolina? Get a free preliminary review of your contract and options.
If you need to get out of a solar contract in South Carolina, here is a general step-by-step framework. Results vary by individual situation, and we recommend consulting a qualified South Carolina attorney before taking significant action.
Read your entire solar agreement, including all exhibits, addendums, and fine print. Identify the type of agreement (lease, PPA, or loan), the cancellation provisions, buyout terms, escalator clauses, and any performance guarantees. Note the company name and all critical deadlines.
If you signed within the last 3 business days through an in-home sale, send a written cancellation notice immediately via certified mail. If the seller failed to provide the required cancellation notice under South Carolina's door-to-door sales regulations, consult an attorney about whether your cancellation window remains open. Cancellation guide →
Gather all documentation related to your solar purchase:
South Carolina is a one-party consent state for recording phone calls, so recordings of your own conversations with the solar company are generally permissible.
Common legal grounds for solar contract exits in South Carolina include:
File a formal complaint with the South Carolina Department of Consumer Affairs (SCDCA). This creates an official record, may prompt the solar company to negotiate, and helps the agency identify patterns of abuse. You can file complaints online through the SCDCA website or by calling (803) 734-4200.
Based on your specific circumstances, your primary exit options in South Carolina include:
We always recommend consulting with a South Carolina-licensed attorney experienced in consumer protection and contract disputes. The treble damages provision under the SCUTPA makes South Carolina a relatively favorable state for consumers with documented evidence of deceptive solar sales practices. Find a solar panel lawyer →
Important: We do not advise homeowners to stop making payments or breach contractual obligations. Missing payments may result in credit damage, collection actions, or acceleration of the full contract balance. Continue making payments while you explore your legal options.
South Carolina follows the FTC's 3-business-day cooling-off rule for door-to-door sales. The state's Consumer Protection Code (S.C. Code 37-2-501 et seq.) also provides a 3-business-day right to cancel for home solicitation sales. The seller must provide written cancellation notice. If this notice was not given, the cancellation period may be extended. Cancellation guide →
After the cooling-off period, direct cancellation is generally not available without cost. However, South Carolina's Unfair Trade Practices Act provides for treble damages in cases of willful deception, which can be powerful leverage. Options include contract buyout, transfer, negotiated settlement, or legal action. Full exit guide →
Yes. The Energy Freedom Act of 2019 established net metering programs in South Carolina. Utilities are required to offer net metering for qualifying solar installations, though rates and program structures have been evolving through regulatory proceedings. Check with your specific utility for current net metering terms and rates.
Yes. The Energy Freedom Act of 2019 explicitly legalized third-party solar ownership, including leases and PPAs. Before this law, such arrangements were effectively prohibited in South Carolina. If you have a solar lease or PPA, your rights are governed by your contract terms and applicable state consumer protection laws. Have a qualified attorney review your specific arrangement.
File complaints with the South Carolina Department of Consumer Affairs at (803) 734-4200 or toll-free at (800) 922-1594. For utility-related issues, contact the SC Public Service Commission at (803) 896-5100. The SC Residential Builders Commission handles contractor licensing issues. We recommend filing with all relevant agencies to create a thorough record.
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 South Carolina-licensed attorney before taking action. See our Ownership Disclosure, Advertiser Disclosure, and Methodology.