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

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.

Right to Cancel: South Carolina's Cooling-Off Period

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.

Federal FTC Cooling-Off Rule

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 Home Solicitation Sales (S.C. Code §§ 37-2-501 to 37-2-507)

South Carolina's home solicitation sales provisions sit in Part 5 of Chapter 2 of the Consumer Protection Code. The operative right-to-cancel section is S.C. Code § 37-2-502, which generally allows a buyer to cancel a home solicitation sale until midnight of the third business day after the day the buyer signs an agreement or offer to purchase that complies with the statute. Key mechanics:

• Day count and cutoff: three business days, running to midnight of the third business day after signing. There is no separate senior-citizen or age-based extension in the South Carolina statute.
• Notice method: written notice mailed to the seller at the address stated in the agreement. The statute does not require a particular form of words, and it generally treats notice as given when it is properly addressed, postage prepaid, and deposited in a mailbox. In other words, notice is generally effective on mailing rather than on receipt.
• Required disclosure: under S.C. Code § 37-2-503 the seller must use a dated written agreement carrying a conspicuous "BUYER'S RIGHT TO CANCEL" statement telling you that you may cancel by mailing notice before midnight of the third business day.
• Refunds and returns: S.C. Code § 37-2-504 generally requires the seller to return payments, notes, and trade-ins within ten days of cancellation, and S.C. Code § 37-2-505 addresses the buyer's duty to make the goods available.
• Emergency exception: § 37-2-502 also describes a narrow exception where the buyer signed a separate dated statement requesting immediate performance to address an emergency and the seller substantially began performance.

What Qualifies as a Home Solicitation Sale in South Carolina

South Carolina's door-to-door sales regulations generally apply to sales solicited at your home through personal contact. This typically includes:

• Unsolicited door-to-door sales visits by solar representatives
• In-home sales presentations, including those arranged via phone or online lead
• Sales at temporary commercial locations or events

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.

South Carolina Consumer Protection Laws for Solar

South Carolina Unfair Trade Practices Act (S.C. Code 39-5-10 et seq.)

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:

• Misrepresenting the cost savings a solar system will generate
• Failing to disclose material terms such as escalator clauses, UCC liens, or transfer restrictions
• Making false claims about equipment quality, warranties, or performance
• Marketing solar leases or PPAs as "free solar" or "government programs"
• Engaging in bait-and-switch sales tactics
• Misrepresenting the nature of the financial arrangement or ownership structure

Critically, S.C. Code § 39-5-140 provides for treble damages (triple the actual damages) where a court finds the violation of § 39-5-20 was willful or knowing, along with reasonable attorney's fees and costs. S.C. Code § 39-5-150 generally sets a three-year limitations period running from discovery of the unlawful conduct. 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.

South Carolina Department of Consumer Affairs

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 Contractor Licensing

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:

• General contractors must hold a valid SC residential builder's license for work exceeding $5,000
• Electrical contractors must be licensed through the appropriate state board
• Unlicensed work may provide grounds for contract rescission or other legal remedies
• Verify your solar installer's credentials through the SC LLR licensing verification portal

South Carolina Warranty Protections

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.

Solar-Specific Regulations in South Carolina

The Energy Freedom Act (Act 62 of 2019)

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:

• Legalized third-party solar: PPAs and leases became explicitly permitted, opening the market to new solar business models
• Established net metering: required utilities to offer net metering programs for qualifying solar installations
• Rate transition: created a framework for transitioning from full retail net metering to successor tariffs over time
• Interconnection standards: established standards for connecting solar systems to the grid

South Carolina Public Service Commission

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:

• Net metering rates and program structure
• Interconnection standards and timelines
• Rate design affecting the economics of solar versus grid power
• Utility solar programs and community solar offerings

Third-Party Solar Ownership

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.

Solar Access and HOA Restrictions

Unlike a number of other states, South Carolina does not currently appear to have a statute in its Code that bars homeowners' associations from prohibiting solar energy systems. Bills to add one have been introduced repeatedly without becoming law, including H. 3979 in the 2021-2022 session and H. 4460 introduced in April 2025, which would have added S.C. Code § 27-1-65 for systems not visible from the street or common areas. S.C. Code § 27-1-60, sometimes cited for this point, actually governs a homeowner's or tenant's right to fly the United States flag, not solar access. Title 27, Chapter 30, the South Carolina Homeowners Association Act, does not address solar. In practice this generally means HOA restrictions on solar in South Carolina are governed by your governing documents rather than by a state solar-access mandate. In any event, HOA rules do not address disputes arising from the financial terms of a solar contract. Confirm current law with a South Carolina-licensed attorney, since legislation in this area may change.

Common Solar Contract Issues in South Carolina

Based on our research, the most common solar contract disputes in South Carolina typically involve these issues:

How to Exit a Solar Contract in South Carolina

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.

Step 1: Review Your Contract Thoroughly

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.

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

Under S.C. Code § 37-2-502 the window generally closes at midnight of the third business day after you sign. If you are still inside it, mail your written cancellation notice immediately. The statute generally treats mailed notice as given when it is properly addressed, postage prepaid, and deposited in a mailbox, so mail it before the deadline rather than waiting for the seller to receive it. Certified mail with return receipt requested is not required by the statute, but we generally recommend it so you have proof of the mailing date. If the seller never gave you the "BUYER'S RIGHT TO CANCEL" statement required by S.C. Code § 37-2-503, consult an attorney about whether your cancellation window remains open. Cancellation guide →

Step 3: Document Everything

Gather all documentation related to your solar purchase:

• The signed contract and all amendments or addendums
• Sales brochures, presentations, and marketing materials
• All email, text message, and written correspondence
• Utility bills before and after solar installation
• Photos of the installation and any damage
• Notes on verbal representations made by the sales team

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.

Step 4: Identify Potential Legal Grounds

Common legal grounds for solar contract exits in South Carolina include:

• Violations of South Carolina's home solicitation sales provisions (S.C. Code § 37-2-502, with the required disclosure at § 37-2-503)
• Unfair or deceptive practices under the SCUTPA (S.C. Code § 39-5-20, with treble damages for willful or knowing violations under § 39-5-140)
• Breach of contract or breach of warranty
• Fraud or misrepresentation
• Contractor licensing violations
• Failure to disclose UCC liens or material contract terms

Step 5: File a Complaint with the SC Department of Consumer Affairs

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.

Step 6: Evaluate Your Exit Options

Based on your specific circumstances, your primary exit options in South Carolina include:

1. Contract buyout: purchasing the system per the terms in your agreement
2. Transfer to a new homeowner: if selling, the buyer may assume the agreement (selling with solar guide →)
3. Negotiated settlement: leveraging documented violations to negotiate a release or reduced buyout
4. Legal action: pursuing rescission or damages (including potential treble damages) through South Carolina courts (find a solar lawyer →)
5. Professional exit service: hiring a solar contract exit specialist (see our rankings →)

Step 7: Consult a South Carolina Attorney

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 →

South Carolina Attorney General and Consumer Protection Resources

Frequently Asked Questions