23 LC 36 5433S
H. B. 73 (SUB)
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House Bill 73 (COMMITTEE SUBSTITUTE)
By: Representatives Gullett of the 19
th
, Parsons of the 44
th
, Thomas of the 65
th
, Anderson of
the 10
th
, and Meeks of the 178
th
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 provide12
for appeals; to require that persons installing such systems be licensed; to require the Public13
Service Commission to develop a form for the written disclosure statement and a solar14
awareness presentation to be provided on its website; to provide for the imposition and15
collection of civil penalties; to provide for exceptions; to provide for related matters; to16
provide for an effective date and applicability; to repeal conflicting laws; and for other17
purposes.18 23 LC 36 5433S
H. B. 73 (SUB)
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BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
19
SECTION 1.20
Chapter 3 of Title 46 of the Official Code of Georgia Annotated, relating to electrical service,21
is amended by adding a new article to read as follows:22
"ARTICLE 5
23
46-3-600.24
As used in this article, the term:25
(1) 'Agreement' means a contract executed between a seller and:26
(A) A buyer for the purchase of a distributed energy generation system; or27
(B) A lessee for the financing of a distributed energy generation system either through28
a lease or a solar energy procurement agreement.29
(2) 'Buyer' means a person that enters into an agreement to purchase a distributed energy30
generation system from a seller.31
(3) 'Distributed energy generation system' means a device or system that:32
(A) Is used to generate or store electricity;33
(B) Has an electric delivery capacity, individually or in connection with other similar34
devices or systems, of greater than one kilowatt or one kilowatt hour; and35
(C) Is used primarily for on-site consumption.36
Such term shall not include an electric generator intended for occasional use.37
(4) 'Electric supplier' shall have the same meaning as provided in Code Section 46-3-3.38
(5) 'Lessee' means a person that finances a distributed energy generation system either39
through a lease or a solar energy procurement agreement.40
(6) 'Person' means an individual or entity.41 23 LC 36 5433S
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(7) 'Seller' means a person engaged in, or whose business consists of, selling distributed42
energy generation systems or financing distributed energy generation systems through43
leases or solar energy procurement agreements.44
(8) 'Solar energy procurement agreement' shall have the same meaning as provided in45
Code Section 46-3-62.46
46-3-601.47
(a) Every seller that is not an electric supplier shall, before selling, financing, or offering48
to sell or finance to any retail customer within this state any distributed energy generation49
system, and before proposing to enter with any retail customer within this state a solar50
energy procurement agreement, first obtain a certificate of authority from the commission.51
(b) The commission shall have the authority to issue multiple certificates of authority. A52
showing of public convenience and necessity is not a condition for the issuance of a53
certificate of authority.54
(c) A seller that seeks a certificate of authority shall make an application to the55
commission which contains the information required by this Code section.56
(d) No later than December 31, 2023, the commission shall by rules and regulations57
describe the information to be included in an application for certification under this Code58
section and the criteria the commission will use in determining an applicant's financial and59
technical capability. Such criteria shall seek to ensure that all sellers:60
(1) Require appropriate background checks of all employees or contractors who will61
work on a buyer's or prospective buyer's premises;62
(2) Provide contact information that is reasonably accessible by the public;63
(3) Possess adequate capital and are financially viable; and64
(4) Meet any other requirements as the commission may deem appropriate, without,65
however, imposing unnecessary barriers to a seller entering the market.66 23 LC 36 5433S
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(e)(1) Upon the filing of a completed application, the commission shall have 60 days to67
issue an order approving or disapproving of such application, except as provided in68
paragraph (2) of this subsection.69
(2) Any complaint concerning an application or any request by the applicant for a public70
hearing on the application shall be filed within 30 days of the filing of the completed71
application. If such a complaint or request for hearing is filed, the commission shall,72
within 60 days of the filing of the complaint or request for hearing, hold a public hearing73
on such application. Within 30 days of such hearing, the commission shall issue an order74
approving or disapproving of the application.75
(f) Any certificate of authority issued by the commission is subject to revocation,76
suspension, or adjustment where the commission finds upon complaint and hearing that:77
(1) A seller has failed repeatedly or has failed willfully to meet obligations to its retail78
customers which are imposed by this article, by any rules or regulations issued pursuant79
to this article, or by the seller's certificate of authority; or80
(2) The activities of the seller are serving or could serve to mislead, deceive, or work a81
fraud upon members of the public.82
(g)(1) The commission may deny an application upon a showing that the applicant or83
anyone acting in concert with the applicant has a history of violations of laws, rules, or84
regulations designed to protect the public. The applicant shall have 30 days from the85
denial of an application for certification to file an appeal with the commission. A public86
hearing shall be held within 60 days of the filing of such an appeal, and the commission87
shall issue its decision as to such appeal within 30 days of the date of the hearing.88
(2) The commission may revoke any certificate of authority issued pursuant to this Code89
section where it finds that the seller or anyone acting in concert with the seller has such90
a history, that any information on the application was falsified or forged, that the seller91
has acted unlawfully to the detriment of the public while certificated, or for any other92 23 LC 36 5433S
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good and valid reason where activities of the seller are serving or could serve to mislead,93
deceive, or work a fraud upon members of the public.94
(3) The commission shall be authorized to adopt rules and regulations to implement this95
subsection.96
(h) Each seller shall be required to continue to possess the financial and technical97
capability to render service pursuant to the seller's warranties and other commitments made98
to buyers or lessees. This is a continuing obligation and may be reviewed by the99
commission at any time.100
(i) Any person engaged in the installation of a distributed energy generation system shall101
be licensed pursuant to Chapter 41 of Title 43 as a general contractor or as a residential102
contractor or employ an individual who is licensed as an electrical contractor pursuant to103
Chapter 41 of Title 43.104
(j) The installation of a distributed energy generation system shall comply with the105
provisions of the article and all applicable federal and state laws, rules, and regulations.106
46-3-602.107
(a) The seller shall provide to every buyer and lessee as part of any agreement a written108
disclosure statement. Such written disclosure statement shall be printed in at least 12 point109
type, be acknowledged by the buyer or lessee, and include the following information,110
disclosures, and guarantees, if applicable:111
(1) The name, address, telephone number, and email address of the buyer or lessee;112
(2) The name, address, telephone number, email address, and valid state contractor113
license number of the person responsible for installing the distributed energy generation114
system;115
(3) The name, address, telephone number, email address, and valid state contractor116
license number of the distributed energy generation system maintenance provider, if117 23 LC 36 5433S
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different from the person responsible for installing the distributed energy generation118
system;119
(4)(A) A disclosure notifying the buyer or lessee whether the distributed energy120
generation system is being purchased or being financed through a lease or a solar121
energy procurement agreement.122
(B) If the distributed energy generation system is being purchased, the written123
disclosure statement shall include a disclosure in substantially the following form: 'You124
are entering into an agreement to purchase a distributed energy generation system. You125
will own (not lease) the system installed on your property.'126
(C) If the distributed energy generation system is being financed through a lease, the127
written disclosure statement shall include a disclosure in substantially the following128
form: 'You are entering into an agreement to lease a distributed energy generation129
system. You will lease (not own) the system installed on your property.'130
(D) If the distributed energy generation system is being financed through a solar131
energy procurement agreement, the written disclosure statement shall include a132
disclosure in substantially the following form: 'You are entering into an agreement to133
purchase power from a distributed energy generation system. You will not own the134
system installed on your property.';135
(5) The total cost to be paid by the buyer or lessee, including, but not limited to, any136
interest, installation fees, document preparation fees, service fees, or other fees. Such137
total cost if the distributed energy generation system is financed through a solar energy138
procurement agreement shall include the initial payment rate and, if applicable, the rate139
of any payment increases and the date of the first increase;140
(6) A payment schedule, including any amounts owed at the agreement signing, at the141
commencement of installation, and at the completion of installation and any final142
payments. If the distributed energy generation system is being financed through a lease,143 23 LC 36 5433S
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the written disclosure statement shall include the frequency and amount of each payment144
due under the lease and the total estimated lease payments over the term of the lease;145
(7) A description of the assumptions used to calculate any savings estimates provided to146
the buyer or lessee and a statement in substantially the following form: 'It is important to147
understand that any representations as to savings based on future electric utility rates are148
estimates only. Your future electric utility rates may vary.';149
(8) A description of any one-time or recurring fees, including, but not limited to,150
estimated system removal fees, maintenance fees, internet connection fees, automated151
clearinghouse fees, and circumstances triggering late fees that may apply;152
(9) A disclosure notifying the buyer or lessee as to whether the distributed energy153
generation system is being financed and whether the seller is assisting in arranging such154
financing. If the distributed energy generation system is being financed, the written155
disclosure statement shall include a statement in substantially the following form: 'Your156
system is financed. Carefully read any agreements, contracts, and disclosure forms157
provided by your lender. This written disclosure statement does not contain the terms of158
your financing agreement. If you have any questions about your financing agreement,159
contact your finance provider before signing any agreement or contract.';160
(10) A declaration providing notification of the number of days after the agreement is161
signed during which the buyer or lessee shall have the right to rescind such agreement.162
If the buyer or lessee does not have right to rescind the agreement, notification that such163
right does not exist and an explanation as to why it does not;164
(11) A description of the distributed energy generation system's:165
(A) Design assumptions, including the make and model of the major components,166
system size, estimated first-year energy production, and estimated annual energy167
production decreases, including the overall percentage degradation over the estimated168
life of the distributed energy generation system; and169
(B) Excess energy utility compensation status at the time the agreement is signed;170 23 LC 36 5433S
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provided, however, that a seller that provides a warranty or guarantee of the energy171
production output of the distributed energy generation system may provide a description172
and copy of such warranty or guarantee in lieu of the description required under this173
paragraph;174
(12) A description of any performance or production guarantees;175
(13) A declaration notifying the buyer or lessee of each federal and state tax credit,176
rebate, or incentive, if any, relied upon by the seller in determining the price of the177
distributed energy generation system and any applicable federal or state tax credit, rebate,178
or incentive for which the buyer or lessee may qualify that is known to the seller at the179
time the agreement is signed. Such declaration shall also disclose to the lessee whether180
financing a distributed energy generation system through a lease may affect qualification181
for any such tax credit, rebate, or incentive. Such declaration shall recommend that the182
buyer or lessee seek professional tax advice to determine how any tax credits, rebates,183
incentives, or renewable energy certificates may apply to such buyer or lessee;184
(14) A description of the ownership and transferability of any tax credits, rebates,185
incentives, or renewable energy certificates associated with the distributed energy186
generation system, including a disclosure as to whether the seller is able to and intends187
to assign or sell any associated renewable energy certificates to a third party;188
(15) If the distributed energy generation system is being purchased, a disclosure189
notifying the buyer as to the potential for tax liability or tax credit eligibility by including190
a statement in substantially the following form: 'You are responsible for property taxes191
on property you own. Consult a tax professional to understand any tax liability or any192
tax credit eligibility that may result from the purchase or financing of a distributed energy193
generation system.';194
(16) The estimated start and completion date for the installation of the distributed energy195
generation system;196 23 LC 36 5433S
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(17) A declaration as to whether any maintenance and repairs of the distributed energy197
generation system are included in the purchase price or financing costs;198
(18) A disclosure as to whether any warranty or maintenance obligations related to the199
distributed energy generation system may be assigned, sold, or transferred by the seller200
to a third party and, if so, a statement in substantially the following form: 'Your contract201
may be assigned, sold, or transferred without your consent to a third party who will be202
bound to all of the terms of the contract. If an assignment, sale, or transfer occurs, you203
will be notified if this will change the address or phone number to use for system204
maintenance or repair requests.';205
(19) If the distributed energy generation system is being purchased, a disclosure206
notifying the buyer of the requirements for interconnecting the system to the utility207
system;208
(20) A disclosure notifying the buyer or lessee of the party responsible for obtaining209
interconnection approval;210
(21) A disclosure notifying the buyer or lessee whether any additional equipment may211
be necessary in order to maintain continuous power access;212
(22) A description and copy of any roof warranties;213
(23) A disclosure notifying the lessee whether the seller will insure a leased distributed214
energy generation system against damage or loss and, if applicable, a disclosure notifying215
the buyer or lessee the circumstances under which the seller will not insure the system216
against damage or loss, in substantially the following form: 'You are responsible for217
obtaining insurance policies or coverage for any loss of or damage to the system. Consult218
an insurance professional to understand how to protect against the risk of loss or damage219
to the system.';220
(24) A disclosure notifying the buyer or lessee whether the seller will place a lien on the221
buyer's or lessee's home or other property as a result of entering into an agreement for the222
purchase or financing of the distributed energy generation system;223 23 LC 36 5433S
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(25) A disclosure notifying the buyer or lessee whether the seller will file a fixture filing224
or a financing statement pursuant to Article 9 of Title 11 on the distributed energy225
generation system;226
(26) A disclosure identifying whether the agreement contains any restrictions on the227
buyer's or lessee's ability to modify or transfer ownership of a distributed energy228
generation system, including whether any such modification or transfer is subject to229
review or approval by a third party;230
(27) If the distributed energy generation system is being financed through a lease or solar231
energy procurement agreement, a disclosure as to whether the lease or the solar energy232
procurement agreement may be transferred to a purchaser upon sale of the home or real233
property to which the system is affixed, and any conditions for such transfer;234
(28) The address of and specific link to the commission's internet website where the solar235
awareness presentation required under Code Section 46-3-603 is available. The seller236
may also include the internet website address of or specific link to another consumer237
information video that it has produced or that is publicly available; and238
(29) A blank section that allows the seller to provide additional relevant disclosures or239
explain disclosures made elsewhere in the written disclosure statement.240
(b) The requirement to provide a written disclosure statement under subsection (a) of this241
Code section may be satisfied by the electronic delivery of such written disclosure242
statement if the intended recipient of the electronically delivered written disclosure243
statement affirmatively acknowledges its receipt. An electronic document satisfies the font244
and other formatting standards required for the written disclosure statement if the format245
and the relative size of characters of the electronic document are reasonably similar to246
those required in subsection (a) of this Code section or if the contents of such electronic247
document are otherwise displayed in a reasonably conspicuous manner.248 23 LC 36 5433S
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46-3-603.249
Prior to January 1, 2024, the commission shall:250
(1) Publish on its internet website separate standard written disclosure statement forms251
that may be used to comply with the requirements of Code Section 46-3-602. Written252
disclosure statements provided in substantially the same configuration as the forms253
published by the commission or containing the information and disclosures required by254
Code Section 46-3-602 shall satisfy the disclosure requirements of this article; and255
(2)(A) Develop and make available to the public on its website a solar awareness256
presentation.257
(B) Such solar awareness presentation shall be prerecorded and shall include consumer258
information related to:259
(i) Written disclosure statements and other requirements of this article;260
(ii) The ongoing costs and maintenance associated with distributed energy generation261
systems; and262
(iii) The current laws in this state relating to metering and connecting distributed263
energy generation systems to an electric supplier's distribution system.264
(C) The commission shall consult with and solicit proposals from the solar industry265
when developing the solar awareness presentation.266
(D) The commission may contract with or hire any experts, consultants, or other267
individuals as may be necessary to develop and publish the solar awareness268
presentation.269
46-3-604.270
(a) A person that willfully violates Code Section 46-3-601 or any rules and regulations271
promulgated thereunder or a seller that willfully:272
(1) Fails to provide a written disclosure statement as required under Code Section273
46-3-602; or274 23 LC 36 5433S
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(2) Fails to provide a written disclosure statement that meets all of the applicable275
requirements of Code Section 46-3-602276
shall be liable for a civil penalty for each violation, provided that the maximum civil277
penalty for violations associated with one distributed energy generation system shall not278
exceed the amount provided for in the agreement as the purchase price if the distributed279
energy generation system is purchased or, if the agreement is for the financing of the280
distributed energy generation system, the maximum civil penalty shall not exceed the281
amount the financed distributed energy generation system would have cost the lessee to282
purchase at the time the agreement is signed.283
(b) A civil penalty under subsection (a) of this Code section may be imposed by the284
commission only after notice and hearing. In determining the amount of the penalty, the285
commission shall consider the gravity and number of violations. The amount of such286
penalty may be collected by the commission in the manner provided in Code Section287
9-11-69 for the enforcement of money judgments.288
(c) The civil penalty provided for in this Code section shall be in addition to any criminal289
or civil penalties otherwise provided by law.290
46-3-605.291
The provisions of this article shall not apply to:292
(1) A person acting through officers, employees, brokers, or agents that markets, sells,293
solicits, negotiates, or enters into an agreement for the purchase or financing of a294
distributed energy generation system as part of a transaction involving the sale or transfer295
of the real property on which the system is or will be affixed;296
(2) A transaction involving the sale or transfer of the real property on which a distributed297
energy generation system is affixed;298
(3) The sale or lease of a distributed energy generation system that will be installed on299
nonresidential real property; or300 23 LC 36 5433S
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(4) A person, other than the seller, that installs a distributed energy generation system301
on residential property."302
SECTION 2.303
This Act shall become effective on July 1, 2023, and shall apply to contracts executed on or304
after January 1, 2024, for the purchase of a distributed energy generation system or for the305
financing of a distributed energy generation system either through a lease or a solar energy306
procurement agreement.307
SECTION 3.308
All laws and parts of laws in conflict with this Act are repealed.309