Chapter 067 |
2024 -- H 7603 SUBSTITUTE A AS AMENDED Enacted 06/10/2024 |
A N A C T |
RELATING TO PUBLIC UTILITIES AND CARRIERS -- RESIDENTIAL SOLAR ENERGY DISCLOSURE AND HOMEOWNERS BILL OF RIGHTS ACT |
Introduced By: Representatives Ackerman, Edwards, Solomon, Voas, McNamara, Dawson, Craven, Place, Rea, and Kennedy |
Date Introduced: February 15, 2024 |
It is enacted by the General Assembly as follows: |
SECTION 1. Chapter 39-26.8 of the General Laws entitled "Residential Solar Energy |
Disclosure and Homeowners Bill of Rights Act" is hereby repealed in its entirety. |
CHAPTER 39-26.8 |
Residential Solar Energy Disclosure and Homeowners Bill of Rights Act |
39-26.8-1. Short title. |
This chapter shall be known and may be cited as the "Residential Solar Energy Disclosure |
and Homeowners Bill of Rights Act." |
39-26.8-2. Definitions. |
As used in this chapter: |
(1) "Customer" means a person who, for primarily personal, family, or household purposes: |
(i) Purchases a residential solar energy system under a system purchase agreement; |
(ii) Leases a residential solar energy system under a system lease agreement; or |
(iii) Purchases electricity under a power purchase agreement. |
(2) "Division" means the division of public utilities and carriers. |
(3) "Power purchase agreement" means an agreement: |
(i) Between a customer and a solar retailer; |
(ii) For the customer’s purchase of electricity generated by a residential solar energy system |
owned by the solar retailer; and |
(iii) That provides for the customer to make payments over a term of at least five (5) years. |
(4) "Residential solar energy system" means a solar energy system that: |
(i) Is installed in the state; |
(ii) Generates electricity primarily for on-site consumption for personal, family, or |
household purposes; |
(iii) Is situated on no more than four (4) units of residential real property; |
(iv) Has an electricity delivery capacity that exceeds one kilowatt; and |
(v) Does not include a generator that: |
(A) Produces electricity; and |
(B) Is intended for occasional use. |
(5) "Solar agreement" means a system purchase agreement, a system lease agreement, or a |
power purchase agreement. |
(6) "Solar energy system" means a system or configuration of solar energy devices that |
collects and uses solar energy to generate electricity. |
(7) "Solar retailer" means a person who: |
(i) Sells or proposes to sell a residential solar energy system to a customer under a system |
purchase agreement; |
(ii) Owns the residential solar energy system that is the subject of a system lease agreement |
or proposed system lease agreement; or |
(iii) Sells or proposes to sell electricity to a customer under a power purchase agreement. |
(8) "System lease agreement" means an agreement: |
(i) Under which a customer leases a residential solar energy system from a solar retailer; |
and |
(ii) That provides for the customer to make payments over a term of at least five (5) years |
for the lease of the residential solar energy system. |
(9) "System purchase agreement" means an agreement under which a customer purchases |
a residential solar energy system from a solar retailer. |
39-26.8-3. Applicability of chapter. |
(a) This chapter applies to solar agreements between solar retailers and customers for |
residential solar energy systems, including any solar agreement that accompanies the transfer of |
ownership or lease of real property. |
(b) This chapter does not apply to: |
(1) The transfer of title or rental of real property on which a residential solar energy system |
is or is expected to be located, if the presence of the residential solar energy system is incidental to |
the transfer of title or rental; |
(2) A lender, governmental entity, or other third party that enters into an agreement with a |
customer to finance a residential solar energy system but is not a party to a system purchase |
agreement, power purchase agreement, or lease agreement; |
(3) A sale or lease of, or the purchase of electricity from, a solar energy system that is not |
a residential solar energy system; or |
(4) The lease of a residential solar energy system or the purchase of power from a |
residential solar energy system under an agreement providing for payments over a term of less than |
five (5) years. |
39-26.8-4. Disclosure form required. |
(a) Before entering a solar agreement, a solar retailer shall provide to a potential customer |
the standard disclosure form established pursuant to subsection (b) of this section. This requirement |
shall apply to contracts entered into beginning forty-five (45) days from the date that the standard |
disclosure form is published by the office of energy resources. |
(b) The office of energy resources shall develop a standard disclosure form. Use of and |
compliance with the standard disclosure form will satisfy the solar retailer’s obligation under this |
chapter. The standard disclosure form shall be published on the website of the office of energy |
resources. In developing the standard disclosure form, the office of energy resources may use as a |
model the renewable energy fund small scale participant consumer disclosure form developed by |
the Rhode Island commerce corporation. The office of energy resources shall also consult with |
industry and other stakeholders in the development of the content and format of the form and in |
regard to any changes to the form. At a minimum, the disclosure form shall: |
(1) Be in at least twelve (12) point font; |
(2) Contain fields that require providing the following information: |
(i) The name, address, telephone number, and any email address of the potential customer; |
(ii) The name, address, telephone number, and email address of the solar retailer; and |
(iii)(A) The name, address, telephone number, email address, and state contractor license |
number of the person who is expected to install the system that is the subject of the solar agreement; |
and |
(B) If the solar retailer selected the person who is expected to provide operations or |
maintenance support to the potential customer or introduced that person to the potential customer, |
the name, address, telephone number, email address, and state contractor license of the operations |
or maintenance support person; and |
(3) Include applicable information and disclosures as provided in §§ 39-26.8-5, 39-26.8-6, |
38-26.8-7, and 39-26.8-8. |
39-26.8-5. Contents of disclosure form for any solar agreement. |
(a) The standard disclosure form shall include: |
(1) An indication of whether operations or maintenance services are included as part of the |
solar agreement; |
(2) If the solar retailer provides any written estimate of the savings the potential customer |
is projected to realize from the system based on similar installations that have the same geographic |
orientation in similar climates, the solar retailer must complete fields requiring entry of the |
following information: |
(i) The estimated projected savings over the life of the solar agreement; and |
(ii) An optional field for the estimated projected savings over any longer period not to |
exceed the anticipated useful life of the system; and |
(3) Fields to disclose material assumptions used to calculate estimated projected savings |
and the source of those assumptions, including: |
(i) If an annual electricity rate increase is assumed, the rate of the increase and the solar |
retailer’s basis for the assumption of the rate increase; |
(ii) The potential customer’s eligibility for or receipt of tax credits or other governmental |
or utility incentives; |
(iii) System production data, including production degradation; |
(iv) The system’s eligibility for interconnection under any net metering or similar program; |
(v) Electrical usage and the system’s designed offset of the electrical usage; |
(vi) Historical utility costs paid by the potential customer; |
(vii) Any rate escalation affecting a payment between the potential customer and the solar |
retailer; and |
(viii) A field to indicate whether costs of replacing equipment were assumed. If such costs |
were assumed, the form shall require a field for listing the costs associated with replacing |
equipment making up part of the system applicable. |
(b) The standard disclosure form shall include the following disclosures and notices: |
(1) Two (2) separate statements in capital letters in close proximity to any written estimate |
of projected savings: |
(i) "THIS IS AN ESTIMATE. UTILITY RATES MAY GO UP OR DOWN AND |
ACTUAL SAVINGS, IF ANY, MAY VARY. HISTORICAL DATA ARE NOT NECESSARILY |
REPRESENTATIVE OF FUTURE RESULTS. FOR FURTHER INFORMATION REGARDING |
RATES, CONTACT YOUR LOCAL UTILITY OR THE STATE PUBLIC UTILITY |
COMMISSION"; and |
(ii) "TAX AND OTHER FEDERAL, STATE, AND LOCAL INCENTIVES VARY AS |
TO REFUNDABILITY AND ARE SUBJECT TO CHANGE OR TERMINATION BY |
LEGISLATIVE OR REGULATORY ACTION, WHICH MAY IMPACT SAVINGS |
ESTIMATES. CONSULT A TAX PROFESSIONAL FOR MORE INFORMATION." |
(2) A notice that: "Legislative or regulatory action may affect or eliminate your ability to |
sell or get credit for any excess power generated by the system, and may affect the price or value |
of that power." |
(c) The standard disclosure form shall include fields requiring entry of the following |
information: |
(1) A statement describing the system and indicating the system design assumptions, |
including the make and model of the solar panels and inverters, system size, positioning of the |
panels on the customer’s property, estimated first-year energy production, and estimated annual |
energy production degradation, including the overall percentage degradation over the term of the |
solar agreement or, at the solar retailer’s option, over the estimated useful life of the system; |
(2) A description of any warranty, representation, or guarantee of energy production of the |
system; and |
(3) The approximate start and completion dates for the installation of the system. |
(d) The standard disclosure form shall require an indication of whether any warranty or |
maintenance obligations related to the system may be transferred by the solar retailer to a third |
party. |
(e) The standard disclosure form shall require the following disclosure: "If this form |
indicates that the warranty or maintenance obligation may be transferred, then be advised — The |
maintenance and repair obligations under your contract may be assigned or transferred without |
your consent to a third party who will be bound to all the terms of the contract. If a transfer occurs, |
you will be notified of any change to the address, email address, or phone number to use for |
questions or payments or to request system maintenance or repair." |
(f) The standard disclosure form shall require an indication of whether the solar retailer |
will obtain customer approval to connect the system to the customer’s utility. If indicated that the |
retailer will not obtain said approval, there shall be an additional field requiring a description of |
what the customer must do to interconnect the system to the utility. |
(g) The standard disclosure form shall require an indication of whether the solar retailer |
provides any warranties. If indicated that the retailer does provide warranties, there shall be an |
additional field requiring a description of any roof penetration warranty or other warranty that the |
solar retailer provides the customer. |
(h) The standard disclosure form shall require the solar retailer to indicate whether the solar |
retailer will make a fixture filing or other notice in the city or town real property records covering |
the system, including a Notice of Independently-Owned Solar Energy System. If indicated that the |
retailer will make the fixture filing, there shall be an additional field requiring a description of any |
fees or other costs associated with the filing that may be charged to the customer. |
(i) The standard disclosure form shall include the following statement in capital letters that: |
"NO EMPLOYEE OR REPRESENTATIVE OF [name of solar retailer] IS AUTHORIZED TO |
MAKE ANY PROMISE TO YOU THAT IS NOT CONTAINED IN THIS DISCLOSURE FORM |
CONCERNING COST SAVINGS, TAX BENEFITS, OR GOVERNMENT OR UTILITY |
INCENTIVES. YOU SHOULD NOT RELY UPON ANY PROMISE OR ESTIMATE THAT IS |
NOT INCLUDED IN THIS DISCLOSURE FORM." |
(j) The standard disclosure form shall include the following statement in capital letters: |
"[name of solar retailer] IS NOT AFFILIATED WITH ANY UTILITY COMPANY OR |
GOVERNMENT AGENCY. NO EMPLOYEE OR REPRESENTATIVE OF [name of solar |
retailer] IS AUTHORIZED TO CLAIM AFFILIATION WITH A UTILITY COMPANY OR |
GOVERNMENT AGENCY." |
(k) The standard disclosure form shall include a statement that if the customer fails to make |
installment payments, the solar retailer may place liens for payment on their residence effective |
only after written notice is provided to the customer. |
(l) The office of energy resources may require any additional information and disclosures |
deemed necessary to inform and protect customers. |
(m) The written disclosure form requirement may be satisfied by the electronic delivery of |
the disclosure form to the potential customer as long as the required disclosures are displayed in a |
clear and conspicuous manner. |
39-26.8-6. Standard form addendum for system lease agreement. |
The standard disclosure form shall include an addendum that applies if a solar retailer is |
proposing to enter into a system lease agreement with a potential customer. The system lease |
addendum shall require the solar retailer to provide a detailed comparison of the cost of leasing the |
system as compared to purchasing the system. |
39-26.8-7. Standard form addendum for system purchase agreement. |
The standard disclosure form shall include an addendum that applies if a solar retailer is |
proposing to enter into a system purchase agreement with a potential customer. The system |
purchase addendum shall include: |
(1) The following statement: "You are entering into an agreement to purchase an energy |
generation system. You will own the system installed on your property. You may be entitled to |
federal tax credits because of the purchase. You should consult your tax advisor"; |
(2) A field for the price quoted to the potential customer for a cash purchase of the system; |
(3) Fields requiring: |
(i) The schedule of required and anticipated payments from the customer to the solar |
retailer and third parties over the term of the system purchase agreement, including application |
fees, up-front charges, down payment, scheduled payments under the system purchase agreement, |
payments at the end of the term of the system purchase agreement, payments for any operations or |
maintenance contract offered by or through the solar retailer in connection with the system purchase |
agreement, and payments for replacement of system components likely to require replacement |
before the end of the useful life of the system as a whole; and the total of all payments referred to |
in this subsection; |
(4) A statement indicating that the cost of insuring the system is not included within the |
schedule of payments under subsection (3) of this section; |
(5) A field to indicate whether the customer is responsible for insurance coverage. The |
field shall be accompanied by the statement: "If so indicated above, you are responsible for |
obtaining insurance coverage for any loss or damage to the system. You should consult an insurance |
professional to understand how to protect against the risk of loss or damage to the system. You |
should also consult your home insurer about the potential impact of installing a system."; |
(6) Fields requiring information about whether the system may be transferred to a purchaser |
of the home or real property where the system is located and any conditions for a transfer; and |
(7) A field requiring a detailed comparison of the costs of purchasing as compared to |
leasing the system. |
39-26.8-8. Standard form addendum for power purchase agreement. |
The standard disclosure form shall include an addendum that applies if a solar retailer is |
proposing to enter into a power purchase agreement with a potential customer. The power purchase |
addendum shall include: |
(1) The following statement: "You are entering into an agreement to purchase power from |
an energy generation system. You will not own the system installed on your property. You will not |
be entitled to any federal tax credit associated with the purchase."; |
(2) Fields requiring information about whether the power purchase agreement may be |
transferred to a purchaser of the home or real property where the system is located and, if so, any |
conditions for a transfer; |
(3) A field to indicate whether the solar retailer will obtain insurance. The field shall be |
accompanied by the statement: "If indicated above, the solar retailer will not obtain insurance |
against damage or loss to the system and the customer is responsible if there is damage or loss to |
the system."; and |
(4) Fields requiring information about what will happen to the system at the end of the term |
of the power purchase agreement. |
39-26.8-9. Customer right to cancel solar agreement. |
The customer has the right to cancel or rescind a solar agreement within forty-five (45) |
days of entering into the solar agreement. The standard disclosure form shall inform the customer |
of this right. |
39-26.8-10. Good-faith estimate allowed. |
If a solar retailer does not, at the time of providing a disclosure form, have exact cost |
information required to be included in the disclosure form, pursuant to this chapter, the retailer may |
make a good-faith estimate of that information, if the solar retailer clearly indicates that the |
information is an estimate and provides the basis for the estimate. If the solar retailer’s final cost |
assessment differs from previously provided estimates, the retailer shall provide a new and |
complete disclosure form. |
39-26.8-11. Division enforcement authority — Administrative fine. |
(a) Subject to subsection (b) of this section, the division may enforce the provisions of this |
chapter by: |
(1) Conducting an investigation into an alleged violation of this chapter; |
(2) Issuing a cease-and-desist order against a further violation of this chapter; and |
(3) Imposing an administrative fine of no more than two thousand five hundred dollars |
($2,500) per solar agreement on a solar retailer that: |
(i) Materially fails to comply with the disclosure requirements of this chapter; or |
(ii) Violates any other provision of this chapter, if the division finds that the violation is a |
willful or intentional attempt to mislead or deceive a customer. |
(b) The division may not commence any enforcement action under this section more than |
four (4) years after the date of execution of the solar agreement with respect to which a violation is |
alleged to have occurred. |
(c) The division shall distribute an administrative fine collected under subsection (a)(3) of |
this section to a customer adversely affected by the solar retailer’s failure or violation resulting in |
a fine under subsection (a)(3) of this section, after the division has conducted an administrative |
proceeding resulting in a determination of the appropriateness and amount of any distribution to a |
customer. |
(d) Nothing in this chapter may be construed to affect a remedy a customer has independent |
of this chapter; or the division’s ability or authority to enforce any other law or regulation. |
39-26.8-12. Rules and regulations. |
The division may promulgate such rules and regulations as are necessary and proper to |
carry out the provisions of this chapter. |
SECTION 2. Title 5 of the General Laws entitled "BUSINESSES AND PROFESSIONS" |
is hereby amended by adding thereto the following chapter: |
CHAPTER 93 |
RESIDENTIAL SOLAR ENERGY DISCLOSURE AND HOMEOWNERS BILL OF RIGHTS |
ACT |
5-93-1. Short title. |
This chapter shall be known and may be cited as the "Residential Solar Energy Disclosure |
and Homeowners Bill of Rights Act." |
5-93-2. Definitions. |
As used in this chapter: |
(1) "Customer" means a person who, for primarily personal, family, or household purposes: |
(i) Purchases a residential solar energy system under a system purchase agreement; |
(ii) Leases a residential solar energy system under a system lease agreement; or |
(iii) Purchases electricity under a power purchase agreement. |
(2) "Department" means the department of business regulation. |
(3) "Lease" means to transfer the right to possession and use of a residential solar energy |
system for a term to a customer on behalf of a solar retailer in return for monetary payment or |
consideration. |
(4) "Power purchase agreement" means an agreement: |
(i) Between a customer and a solar retailer; |
(ii) For the customer’s purchase of electricity generated by a residential solar energy system |
owned by the solar retailer; and |
(iii) That provides for the customer to make payments over a term of at least five (5) years. |
(5) "Residential solar energy system" means a solar energy system that: |
(i) Is installed in the state; |
(ii) Generates electricity primarily for on-site consumption for personal, family, or |
household purposes; |
(iii) Is situated on no more than four (4) units of residential real property; |
(iv) Has an electricity delivery capacity that exceeds one kilowatt; and |
(v) Does not include a generator that: |
(A) Produces electricity; and |
(B) Is intended for occasional use. |
(67) "Solar agreement" means a system purchase agreement, a system lease agreement, or |
a power purchase agreement. |
(78) "Solar energy system" means a system or configuration of solar energy devices that |
collects and uses solar energy to generate electricity. |
(89) "Solar retailer" means a person who: |
(i) Sells or proposes to sell a residential solar energy system to a customer under a system |
purchase agreement; |
(ii) Owns the residential solar energy system that is the subject of a system lease agreement |
or proposed system lease agreement; or |
(iii) Sells or proposes to sell electricity to a customer under a power purchase agreement. |
(911) "System lease agreement" means an agreement: |
(i) Under which a customer leases a residential solar energy system from a solar retailer; |
and |
(ii) That provides for the customer to make payments over a term of at least five (5) years |
for the lease of the residential solar energy system. |
(1012) "System purchase agreement" means an agreement under which a customer |
purchases a residential solar energy system from a solar retailer. |
(1110) "Solicit" means offering or attempting to sell or lease a residential solar energy |
system to a person or requesting, urging, or attempting to persuade a person to purchase, lease, or |
apply for a particular kind of solar system from a particular solar retailer. |
(126) "Sell" means to transfer a residential solar energy system to a customer on behalf of |
a solar retailer in return for monetary payment or other consideration. |
5-93-3. Applicability of chapter. |
(a) This chapter applies to solar agreements between solar retailers and customers for |
residential solar energy systems, including any solar agreement that accompanies the transfer of |
ownership or lease of real property. |
(b) This chapter does not apply to: |
(1) The transfer of title or rental of real property on which a residential solar energy system |
is or is expected to be located, if the presence of the residential solar energy system is incidental to |
the transfer of title or rental; |
(2) A lender, governmental entity, or other third party that enters into an agreement with a |
customer to finance a residential solar energy system but is not a party to a system purchase |
agreement, power purchase agreement, or lease agreement; |
(3) A sale or lease of, or the purchase of electricity from, a solar energy system that is not |
a residential solar energy system; or |
(4) The lease of a residential solar energy system or the purchase of power from a |
residential solar energy system under an agreement providing for payments over a term of less than |
five (5) years. |
5-93-4. Solar retailer registration. |
(a) All solar retailers selling, leasing, and/or soliciting residential solar energy systems for |
purchase or lease shall register with the department and shall renew such registration annually. |
(b) The registration application and any renewal application shall include the following: |
(1) The name and address of the applicant and, if the applicant is an entity, the name and |
address of at least one natural person who is in responsible charge of the operations on behalf of |
the applicant; |
(2) Evidence of: |
(i) A current permit to make sales at retail from the Rhode Island division of taxation or |
confirmation of sales tax exemption, if applicable; |
(ii) Financial responsibility that is acceptable to the department; and |
(iii) Appointment of an agent located within the state who is authorized to accept service |
of process on behalf of the applicant; |
(3) A list of all representatives soliciting, leasing, and/or selling solar energy systems on |
behalf of a solar retailer, whether for sale or lease. |
(4) Any other information that the department shall require. |
(c) The fees for initial registration, renewal, and late renewal shall be determined by the |
department and established by regulation. |
(d) Each owner, member, director, and principal officer of the applicant, and any individual |
acting as manager or a sales representative of the applicant shall obtain and provide a national |
criminal records check from the bureau of criminal identification of the department of attorney |
general, department of public safety division of the state police, or local police department that |
shall include fingerprints submitted to the Federal Bureau of Investigation. The director will |
determine by regulation those items of information appearing on a criminal records check that will |
constitute disqualifying information and, subject to § 28-5.1-14, render the applicant ineligible for |
registration under this chapter. Each applicant shall be responsible for the cost of obtaining the |
criminal records check. |
(e) All application requirements must be maintained and kept current for the duration of |
the registration. |
5-93-5. Solicitations and sales. |
(a) All solicitations, leases, and sales of a residential solar energy systems to a customer |
conducted and consummated by mail, door-to-door sale, telephone, electronic, or other means at |
the premises of a customer or at a fair, trade or business show, convention, or exposition shall: |
(1) For any solicitation, identify the person making such solicitation, lease, or sale and the |
solar retailer the person represents; |
(2) For door-to-door sales to customers, be conducted in accordance with local ordinances, |
or if there is no local ordinance, between the hours of ten o’clock a.m. (10:00 a.m.) and eight |
o’clock p.m. (8:00 p.m.) unless the customer schedules an earlier or later appointment, and with |
both English and Spanish written materials available. Any representative of a solar retailer shall |
prominently display or wear a photo identification badge including their name, registration number, |
and the name and registration number of the solar retailer who or that they represent;. |
(b) Each solar retailer shall develop and implement standards and qualifications for |
employees and third-party sales representatives who are engaged in the solicitation, lease, and sale |
of residential solar energy systems;. |
(c) Each solar retailer shall maintain an active roster of any employees and third-party sales |
representatives who are engaged in the solicitation, lease, and sale of residential solar energy |
systems, and keep such roster available for inspection by law enforcement or the department; and. |
(d) Each solar retailer and sales or other representative of a solar retailer shall comply with |
the provisions of the telemarketing rules adopted pursuant to 15 U.S.C. § 6102 and any other |
applicable federal, state, and local laws. |
5-93-6. Standard disclosure form required. |
(a) Before entering a solar agreement, a solar retailer shall provide to a potential customer, |
in hard copy or via electronic mail with copy attached or downloadable, the standard disclosure |
form established pursuant to subsection (b) of this section. This requirement shall apply to contracts |
entered into beginning forty-five (45) days from the date that the standard disclosure form is |
published by the office of energy resources. |
(b) The office of energy resources shall develop a standard disclosure form. Use of and |
compliance with the standard disclosure form will satisfy the solar retailer’s disclosure obligation |
under this chapter. The standard disclosure form shall be published on the website of the office of |
energy resources. In developing the standard disclosure form, the office of energy resources may |
use as a model the renewable energy fund small scale participant consumer standard disclosure |
form developed by the Rhode Island commerce corporation. The office of energy resources shall |
also consult with industry and other stakeholders in the development of the content and format of |
the standard disclosure form and in regard to any changes to the form. At a minimum, the standard |
disclosure form shall: |
(1) Be in at least twelve-(12)point (12) type; |
(2) Contain fields that require providing the following information: |
(i) The name, address, telephone number, and any email address of the potential customer; |
(ii) The name and address of the solar retailer and the name, telephone number, and email |
address of the natural person who is in responsible charge of solar retailer sales; and |
(iii)(A) The name, address, telephone number, email address, and state contractor license |
number of the person who is expected to install the system that is the subject of the solar agreement; |
and |
(B) If the solar retailer selected the person or company who or that is expected to provide |
operations or maintenance support to the potential customer or introduced that person or company |
to the potential customer, the name, address, telephone number, email address, and state contractor |
license of the operations or maintenance support person or company; and |
(C) If the solar retailer selected the person or company who or that is expected to provide |
financing to the customer for the residential solar energy system or introduced that person or |
company to the potential customer, the name, address, telephone number, email address, and state |
lending license; |
(3) Include applicable information and disclosures as provided in §§ 5-93-7, 5-93-8, 5-93- |
9, and 5-93-10. |
5-93-7. Contents of the standard disclosure form for any solar agreement. |
(a) The standard disclosure form shall include: |
(1) A statement of whether operations or maintenance services are included as part of the |
solar agreement; |
(2) If the solar retailer provides any written estimate of the savings the potential customer |
is projected to realize from the system based on similar installations that have the same geographic |
orientation in similar climates, the solar retailer must complete fields requiring entry of the |
following information: |
(i) The estimated projected savings over the life of the solar agreement; and |
(ii) An optional field for the estimated projected savings over any longer period not to |
exceed the anticipated useful life of the system; and |
(3) Fields to disclose material assumptions used to calculate estimated projected savings |
and the source of those assumptions, including: |
(i) If an annual electricity rate increase is assumed, the rate of the increase and the solar |
retailer’s basis for the assumption of the rate increase; |
(ii) The potential customer’s eligibility for or receipt of tax credits or other governmental |
or utility incentives; |
(iii) System production data, including production degradation; |
(iv) The system’s eligibility for interconnection under any net metering or similar program, |
or lack thereof; |
(v) Electrical usage and the system’s designed offset of the electrical usage; |
(vi) Historical utility costs paid by the potential customer; |
(vii) Any rate escalation affecting a payment between the potential customer and the solar |
retailer; and |
(viii) A field to indicate whether costs of replacing equipment were assumed. If such costs |
were assumed, the standard disclosure form shall require a field for listing the costs associated with |
replacing equipment making up part of the system applicable. |
(b) The standard disclosure form shall include the following disclosures and notices: |
(1) Two (2) separate statements in capital letters in close proximity to any written estimate |
of projected savings: |
(i) "THIS IS AN ESTIMATE. UTILITY RATES MAY GO UP OR DOWN AND |
ACTUAL SAVINGS, IF ANY, MAY VARY. HISTORICAL DATA ARE NOT NECESSARILY |
REPRESENTATIVE OF FUTURE RESULTS. FOR FURTHER INFORMATION REGARDING |
RATES, CONTACT YOUR LOCAL UTILITY OR THE STATE DIVISION OF PUBLIC |
UTILITIES AND CARRIERS"; AND |
(ii) "TAX AND OTHER FEDERAL, STATE, AND LOCAL INCENTIVES VARY AS |
TO REFUNDABILITY AND ARE SUBJECT TO CHANGE OR TERMINATION BY |
LEGISLATIVE OR REGULATORY ACTION, WHICH MAY IMPACT SAVINGS |
ESTIMATES. CONSULT A TAX PROFESSIONAL FOR MORE INFORMATION." |
(2) A notice that: "Legislative or regulatory action may affect or eliminate your ability to |
sell or get credit for any excess power generated by the system, and may affect the price or value |
of that power." |
(c) The standard disclosure form shall include fields requiring entry of the following |
information: |
(1) A statement describing the system and indicating the system design assumptions, |
including the make and model of the solar panels and inverters, system size, positioning of the |
panels on the customer’s property, estimated first-year energy production, and estimated annual |
energy production degradation, including the overall percentage degradation over the term of the |
solar agreement or, at the solar retailer’s option, over the estimated useful life of the system; |
(2) A description of any warranty, representation, or guarantee of energy production of the |
system; and |
(3) The approximate start and completion dates for the installation of the system. |
(d) The standard disclosure form shall require an indication of whether any warranty or |
maintenance obligations related to the system may be transferred by the solar retailer to a third |
party. |
(e) The standard disclosure form shall require the following disclosure: "If this form |
indicates that the warranty or maintenance obligation may be transferred, then be advised -- The |
maintenance and repair obligations under your contract may be assigned or transferred without |
your consent to a third party who will be bound to all the terms of the contract. If a transfer occurs, |
you will be notified of any change to the address, email address, or phone number to use for |
questions or payments or to request system maintenance or repair." |
(f) The standard disclosure form shall require an indication of whether the solar retailer |
will obtain customer approval to connect the system to the customer’s utility. If indicated that the |
retailer will not obtain said approval, there shall be an additional field requiring a description of |
what the customer must do to interconnect the system to the utility. |
(g) The standard disclosure form shall require an indication of whether the solar retailer |
provides any warranties. If indicated that the retailer does provide warranties, there shall be an |
additional field requiring a description of any roof penetration warranty or other warranty that the |
solar retailer provides the customer. |
(h) The standard disclosure form shall require the solar retailer to indicate whether the solar |
retailer will make a fixture filing or other notice in the city or town real property records covering |
the system, including a notice of independently-owned solar energy system. If indicated that the |
retailer will make the fixture filing, there shall be an additional field requiring a description of any |
fees or other costs associated with the filing that may be charged to the customer. |
(i) The standard disclosure form shall include the following statement in capital letters that: |
"NO EMPLOYEE OR REPRESENTATIVE OF [NAME OF SOLAR RETAILER] IS |
AUTHORIZED TO MAKE ANY PROMISE TO YOU THAT IS NOT CONTAINED IN THIS |
DISCLOSURE FORM CONCERNING COST SAVINGS, TAX BENEFITS, OR |
GOVERNMENT OR UTILITY INCENTIVES. YOU SHOULD NOT RELY UPON ANY |
PROMISE OR ESTIMATE THAT IS NOT INCLUDED IN THIS DISCLOSURE FORM." |
(j) The standard disclosure form shall include the following statement in capital letters: |
"[NAME OF SOLAR RETAILER] IS NOT AFFILIATED WITH ANY UTILITY COMPANY |
OR GOVERNMENT AGENCY. NO EMPLOYEE OR REPRESENTATIVE OF [NAME OF |
SOLAR RETAILER] IS AUTHORIZED TO CLAIM AFFILIATION WITH A UTILITY |
COMPANY OR GOVERNMENT AGENCY." |
(k) The standard disclosure form shall include a statement that if the customer fails to make |
installment payments, the solar retailer may place liens for payment on their residence effective |
only after written notice is provided to the customer. |
(l) The office of energy resources may require any additional information and disclosures |
deemed necessary to inform and protect customers. |
(m) The written disclosure form requirement may be satisfied by the electronic mail |
delivery of the standard disclosure form to the potential customer as long as the required disclosures |
are displayed in a clear and conspicuous manner and the form is either attached or in a |
downloadable format. |
5-93-8. Standard form addendum for system lease agreement. |
The standard disclosure form shall include an addendum that applies if a solar retailer is |
proposing to enter into a system lease agreement with a potential customer. The standard disclosure |
form will include details about the lease price and its associated escalator, if any. |
5-93-9. Standard disclosure form addendum for system purchase agreement. |
The standard disclosure form shall include an addendum that applies if a solar retailer is |
proposing to enter into a system purchase agreement with a potential customer. The system |
purchase addendum shall include: |
(1) The following statement: "You are entering into an agreement to purchase an energy |
generation system. You will own the system installed on your property. You may be entitled to |
federal tax credits because of the purchase. You should consult your tax advisor"; |
(2) A field for the price quoted to the potential customer for a cash purchase of the system; |
(3) Fields requiring: |
(i) The schedule of required and anticipated payments from the customer to the solar |
retailer and third parties over the term of the system purchase agreement, including application |
fees, up-front charges, down payment, scheduled payments under the system purchase agreement, |
payments at the end of the term of the system purchase agreement, payments for any operations or |
maintenance contract offered by or through the solar retailer in connection with the system purchase |
agreement, and payments for replacement of system components likely to require replacement |
before the end of the useful life of the system as a whole; and the total of all payments referred to |
in this subsection; |
(ii) An itemized description of all additional fees or charges; |
(4) A statement indicating that the cost of insuring the system is not included within the |
schedule of payments under subsection (3) of this section; |
(5) A field to indicate whether the customer is responsible for insurance coverage. The |
field shall be accompanied by the statement: "If so indicated above, you are responsible for |
obtaining insurance coverage for any loss or damage to the system. You should consult an insurance |
professional to understand how to protect against the risk of loss or damage to the system. You |
should also consult your home insurer about the potential impact of installing a system."; |
(6) Fields requiring information about whether the system may be transferred to a purchaser |
of the home or real property where the system is located and any conditions for a transfer; and |
(7) A field requiring a detailed comparison of the costs of purchasing as compared to |
leasing the system. |
5-93-10. Standard disclosure form addendum for power purchase agreement. |
The standard disclosure form shall include an addendum that applies if a solar retailer is |
proposing to enter into a power purchase agreement with a potential customer. The power purchase |
addendum shall include: |
(1) The following statement: "You are entering into an agreement to purchase power from |
an energy generation system. You will not own the system installed on your property. You will not |
be entitled to any federal tax credit associated with the purchase."; |
(2) Fields requiring information about whether the power purchase agreement may be |
transferred to a purchaser of the home or real property where the system is located and, if so, any |
conditions for a transfer; |
(3) A field to indicate whether the solar retailer will obtain insurance. The field shall be |
accompanied by the statement: "If indicated above, the solar retailer will not obtain insurance |
against damage or loss to the system and the customer is responsible if there is damage or loss to |
the system."; and |
(4) Fields requiring information about what will happen to the system at the end of the term |
of the power purchase agreement. |
5-93-11. Customer right to cancel or rescind solar agreement. |
(a) The customer has the right to cancel or rescind a solar agreement within seven (7) days |
of entering into the solar agreement. The standard disclosure form required under § 5-93-6 may |
also include the written right of rescission notice required to inform the customer of this right as |
provided in subsection (b) of this section. |
(b) The solar retailer shall, at the time of entry into the contract, lease, or other agreement |
give a written right of cancellation or rescission notice to the consumer, in hard copy or via |
electronic mail with copy attached or downloadable, which must substantially comply with this |
section. The notice must: |
(1) Appear in the contract, lease, or other agreement under the conspicuous caption: |
"NOTICE OF RIGHT TO CANCEL OR RESCIND"; and |
(2) Read as follows: |
(DATE OF TRANSACTION) "YOU MAY CANCEL AND RESCIND THIS |
AGREEMENT, WITHOUT ANY PENALTY OR OBLIGATION, WITHIN SEVEN (7) |
BUSINESS DAYS FROM THE ABOVE DATE. IF YOU CANCEL OR RESCIND, YOUR |
CANCELLATION OR RESCISSION NOTICE MUST STATE THAT YOU DO NOT WISH TO |
BE BOUND BY THE AGREEMENT AND BE MAILED BY REGISTERED OR CERTIFIED |
MAIL NOT LATER THAN MIDNIGHT SEVEN (7) DAYS FOLLOWING THE CONSUMER’S |
SIGNING THE AGREEMENT, EXCLUDING SUNDAY AND ANY HOLIDAY ON WHICH |
REGULAR MAIL DELIVERIES ARE NOT MADE. ALL CANCELLATIONS MUST BE |
MAILED TO: |
(INSERT NAME AND ADDRESS OF THE SELLER)." |
(c) Whenever a contract, lease, or other agreement for the sale or lease of a residential solar |
energy system fails to conform to the provisions of this section and/or if the consumer or the |
consumers consumer’s agent has notified the solar retailer of the consumer’s intent to cancel the |
agreement by registered mail, return receipt requested, the solar retailer shall have five (5) business |
days to return to the consumer any deposits, fees, costs, or other payments made by the consumer |
and any note or other evidence of indebtedness, and any security interest arising out of the |
transaction shall be cancelled or terminated. Failure to return all deposits, fees, costs, and other |
payments and evidence of indebtedness or to cancel or terminate any security interest shall enable |
the consumer to recover from the solar retailer treble damages plus reasonable attorneys’ fees and |
costs in any subsequent legal proceeding. |
(d) The consumer’s right of rescission shall not be waived, sold, or abrogated in any way |
or manner. |
5-93-12. Good-faith estimate allowed. |
If a solar retailer does not, at the time of providing a standard disclosure form, have exact |
cost information required to be included in the standard disclosure form, pursuant to this chapter, |
the retailer may make a good-faith estimate of that information, if the solar retailer clearly indicates |
that the information is an estimate and provides the basis for the estimate. If the solar retailer’s final |
cost assessment differs from previously provided estimates, the retailer shall provide a new and |
complete standard disclosure form including itemization of cost differences from the previous |
estimate. |
5-93-13. Statement of account; disclosure to purchaser of property. |
(a) Within ten (10) business days of a written request from the lessee under a lease or the |
debtor under a financing agreement with respect to a residential solar energy system, any solar |
retailer who or that is the lessor or creditor with respect to such lease or financing, or if the lease |
or financing is held by or has been assigned to a third party, the third-party lessor or creditor, shall |
provide a written statement to the lessee/debtor of all amounts then or thereafter due and owing |
under the lease or financing agreement. |
(b) In any purchase and sale agreement or other contract for the sale of residential property |
that has a residential solar energy system which that is subject to a lease or unpaid financing, the |
homeowner selling the property shall disclose to the property purchaser the existence and terms of |
such lease or financing. |
(c) This section shall not preempt, alter, or impair any disclosure requirements required |
under chapter 20.8 of this title 5. |
5-93-14. Department enforcement authority -- Administrative fine. |
(a) Subject to subsection (c) of this section, the department may suspend, revoke, or refuse |
to issue or renew a solar retailer registration or may levy an administrative penalty of no more than |
five thousand dollars ($5,000) per violation for: |
(1) Providing incorrect, misleading, incomplete, or materially untrue information in the |
registration application; |
(2) Obtaining or attempting to obtain a registration through fraud or misrepresentation; |
(3) Using fraudulent, coercive, or dishonest practices or demonstrating incompetence, |
untrustworthiness, or financial irresponsibility in this state or in another place; |
(4) Having a registration, or its equivalent, denied, suspended, or revoked in any other state, |
province, district, or territory; |
(5) Operating as a solar retailer or engaging in solar retailer activities without a current and |
valid registration; |
(6) Operating as a solar retailer and hiring, using, or knowingly assisting a contractor who |
is not registered under chapter 65 of this title 5 to perform work which that requires registration |
under said chapter; |
(7) Operating as a solar retailer and hiring, using, or knowingly assisting a person who is |
not licensed under chapter 6 of this title 5 to perform work which that requires a license under said |
chapter; |
(8) Operating as a solar retailer and hiring, using, or knowingly assisting a person or |
company who or that is not licensed under chapter 14 of title 19 to engage in activities for which |
a license is required under said chapter; |
(9) A solar retailer operator or any principal or sales representative thereof having been |
convicted of or having pled nolo contendere to an offense involving theft, embezzlement, or |
mishandling of funds or to a felony that is substantially related to the solar retailer registration |
consistent with § 28-5.1-14; or |
(10) Violating any provisions of this chapter, and/or any applicable federal or state statutes, |
rules, regulations, or local ordinances. |
(b) If the department acts to deny a registration application or renewal thereof or to suspend |
or revoke a registration, the department will notify the applicant or registrant, in writing, and all |
notices and any hearing thereon shall be conducted pursuant to chapter 35 of title 42 |
("administrative procedures"). |
(c) The department may not commence any enforcement action under this section more |
than four (4) years after the date of execution of the solar agreement with respect to which a |
violation is alleged to have occurred. |
(d) The department may investigate the activities of any person engaged in the solar |
industry to determine compliance with this chapter. |
(e) Records required by this chapter, including any other documents or materials presented |
to a customer prior to their execution of a solar agreement, shall be maintained and preserved for a |
period of seven (7) years from the date thereof and shall be open for inspection by any authorized |
representative of the department during regular business hours, by any employee of the office of |
the attorney general, and by any state or municipal official or police officer. |
(f) Nothing in this chapter may be construed to affect a remedy a customer has independent |
of this chapter; or the department’s ability or authority to enforce any other law or regulation. |
5-93-15. Order to cease and desist. |
(a) If the department has reason to believe that any person, firm, corporation, or association |
is conducting any activities requiring registration in this chapter without obtaining a registration, |
or who after the denial, suspension, or revocation of a registration conducts any activities requiring |
registration under this chapter, the department may issue its order to that person, firm, corporation, |
or association commanding them to appear before the department at a hearing to be held no sooner |
than ten (10) days nor later than twenty (20) days after issuance of that order to show cause why |
the department should not issue an order to that person or entity to cease and desist from the |
violation of the provisions of this chapter. |
(b) All hearings shall be governed by the chapter 35 of title 42 ("administrative |
procedures"), and by the department’s rules of procedure for administrative hearings. |
5-93-16. Private right of action. |
(a) Any person having a claim against a solar retailer under a solar agreement and/or with |
respect to a residential solar energy system may, in addition to any other common law action or |
administrative remedy, bring an action under the rules of civil procedure in a state court of |
competent jurisdiction. A civil action filed in court under this section may be instituted in lieu of, |
or as a supplement to, the department’s administrative proceedings. |
(b) In an action filed under this section in which the plaintiff prevails, the court may, in |
addition to any judgment awarded to the plaintiff, require treble damages, reasonable attorneys' |
fees, and the costs of the action to be paid by the defendant. |
5-93-17. Loans and financing. |
No person or company, including a solar retailer, shall provide a loan or otherwise finance |
or provide financing including retail installment contracts for the purchase and sale of a residential |
solar energy system or broker or service such loans, directly or indirectly, without first obtaining a |
license pursuant to chapter 14 of title 19, and no person or company engaging in such activities |
shall be exempt from licensure under § 19-14.1-10. |
5-93-18. Rules and regulations. |
The department may promulgate such rules and regulations as are necessary and proper to |
carry out the provisions of this chapter. |
SECTION 3. This act shall take effect on March 1, 2025. |
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LC004388/SUB A |
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