Solar panels are generally not illegal and most states have laws protecting homeowners' right to install them. Is Installing Solar Panels Illegal in Any State? Technically, no state outlaws or bans solar panels; quite the opposite. Most states have solar access laws that forbid any agreement, covenant, condition, bylaw, or contract that outlaws or limits solar installations by Homeowners Associations (HOA). Solar panels can be illegal due to various regulations and legal challenges. Federal regulations. Explore the legal considerations and safety standards for using a generator to power your home, including permits and local regulations. Please understand this is a work in process! If you have any information to share. State solar regulations generally fall into three key categories: installation requirements, financial incentives, and utility connection policies. In the days immediately following Hurricane.