23 LC 36 5380
H. B. 73
- 1 -
House Bill 73
By: Representatives Gullett of the 19
th
, Parsons of the 44
th
, Thomas of the 65
th
, Anderson of
the 10
th
, Meeks of the 178
th
, and others
A BILL TO BE ENTITLED
AN ACT
To amend Chapter 3 of Title 46 of the Official Code of Georgia Annotated, relating to
1
electrical service, so as to require that the seller provide a written disclosure statement with2
any agreement for the sale of distributed energy generation systems or for the financing of3
such systems through leases or solar energy procurement agreements; to provide for the4
delivery of such written disclosure statement; to provide for definitions; to require a5
certificate of authority as a prerequisite for sellers that are not electric suppliers that want to6
sell or lease to a retail customer a distributed energy generation system or enter into a solar7
energy procurement agreement with a retail customer; to provide the Public Service8
Commission with the authority to issue multiple certificates of authority; to provide for the9
promulgation of rules and regulations and other requirements regarding applications for a10
certificate of authority; to provide for public hearings and decisions on applications; to11
provide for revocations, suspension, and other action on certificates of authority; to require12
that persons installing such systems be licensed; to require the Public Service Commission13
to develop a form for the written disclosure statement and a solar awareness presentation to14
be provided on its website; to provide for the imposition and collection of civil penalties; to15
provide for exceptions; to provide for related matters; to provide for an effective date and16
applicability; to repeal conflicting laws; and for other purposes.17 23 LC 36 5380
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BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
18
SECTION 1.19
Chapter 3 of Title 46 of the Official Code of Georgia Annotated, relating to electrical service,20
is amended by adding a new article to read as follows:21
"ARTICLE 5
22
46-3-600.23
As used in this article, the term:24
(1) 'Agreement' means a contract executed between a seller and:25
(A) A buyer for the purchase of a distributed energy generation system; or26
(B) A lessee for the financing of a distributed energy generation system either through27
a lease or a solar energy procurement agreement.28
(2) 'Buyer' means a person that enters into an agreement to purchase a distributed energy29
generation system from a seller.30
(3) 'Distributed energy generation system' means a device or system that:31
(A) Is used to generate or store electricity;32
(B) Has an electric delivery capacity, individually or in connection with other similar33
devices or systems, of greater than one kilowatt or one kilowatt hour; and34
(C) Is used primarily for on-site consumption.35
Such term shall not include an electric generator intended for occasional use.36
(4) 'Electric supplier' shall have the same meaning as provided in Code Section 46-3-3.37
(5) 'Lessee' means a person that finances a distributed energy generation system either38
through a lease or a solar energy procurement agreement.39
(6) 'Person' means an individual or entity.40 23 LC 36 5380
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(7) 'Seller' means a person regularly engaged in, or whose business consists of, selling41
distributed energy generation systems or financing distributed energy generation systems42
through leases or solar energy procurement agreements.43
(8) 'Solar energy procurement agreement' shall have the same meaning as provided in44
Code Section 46-3-62.45
46-3-601.46
(a) Every seller that is not an electric supplier shall, before selling, financing, or offering47
to sell or finance to any retail customer within this state any distributed energy generation48
system, and before proposing to enter with any retail customer within this state a solar49
energy procurement agreement, first obtain a certificate of authority from the commission.50
(b) The commission shall have the authority to issue multiple certificates of authority. A51
showing of public convenience and necessity is not a condition for the issuance of a52
certificate of authority.53
(c) A seller that seeks a certificate of authority shall make an application to the54
commission which contains the information required by this Code section.55
(d) No later than December 31, 2023, the commission shall by rules and regulations56
describe the information to be included in an application for certification under this Code57
section and the criteria the commission will use in determining an applicant's financial and58
technical capability. Such criteria shall seek to ensure that all sellers:59
(1) Require appropriate background checks of all employees or contractors who will60
work on a buyer's or prospective buyer's premises;61
(2) Provide contact information that is reasonably accessible by the public;62
(3) Possess adequate capital and are financially viable; and63
(4) Meet any other requirements as the commission may deem appropriate, without,64
however, imposing unnecessary barriers to a seller entering the market.65 23 LC 36 5380
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(e) The commission shall conduct a public hearing on each application within 60 days of66
completion of the filing of such application and issue an order approving or disapproving67
of the application within 30 days of the hearing.68
(f) Any certificate of authority issued by the commission is subject to revocation,69
suspension, or adjustment where the commission finds upon complaint and hearing that a70
seller has failed repeatedly or has failed willfully to meet obligations to its retail customers71
which are imposed by this article, by any rules or regulations issued pursuant to this article,72
or by the seller's certificate of authority; has engaged in unfair competition; or has abused73
its market position.74
(g) The commission may deny an application upon a showing that the applicant or anyone75
acting in concert with the applicant has a history of violations of laws, rules, or regulations76
designed to protect the public. The commission may revoke any certificate of authority77
issued pursuant to this Code section where it finds that the seller or anyone acting in78
concert with the seller has such a history, that any information on the application was79
falsified or forged, that the seller has acted unlawfully to the detriment of the public while80
certificated, or for any other good and valid reason where activities of the seller are serving81
or could serve to mislead, deceive, or work a fraud upon members of the public. The82
commission shall be authorized to adopt rules and regulations to implement this subsection.83
In any case where it is asserted in good faith that the seller is, has been, or may be about84
to become involved in activities described in this subsection, any deadline imposed under85
this Code section regarding the granting of certification shall be null and void until such86
time as such assertions can be addressed.87
(h) Each seller shall be required to continue to possess the financial and technical88
capability to render service pursuant to the seller's warranties and other commitments made89
to buyers or lessees. This is a continuing obligation and may be reviewed by the90
commission at any time.91 23 LC 36 5380
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(i) Any person engaged in the installation of a distributed energy generation system shall92
be licensed pursuant to Chapter 14 of Title 43 as a general contractor or as a residential93
contractor or employ an individual who is licensed as an electrical contractor pursuant to94
Chapter 14 of Title 43.95
(j) The installation of a distributed energy generation system shall comply with the96
provisions of the article and all applicable federal and state laws, rules, and regulations.97
46-3-602.98
(a) The seller shall provide to every buyer and lessee as part of any agreement a written99
disclosure statement. Such written disclosure statement shall be printed in at least 12 point100
type, be acknowledged by the buyer or lessee, and include the following information,101
disclosures, and guarantees, if applicable:102
(1) The name, address, telephone number, and email address of the buyer or lessee;103
(2) The name, address, telephone number, email address, and valid state contractor104
license number of the person responsible for installing the distributed energy generation105
system;106
(3) The name, address, telephone number, email address, and valid state contractor107
license number of the distributed energy generation system maintenance provider, if108
different from the person responsible for installing the distributed energy generation109
system;110
(4)(A) A disclosure notifying the buyer or lessee whether the distributed energy111
generation system is being purchased or being financed through a lease or a solar112
energy procurement agreement.113
(B) If the distributed energy generation system is being purchased, the written114
disclosure statement shall include a disclosure in substantially the following form: 'You115
are entering into an agreement to purchase a distributed energy generation system. You116
will own (not lease) the system installed on your property.'117 23 LC 36 5380
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(C) If the distributed energy generation system is being financed through a lease, the118
written disclosure statement shall include a disclosure in substantially the following119
form: 'You are entering into an agreement to lease a distributed energy generation120
system. You will lease (not own) the system installed on your property.'121
(D) If the distributed energy generation system is being financed through a solar122
energy procurement agreement, the written disclosure statement shall include a123
disclosure in substantially the following form: 'You are entering into an agreement to124
purchase power from a distributed energy generation system. You will not own the125
system installed on your property.';126
(5) The total cost to be paid by the buyer or lessee, including, but not limited to, any127
interest, installation fees, document preparation fees, service fees, or other fees. Such128
total cost if the distributed energy generation system is financed through a solar energy129
procurement agreement shall include the initial payment rate and, if applicable, the rate130
of any payment increases and the date of the first increase;131
(6) A payment schedule, including any amounts owed at the agreement signing, at the132
commencement of installation, and at the completion of installation and any final133
payments. If the distributed energy generation system is being financed through a lease,134
the written disclosure statement shall include the frequency and amount of each payment135
due under the lease and the total estimated lease payments over the term of the lease;136
(7) A description of the assumptions used to calculate any savings estimates provided to137
the buyer or lessee and a statement in substantially the following form: 'It is important to138
understand that any representations as to savings based on future electric utility rates are139
estimates only. Your future electric utility rates may vary.';140
(8) A description of any one-time or recurring fees, including, but not limited to,141
estimated system removal fees, maintenance fees, internet connection fees, automated142
clearinghouse fees, and circumstances triggering late fees that may apply;143 23 LC 36 5380
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(9) A disclosure notifying the buyer or lessee as to whether the distributed energy144
generation system is being financed and whether the seller is assisting in arranging such145
financing. If the distributed energy generation system is being financed, the written146
disclosure statement shall include a statement in substantially the following form: 'Your147
system is financed. Carefully read any agreements, contracts, and disclosure forms148
provided by your lender. This written disclosure statement does not contain the terms of149
your financing agreement. If you have any questions about your financing agreement,150
contact your finance provider before signing any agreement or contract.';151
(10) A declaration providing notification of the number of days after the agreement is152
signed during which the buyer or lessee shall have the right to rescind such agreement.153
If the buyer or lessee does not have right to rescind the agreement, notification that such154
right does not exist and an explanation as to why it does not;155
(11) A description of the distributed energy generation system's:156
(A) Design assumptions, including the make and model of the major components,157
system size, estimated first-year energy production, and estimated annual energy158
production decreases, including the overall percentage degradation over the estimated159
life of the distributed energy generation system; and160
(B) Excess energy utility compensation status at the time the agreement is signed;161
provided, however, that a seller that provides a warranty or guarantee of the energy162
production output of the distributed energy generation system may provide a description163
and copy of such warranty or guarantee in lieu of the description required under this164
paragraph;165
(12) A description of any performance or production guarantees;166
(13) A declaration notifying the buyer or lessee of each federal and state tax credit,167
rebate, or incentive, if any, relied upon by the seller in determining the price of the168
distributed energy generation system and any applicable federal or state tax credit, rebate,169
or incentive for which the buyer or lessee may qualify that is known to the seller at the170 23 LC 36 5380
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time the agreement is signed. Such declaration shall also disclose to the lessee whether171
financing a distributed energy generation system through a lease may affect qualification172
for any such tax credit, rebate, or incentive;173
(14) A description of the ownership and transferability of any tax credits, rebates,174
incentives, or renewable energy certificates associated with the distributed energy175
generation system, including a disclosure as to whether the seller is able to and intends176
to assign or sell any associated renewable energy certificates to a third party;177
(15) If the distributed energy generation system is being purchased, a disclosure178
notifying the buyer as to the potential for tax liability or tax credit eligibility by including179
a statement in substantially the following form: 'You are responsible for property taxes180
on property you own. Consult a tax professional to understand any tax liability or any181
tax credit eligibility that may result from the purchase or financing of a distributed energy182
generation system.';183
(16) The estimated start and completion date for the installation of the distributed energy184
generation system;185
(17) A declaration as to whether any maintenance and repairs of the distributed energy186
generation system are included in the purchase price or financing costs;187
(18) A disclosure as to whether any warranty or maintenance obligations related to the188
distributed energy generation system may be assigned, sold, or transferred by the seller189
to a third party and, if so, a statement in substantially the following form: 'Your contract190
may be assigned, sold, or transferred without your consent to a third party who will be191
bound to all of the terms of the contract. If an assignment, sale, or transfer occurs, you192
will be notified if this will change the address or phone number to use for system193
maintenance or repair requests.';194
(19) If the distributed energy generation system is being purchased, a disclosure195
notifying the buyer of the requirements for interconnecting the system to the utility196
system;197 23 LC 36 5380
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(20) A disclosure notifying the buyer or lessee of the party responsible for obtaining198
interconnection approval;199
(21) A disclosure notifying the buyer or lessee whether any additional equipment may200
be necessary in order to maintain continuous power access;201
(22) A description and copy of any roof warranties;202
(23) A disclosure notifying the lessee whether the seller will insure a leased distributed203
energy generation system against damage or loss and, if applicable, a disclosure notifying204
the buyer or lessee the circumstances under which the seller will not insure the system205
against damage or loss, in substantially the following form: 'You are responsible for206
obtaining insurance policies or coverage for any loss of or damage to the system. Consult207
an insurance professional to understand how to protect against the risk of loss or damage208
to the system.';209
(24) A disclosure notifying the buyer or lessee whether the seller will place a lien on the210
buyer's or lessee's home or other property as a result of entering into an agreement for the211
distributed energy generation system;212
(25) A disclosure notifying the buyer or lessee whether the seller will file a fixture filing213
or a financing statement pursuant to Article 9 of Title 11 on the distributed energy214
generation system;215
(26) A disclosure identifying whether the agreement contains any restrictions on the216
buyer's or lessee's ability to modify or transfer ownership of a distributed energy217
generation system, including whether any such modification or transfer is subject to218
review or approval by a third party;219
(27) If the distributed energy generation system is being financed through a lease or solar220
energy procurement agreement, a disclosure as to whether the lease or the solar energy221
procurement agreement may be transferred to a purchaser upon sale of the home or real222
property to which the system is affixed, and any conditions for such transfer;223 23 LC 36 5380
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(28) The address of and specific link to the commission's internet website where the solar224
awareness presentation required under Code Section 46-3-603 is available. The seller225
may also include the internet website address of or specific link to another consumer226
information video that it has produced or that is publicly available; and227
(29) A blank section that allows the seller to provide additional relevant disclosures or228
explain disclosures made elsewhere in the written disclosure statement.229
(b) The requirement to provide a written disclosure statement under subsection (a) of this230
Code section may be satisfied by the electronic delivery of such written disclosure231
statement if the intended recipient of the electronically delivered written disclosure232
statement affirmatively acknowledges its receipt. An electronic document satisfies the font233
and other formatting standards required for the written disclosure statement if the format234
and the relative size of characters of the electronic document are reasonably similar to235
those required in subsection (a) of this Code section or if the contents of such electronic236
document are otherwise displayed in a reasonably conspicuous manner.237
46-3-603.238
Prior to January 1, 2024, the commission shall:239
(1) Publish on its internet website separate standard written disclosure statement forms240
of no more than five pages in length that may be used to comply with the requirements241
of Code Section 46-3-602. Written disclosure statements provided in substantially the242
same configuration as the forms published by the commission or containing the243
information and disclosures required by Code Section 46-3-602 shall satisfy the244
disclosure requirements of this article; and245
(2)(A) Develop and make available to the public on its website a solar awareness246
presentation.247
(B) Such solar awareness presentation shall be prerecorded and shall include consumer248
information related to:249 23 LC 36 5380
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(i) Written disclosure statements and other requirements of this article;250
(ii) The ongoing costs and maintenance associated with distributed energy generation251
systems; and252
(iii) The current laws in this state relating to metering and connecting distributed253
energy generation systems to an electric supplier's distribution system.254
(C) The commission shall consult with and solicit proposals from the solar industry255
and sellers, buyers, and lessees of distributed energy generation systems when256
developing the solar awareness presentation.257
(D) The commission may contract with or hire any experts, consultants, or other258
individuals as may be necessary to develop and publish the solar awareness259
presentation.260
46-3-604.261
(a) A person that willfully and intentionally violates Code Section 46-3-601 or a seller that262
willfully and intentionally:263
(1) Fails to provide a written disclosure statement as required under Code Section264
46-3-602; or265
(2) Fails to provide a written disclosure statement that meets all of the applicable266
requirements of Code Section 46-3-602267
shall be liable for a civil penalty for each violation, provided that the maximum civil268
penalty for violations associated with one distributed energy generation system shall not269
exceed the amount provided for in the agreement as the purchase price if the distributed270
energy generation system is purchased or, if the agreement is for the financing of the271
distributed energy generation system, the maximum civil penalty shall not exceed the272
amount the financed distributed energy generation system would have cost the lessee to273
purchase at the time the agreement is signed.274 23 LC 36 5380
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(b) A civil penalty under subsection (a) of this Code section may be imposed by the275
commission only after notice and hearing. In determining the amount of the penalty, the276
commission shall consider the gravity and number of violations. The amount of such277
penalty may be collected by the commission in the manner provided in Code Section278
9-11-69 for the enforcement of money judgments.279
(c) The civil penalty provided for in this Code section shall be in addition to any criminal280
or civil penalties otherwise provided by law.281
46-3-605.282
The provisions of this article shall not apply to:283
(1) A person acting through officers, employees, brokers, or agents that markets, sells,284
solicits, negotiates, or enters into an agreement for the purchase or financing of a285
distributed energy generation system as part of a transaction involving the sale or transfer286
of the real property on which the system is or will be affixed;287
(2) A transaction involving the sale or transfer of the real property on which a distributed288
energy generation system is affixed;289
(3) The sale or lease of a distributed energy generation system that will be installed on290
nonresidential real property; or291
(4) A person, other than the seller, that installs a distributed energy generation system292
on residential property."293
SECTION 2.294
This Act shall become effective on July 1, 2023, and shall apply to contracts executed on or295
after January 1, 2024, for the purchase of a distributed energy generation system or for the296
financing of a distributed energy generation system either through a lease or a solar energy297
procurement agreement.298 23 LC 36 5380
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SECTION 3.
299
All laws and parts of laws in conflict with this Act are repealed.300