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Letting the Sun Shine In: Can You Buy a Plug-In Solar Panel To Reduce Electricity Bills?

Kit Yona, M.A.

Article by: Kit Yona, M.A.

Legal Writer

Reviewed by Joseph Fawbush, Esq. | Last updated on

It's bright, helps plants grow, and, depending on where you live, is either too hot, not warm enough, or just right. The Sun, our solar system's resident star, is also a potential source of clean and efficient renewable energy for the next billion years or so. While installing a rooftop array is not feasible for many homeowners and not available for renters, can a different system, sometimes referred to as "balcony solar," be a legal option for reducing electricity rates and energy bills?

As with many of the topics discussed here, the answer is complicated (sorry) and depends on where you live. There are currently seven states that have passed laws permitting the use of "plug-and-play solar," while others have approved legislation or active bills. A dozen saw plug-in solar legislation die on the floor, and 16 have bans in place. Suffice it to say, how quickly plug-in solar will further spread across the U.S., if at all, is uncertain.

Advocates from both sides are quick to champion or disparage small-scale solar panel use, which underscores the intricacies involved. Understanding potential legal issues with homeowners' associations (HOAs), landlords, or utility companies can help you determine whether a plug-in solar panel system might be a good fit for your home, apartment, shed, or off-the-grid cabin.

But, Soft! What Light Through Yonder Window Breaks?

Solar panels have been around long enough for most of us to become accustomed to seeing them arrayed on a house roof, over a parking lot, or sprawling in an open pasture as part of an energy farm. Portable solar panels can charge cell phones and other small electronic devices.

Plug-in solar panels continue to grow in popularity in European countries like Germany and were recently approved for use in England. Advances in technology have made it easier for these setups to store power for later use, rather than only being available when harvested. Net metering, which uses a bidirectional meter, monitors current flow in both directions, lowering energy costs when applicable.

So far in the U.S., it remains a work in progress. Utah was the first state to pass a law permitting the use of small plug-in solar devices up to 1,200 watts in 2025, followed by similar laws since then in Maine, Virginia, Colorado, Maryland, Connecticut, and Vermont. State legislation addressed the issue of using interconnection rules intended for large rooftop arrays for smaller plug-and-play systems. Still, it's not as simple as grabbing a solar panel and plugging it into a wall outlet.

While having a plug-in solar rig was previously considered "guerrilla solar" and a way to reduce utility bills or achieve full energy independence, setting up a smaller solar-panel rig is a serious undertaking. The power grids operated by electric utility companies require extensive load forecasting, and unexpected current flowing into the system can be dangerous. If a plug-in solar setup doesn't have anti-islanding protection, workers expecting part of the grid to be shut down may face a potentially fatal risk. In states that allow the use of plug-in solar panels, it's common to require an interconnection agreement and utility approval to ensure the safety of all involved.

A Bit More Complicated Than Using a Potato To Power a Light Bulb

Informing your utility company if you plan to use plug-in solar is a necessity. Who else you're required to alert to the installation may fall into a legal gray area depending on your location; renters should check their leases, and those in an HOA should consult their bylaws.

It's also a good idea to understand exactly how the system you're installing will work. Whether you set up your panels on a balcony, in a garden, or on top of your garage, the sunlight captured is converted into direct current (DC) energy. A microinverter converts DC to alternating current (AC). This flows through a standard power outlet into your home or business's electrical system. The energy created by your panels is used before power is drawn from the utility company's grid. The bidirectional meter tracks energy flow in both directions and adjusts your kilowatt-hour usage accordingly.

Coming Soon to a State Near You! (Maybe)

States that haven't approved plug-and-play solar have cited concerns about fire risks, interconnection issues, and backfeeding, which occurs when electrical grids remain energized even when they're supposed to be offline. There's also a good deal of lobbying from the fossil fuel industry, which has expressed concern that its economic models can't support a mass influx of plug-in solar users.

Still, the ability to equip a non-roof solar array without exorbitant installation costs is lurking around the corner in several jurisdictions. Three states (California, New Hampshire, and New York) have legislation approved and awaiting signature, and bills remain active in states like Hawaii and Illinois. For residents hoping to harness clean energy and save on their utility bills, the future's so bright, they gotta wear shades.

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