2024 -- S 2801 | |
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LC004389 | |
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STATE OF RHODE ISLAND | |
IN GENERAL ASSEMBLY | |
JANUARY SESSION, A.D. 2024 | |
____________ | |
A N A C T | |
RELATING TO PUBLIC UTILITIES AND CARRIERS -- RESIDENTIAL SOLAR ENERGY | |
DISCLOSURE AND HOMEOWNERS BILL OF RIGHTS ACT | |
| |
Introduced By: Senators Bissaillon, DiMario, Gu, and Cano | |
Date Introduced: March 22, 2024 | |
Referred To: Senate Commerce | |
(Dept. of Business Regulation) | |
It is enacted by the General Assembly as follows: | |
1 | SECTION 1. Chapter 39-26.8 of the General Laws entitled "Residential Solar Energy |
2 | Disclosure and Homeowners Bill of Rights Act" is hereby repealed in its entirety. |
3 | CHAPTER 39-26.8 |
4 | Residential Solar Energy Disclosure and Homeowners Bill of Rights Act |
5 | 39-26.8-1. Short title. |
6 | This chapter shall be known and may be cited as the "Residential Solar Energy Disclosure |
7 | and Homeowners Bill of Rights Act." |
8 | 39-26.8-2. Definitions. |
9 | As used in this chapter: |
10 | (1) "Customer" means a person who, for primarily personal, family, or household purposes: |
11 | (i) Purchases a residential solar energy system under a system purchase agreement; |
12 | (ii) Leases a residential solar energy system under a system lease agreement; or |
13 | (iii) Purchases electricity under a power purchase agreement. |
14 | (2) "Division" means the division of public utilities and carriers. |
15 | (3) "Power purchase agreement" means an agreement: |
16 | (i) Between a customer and a solar retailer; |
17 | (ii) For the customer’s purchase of electricity generated by a residential solar energy system |
18 | owned by the solar retailer; and |
| |
1 | (iii) That provides for the customer to make payments over a term of at least five (5) years. |
2 | (4) "Residential solar energy system" means a solar energy system that: |
3 | (i) Is installed in the state; |
4 | (ii) Generates electricity primarily for on-site consumption for personal, family, or |
5 | household purposes; |
6 | (iii) Is situated on no more than four (4) units of residential real property; |
7 | (iv) Has an electricity delivery capacity that exceeds one kilowatt; and |
8 | (v) Does not include a generator that: |
9 | (A) Produces electricity; and |
10 | (B) Is intended for occasional use. |
11 | (5) "Solar agreement" means a system purchase agreement, a system lease agreement, or a |
12 | power purchase agreement. |
13 | (6) "Solar energy system" means a system or configuration of solar energy devices that |
14 | collects and uses solar energy to generate electricity. |
15 | (7) "Solar retailer" means a person who: |
16 | (i) Sells or proposes to sell a residential solar energy system to a customer under a system |
17 | purchase agreement; |
18 | (ii) Owns the residential solar energy system that is the subject of a system lease agreement |
19 | or proposed system lease agreement; or |
20 | (iii) Sells or proposes to sell electricity to a customer under a power purchase agreement. |
21 | (8) "System lease agreement" means an agreement: |
22 | (i) Under which a customer leases a residential solar energy system from a solar retailer; |
23 | and |
24 | (ii) That provides for the customer to make payments over a term of at least five (5) years |
25 | for the lease of the residential solar energy system. |
26 | (9) "System purchase agreement" means an agreement under which a customer purchases |
27 | a residential solar energy system from a solar retailer. |
28 | 39-26.8-3. Applicability of chapter. |
29 | (a) This chapter applies to solar agreements between solar retailers and customers for |
30 | residential solar energy systems, including any solar agreement that accompanies the transfer of |
31 | ownership or lease of real property. |
32 | (b) This chapter does not apply to: |
33 | (1) The transfer of title or rental of real property on which a residential solar energy system |
34 | is or is expected to be located, if the presence of the residential solar energy system is incidental to |
| LC004389 - Page 2 of 22 |
1 | the transfer of title or rental; |
2 | (2) A lender, governmental entity, or other third party that enters into an agreement with a |
3 | customer to finance a residential solar energy system but is not a party to a system purchase |
4 | agreement, power purchase agreement, or lease agreement; |
5 | (3) A sale or lease of, or the purchase of electricity from, a solar energy system that is not |
6 | a residential solar energy system; or |
7 | (4) The lease of a residential solar energy system or the purchase of power from a |
8 | residential solar energy system under an agreement providing for payments over a term of less than |
9 | five (5) years. |
10 | 39-26.8-4. Disclosure form required. |
11 | (a) Before entering a solar agreement, a solar retailer shall provide to a potential customer |
12 | the standard disclosure form established pursuant to subsection (b) of this section. This requirement |
13 | shall apply to contracts entered into beginning forty-five (45) days from the date that the standard |
14 | disclosure form is published by the office of energy resources. |
15 | (b) The office of energy resources shall develop a standard disclosure form. Use of and |
16 | compliance with the standard disclosure form will satisfy the solar retailer’s obligation under this |
17 | chapter. The standard disclosure form shall be published on the website of the office of energy |
18 | resources. In developing the standard disclosure form, the office of energy resources may use as a |
19 | model the renewable energy fund small scale participant consumer disclosure form developed by |
20 | the Rhode Island commerce corporation. The office of energy resources shall also consult with |
21 | industry and other stakeholders in the development of the content and format of the form and in |
22 | regard to any changes to the form. At a minimum, the disclosure form shall: |
23 | (1) Be in at least twelve (12) point font; |
24 | (2) Contain fields that require providing the following information: |
25 | (i) The name, address, telephone number, and any email address of the potential customer; |
26 | (ii) The name, address, telephone number, and email address of the solar retailer; and |
27 | (iii)(A) The name, address, telephone number, email address, and state contractor license |
28 | number of the person who is expected to install the system that is the subject of the solar agreement; |
29 | and |
30 | (B) If the solar retailer selected the person who is expected to provide operations or |
31 | maintenance support to the potential customer or introduced that person to the potential customer, |
32 | the name, address, telephone number, email address, and state contractor license of the operations |
33 | or maintenance support person; and |
34 | (3) Include applicable information and disclosures as provided in §§ 39-26.8-5, 39-26.8-6, |
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1 | 38-26.8-7, and 39-26.8-8. |
2 | 39-26.8-5. Contents of disclosure form for any solar agreement. |
3 | (a) The standard disclosure form shall include: |
4 | (1) An indication of whether operations or maintenance services are included as part of the |
5 | solar agreement; |
6 | (2) If the solar retailer provides any written estimate of the savings the potential customer |
7 | is projected to realize from the system based on similar installations that have the same geographic |
8 | orientation in similar climates, the solar retailer must complete fields requiring entry of the |
9 | following information: |
10 | (i) The estimated projected savings over the life of the solar agreement; and |
11 | (ii) An optional field for the estimated projected savings over any longer period not to |
12 | exceed the anticipated useful life of the system; and |
13 | (3) Fields to disclose material assumptions used to calculate estimated projected savings |
14 | and the source of those assumptions, including: |
15 | (i) If an annual electricity rate increase is assumed, the rate of the increase and the solar |
16 | retailer’s basis for the assumption of the rate increase; |
17 | (ii) The potential customer’s eligibility for or receipt of tax credits or other governmental |
18 | or utility incentives; |
19 | (iii) System production data, including production degradation; |
20 | (iv) The system’s eligibility for interconnection under any net metering or similar program; |
21 | (v) Electrical usage and the system’s designed offset of the electrical usage; |
22 | (vi) Historical utility costs paid by the potential customer; |
23 | (vii) Any rate escalation affecting a payment between the potential customer and the solar |
24 | retailer; and |
25 | (viii) A field to indicate whether costs of replacing equipment were assumed. If such costs |
26 | were assumed, the form shall require a field for listing the costs associated with replacing |
27 | equipment making up part of the system applicable. |
28 | (b) The standard disclosure form shall include the following disclosures and notices: |
29 | (1) Two (2) separate statements in capital letters in close proximity to any written estimate |
30 | of projected savings: |
31 | (i) "THIS IS AN ESTIMATE. UTILITY RATES MAY GO UP OR DOWN AND |
32 | ACTUAL SAVINGS, IF ANY, MAY VARY. HISTORICAL DATA ARE NOT NECESSARILY |
33 | REPRESENTATIVE OF FUTURE RESULTS. FOR FURTHER INFORMATION REGARDING |
34 | RATES, CONTACT YOUR LOCAL UTILITY OR THE STATE PUBLIC UTILITY |
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1 | COMMISSION"; and |
2 | (ii) "TAX AND OTHER FEDERAL, STATE, AND LOCAL INCENTIVES VARY AS |
3 | TO REFUNDABILITY AND ARE SUBJECT TO CHANGE OR TERMINATION BY |
4 | LEGISLATIVE OR REGULATORY ACTION, WHICH MAY IMPACT SAVINGS |
5 | ESTIMATES. CONSULT A TAX PROFESSIONAL FOR MORE INFORMATION." |
6 | (2) A notice that: "Legislative or regulatory action may affect or eliminate your ability to |
7 | sell or get credit for any excess power generated by the system, and may affect the price or value |
8 | of that power." |
9 | (c) The standard disclosure form shall include fields requiring entry of the following |
10 | information: |
11 | (1) A statement describing the system and indicating the system design assumptions, |
12 | including the make and model of the solar panels and inverters, system size, positioning of the |
13 | panels on the customer’s property, estimated first-year energy production, and estimated annual |
14 | energy production degradation, including the overall percentage degradation over the term of the |
15 | solar agreement or, at the solar retailer’s option, over the estimated useful life of the system; |
16 | (2) A description of any warranty, representation, or guarantee of energy production of the |
17 | system; and |
18 | (3) The approximate start and completion dates for the installation of the system. |
19 | (d) The standard disclosure form shall require an indication of whether any warranty or |
20 | maintenance obligations related to the system may be transferred by the solar retailer to a third |
21 | party. |
22 | (e) The standard disclosure form shall require the following disclosure: "If this form |
23 | indicates that the warranty or maintenance obligation may be transferred, then be advised — The |
24 | maintenance and repair obligations under your contract may be assigned or transferred without |
25 | your consent to a third party who will be bound to all the terms of the contract. If a transfer occurs, |
26 | you will be notified of any change to the address, email address, or phone number to use for |
27 | questions or payments or to request system maintenance or repair." |
28 | (f) The standard disclosure form shall require an indication of whether the solar retailer |
29 | will obtain customer approval to connect the system to the customer’s utility. If indicated that the |
30 | retailer will not obtain said approval, there shall be an additional field requiring a description of |
31 | what the customer must do to interconnect the system to the utility. |
32 | (g) The standard disclosure form shall require an indication of whether the solar retailer |
33 | provides any warranties. If indicated that the retailer does provide warranties, there shall be an |
34 | additional field requiring a description of any roof penetration warranty or other warranty that the |
| LC004389 - Page 5 of 22 |
1 | solar retailer provides the customer. |
2 | (h) The standard disclosure form shall require the solar retailer to indicate whether the solar |
3 | retailer will make a fixture filing or other notice in the city or town real property records covering |
4 | the system, including a Notice of Independently-Owned Solar Energy System. If indicated that the |
5 | retailer will make the fixture filing, there shall be an additional field requiring a description of any |
6 | fees or other costs associated with the filing that may be charged to the customer. |
7 | (i) The standard disclosure form shall include the following statement in capital letters that: |
8 | "NO EMPLOYEE OR REPRESENTATIVE OF [name of solar retailer] IS AUTHORIZED TO |
9 | MAKE ANY PROMISE TO YOU THAT IS NOT CONTAINED IN THIS DISCLOSURE FORM |
10 | CONCERNING COST SAVINGS, TAX BENEFITS, OR GOVERNMENT OR UTILITY |
11 | INCENTIVES. YOU SHOULD NOT RELY UPON ANY PROMISE OR ESTIMATE THAT IS |
12 | NOT INCLUDED IN THIS DISCLOSURE FORM." |
13 | (j) The standard disclosure form shall include the following statement in capital letters: |
14 | "[name of solar retailer] IS NOT AFFILIATED WITH ANY UTILITY COMPANY OR |
15 | GOVERNMENT AGENCY. NO EMPLOYEE OR REPRESENTATIVE OF [name of solar |
16 | retailer] IS AUTHORIZED TO CLAIM AFFILIATION WITH A UTILITY COMPANY OR |
17 | GOVERNMENT AGENCY." |
18 | (k) The standard disclosure form shall include a statement that if the customer fails to make |
19 | installment payments, the solar retailer may place liens for payment on their residence effective |
20 | only after written notice is provided to the customer. |
21 | (l) The office of energy resources may require any additional information and disclosures |
22 | deemed necessary to inform and protect customers. |
23 | (m) The written disclosure form requirement may be satisfied by the electronic delivery of |
24 | the disclosure form to the potential customer as long as the required disclosures are displayed in a |
25 | clear and conspicuous manner. |
26 | 39-26.8-6. Standard form addendum for system lease agreement. |
27 | The standard disclosure form shall include an addendum that applies if a solar retailer is |
28 | proposing to enter into a system lease agreement with a potential customer. The system lease |
29 | addendum shall require the solar retailer to provide a detailed comparison of the cost of leasing the |
30 | system as compared to purchasing the system. |
31 | 39-26.8-7. Standard form addendum for system purchase agreement. |
32 | The standard disclosure form shall include an addendum that applies if a solar retailer is |
33 | proposing to enter into a system purchase agreement with a potential customer. The system |
34 | purchase addendum shall include: |
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1 | (1) The following statement: "You are entering into an agreement to purchase an energy |
2 | generation system. You will own the system installed on your property. You may be entitled to |
3 | federal tax credits because of the purchase. You should consult your tax advisor"; |
4 | (2) A field for the price quoted to the potential customer for a cash purchase of the system; |
5 | (3) Fields requiring: |
6 | (i) The schedule of required and anticipated payments from the customer to the solar |
7 | retailer and third parties over the term of the system purchase agreement, including application |
8 | fees, up-front charges, down payment, scheduled payments under the system purchase agreement, |
9 | payments at the end of the term of the system purchase agreement, payments for any operations or |
10 | maintenance contract offered by or through the solar retailer in connection with the system purchase |
11 | agreement, and payments for replacement of system components likely to require replacement |
12 | before the end of the useful life of the system as a whole; and the total of all payments referred to |
13 | in this subsection; |
14 | (4) A statement indicating that the cost of insuring the system is not included within the |
15 | schedule of payments under subsection (3) of this section; |
16 | (5) A field to indicate whether the customer is responsible for insurance coverage. The |
17 | field shall be accompanied by the statement: "If so indicated above, you are responsible for |
18 | obtaining insurance coverage for any loss or damage to the system. You should consult an insurance |
19 | professional to understand how to protect against the risk of loss or damage to the system. You |
20 | should also consult your home insurer about the potential impact of installing a system."; |
21 | (6) Fields requiring information about whether the system may be transferred to a purchaser |
22 | of the home or real property where the system is located and any conditions for a transfer; and |
23 | (7) A field requiring a detailed comparison of the costs of purchasing as compared to |
24 | leasing the system. |
25 | 39-26.8-8. Standard form addendum for power purchase agreement. |
26 | The standard disclosure form shall include an addendum that applies if a solar retailer is |
27 | proposing to enter into a power purchase agreement with a potential customer. The power purchase |
28 | addendum shall include: |
29 | (1) The following statement: "You are entering into an agreement to purchase power from |
30 | an energy generation system. You will not own the system installed on your property. You will not |
31 | be entitled to any federal tax credit associated with the purchase."; |
32 | (2) Fields requiring information about whether the power purchase agreement may be |
33 | transferred to a purchaser of the home or real property where the system is located and, if so, any |
34 | conditions for a transfer; |
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1 | (3) A field to indicate whether the solar retailer will obtain insurance. The field shall be |
2 | accompanied by the statement: "If indicated above, the solar retailer will not obtain insurance |
3 | against damage or loss to the system and the customer is responsible if there is damage or loss to |
4 | the system."; and |
5 | (4) Fields requiring information about what will happen to the system at the end of the term |
6 | of the power purchase agreement. |
7 | 39-26.8-9. Customer right to cancel solar agreement. |
8 | The customer has the right to cancel or rescind a solar agreement within forty-five (45) |
9 | days of entering into the solar agreement. The standard disclosure form shall inform the customer |
10 | of this right. |
11 | 39-26.8-10. Good-faith estimate allowed. |
12 | If a solar retailer does not, at the time of providing a disclosure form, have exact cost |
13 | information required to be included in the disclosure form, pursuant to this chapter, the retailer may |
14 | make a good-faith estimate of that information, if the solar retailer clearly indicates that the |
15 | information is an estimate and provides the basis for the estimate. If the solar retailer’s final cost |
16 | assessment differs from previously provided estimates, the retailer shall provide a new and |
17 | complete disclosure form. |
18 | 39-26.8-11. Division enforcement authority — Administrative fine. |
19 | (a) Subject to subsection (b) of this section, the division may enforce the provisions of this |
20 | chapter by: |
21 | (1) Conducting an investigation into an alleged violation of this chapter; |
22 | (2) Issuing a cease-and-desist order against a further violation of this chapter; and |
23 | (3) Imposing an administrative fine of no more than two thousand five hundred dollars |
24 | ($2,500) per solar agreement on a solar retailer that: |
25 | (i) Materially fails to comply with the disclosure requirements of this chapter; or |
26 | (ii) Violates any other provision of this chapter, if the division finds that the violation is a |
27 | willful or intentional attempt to mislead or deceive a customer. |
28 | (b) The division may not commence any enforcement action under this section more than |
29 | four (4) years after the date of execution of the solar agreement with respect to which a violation is |
30 | alleged to have occurred. |
31 | (c) The division shall distribute an administrative fine collected under subsection (a)(3) of |
32 | this section to a customer adversely affected by the solar retailer’s failure or violation resulting in |
33 | a fine under subsection (a)(3) of this section, after the division has conducted an administrative |
34 | proceeding resulting in a determination of the appropriateness and amount of any distribution to a |
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1 | customer. |
2 | (d) Nothing in this chapter may be construed to affect a remedy a customer has independent |
3 | of this chapter; or the division’s ability or authority to enforce any other law or regulation. |
4 | 39-26.8-12. Rules and regulations. |
5 | The division may promulgate such rules and regulations as are necessary and proper to |
6 | carry out the provisions of this chapter. |
7 | SECTION 2. Title 5 of the General Laws entitled "BUSINESSES AND PROFESSIONS" |
8 | is hereby amended by adding thereto the following chapter: |
9 | CHAPTER 93 |
10 | RESIDENTIAL SOLAR ENERGY DISCLOSURE AND HOMEOWNERS BILL OF RIGHTS |
11 | ACT |
12 | 5-93-1. Short title. |
13 | This chapter shall be known and may be cited as the "Residential Solar Energy Disclosure |
14 | and Homeowners Bill of Rights Act." |
15 | 5-93-2. Definitions. |
16 | As used in this chapter: |
17 | (1) "Customer" means a person who, for primarily personal, family, or household purposes: |
18 | (i) Purchases a residential solar energy system under a system purchase agreement; |
19 | (ii) Leases a residential solar energy system under a system lease agreement; or |
20 | (iii) Purchases electricity under a power purchase agreement. |
21 | (2) "Department" means the department of business regulation. |
22 | (3) "Lease" means to transfer the right to possession and use of a residential solar energy |
23 | system for a term to a customer on behalf of a solar retailer in return for monetary payment or |
24 | consideration. |
25 | (4) "Power purchase agreement" means an agreement: |
26 | (i) Between a customer and a solar retailer; |
27 | (ii) For the customer’s purchase of electricity generated by a residential solar energy system |
28 | owned by the solar retailer; and |
29 | (iii) That provides for the customer to make payments over a term of at least five (5) years. |
30 | (5) "Residential solar energy system" means a solar energy system that: |
31 | (i) Is installed in the state; |
32 | (ii) Generates electricity primarily for on-site consumption for personal, family, or |
33 | household purposes; |
34 | (iii) Is situated on no more than four (4) units of residential real property; |
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1 | (iv) Has an electricity delivery capacity that exceeds one kilowatt; and |
2 | (v) Does not include a generator that: |
3 | (A) Produces electricity; and |
4 | (B) Is intended for occasional use. |
5 | (6) "Solar agreement" means a system purchase agreement, a system lease agreement, or a |
6 | power purchase agreement. |
7 | (7) "Solar energy system" means a system or configuration of solar energy devices that |
8 | collects and uses solar energy to generate electricity. |
9 | (8) "Solar retailer" means a person who: |
10 | (i) Sells or proposes to sell a residential solar energy system to a customer under a system |
11 | purchase agreement; |
12 | (ii) Owns the residential solar energy system that is the subject of a system lease agreement |
13 | or proposed system lease agreement; or |
14 | (iii) Sells or proposes to sell electricity to a customer under a power purchase agreement. |
15 | (9) "System lease agreement" means an agreement: |
16 | (i) Under which a customer leases a residential solar energy system from a solar retailer; |
17 | and |
18 | (ii) That provides for the customer to make payments over a term of at least five (5) years |
19 | for the lease of the residential solar energy system. |
20 | (10) "System purchase agreement" means an agreement under which a customer purchases |
21 | a residential solar energy system from a solar retailer. |
22 | (11) "Solicit" means offering or attempting to sell or lease a residential solar energy system |
23 | to a person or requesting, urging, or attempting to persuade a person to purchase, lease or apply for |
24 | a particular kind of solar system from a particular solar retailer. |
25 | (12) "Sell" means to transfer a residential solar energy system to a customer on behalf of a |
26 | solar retailer in return for monetary payment or other consideration. |
27 | 5-93-3. Applicability of chapter. |
28 | (a) This chapter applies to solar agreements between solar retailers and customers for |
29 | residential solar energy systems, including any solar agreement that accompanies the transfer of |
30 | ownership or lease of real property. |
31 | (b) This chapter does not apply to: |
32 | (1) The transfer of title or rental of real property on which a residential solar energy system |
33 | is or is expected to be located, if the presence of the residential solar energy system is incidental to |
34 | the transfer of title or rental; |
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1 | (2) A lender, governmental entity, or other third party that enters into an agreement with a |
2 | customer to finance a residential solar energy system but is not a party to a system purchase |
3 | agreement, power purchase agreement, or lease agreement; |
4 | (3) A sale or lease of, or the purchase of electricity from, a solar energy system that is not |
5 | a residential solar energy system; or |
6 | (4) The lease of a residential solar energy system or the purchase of power from a |
7 | residential solar energy system under an agreement providing for payments over a term of less than |
8 | five (5) years. |
9 | 5-93-4. Solar retailer registration. |
10 | (a) All solar retailers selling, leasing and/or soliciting residential solar energy systems for |
11 | purchase or lease shall register with the department and shall renew such registration annually. |
12 | (b) The registration application and any renewal application shall include the following: |
13 | (1) The name and address of the applicant and, if the applicant is an entity, the name and |
14 | address of at least one natural person who is in responsible charge of the operations on behalf of |
15 | the applicant; |
16 | (2) Evidence of: |
17 | (i) A current permit to make sales at retail from the Rhode Island division of taxation or |
18 | confirmation of sales tax exemption, if applicable; |
19 | (ii) Financial responsibility that is acceptable to the department; and |
20 | (iii) Appointment of an agent located within the state who is authorized to accept service |
21 | of process on behalf of the applicant; |
22 | (3) A list of all representatives soliciting, leasing and/or selling solar energy systems on |
23 | behalf of a solar retailer, whether for sale or lease. |
24 | (4) Any other information that the department shall require. |
25 | (c) The fees for initial registration, renewal and late renewal shall be determined by the |
26 | department and established by regulation. |
27 | (d) Each owner, member, director, and principal officer of the applicant, and any individual |
28 | acting as manager or a sales representative of the applicant shall obtain and provide a national |
29 | criminal records check from the bureau of criminal identification of the department of attorney |
30 | general, department of public safety division of the state police, or local police department that |
31 | shall include fingerprints submitted to the Federal Bureau of Investigation. The director will |
32 | determine by regulation those items of information appearing on a criminal records check that will |
33 | constitute disqualifying information and, subject to § 28-5.1-14, render the applicant ineligible for |
34 | registration under this chapter. Each applicant shall be responsible for the cost of obtaining the |
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1 | criminal records check. |
2 | (e) All application requirements must be maintained and kept current for the duration of |
3 | the registration. |
4 | 5-93-5. Solicitations and sales. |
5 | (a) All solicitations, leases and sales of a residential solar energy systems to a customer |
6 | conducted and consummated by mail, door-to-door sale, telephone, electronic or other means at the |
7 | premises of a customer or at a fair, trade or business show, convention or exposition shall: |
8 | (1) For any solicitation, identify the person making such solicitation, lease or sale and the |
9 | solar retailer the person represents; |
10 | (2) For door-to-door sales to customers, be conducted in accordance with local ordinances, |
11 | between the hours of ten o’clock a.m. (10:00 a.m.) and six o’clock p.m. (6:00 p.m.) unless the |
12 | customer schedules an earlier or later appointment, and with both English and Spanish written |
13 | materials available. Any representative of a solar retailer shall prominently display or wear a photo |
14 | identification badge including their name, registration number, and the name and registration |
15 | number of the solar retailer who they represent; |
16 | (b) Each solar retailer shall develop and implement standards and qualifications for |
17 | employees and third-party sales representatives who are engaged in the solicitation, lease and sale |
18 | of residential solar energy systems; |
19 | (c) Each solar retailer shall maintain an active roster of any employees and third-party sales |
20 | representatives who are engaged in the solicitation, lease and sale of residential solar energy |
21 | systems, and keep such roster available for inspection by law enforcement or the department; and |
22 | (d) Each solar retailer and sales or other representative of a solar retailer shall comply with |
23 | the provisions of the telemarketing rules adopted pursuant to 15 U.S.C. § 6102 and any other |
24 | applicable federal, state and local laws. |
25 | 5-93-6. Disclosure form required. |
26 | (a) Before entering a solar agreement, a solar retailer shall provide to a potential customer, |
27 | in hard copy or via electronic mail with copy attached or downloadable, the standard disclosure |
28 | form established pursuant to subsection (b) of this section. This requirement shall apply to contracts |
29 | entered into beginning forty-five (45) days from the date that the standard disclosure form is |
30 | published by the office of energy resources. |
31 | (b) The office of energy resources shall develop a standard disclosure form. Use of and |
32 | compliance with the standard disclosure form will satisfy the solar retailer’s obligation under this |
33 | chapter. The standard disclosure form shall be published on the website of the office of energy |
34 | resources. In developing the standard disclosure form, the office of energy resources may use as a |
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1 | model the renewable energy fund small scale participant consumer disclosure form developed by |
2 | the Rhode Island commerce corporation. The office of energy resources shall also consult with |
3 | industry and other stakeholders in the development of the content and format of the form and in |
4 | regard to any changes to the form. At a minimum, the disclosure form shall: |
5 | (1) Be in at least twelve (12) point type; |
6 | (2) Contain fields that require providing the following information: |
7 | (i) The name, address, telephone number, and any email address of the potential customer; |
8 | (ii) The name and address of the solar retailer and the name, telephone number, and email |
9 | address of the natural person who is in responsible charge of solar retailer sales; and |
10 | (iii)(A) The name, address, telephone number, email address, and state contractor license |
11 | number of the person who is expected to install the system that is the subject of the solar agreement; |
12 | and |
13 | (B) If the solar retailer selected the person or company who is expected to provide |
14 | operations or maintenance support to the potential customer or introduced that person or company |
15 | to the potential customer, the name, address, telephone number, email address, and state contractor |
16 | license of the operations or maintenance support person or company; and |
17 | (C) If the solar retailer selected the person or company who is expected to provide financing |
18 | to the customer for the residential solar energy system or introduced that person or company to the |
19 | potential customer, the name, address, telephone number, email address, and state lending license; |
20 | (3) Include applicable information and disclosures as provided in §§ 5-93-7, 5-93-8, 5-93- |
21 | 9 and 5-93-10. |
22 | 5-93-7. Contents of disclosure form for any solar agreement. |
23 | (a) The standard disclosure form shall include: |
24 | (1) A statement of whether operations or maintenance services are included as part of the |
25 | solar agreement; |
26 | (2) If the solar retailer provides any written estimate of the savings the potential customer |
27 | is projected to realize from the system based on similar installations that have the same geographic |
28 | orientation in similar climates, the solar retailer must complete fields requiring entry of the |
29 | following information: |
30 | (i) The estimated projected savings over the life of the solar agreement; and |
31 | (ii) An optional field for the estimated projected savings over any longer period not to |
32 | exceed the anticipated useful life of the system; and |
33 | (3) Fields to disclose material assumptions used to calculate estimated projected savings |
34 | and the source of those assumptions, including: |
| LC004389 - Page 13 of 22 |
1 | (i) If an annual electricity rate increase is assumed, the rate of the increase and the solar |
2 | retailer’s basis for the assumption of the rate increase; |
3 | (ii) The potential customer’s eligibility for or receipt of tax credits or other governmental |
4 | or utility incentives; |
5 | (iii) System production data, including production degradation; |
6 | (iv) The system’s eligibility for interconnection under any net metering or similar program, |
7 | or lack thereof; |
8 | (v) Electrical usage and the system’s designed offset of the electrical usage; |
9 | (vi) Historical utility costs paid by the potential customer; |
10 | (vii) Any rate escalation affecting a payment between the potential customer and the solar |
11 | retailer; and |
12 | (viii) A field to indicate whether costs of replacing equipment were assumed. If such costs |
13 | were assumed, the form shall require a field for listing the costs associated with replacing |
14 | equipment making up part of the system applicable. |
15 | (b) The standard disclosure form shall include the following disclosures and notices: |
16 | (1) Two (2) separate statements in capital letters in close proximity to any written estimate |
17 | of projected savings: |
18 | (i) "THIS IS AN ESTIMATE. UTILITY RATES MAY GO UP OR DOWN AND |
19 | ACTUAL SAVINGS, IF ANY, MAY VARY. HISTORICAL DATA ARE NOT NECESSARILY |
20 | REPRESENTATIVE OF FUTURE RESULTS. FOR FURTHER INFORMATION REGARDING |
21 | RATES, CONTACT YOUR LOCAL UTILITY OR THE STATE DIVISION OF PUBLIC |
22 | UTILITIES AND CARRIERS"; AND |
23 | (ii) "TAX AND OTHER FEDERAL, STATE, AND LOCAL INCENTIVES VARY AS |
24 | TO REFUNDABILITY AND ARE SUBJECT TO CHANGE OR TERMINATION BY |
25 | LEGISLATIVE OR REGULATORY ACTION, WHICH MAY IMPACT SAVINGS |
26 | ESTIMATES. CONSULT A TAX PROFESSIONAL FOR MORE INFORMATION." |
27 | (2) A notice that: "Legislative or regulatory action may affect or eliminate your ability to |
28 | sell or get credit for any excess power generated by the system, and may affect the price or value |
29 | of that power." |
30 | (c) The standard disclosure form shall include fields requiring entry of the following |
31 | information: |
32 | (1) A statement describing the system and indicating the system design assumptions, |
33 | including the make and model of the solar panels and inverters, system size, positioning of the |
34 | panels on the customer’s property, estimated first-year energy production, and estimated annual |
| LC004389 - Page 14 of 22 |
1 | energy production degradation, including the overall percentage degradation over the term of the |
2 | solar agreement or, at the solar retailer’s option, over the estimated useful life of the system; |
3 | (2) A description of any warranty, representation, or guarantee of energy production of the |
4 | system; and |
5 | (3) The approximate start and completion dates for the installation of the system. |
6 | (d) The standard disclosure form shall require an indication of whether any warranty or |
7 | maintenance obligations related to the system may be transferred by the solar retailer to a third |
8 | party. |
9 | (e) The standard disclosure form shall require the following disclosure: "If this form |
10 | indicates that the warranty or maintenance obligation may be transferred, then be advised -- The |
11 | maintenance and repair obligations under your contract may be assigned or transferred without |
12 | your consent to a third party who will be bound to all the terms of the contract. If a transfer occurs, |
13 | you will be notified of any change to the address, email address, or phone number to use for |
14 | questions or payments or to request system maintenance or repair." |
15 | (f) The standard disclosure form shall require an indication of whether the solar retailer |
16 | will obtain customer approval to connect the system to the customer’s utility. If indicated that the |
17 | retailer will not obtain said approval, there shall be an additional field requiring a description of |
18 | what the customer must do to interconnect the system to the utility. |
19 | (g) The standard disclosure form shall require an indication of whether the solar retailer |
20 | provides any warranties. If indicated that the retailer does provide warranties, there shall be an |
21 | additional field requiring a description of any roof penetration warranty or other warranty that the |
22 | solar retailer provides the customer. |
23 | (h) The standard disclosure form shall require the solar retailer to indicate whether the solar |
24 | retailer will make a fixture filing or other notice in the city or town real property records covering |
25 | the system, including a notice of independently-owned solar energy system. If indicated that the |
26 | retailer will make the fixture filing, there shall be an additional field requiring a description of any |
27 | fees or other costs associated with the filing that may be charged to the customer. |
28 | (i) The standard disclosure form shall include the following statement in capital letters that: |
29 | "NO EMPLOYEE OR REPRESENTATIVE OF [NAME OF SOLAR RETAILER] IS |
30 | AUTHORIZED TO MAKE ANY PROMISE TO YOU THAT IS NOT CONTAINED IN THIS |
31 | DISCLOSURE FORM CONCERNING COST SAVINGS, TAX BENEFITS, OR |
32 | GOVERNMENT OR UTILITY INCENTIVES. YOU SHOULD NOT RELY UPON ANY |
33 | PROMISE OR ESTIMATE THAT IS NOT INCLUDED IN THIS DISCLOSURE FORM." |
34 | (j) The standard disclosure form shall include the following statement in capital letters: |
| LC004389 - Page 15 of 22 |
1 | "[NAME OF SOLAR RETAILER] IS NOT AFFILIATED WITH ANY UTILITY COMPANY |
2 | OR GOVERNMENT AGENCY. NO EMPLOYEE OR REPRESENTATIVE OF [NAME OF |
3 | SOLAR RETAILER] IS AUTHORIZED TO CLAIM AFFILIATION WITH A UTILITY |
4 | COMPANY OR GOVERNMENT AGENCY." |
5 | (k) The standard disclosure form shall include a statement that if the customer fails to make |
6 | installment payments, the solar retailer may place liens for payment on their residence effective |
7 | only after written notice is provided to the customer. |
8 | (l) The office of energy resources may require any additional information and disclosures |
9 | deemed necessary to inform and protect customers. |
10 | (m) The written disclosure form requirement may be satisfied by the electronic mail |
11 | delivery of the disclosure form to the potential customer as long as the required disclosures are |
12 | displayed in a clear and conspicuous manner and the form is either attached or in a downloadable |
13 | format. |
14 | 5-93-8. Standard form addendum for system lease agreement. |
15 | The standard disclosure form shall include an addendum that applies if a solar retailer is |
16 | proposing to enter into a system lease agreement with a potential customer. The disclosure form |
17 | will include details about the lease price and its associated escalator, if any. |
18 | 5-93-9. Standard form addendum for system purchase agreement. |
19 | The standard disclosure form shall include an addendum that applies if a solar retailer is |
20 | proposing to enter into a system purchase agreement with a potential customer. The system |
21 | purchase addendum shall include: |
22 | (1) The following statement: "You are entering into an agreement to purchase an energy |
23 | generation system. You will own the system installed on your property. You may be entitled to |
24 | federal tax credits because of the purchase. You should consult your tax advisor"; |
25 | (2) A field for the price quoted to the potential customer for a cash purchase of the system; |
26 | (3) Fields requiring: |
27 | (i) The schedule of required and anticipated payments from the customer to the solar |
28 | retailer and third parties over the term of the system purchase agreement, including application |
29 | fees, up-front charges, down payment, scheduled payments under the system purchase agreement, |
30 | payments at the end of the term of the system purchase agreement, payments for any operations or |
31 | maintenance contract offered by or through the solar retailer in connection with the system purchase |
32 | agreement, and payments for replacement of system components likely to require replacement |
33 | before the end of the useful life of the system as a whole; and the total of all payments referred to |
34 | in this subsection; |
| LC004389 - Page 16 of 22 |
1 | (4) A statement indicating that the cost of insuring the system is not included within the |
2 | schedule of payments under subsection (3) of this section; |
3 | (5) A field to indicate whether the customer is responsible for insurance coverage. The |
4 | field shall be accompanied by the statement: "If so indicated above, you are responsible for |
5 | obtaining insurance coverage for any loss or damage to the system. You should consult an insurance |
6 | professional to understand how to protect against the risk of loss or damage to the system. You |
7 | should also consult your home insurer about the potential impact of installing a system."; |
8 | (6) Fields requiring information about whether the system may be transferred to a purchaser |
9 | of the home or real property where the system is located and any conditions for a transfer; and |
10 | (7) A field requiring a detailed comparison of the costs of purchasing as compared to |
11 | leasing the system. |
12 | 5-93-10. Standard form addendum for power purchase agreement. |
13 | The standard disclosure form shall include an addendum that applies if a solar retailer is |
14 | proposing to enter into a power purchase agreement with a potential customer. The power purchase |
15 | addendum shall include: |
16 | (1) The following statement: "You are entering into an agreement to purchase power from |
17 | an energy generation system. You will not own the system installed on your property. You will not |
18 | be entitled to any federal tax credit associated with the purchase."; |
19 | (2) Fields requiring information about whether the power purchase agreement may be |
20 | transferred to a purchaser of the home or real property where the system is located and, if so, any |
21 | conditions for a transfer; |
22 | (3) A field to indicate whether the solar retailer will obtain insurance. The field shall be |
23 | accompanied by the statement: "If indicated above, the solar retailer will not obtain insurance |
24 | against damage or loss to the system and the customer is responsible if there is damage or loss to |
25 | the system."; and |
26 | (4) Fields requiring information about what will happen to the system at the end of the term |
27 | of the power purchase agreement. |
28 | 5-93-11. Customer right to cancel solar agreement. |
29 | (a) The customer has the right to cancel or rescind a solar agreement within seven (7) days |
30 | of entering into the solar agreement. The standard disclosure form required under § 5-93-6 may |
31 | also include the written right of rescission notice required to inform the customer of this right as |
32 | provided in subsection (b) of this section. |
33 | (b) The solar retailer shall, at the time of entry into the contract, lease or other agreement |
34 | give a written right of rescission notice to the consumer, in hard copy or via electronic mail with |
| LC004389 - Page 17 of 22 |
1 | copy attached or downloadable, which must substantially comply with this section. The notice |
2 | must: |
3 | (1) Appear in the contract, lease, or other agreement under the conspicuous caption: |
4 | "NOTICE OF CANCELLATION"; and |
5 | (2) Read as follows: |
6 | (DATE OF TRANSACTION) "YOU MAY CANCEL AND RESCIND THIS |
7 | AGREEMENT, WITHOUT ANY PENALTY OR OBLIGATION, WITHIN SEVEN (7) |
8 | BUSINESS DAYS FROM THE ABOVE DATE. IF YOU CANCEL, YOUR CANCELLATION |
9 | NOTICE MUST STATE THAT YOU DO NOT WISH TO BE BOUND BY THE AGREEMENT |
10 | AND MAILED BY REGISTERED OR CERTIFIED MAIL NOT LATER THAN MIDNIGHT |
11 | SEVEN (7) DAYS FOLLOWING THE CONSUMER’S SIGNING THE AGREEMENT, |
12 | EXCLUDING SUNDAY AND ANY HOLIDAY ON WHICH REGULAR MAIL DELIVERIES |
13 | ARE NOT MADE. ALL CANCELLATIONS MUST BE MAILED TO: |
14 | (INSERT NAME AND ADDRESS OF THE SELLER)." |
15 | (c) Whenever a contract, lease or other agreement for the sale or lease of a residential solar |
16 | energy system fails to conform to the provisions of this section and/or if the consumer or the |
17 | consumers agent has notified the solar retailer of the consumer’s intent to cancel the agreement by |
18 | registered mail, return receipt requested, the solar retailer shall have five (5) business days to return |
19 | to the consumer any deposits, fees, costs or other payments made by the consumer and any note or |
20 | other evidence of indebtedness, and any security interest arising out of the transaction shall be |
21 | cancelled or terminated. Failure to return all deposits, fees, costs and other payments and evidence |
22 | of indebtedness or to cancel or terminate any security interest shall enable the consumer to recover |
23 | from the solar retailer treble damages plus reasonable attorneys’ fees and costs in any subsequent |
24 | legal proceeding. |
25 | (d) The consumer’s right of rescission shall not be waived, sold, or abrogated in any way |
26 | or manner. |
27 | 5-93-12. Good-faith estimate allowed. |
28 | If a solar retailer does not, at the time of providing a disclosure form, have exact cost |
29 | information required to be included in the disclosure form, pursuant to this chapter, the retailer may |
30 | make a good-faith estimate of that information, if the solar retailer clearly indicates that the |
31 | information is an estimate and provides the basis for the estimate. If the solar retailer’s final cost |
32 | assessment differs from previously provided estimates, the retailer shall provide a new and |
33 | complete disclosure form. |
34 | 5-93-13. Statement of account; disclosure to purchaser of property. |
| LC004389 - Page 18 of 22 |
1 | (a) Within ten (10) business days of a written request from the lessee under a lease or the |
2 | debtor under a financing agreement with respect to a residential solar energy system, any solar |
3 | retailer who is the lessor or creditor with respect to such lease or financing, or if the lease or |
4 | financing is held by or has been assigned to a third party, the third-party lessor or creditor, shall |
5 | provide a written statement to the lessee/debtor of all amounts then or thereafter due and owing |
6 | under the lease or financing agreement. |
7 | (b) In any purchase and sale agreement or other contract for the sale of residential property |
8 | that has a residential solar energy system which is subject to a lease or unpaid financing, the |
9 | homeowner selling the property shall disclose to the property purchaser the existence and terms of |
10 | such lease or financing. |
11 | (c) This section shall not preempt, alter, or impair any disclosure requirements required |
12 | under chapter 20.8 of title 5. |
13 | 5-93-14. Department enforcement authority -- Administrative fine. |
14 | (a) Subject to subsection (c) of this section, the department may suspend, revoke, or refuse |
15 | to issue or renew a solar retailer registration or may levy an administrative penalty of no more than |
16 | five thousand dollars ($5,000) per violation for: |
17 | (1) Providing incorrect, misleading, incomplete, or materially untrue information in the |
18 | registration application; |
19 | (2) Obtaining or attempting to obtain a registration through fraud or misrepresentation; |
20 | (3) Using fraudulent, coercive, or dishonest practices or demonstrating incompetence, |
21 | untrustworthiness, or financial irresponsibility in this state or in another place; |
22 | (4) Having a registration, or its equivalent, denied, suspended, or revoked in any other state, |
23 | province, district, or territory; |
24 | (5) Operating as a solar retailer or engaging in solar retailer activities without a current and |
25 | valid registration; |
26 | (6) Operating as a solar retailer and hiring, using, or knowingly assisting a contractor who |
27 | is not registered under chapter 65 of title 5 to perform work which requires registration under said |
28 | chapter; |
29 | (7) Operating as a solar retailer and hiring, using, or knowingly assisting a person who is |
30 | not licensed under chapter 6 of title 5 to perform work which requires a license under said chapter; |
31 | (8) Operating as a solar retailer and hiring, using, or knowingly assisting a person or |
32 | company who is not licensed under chapter 14 of title 19 to engage in activities for which a license |
33 | is required under said chapter; |
34 | (9) A solar retailer operator or any principal or sales representative thereof having been |
| LC004389 - Page 19 of 22 |
1 | convicted of or having pled nolo contendere to an offense involving theft, embezzlement or |
2 | mishandling of funds or to a felony that is substantially related to the solar retailer registration |
3 | consistent with § 28-5.1-14; or |
4 | (10) Violating any applicable federal or state statutes, rules, regulations, or local |
5 | ordinances. |
6 | (b) If the department acts to deny a registration application or renewal thereof or to suspend |
7 | or revoke a registration, the department will notify the applicant or registrant, in writing, and all |
8 | notices and any hearing thereon shall be conducted pursuant to chapter 35 of title 42 |
9 | ("administrative procedures"). |
10 | (c) The department may not commence any enforcement action under this section more |
11 | than four (4) years after the date of execution of the solar agreement with respect to which a |
12 | violation is alleged to have occurred. |
13 | (d) The department may investigate the activities of any person engaged in the solar |
14 | industry to determine compliance with this chapter. |
15 | (e) Records required by this chapter shall be maintained and preserved for a period of four |
16 | (4) years from the date thereof and shall be open for inspection by any authorized representative of |
17 | the department during regular business hours, and by any state or municipal official or police |
18 | officer. |
19 | (f) Nothing in this chapter may be construed to affect a remedy a customer has independent |
20 | of this chapter; or the department’s ability or authority to enforce any other law or regulation. |
21 | 5-93-15. Order to cease and desist. |
22 | (a) If the department has reason to believe that any person, firm, corporation, or association |
23 | is conducting any activities requiring registration in this chapter without obtaining a registration, |
24 | or who after the denial, suspension, or revocation of a registration conducts any activities requiring |
25 | registration under this chapter, the department may issue its order to that person, firm, corporation, |
26 | or association commanding them to appear before the department at a hearing to be held no sooner |
27 | than ten (10) days nor later than twenty (20) days after issuance of that order to show cause why |
28 | the department should not issue an order to that person or entity to cease and desist from the |
29 | violation of the provisions of this chapter. |
30 | (b) All hearings shall be governed by the chapter 35 of title 42 ("administrative |
31 | procedures"), and by the department’s rules of procedure for administrative hearings. |
32 | 5-93-16. Private right of action. |
33 | (a) Any person having a claim against a solar retailer under a solar agreement and/or with |
34 | respect to a residential solar energy system may, in addition to any other common law action or |
| LC004389 - Page 20 of 22 |
1 | administrative remedy, bring an action under the rules of civil procedure in a state court of |
2 | competent jurisdiction. A civil action filed in court under this section may be instituted in lieu of, |
3 | or as a supplement to, the department’s administrative proceedings. |
4 | (b) In an action filed under this section in which the plaintiff prevails, the court may, in |
5 | addition to any judgment awarded to the plaintiff, require treble damages, reasonable attorneys' |
6 | fees, and the costs of the action to be paid by the defendant. |
7 | 5-93-17. Loans and financing. |
8 | No person or company, including a solar retailer, shall provide a loan or otherwise finance |
9 | or provide financing for the purchase and sale or lease of a residential solar energy system or broker |
10 | or service such loans, directly or indirectly, without first obtaining a license pursuant to chapter 14 |
11 | of title 19, and no person or company engaging in such activities shall be exempt from licensure |
12 | under § 19-14.1-10. |
13 | 5-93-18. Rules and regulations. |
14 | The department may promulgate such rules and regulations as are necessary and proper to |
15 | carry out the provisions of this chapter. |
16 | SECTION 3. This act shall take effect on January 1, 2025. |
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LC004389 | |
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| LC004389 - Page 21 of 22 |
EXPLANATION | |
BY THE LEGISLATIVE COUNCIL | |
OF | |
A N A C T | |
RELATING TO PUBLIC UTILITIES AND CARRIERS -- RESIDENTIAL SOLAR ENERGY | |
DISCLOSURE AND HOMEOWNERS BILL OF RIGHTS ACT | |
*** | |
1 | This act would repeal the "Residential Solar Energy Disclosure and Homeowners Bill of |
2 | Rights Act" in chapter 26.8 of title 39 and amend title 5 entitled "Businesses and Professions" to |
3 | include chapter 93, an amended "Residential Solar Energy Disclosure and Homeowners Bill of |
4 | Rights Act." |
5 | This act would take effect on January 1, 2025. |
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LC004389 | |
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| LC004389 - Page 22 of 22 |