HB2156 – Creating consumer protections for purchasers of solar energy systems.
Prime Sponsor – Representative Reeves (D; 30th District; Federal Way) (Co-Sponsors Doglio and Pollet – Ds) By request of the Department of Commerce.
Current status – Had a hearing in the House Committee on Consumer Protection & Business January 16th; amended and passed out of committee January 19th. Referred to Rules.
Next step would be – Action by the Rules Committee.
Legislative tracking page for the bill.
SB6256 is a companion bill in the House.
In the House –
There’s a summary by staff of the changes made in the amendment.
Summary –
The bill would require anyone selling or installing a commercial or residential system for more than $1,000 to be licensed and have a written contract with the customer. The contract would have to include:
(a) An itemized list of work to be performed including any known or anticipated electrical upgrades;
(b) Any financing that’s incorporated directly in the contract, conforming to all state and federal consumer loan regulations and disclosure requirements;
(c) The exact amount paid, if any, by a solar contractor or salesperson to any lender in the
form of a dealer fee, or other inducement to obtain financing;
(d) The total dollar amount of the contract and the cost per DC watt from the nameplate rating;
(e) A detailed, performance-based payment schedule based on project completion milestones, explaining when costs are due, the customer’s right to cancel the contract, and the cancellation fees that would be due at each milestone in the payment schedule;
(f) The model, brand name and warranty period of the major components to be installed. (The customer would have to agree in writing to any changes in those.);
(g) Any ongoing operations and maintenance costs included in the contract;
(h) A list of anticipated maintenance activities the customer will need to perform to maintain the warranty and performance of the equipment including inverter replacement;
(i) The system’s projected first-year production in kilowatt-hours, based on the characteristics of the specific site, and developed with a nationally recognized methodology and industry-standard tool.
(j) An explanation of what happens annually to any unused net metering or other bill credits from on-site generation;
(k) The contractor’s good faith estimate of electric bill savings the customer is expected to achieve over the first year after interconnection.
(l) The name, business address, and phone number of the primary solar salesperson or sales firm, if different from the contractor;
(m) The name, business address, and registration number of the contractor, with a link to the Department of Labor and Industries contractor verification tool;
(n) A statement of whether all or part of the work is intended to be subcontracted or performed by another person or entity than the contractor’s own workforce;
(o) A recommendation in capital letters about the importance of getting approval of any expected loan for the project before signing the contract and of knowing whether payments would begin before the statement was operational.
(p) A notification in capital letters of the customer’s right to cancel the contract within three days.
(q) Notice about potential complications in receiving the Federal residential clean energy tax credit for the project. (This and the preceding two items would need to be initialed by the customer to acknowledge reading and understanding them.)
(r) A statement clearly explaining whether the contract includes the cost of uninstalling and
reinstalling the system if it’s on the customer’s roof and that must be replaced or repaired in the future. If that isn’t covered, the customer’s responsibility for this work needs to be stated.
(s) A copy of the IRS’s current Form 5695 instructions for the residential clean energy credit qualified solar electric property costs;
(t) A statement that it’s the contractor’s responsibility to install the system per manufacturer instructions, in compliance with the national and local codes, and with the utility’s interconnection standards;
(u) A copy of, or electronic link to, the applicable utility interconnection application, and a statement documenting which party is responsible for getting permission to operate from the utility. (The interconnection agreement would have to be approved by the utility before installation began, unless the utility waived that requirement).
There would have to be a statement that the addition of a solar system may affect the value of the structure as determined by the county assessor and any change in value may be reflected in annual property taxes, and a statement informing the customer that the system will automatically disconnect from the grid in the event of a power outage to protect utility repair personnel from electric shock, and that the solar system will not provide any power to the customer in that case. (This is not required if the system includes energy storage and/or power conversion and control technologies designed and installed to provide backup power during a grid outage.)
There are various provisions protecting the customer’s right to cancel the contract within three days, and prohibiting collecting any payment for the system during that period.
The bill would prohibit trying to sell a system using any statement or representation about the costs, financing, terms, or conditions of its purchase or installation that as deceptive, and would classify violations of the bill’s requirements as unfair or deceptive acts and unfair methods of competition under the Consumer Protection Act. Contractors, subcontractors, or solar salespeople who failed to comply with the requirements would be liable to the customer for any actual damages sustained as a result of the failure, and if you bought or were assigned an installation contract you’d be subject to the same potential liabilities.