LEGISLATIVE GENERAL COUNSEL H.B. 215
6 Approved for Filing: S. Elder 6 1st Sub. (Buff)
6 02-08-24 1:59 PM 6
Representative Colin W. Jack proposes the following substitute bill:
1 HOME SOLAR ENERGY AMENDMENTS
2 2024 GENERAL SESSION
3 STATE OF UTAH
4 Chief Sponsor: Colin W. Jack
5 Senate Sponsor: ____________
6
7 LONG TITLE
8 General Description:
9 This bill modifies provisions related to the Residential Solar Energy Disclosure Act.
10 Highlighted Provisions:
11 This bill:
12 < defines terms;
13 < allows a customer to rescind or cancel a solar agreement up to 15 days after receipt
14 of the customer's second monthly electricity bill after installation of the solar
15 equipment;
16 < requires a solar company to notify a customer of the customer's right to cancel or
17 rescind the contract;
18 < requires a solar retailer operating in the state to register with the state;
19 < requires a solar retailer operating in the state to obtain and maintain bonding; and
20 < makes technical changes. 1st Sub. H.B. 215
21 Money Appropriated in this Bill:
22 None
23 Other Special Clauses:
24 None
25 Utah Code Sections Affected:
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26 AMENDS:
27 13-52-102, as enacted by Laws of Utah 2018, Chapter 290
28 13-52-202, as enacted by Laws of Utah 2018, Chapter 290
29 ENACTS:
30 13-52-207, Utah Code Annotated 1953
31 13-52-208, Utah Code Annotated 1953
32
33 Be it enacted by the Legislature of the state of Utah:
34 Section 1. Section 13-52-102 is amended to read:
35 13-52-102. Definitions.
36 As used in this chapter:
37 (1) "Affiliated person" means a solar retailer or a solar retailer's contractor, director,
38 employee, officer, owner, or partner.
39 (2) "Customer" means a person who, for primarily personal, family, or household
40 purposes:
41 (a) purchases a residential solar energy system under a system purchase agreement;
42 (b) leases a residential solar energy system under a system lease agreement; or
43 (c) purchases electricity under a power purchase agreement.
44 [(2)] (3) "Division" means the Division of Consumer Protection, established in Section
45 13-2-1.
46 [(3)] (4) "Power purchase agreement" means an agreement:
47 (a) between a customer and a solar retailer;
48 (b) for the customer's purchase of electricity generated by a residential solar energy
49 system owned by the solar retailer; and
50 (c) that provides for the customer to make payments over a term of at least five years.
51 [(4)] (5) "Residential solar energy system":
52 (a) means a solar energy system that:
53 (i) is installed in the state;
54 (ii) generates electricity primarily for on-site consumption for personal, family, or
55 household purposes;
56 (iii) is situated on no more than four units of residential real property; and
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57 (iv) has an electricity delivery capacity that exceeds one kilowatt; and
58 (b) does not include a generator that:
59 (i) produces electricity; and
60 (ii) is intended for occasional use.
61 [(5)] (6) "Solar agreement" means a system purchase agreement, a system lease
62 agreement, or a power purchase agreement.
63 [(6)] (7) "Solar energy system" means a system or configuration of solar energy devices
64 that collects and uses solar energy to generate electricity.
65 [(7)] (8) "Solar retailer" means a person who:
66 (a) sells or proposes to sell a residential solar energy system to a customer under a
67 system purchase agreement;
68 (b) owns the residential solar energy system that is the subject of a system lease
69 agreement or proposed system lease agreement; or
70 (c) sells or proposes to sell electricity to a customer under a power purchase agreement.
71 [(8)] (9) "System lease agreement" means an agreement:
72 (a) under which a customer leases a residential solar energy system from a solar
73 retailer; and
74 (b) that provides for the customer to make payments over a term of at least five years
75 for the lease of the residential solar energy system.
76 [(9)] (10) "System purchase agreement" means an agreement under which a customer
77 purchases a residential solar energy system from a solar retailer.
78 Section 2. Section 13-52-202 is amended to read:
79 13-52-202. Contents of disclosure statement for any solar agreement.
80 If a solar retailer is proposing to enter any solar agreement with a potential customer,
81 the disclosure statement required in Subsection 13-52-201(1) shall include:
82 (1) a statement indicating that operations or maintenance services are not included as
83 part of the solar agreement, if those services are not included as part of the solar agreement;
84 (2) if the solar retailer provides any written estimate of the savings the potential
85 customer is projected to realize from the system:
86 (a) (i) the estimated projected savings over the life of the solar agreement; and
87 (ii) at the discretion of the solar retailer, the estimated projected savings over any
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88 longer period not to exceed the anticipated useful life of the system;
89 (b) any material assumptions used to calculate estimated projected savings and the
90 source of those assumptions, including:
91 (i) if an annual electricity rate increase is assumed, the rate of the increase and the solar
92 retailer's basis for the assumption of the rate increase;
93 (ii) the potential customer's eligibility for or receipt of tax credits or other
94 governmental or utility incentives;
95 (iii) system production data, including production degradation;
96 (iv) the system's eligibility for interconnection under any net metering or similar
97 program;
98 (v) electrical usage and the system's designed offset of the electrical usage;
99 (vi) historical utility costs paid by the potential customer;
100 (vii) any rate escalation affecting a payment between the potential customer and the
101 solar retailer; and
102 (viii) the costs associated with replacing equipment making up part of the system or, if
103 those costs are not assumed, a statement indicating that those costs are not assumed; and
104 (c) two separate statements in capital letters in close proximity to any written estimate
105 of projected savings, with substantially the following form and content:
106 (i) "THIS IS AN ESTIMATE. UTILITY RATES MAY GO UP OR DOWN AND
107 ACTUAL SAVINGS, IF ANY, MAY VARY. HISTORICAL DATA ARE NOT
108 NECESSARILY REPRESENTATIVE OF FUTURE RESULTS. FOR FURTHER
109 INFORMATION REGARDING RATES, CONTACT YOUR LOCAL UTILITY OR THE
110 STATE PUBLIC SERVICE COMMISSION."; and
111 (ii) "TAX AND OTHER FEDERAL, STATE, AND LOCAL INCENTIVES VARY
112 AS TO REFUNDABILITY AND ARE SUBJECT TO CHANGE OR TERMINATION BY
113 LEGISLATIVE OR REGULATORY ACTION, WHICH MAY IMPACT SAVINGS
114 ESTIMATES. CONSULT A TAX PROFESSIONAL FOR MORE INFORMATION.";
115 (3) a notice with substantially the following form and content: "Legislative or
116 regulatory action may affect or eliminate your ability to sell or get credit for any excess power
117 generated by the system, and may affect the price or value of that power.";
118 (4) a notice describing any right a customer has under Section 13-52-207, and any
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119 other applicable law to cancel or rescind a solar agreement;
120 (5) a statement describing the system and indicating the system design assumptions,
121 including the make and model of the solar panels and inverters, system size, positioning of the
122 panels on the customer's property, estimated first-year energy production, and estimated annual
123 energy production degradation, including the overall percentage degradation over the term of
124 the solar agreement or, at the solar retailer's option, over the estimated useful life of the system;
125 (6) a description of any warranty, representation, or guarantee of energy production of
126 the system;
127 (7) the approximate start and completion dates for the installation of the system;
128 (8) a statement that the solar company may not begin installation of the system until at
129 least 10 days after the day on which the solar company and customer enter into a contract;
130 [(8)] (9) a statement indicating whether any warranty or maintenance obligations
131 related to the system may be transferred by the solar retailer to a third party and, if so, a
132 statement with substantially the following form and content: "The maintenance and repair
133 obligations under your contract may be assigned or transferred without your consent to a third
134 party who will be bound to all the terms of the contract. If a transfer occurs, you will be
135 notified of any change to the address, email address, or phone number to use for questions or
136 payments or to request system maintenance or repair.";
137 [(9)] (10) if the solar retailer will not obtain customer approval to connect the system to
138 the customer's utility, a statement to that effect and a description of what the customer must do
139 to interconnect the system to the utility;
140 [(10)] (11) a description of any roof penetration warranty or other warranty that the
141 solar retailer provides the customer or a statement, in bold capital letters, that the solar retailer
142 does not provide any warranty;
143 [(11)] (12) a statement indicating whether the solar retailer will make a fixture filing or
144 other notice in the county real property records covering the system, including a Notice of
145 Independently Owned Solar Energy System, and any fees or other costs associated with the
146 filing that may be charged to the customer;
147 [(12)] (13) a statement in capital letters with substantially the following form and
148 content: "NO EMPLOYEE OR REPRESENTATIVE OF [name of solar retailer] IS
149 AUTHORIZED TO MAKE ANY PROMISE TO YOU THAT IS NOT CONTAINED IN
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150 THIS DISCLOSURE STATEMENT CONCERNING COST SAVINGS, TAX BENEFITS,
151 OR GOVERNMENT OR UTILITY INCENTIVES. YOU SHOULD NOT RELY UPON ANY
152 PROMISE OR ESTIMATE THAT IS NOT INCLUDED IN THIS DISCLOSURE
153 STATEMENT.";
154 [(13)] (14) a statement in capital letters with substantially the following form and
155 content: "[name of solar retailer] IS NOT AFFILIATED WITH ANY UTILITY COMPANY
156 OR GOVERNMENT AGENCY. NO EMPLOYEE OR REPRESENTATIVE OF [name of
157 solar retailer] IS AUTHORIZED TO CLAIM AFFILIATION WITH A UTILITY COMPANY
158 OR GOVERNMENT AGENCY."; and
159 [(14)] (15) any additional information, statement, or disclosure the solar retailer
160 considers appropriate, as long as the additional information, statement, or disclosure does not
161 have the purpose or effect of obscuring the disclosures required under this part.
162 Section 3. Section 13-52-207 is enacted to read:
163 13-52-207. Customer ability to cancel solar agreement.
164 (1) A solar company shall provide to the customer a copy of the signed solar
165 agreement, including any disclosures required under this chapter:
166 (a) in paper form; and
167 (b) if the solar company marketed services for residential solar energy systems to the
168 customer in a language other than English, in that language.
169 (2) A solar agreement is not enforceable against the customer unless the requirements
170 in Subsection (1) are met.
171 (3) A solar retailer may not begin installation of any solar equipment until 10 days after
172 providing a customer with a solar agreement as described in Subsection (1).
173 (4) A customer may cancel a solar agreement without penalty or obligation, for any
174 reason, up to 15 days after the customer receives the second monthly electricity bill following
175 the date the customer's solar energy system installation is complete and the system is
176 operational.
177 (5) If a customer cancels a solar agreement under Subsection (4), the solar retailer
178 shall:
179 (a) within 10 days:
180 (i) return any check signed by the customer as payment under the terms of the solar
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181 agreement;
182 (ii) refund any money provided by the customer under the terms of the solar agreement;
183 and
184 (iii) notify the customer of any product or equipment installed under the solar
185 agreement that needs to be removed from the customer's residence; and
186 (b) within 20 days after the day on which the customer provides notice of cancellation,
187 remove all products and equipment installed under the solar agreement from the customer's
188 residence or designate any such product or equipment remaining at the customer's residence as
189 abandoned.
190 Section 4. Section 13-52-208 is enacted to read:
191 13-52-208. Solar retailer bonding and registration requirements.
192 (1) A solar retailer that engages in the retail sale, solicitation, or installation of solar
193 equipment in this state shall register with the division before conducting business as a solar
194 retailer in the state.
195 (2) (a) A solar retailer shall renew the registration under this section annually.
196 (b) To renew a registration, a solar retailer shall submit a renewal application to the
197 division at least 30 days before expiration of the current registration.
198 (3) The division may establish by rule, made in accordance with Title 63G, Chapter 3,
199 Utah Administrative Rulemaking Act:
200 (a) the initial solar retailer registration process and content of forms;
201 (b) the solar retailer registration renewal process and content of forms; and
202 (c) a registration fee not to exceed $200, set in accordance with Section 63J-1-504.
203 (4) (a) Each solar retailer in this state shall designate a registered agent for receiving
204 service of process.
205 (b) A solar retailer's registered agent shall be reasonably available from 8 a.m. until 5
206 p.m. during normal working days.
207 (c) If a solar retailer fails to designate an agent to receive service or fails to appoint a
208 successor to the agent, the division shall:
209 (i) deny the solar retailer's application for an initial or renewal registration; and
210 (ii) if the application is for a renewal registration, suspend the solar retailer's current
211 registration until the solar retailer designates an agent.
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212 (5) If information in an application for registration or for renewal of registration as a
213 solar retailer materially changes or becomes incorrect or incomplete, the applicant shall, within
214 30 days after the day on which information changes or becomes incorrect or incomplete, submit
215 the correct information to the division in a manner that the division establishes by rule under
216 Subsection (3).
217 (6) A registered solar retailer shall obtain and maintain the following security:
218 (a) a performance bond issued by a surety authorized to transact surety business in this
219 state;
220 (b) an irrevocable letter of credit issued by a financial institution authorized under the
221 laws of this state or the United States doing business in this state; or
222 (c) a certificate of deposit held in this state in a financial institution authorized under
223 the laws of this state or the United States to accept deposits from the public.
224 (7) The solar retailer shall post a bond, letter of credit, or certificate in the amount of:
225 (a) $1,000,000 if neither the solar retailer nor any affiliated person has violated this
226 chapter in the three-year period preceding registration or renewal;
227 (b) $2,000,000 if the solar retailer or any affiliated person has violated this chapter
228 once in the three-year period preceding registration or renewal; or
229 (c) $5,000,000 if the solar retailer or any affiliated person has violated this chapter two
230 or more times in the three-year period preceding registration or renewal.
231 (8) The bond, letter of credit, or certificate of deposit described in Subsection (5) shall