HB 1644: DCCA; Consumer Protection; Residential Solar Energy Devices; Power Purchase Agreements; Agreement Cover Page; Disclosures; Contractors; Voidable

A BILL FOR AN ACT

RELATING TO CONSUMER PROTECTION.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  The legislature finds that deceptive or misleading solar energy device business practices undermine consumer confidence, impose hardship on homeowners, and impede the State's clean energy goals.  This Act enhances enforcement of existing law without imposing new licensing requirements on legitimate sales activities.

     Accordingly, the purpose of this Act is to:

     (1)  Require purchase, lease, and power purchase agreements to include a cover page with required disclosures about agreement terms and the right to rescind and cancel;

     (2)  Require any person or entity that markets, sells, leases, or solicits a residential solar energy device or that markets, sells, or solicits power purchase agreements to comply with consumer protection laws;

     (3)  Prohibit any person or entity from installing, marketing, offering financing, or engaging in customer acquisition for residential solar energy devices without holding a contractor's license or having a contractual affiliation with a licensed contractor;

     (4)  Allow a purchaser, lessee, or host customer to rescind or cancel the agreement without penalty or obligation within a certain period; and

     (5)  Specify that an agreement executed in violation are voidable by the purchaser, lessee, or host customer.

     SECTION 2.  Section 481B-6, Hawaii Revised Statutes, is amended to read as follows:

     "§481B-6  [Sale of solar] Residential solar energy devices; disclosure requirements[.]; business practices.  (a)  No person or entity shall advertise, offer to sell, or sell a residential solar energy device unless the person clearly discloses separately, and in writing, the following information concerning the sale price of the residential solar energy device to the consumer:

     (1)  The cost of the residential solar energy device and accessories related to the operation of the residential solar energy device and for their installation; and

     (2)  The cost of items unrelated to the operation of the residential solar energy device, including but not limited to[,] "free gifts", offers to pay electric bills, rebates, and other incentives designed to promote the sale of the residential solar energy device.

     (b)  An agreement for the purchase or lease of a residential solar energy device, or a power purchase agreement for the sale of the output of a residential solar energy device, shall include a cover page that:

     (1)  Prominently displays the following information at the top of the cover page in at least sixteen-point type:

          (A)  Notice of the right to rescind or cancel the agreement, without any penalty or obligation, within three business days after the execution of the agreement;

          (B)  An electronic mail address to which a notice of recission or cancellation may be sent and notice that the purchaser, lessee, or host customer may send a rescission or cancellation notice to that electronic mail address; and

          (C)  Notice that, before the installation of the residential solar energy device, the purchaser, lessee, or host customer will have the opportunity to confirm that no representations, offers, or promises were made at any time concerning the purchase or lease of the residential solar energy device or the power purchase agreement for the sale of the output of a residential solar energy device, other than what is contained in the agreement; and

     (2)  Provides the following information in at least ten-point type:

          (A)  The total system price, including the total cash price and the total price with financing costs, where the cash price and the financed price differ;

          (B)  The estimated annual energy production and methodology used to determine the estimate;

          (C)  The estimated annual utility bill savings and assumptions used;

          (D)  The following tax incentive eligibility statement: "Eligibility for federal and state tax incentives depends on individual circumstances and is not guaranteed by the solar company.";

          (E)  Payment terms;

          (F)  The escalation rate, if applicable;

          (G)  The ownership structure, whether purchase, lease, loan, or power purchase agreement;

          (H)  The name and license number of the installing contractor;

          (I)  Warranty terms; and

          (J)  Consumer cancellation rights.

The department of commerce and consumer affairs shall create a template of the standardized cover page described in this subsection.  Beginning January 1, 2027, the department of commerce and consumer affairs shall publish and make available free of charge the template required by this subsection in electronic format on a website maintained by the department.  In creating or revising the template required by this subsection, the department of commerce and consumer affairs may consult with a public utility, as defined in section 269-1, domestic nonprofit corporation, or limited liability company that represents the interests of any person or entity that sells or leases residential solar energy devices.

     (c)  Any person or entity that markets, sells, leases, or solicits a residential solar energy device, or that markets, sells, or solicits power purchase agreements, associated with a residential solar energy device in the State shall comply with the consumer protection requirements of this chapter and chapter 444, and any rules adopted thereunder, relating to truthful advertising, disclosures, contract terms, or cancellation rights.  This subsection shall not apply to financial institutions.

     (d)  A person or entity that does not hold an active contractor's license under chapter 444 shall not:

     (1)  Represent that the person or entity is authorized to install or supervise the installation of a residential solar energy device;

     (2)  Enter into or offer to enter into a contract for the installation of a residential solar energy device; or

     (3)  Market, offer financing, or engage in customer acquisition or lead generation activities for a residential solar energy device, without being contractually affiliated with one contractor holding a license allowing the contractor to install a residential solar energy device.  The contractor's name and license number shall be disclosed on all marketing materials, proposal documents, and contract documents.

     (e)  Any purchaser or lessee who enters into or signs an agreement for the purchase or lease of a residential solar energy device or host customer who enters into a power purchase agreement may rescind or cancel the agreement, without any penalty or obligation, by giving notice in writing to the installer either by delivering or mailing notice in writing or sending notice by electronic mail no later than 11:59 p.m. on the third business day after the date the agreement was entered into or signed.  The notice shall be addressed to the installer at the installer's place of business, or another place designated in the agreement, or sent to the electronic mail address set forth on the cover page required by this section, as applicable, and shall contain words indicating the intent of the purchaser, lessee, or host customer to rescind or cancel the transaction previously entered into.

     (f)  If any person executes with a purchaser or lessee an agreement for the purchase or lease of a residential solar energy device or with a host customer a power purchase agreement and fails to comply with any requirement of this section, the agreement shall be voidable by the purchaser, lessee, or host customer.

     (g)  The department of commerce and consumer affairs may adopt rules pursuant to chapter 91 necessary for the purposes of this section.

     [(b)] (h)  As used in this section[, "solar]:

     "Financial institution" has the same meaning as defined in section 412:1-109.

     "Host customer" means:

     (1)  The customer of record of an electric utility at the location where a residential solar energy device will be located; or

     (2)  A person who has been designated by the customer of record of an electric utility in a letter to the utility explaining the relationship between that person and the customer of record.

     "Power purchase agreement" means an agreement in which a person or entity:

     (1)  Arranges for the design, installation, maintenance, and energy output of a residential solar energy device; and

     (2)  Sells the electricity generated from a residential solar energy device to the host customer.

     "Solar energy device" means any new identifiable facility, equipment, apparatus, or the like [which] that makes use of solar energy for energy storage or heating, cooling, or reducing the use of other types of energy dependent upon fossil fuel for its generation."

     SECTION 3.  This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

     SECTION 4.  If any provision of this Act, or the application thereof to any person or circumstance, is held invalid, the invalidity does not affect other provisions or applications of the Act that can be given effect without the invalid provision or application, and to this end the provisions of this Act are severable.

     SECTION 5.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 6.  This Act shall take effect on July 1, 3000.

Report Title:

DCCA; Consumer Protection; Residential Solar Energy Devices; Power Purchase Agreements; Agreement Cover Page; Disclosures; Contractors; Voidable

Description:

Requires purchase, lease, and power purchase agreements for residential solar energy devices to include a cover page with certain required disclosures.  Requires any person or entity that markets, sells, leases, or solicits a residential solar energy device or markets, sells, or solicits power purchase agreements to comply with consumer protection laws.  Prohibits any person or entity from installing, marketing, offering financing, or engaging in customer acquisition for a residential solar energy device without holding a contractor's license or having a contractual affiliation with a licensed contractor.  Allows for rescission or cancellation of the agreement.  Specifies that agreements in violation of the law are voidable.  Effective 7/1/3000.  (SD1)

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

A BILL FOR AN ACT

RELATING TO CONSUMER PROTECTION.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  The legislature finds that deceptive or misleading solar energy device business practices undermine consumer confidence, impose hardship on homeowners, and impede the State's clean energy goals.  This Act enhances enforcement of existing law without imposing new licensing requirements on legitimate sales activities.

     Accordingly, the purpose of this Act is to:

     (1)  Require purchase, lease, and power purchase agreements to include a cover page with required disclosures about the right to rescind and cancel and agreement terms;

     (2)  Require any person or entity that markets, sells, leases, or solicits a residential solar energy device or that markets, sells, or solicits power purchase agreements to comply with consumer protection laws;

     (3)  Prohibit any person or entity from installing, marketing, offering financing, or engaging in customer acquisition for residential solar energy devices without holding a contractor's license or having a contractual affiliation with a licensed contractor;

     (4)  Allow a purchaser, lessee, or host customer to rescind or cancel the agreement without penalty or obligation within a certain period; and

     (5)  Specify that an agreement executed in violation are voidable by the purchaser, lessee, or host customer.

     SECTION 2.  Section 481B-6, Hawaii Revised Statutes, is amended to read as follows:

     "§481B-6  [Sale of solar] Residential solar energy devices; disclosure requirements[.]; business practices.  (a)  No person or entity shall advertise, offer to sell, or sell a residential solar energy device unless the person clearly discloses separately, and in writing, the following information concerning the sale price of the residential solar energy device to the consumer:

     (1)  The cost of the residential solar energy device and accessories related to the operation of the residential solar energy device and for their installation; and

     (2)  The cost of items unrelated to the operation of the residential solar energy device, including but not limited to[,] "free gifts", offers to pay electric bills, rebates, and other incentives designed to promote the sale of the residential solar energy device.

     (b)  An agreement for the purchase or lease of a residential solar energy device, or a power purchase agreement for the sale of the output of a residential solar energy device, shall include a cover page that:

     (1)  Prominently displays the following information at the top of the cover page in at least sixteen-point type:

          (A)  Notice of the right to rescind or cancel the agreement, without any penalty or obligation, within three business days after the execution of the agreement;

          (B)  An electronic mail address to which a notice of recission or cancellation may be sent and notice that the purchaser, lessee, or host customer may send a rescission or cancellation notice to that electronic mail address; and

          (C)  Notice that, before the installation of the residential solar energy device, the purchaser, lessee, or host customer will have the opportunity to confirm that no representations, offers, or promises were made at any time concerning the purchase or lease of the residential solar energy device or the power purchase agreement for the sale of the output of a residential solar energy device, other than what is contained in the agreement; and

     (2)  Provides the following information in at least ten-point type:

          (A)  The total system price, including the total cash price and the total price with financing costs, where the cash price and the financed price differ;

          (B)  The estimated annual energy production and methodology used to determine the estimate;

          (C)  The estimated annual utility bill savings and assumptions used;

          (D)  The following tax incentive eligibility statement: "Eligibility for federal and state tax incentives depends on individual circumstances and is not guaranteed by the solar company.";

          (E)  Payment terms;

          (F)  The escalation rate, if applicable;

          (G)  The ownership structure, whether purchase, lease, loan, or power purchase agreement;

          (H)  The name and license number of the installing contractor;

          (I)  Warranty terms; and

          (J)  Consumer cancellation rights.

The department of commerce and consumer affairs shall design, publish, and periodically update as needed, a template of the standardized cover page described in this subsection in consultation with representatives from the solar industry.

     (c)  Any person or entity that markets, sells, leases, or solicits a residential solar energy device, or that markets, sells, or solicits power purchase agreements, associated with a residential solar energy device in the State shall comply with the consumer protection requirements of this chapter and chapter 444, and any rules adopted thereunder, relating to truthful advertising, disclosures, contract terms, or cancellation rights.  This subsection shall not apply to financial institutions.

     (d)  A person or entity that does not hold an active contractor's license under chapter 444 shall not:

     (1)  Represent that the person or entity is authorized to install or supervise the installation of a residential solar energy device;

     (2)  Enter into or offer to enter into a contract for the installation of a residential solar energy device; or

     (3)  Market, offer financing, or engage in customer acquisition or lead generation activities for a residential solar energy device, without being contractually affiliated with one contractor holding a license allowing the contractor to install a residential solar energy device.  The contractor's name and license number shall be disclosed on all marketing materials, proposal documents, and contract documents.

     (e)  Any purchaser or lessee who enters into or signs an agreement for the purchase or lease of a residential solar energy device or host customer who enters into a power purchase agreement may rescind or cancel the agreement, without any penalty or obligation, by giving notice in writing to the installer either by delivering or mailing notice in writing or sending notice by electronic mail no later than 11:59 p.m. on the third business day after the date the agreement was entered into or signed.  The notice shall be addressed to the installer at the installer's place of business, or another place designated in the agreement, or sent to the electronic mail address set forth on the cover page required by this section, as applicable, and shall contain words indicating the intent of the purchaser, lessee, or host customer to rescind or cancel the transaction previously entered into.

     (f)  If any person executes with a purchaser or lessee an agreement for the purchase or lease of a solar energy device or with a host customer a power purchase agreement and fails to comply with any requirement of this section, the agreement shall be voidable by the purchaser, lessee, or host customer.

     (g)  The department of commerce and consumer affairs may adopt rules pursuant to chapter 91 necessary for the purposes of this section.

     [(b)] (h)  As used in this section[, "solar]:

     "Financial institution" has the same meaning as defined in section 412:1-109.

     "Host customer" means:

     (1)  The customer of record of an electric utility at the location where a residential solar energy device will be located; or

     (2)  A person who has been designated by the customer of record of an electric utility in a letter to the utility explaining the relationship between that person and the customer of record.

     "Power purchase agreement" means an agreement in which a person or entity:

     (1)  Arranges for the design, installation, maintenance, and energy output of a residential solar energy device; and

     (2)  Sells the electricity generated from a residential solar energy device to the host customer.

     "Solar energy device" means any new identifiable facility, equipment, apparatus, or the like [which] that makes use of solar energy for energy storage or heating, cooling, or reducing the use of other types of energy dependent upon fossil fuel for its generation."

     SECTION 3.  This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

     SECTION 4.  If any provision of this Act, or the application thereof to any person or circumstance, is held invalid, the invalidity does not affect other provisions or applications of the Act that can be given effect without the invalid provision or application, and to this end the provisions of this Act are severable.

     SECTION 5.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 6.  This Act shall take effect on July 1, 3000.

Report Title:

DCCA; Consumer Protection; Residential Solar Energy Devices; Power Purchase Agreements; Agreement Cover Page; Disclosures; Contractors; Voidable

Description:

Requires purchase, lease, and power purchase agreements for residential solar energy devices to include a cover page with certain required disclosures.  Requires any person or entity that markets, sells, leases, or solicits a residential solar energy device or markets, sells, or solicits power purchase agreements to comply with consumer protection laws.  Prohibits any person or entity from installing, marketing, offering financing, or engaging in customer acquisition for a residential solar energy device without holding a contractor's license or having a contractual affiliation with a licensed contractor.  Allows for rescission or cancellation of the agreement.  Specifies that agreements in violation of the law are voidable.  Effective 7/1/3000.  (HD2)

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

A BILL FOR AN ACT

RELATING TO CONSUMER PROTECTION.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  The legislature finds that deceptive or misleading solar energy device sales practices undermine consumer confidence, impose hardship on homeowners, and impede the State's clean energy goals.  This Act enhances enforcement of existing law without imposing new licensing requirements on legitimate sales activities.

     Accordingly, the purpose of this Act is to:

     (1)  Require a person or entity marketing or contracting for a residential solar energy device to provide the consumer a one-page standardized disclosure form;

     (2)  Require any person or entity marketing, selling, or soliciting a residential solar energy device or financing product to comply with consumer protection laws; and

     (3)  Prohibit any person or entity from selling a residential solar energy device without holding a contractor's license or having a contractual affiliation with a licensed contractor.

     SECTION 2.  Section 481B-6, Hawaii Revised Statutes, is amended to read as follows:

     "§481B-6  Sale of solar energy devices; disclosure requirements[.]; sales practices.  (a)  No person shall advertise, offer to sell, or sell a solar energy device unless the person clearly discloses separately the following information concerning the sale price of the solar energy device to the consumer:

     (1)  The cost of the solar energy device and accessories related to the operation of the solar energy device and for their installation; and

     (2)  The cost of items unrelated to the operation of the solar energy device, including but not limited to, "free gifts", offers to pay electric bills, rebates, and other incentives designed to promote the sale of the solar device.

     (b)  In addition to the requirements under subsection (a), a person or entity marketing or contracting for a residential solar energy device shall provide the consumer, before contract execution, a one-page standardized disclosure form in plain language, which shall appear as the first page of any proposal or contract and shall include:

     (1)  The total system price;

     (2)  The estimated annual energy production and methodology used to determine the estimate;

     (3)  The estimated annual utility bill savings and assumptions used;

     (4)  The following tax incentive eligibility statement: "Eligibility for state and federal tax incentives depends on individual circumstances and is not guaranteed by the solar company.";

     (5)  Payment terms;

     (6)  The escalation rate, if applicable;

     (7)  The ownership structure, whether purchase, lease, loan, or power purchase agreement;

     (8)  The name and license number of the installing contractor;

     (9)  Warranty terms; and

    (10)  Consumer cancellation rights.

The department of commerce and consumer affairs shall design, publish, and periodically update as needed, a template of the standardized disclosure form described in this subsection in consultation with representatives from the solar industry.

     (c)  Any person or entity that markets, sells, or solicits a residential solar energy device, or that markets, sells, or solicits financing products, whether loans, leases, or power purchase agreements, associated with a residential solar energy device in the State shall comply with the consumer protection requirements of this chapter and chapter 444, and any rules adopted thereunder, relating to truthful advertising, disclosures, contract terms, or cancellation rights.

     (d)  A person or entity that does not hold an active contractor's license under chapter 444 shall not:

     (1)  Represent that the person or entity is authorized to install or supervise the installation of a residential solar energy device;

     (2)  Enter into or offer to enter into a contract for the installation of a residential solar energy device; or

     (3)  Market, offer financing, or engage in customer acquisition or lead generation activities for a residential solar energy device, without being contractually affiliated with one or more contractors holding licenses allowing them to install a residential solar energy device.  The contractors' names and license numbers shall be disclosed on all marketing materials, proposal documents, and contract documents.

     (e)  Violation of this section constitutes an unfair or deceptive act or practice under chapter 480.

     (f)  Nothing in this section shall be construed to prohibit solar energy device marketing, sales, or financing activities; provided that the person or entity complies with the requirements of this section.

     (g)  The department of commerce and consumer affairs may adopt rules pursuant to chapter 91 necessary for the purposes of this section.

     [(b)] (h)  As used in this section, "solar energy device" means any new identifiable facility, equipment, apparatus, or the like [which] that makes use of solar energy for energy storage or heating, cooling, or reducing the use of other types of energy dependent upon fossil fuel for its generation."

     SECTION 3.  This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

     SECTION 4.  If any provision of this Act, or the application thereof to any person or circumstance, is held invalid, the invalidity does not affect other provisions or applications of the Act that can be given effect without the invalid provision or application, and to this end the provisions of this Act are severable.

     SECTION 5.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 6.  This Act shall take effect on July 1, 3000.

Report Title:

DCCA; Rooftop Solar; Residential Solar Energy Devices; Energy Storage; Consumer Protection; Contractors; Deceptive Practices

Description:

Requires a person or entity marketing or contracting for a residential solar energy device to provide the consumer a one-page standardized disclosure form.  Requires any person or entity marketing, selling, or soliciting a residential solar energy device or financing product to comply with consumer protection laws.  Prohibits any person or entity from selling a residential solar energy device without holding a contractor's license or having a contractual affiliation with a licensed contractor.  Effective 7/1/3000.  (HD1)

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

A BILL FOR AN ACT

relating to consumer protection.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  The legislature finds that deceptive or misleading solar sales practices undermine consumer confidence, impose hardship on homeowners, and impede the State's clean energy goals.  This Act enhances enforcement of existing law without imposing new licensing requirements on legitimate sales activities.

     Accordingly, the purpose of this Act is to:

     (1)  Require any person or entity selling a residential solar energy device to comply with consumer protection laws;

     (2)  Require a standardized one-page disclosure form in residential solar proposals and contracts; and

     (3)  Prohibit any person or entity from selling a residential solar energy device without holding a contractor's license or having a contractual affiliation with a licensed contractor.

     SECTION 2.  Section 481B-6, Hawaii Revised Statutes, is amended to read as follows:

     "§481B-6  Sale of solar energy devices; disclosure requirements[.]; sales practices.  (a)  No person shall advertise, offer to sell, or sell a solar energy device unless the person clearly discloses separately the following information concerning the sale price of the solar energy device to the consumer:

     (1)  The cost of the solar energy device and accessories related to the operation of the solar energy device and for their installation; and

     (2)  The cost of items unrelated to the operation of the solar energy device, including but not limited to, "free gifts", offers to pay electric bills, rebates, and other incentives designed to promote the sale of the solar device.

     (b)  In addition to the requirements under subsection (a), a person or entity marketing or contracting for a residential solar energy device shall provide the consumer, before contract execution, a one-page standardized disclosure form in plain language, which shall appear as the first page of any proposal or contract and shall include:

     (1)  The total system price;

     (2)  The estimated annual energy production and methodology;

     (3)  The estimated annual utility bill savings and assumptions used;

     (4)  The following incentive eligibility statement: "Eligibility for state and federal tax incentives depends on individual circumstances and is not guaranteed by the solar company.";

     (5)  Payment terms;

     (6)  The escalation rate, if applicable;

     (7)  The ownership structure, whether purchase, lease, loan or power purchase agreement;

     (8)  The name and license number of the installing contractor;

     (9)  Warranty terms; and

    (10)  Consumer cancellation rights.

The department of commerce and consumer affairs shall design, publish, and periodically update as needed, a template of the standardized disclosure form described in this subsection in consultation with the solar industry.

     (c)  Any person or entity that markets, sells, or solicits a residential solar energy device, or that markets, sells or solicits financing products, whether loans, leases or power purchase agreements, associated with a residential solar energy device in the State shall comply with the consumer protection requirements of this chapter and chapter 444, and any rules adopted thereunder, relating to truthful advertising, disclosures, contract terms, or cancellation rights.

     (d)  A person or entity that does not hold an active contractor's license under chapter 444 shall not:

     (1)  Represent that the person or entity is authorized to install or supervise the installation of a residential solar energy device;

     (2)  Enter into or offer to enter into a contract for the installation of a residential solar energy device; or

     (3)  Market, offer financing, or engage in customer acquisition or lead generation activities for a residential solar energy device, without being contractually affiliated with one or more contractors holding licenses allowing them to install a residential solar energy device.  The contractors' names and license numbers shall be disclosed on all marketing materials, proposal documents, and contract documents.

     (e)  Violation of this section constitutes an unfair or deceptive act or practice under chapter 480.

     (f)  Nothing in this section shall be construed to prohibit solar energy device marketing, sales, or financing activities; provided that the person or entity complies with the requirements of subsection (d).

     (g)  The department of commerce and consumer affairs may adopt rules pursuant to chapter 91 necessary for the purposes of this section.

     [(b)] (h)  As used in this section, "solar energy device" means any new identifiable facility, equipment, apparatus, or the like [which] that makes use of solar energy for energy storage or heating, cooling, or reducing the use of other types of energy dependent upon fossil fuel for its generation."

     SECTION 3.  This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

     SECTION 4.  If any provision of this Act, or the application thereof to any person or circumstance, is held invalid, the invalidity does not affect other provisions or applications of the Act that can be given effect without the invalid provision or application, and to this end the provisions of this Act are severable.

     SECTION 5.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 6.  This Act shall take effect upon its approval.

Report Title:

DCCA; Rooftop Solar; Residential Solar Energy Devices; Energy Storage; Consumer Protection; Contractors; Deceptive Practices

Description:

Requires any person or entity selling a residential solar energy device to comply with consumer protection laws.  Prohibits the sale of a residential solar energy device without a contractor's license or contractual affiliation with a licensed contractor.  Requires a standardized disclosure form to be developed by the Department of Commerce and Consumer Affairs for use in all residential solar proposals and contracts.

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

STAND. COM. REP. NO.  1043-26

Honolulu, Hawaii

                , 2026

RE:   H.B. No. 1644

      H.D. 2

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Madame:

     Your Committee on Consumer Protection & Commerce, to which was referred H.B. No. 1644, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO CONSUMER PROTECTION,"

begs leave to report as follows:

     The purpose of this measure is to:

     (1)  Require a person or entity marketing or contracting for a residential solar energy device to provide the consumer a one-page standardized disclosure form;

     (2)  Require any person or entity marketing, selling, or soliciting a residential solar energy device or financing product to comply with certain consumer protection laws; and

     (3)  Prohibit any person or entity from selling a residential solar energy device without holding a contractor's license or having a contractual affiliation with a licensed contractor.

     Your Committee received testimony in support of this measure from the Hawaiʻi Green Infrastructure Authority; Kauaʻi Island Utility Cooperative; Alternate Energy Inc.; Sunrun Inc.; Symbium Corp.; Green Power Projects LLC; Solaray Corporation; Hawaiian Electric; Hawaii Solar Energy Association; Malama Solar; International Brotherhood of Electrical Workers Local 1186, AFL CIO; and eight individuals.  Your Committee received comments on this measure from the Department of Commerce and Consumer Affairs; Contractors License Board; and Hawaii Credit Union League.

     Your Committee finds that the field of residential solar energy devices is complex with complicated financing and ownership models.  The average consumer often lacks understanding of the intricacies of installing residential solar energy devices.  It can be particularly hard to understand the differences between products since agreements typically involve industry-specific jargon and technical terms.  These issues make the solar market particularly susceptible to unscrupulous practices, which disproportionately affect kupuna, first-time homeowners, and other consumers unfamiliar with complex financial arrangements.  This measure bolsters consumer protections by requiring certain disclosures and requiring installations to be made by certain licensed professionals, which will ensure customers have access to key information and will guard against misleading or inaccurate representations.

     Your Committee has amended this measure by:

     (1)  Specifying that, for purposes of the existing law related to disclosures for sales of solar energy devices, the disclosures must be in writing;

     (2)  Specifying that the required disclosure is to be the cover page of the purchase or lease agreement or power purchase agreement involving the residential solar energy device;

     (3)  Requiring the cover page to include a notice that details specific information, including:

          (A)  The right to rescind or cancel the agreement and the means to effectuate the rescission or cancellation; and

          (B)  The right to confirm that there are no representations, offers, or promises other than what is in the agreement;

     (4)  Clarifying that the mandated compliance with certain consumer protection requirements does not apply to financial institutions, as this measure is directed toward the practices of persons marketing, selling, or soliciting residential solar energy devices;

     (5)  Deleting language that conflicted with the Contractors Licensing Board's administrative rule requiring persons who perform work on behalf of more than one contractor to also be licensed as a contractor;

     (6)  Deleting unnecessary language relating to the interpretation of the statute;

     (7)  Specifying that a purchaser, lessee, or host customer has the authority to rescind or cancel the agreement without any penalty or obligation by providing notice within three business days;

     (8)  Providing that an agreement that fails to comply with the requirements under the law relating to residential solar energy devices is voidable by the purchaser, lessee, or host customer;

     (9)  Inserting definitions for "financial institution", "host customer", and "power purchase agreement"; and

     (10) Making technical, nonsubstantive amendments for the purposes of clarity, consistency, and style.

     As affirmed by the record of votes of the members of your Committee on Consumer Protection & Commerce that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1644, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 1644, H.D. 2.

Respectfully submitted on behalf of the members of the Committee on Consumer Protection & Commerce,

STAND. COM. REP. NO.  445-26

Honolulu, Hawaii

                , 2026

RE:   H.B. No. 1644

      H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Madame:

     Your Committee on Energy & Environmental Protection, to which was referred H.B. No. 1644 entitled:

"A BILL FOR AN ACT RELATING TO CONSUMER PROTECTION,"

begs leave to report as follows:

     The purpose of this measure is to:

     (1)  Require a person or entity marketing or contracting for a residential solar energy device to provide the consumer a one-page standardized disclosure form;

     (2)  Require any person or entity marketing, selling, or soliciting a residential solar energy device or financing product to comply with consumer protection laws; and

     (3)  Prohibit any person or entity from selling a residential solar energy device without holding a contractor's license or having a contractual affiliation with a licensed contractor.

     Your Committee received testimony in support of this measure from the Department of Commerce and Consumer Affairs; Hawaiʻi Green Infrastructure Authority; Kauaʻi Island Utility Cooperative; Hawaii Solar Energy Association; Photonworks Engineering; Green Power Projects LLC; ELCCO Inc.; HI‑POWER Solar LLC; Hawaii Solar Energy Association; Alternate Energy Inc.; Sunspear Energy LLC; Independent Energy; EP Cube; Energy Advisors; and five individuals.

     Your Committee finds that deceptive or misleading solar energy device sales practices have created confusion for homeowners, imposed financial hardship, and hindered progress toward the State's clean energy goals.  Your Committee further finds that the Hawaii Green Infrastructure Authority has received a number of consumer reports of imposter door-to-door salespeople claiming to represent the Authority.  This measure seeks to protect consumers and promote clean energy adoption by requiring standardized disclosures and ensuring that only licensed contractors, or entities affiliated with them, may sell residential solar energy devices.

     Your Committee has amended this measure by:

     (1)  Changing the effective date to July 1, 3000, to encourage further discussion; and

     (2)  Making technical, nonsubstantive amendments for the purposes of clarity, consistency, and style.

     As affirmed by the record of votes of the members of your Committee on Energy & Environmental Protection that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1644, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1644, H.D. 1, and be referred to your Committee on Consumer Protection & Commerce.

Respectfully submitted on behalf of the members of the Committee on Energy & Environmental Protection,