24 LC 55 0286S
The Senate Committee on Regulated Industries and Utilities offered the following
substitute to HB 73:
A BILL TO BE ENTITLED
AN ACT
To amend Chapter 3 of Title 46 of the Official Code of Georgia Annotated, relating to1
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 the Public5
Service Commission to develop a form for the written disclosure statement and a solar6
awareness presentation to be provided on its website; to provide for the imposition and7
collection of civil penalties; to provide for exceptions; to provide for related matters; to8
provide for an effective date and applicability; to repeal conflicting laws; and for other9
purposes.10
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:11
SECTION 1.12
Chapter 3 of Title 46 of the Official Code of Georgia Annotated, relating to electrical service,13
is amended by adding a new article to read as follows:14
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"ARTICLE 515
46-3-600.16
As used in this article, the term:17
(1) 'Agreement' means a contract executed between a seller and:18
(A) A buyer for the purchase of a distributed energy generation system; or19
(B) A lessee for the financing of a distributed energy generation system either through20
a lease or a solar energy procurement agreement.21
(2) 'Buyer' means a person that enters into an agreement to purchase a distributed energy22
generation system from a seller.23
(3) 'Distributed energy generation system' means a device or system that:24
(A) Is used to generate or store electricity;25
(B) Has an electric delivery capacity, individually or in connection with other similar26
devices or systems, of greater than one kilowatt or one kilowatt hour; and27
(C) Is used primarily for on-site consumption for residential purposes.28
Such term shall not include an electric generator intended for occasional use.29
(4) 'Electric supplier' shall have the same meaning as provided in Code Section 46-3-3.30
(5) 'Lessee' means a person that finances a distributed energy generation system either31
through a lease or a solar energy procurement agreement.32
(6) 'Person' means an individual or entity.33
(7) 'Seller' means a person engaged in, or whose business consists of, selling distributed34
energy generation systems or financing distributed energy generation systems through35
leases or solar energy procurement agreements.36
(8) 'Solar energy procurement agreement' shall have the same meaning as provided in37
Code Section 46-3-62.38
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46-3-601.39
(a) A seller shall provide to every buyer and lessee as part of any agreement a written40
disclosure statement. Such written disclosure statement shall be printed in at least 12 point41
type, be acknowledged by the buyer or lessee, and include the following information,42
disclosures, and guarantees, if applicable:43
(1) The name, address, telephone number, and email address of the buyer or lessee;44
(2) The name, address, telephone number, email address, and valid state contractor45
license number of the person responsible for installing the distributed energy generation46
system;47
(3) The name, address, telephone number, email address, and valid state contractor48
license number of the distributed energy generation system maintenance provider, if49
different from the person responsible for installing the distributed energy generation50
system;51
(4)(A) A disclosure notifying the buyer or lessee whether the distributed energy52
generation system is being purchased or being financed through a lease or a solar53
energy procurement agreement.54
(B) If the distributed energy generation system is being purchased, the written55
disclosure statement shall include a disclosure in substantially the following form: 'You56
are entering into an agreement to purchase a distributed energy generation system. You57
will own (not lease) the system installed on your property.'58
(C) If the distributed energy generation system is being financed through a lease, the59
written disclosure statement shall include a disclosure in substantially the following60
form: 'You are entering into an agreement to lease a distributed energy generation61
system. You will lease (not own) the system installed on your property.'62
(D) If the distributed energy generation system is being financed through a solar63
energy procurement agreement, the written disclosure statement shall include a64
disclosure in substantially the following form: 'You are entering into an agreement to65
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purchase power from a distributed energy generation system. You will not own the66
system installed on your property.';67
(5) The total cost to be paid by the buyer or lessee, including, but not limited to, any68
interest, installation fees, document preparation fees, service fees, or other fees or69
charges. Such total cost if the distributed energy generation system is financed through70
a solar energy procurement agreement shall include the initial payment rate and, if71
applicable, the rate of any payment increases and the date of the first increase;72
(6) A payment schedule, including any amounts owed at the agreement signing, at the73
commencement of installation, and at the completion of installation and any final74
payments. If the distributed energy generation system is being financed through a lease,75
the written disclosure statement shall include the frequency and amount of each payment76
due under the lease and the total estimated lease payments over the term of the lease;77
(7) A description of the assumptions used to calculate any savings estimates provided to78
the buyer or lessee and a statement in substantially the following form: 'It is important to79
understand that any representations as to savings based on future electric utility rates are80
estimates only. Your future electric utility rates may vary.';81
(8) A description of any one-time or recurring fees, including, but not limited to,82
estimated system removal fees, maintenance fees, internet connection fees, automated83
clearinghouse fees, and circumstances triggering late fees that may apply;84
(9) A disclosure notifying the buyer or lessee as to whether the distributed energy85
generation system is being financed and whether the seller is assisting in arranging such86
financing. If the distributed energy generation system is being financed, the written87
disclosure statement shall include a statement in substantially the following form: 'Your88
system is financed. Carefully read any agreements, contracts, and disclosure forms89
provided by your lender. This written disclosure statement does not contain the terms of90
your financing agreement. If you have any questions about your financing agreement,91
contact your finance provider before signing any agreement or contract.';92
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(10) A declaration providing notification of the number of days after the agreement is93
signed during which the buyer or lessee shall have the right to rescind such agreement. 94
If the buyer or lessee does not have right to rescind the agreement, notification that such95
right does not exist and an explanation as to why it does not;96
(11) A description of the distributed energy generation system's:97
(A) Design assumptions, including the make and model of the major components,98
system size, estimated first-year energy production, and estimated annual energy99
production decreases, including the overall percentage degradation over the estimated100
life of the distributed energy generation system; and101
(B) Excess energy utility compensation status at the time the agreement is signed;102
provided, however, that a seller that provides a warranty or guarantee of the energy103
production output of the distributed energy generation system may provide a description104
and copy of such warranty or guarantee in lieu of the description required under this105
paragraph;106
(12) A description of any performance or production guarantees;107
(13) A declaration notifying the buyer or lessee of each federal and state tax credit,108
rebate, or incentive, if any, relied upon by the seller in determining the price of the109
distributed energy generation system and any applicable federal or state tax credit, rebate,110
or incentive for which the buyer or lessee may qualify that is known to the seller at the111
time the agreement is signed. Such declaration shall also disclose to the lessee whether112
financing a distributed energy generation system through a lease may affect qualification113
for any such tax credit, rebate, or incentive. Such declaration shall recommend that the114
buyer or lessee seek professional tax advice to determine how any tax credits, rebates,115
incentives, or renewable energy certificates may apply to such buyer or lessee;116
(14) A description of the ownership and transferability of any tax credits, rebates,117
incentives, or renewable energy certificates associated with the distributed energy118
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generation system, including a disclosure as to whether the seller is able to and intends119
to assign or sell any associated renewable energy certificates to a third party;120
(15) If the distributed energy generation system is being purchased, a disclosure121
notifying the buyer as to the potential for tax liability or tax credit eligibility by including122
a statement in substantially the following form: 'You are responsible for property taxes123
on property you own. Consult a tax professional to understand any tax liability or any124
tax credit eligibility that may result from the purchase or financing of a distributed energy125
generation system.';126
(16) The estimated start and completion date for the installation of the distributed energy127
generation system;128
(17) A declaration as to whether any maintenance and repairs of the distributed energy129
generation system are included in the purchase price or financing costs;130
(18) A disclosure as to whether any warranty or maintenance obligations related to the131
distributed energy generation system may be assigned, sold, or transferred by the seller132
to a third party and, if so, a statement in substantially the following form: 'Your contract133
may be assigned, sold, or transferred without your consent to a third party who will be134
bound to all of the terms of the contract. If an assignment, sale, or transfer occurs, you135
will be notified if this will change the address or phone number to use for system136
maintenance or repair requests.';137
(19) If the distributed energy generation system is being purchased, a disclosure138
notifying the buyer of the requirements for interconnecting the system to the utility139
system;140
(20) A disclosure notifying the buyer or lessee of the party responsible for obtaining141
interconnection approval;142
(21) A disclosure notifying the buyer or lessee whether any additional equipment may143
be necessary in order to maintain continuous power access;144
(22) A description and copy of any roof warranties;145
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(23) A disclosure notifying the lessee whether the seller will insure a leased distributed146
energy generation system against damage or loss and, if applicable, a disclosure notifying147
the buyer or lessee the circumstances under which the seller will not insure the system148
against damage or loss, in substantially the following form: 'You are responsible for149
obtaining insurance policies or coverage for any loss of or damage to the system. Consult150
an insurance professional to understand how to protect against the risk of loss or damage151
to the system.';152
(24) A disclosure notifying the buyer or lessee whether the seller will place a lien on the153
buyer's or lessee's home or other property as a result of entering into an agreement for the154
purchase or financing of the distributed energy generation system;155
(25) A disclosure notifying the buyer or lessee whether the seller will file a fixture filing156
or a financing statement pursuant to Article 9 of Title 11 on the distributed energy157
generation system;158
(26) A disclosure identifying whether the agreement contains any restrictions on the159
buyer's or lessee's ability to modify or transfer ownership of a distributed energy160
generation system, including whether any such modification or transfer is subject to161
review or approval by a third party;162
(27) If the distributed energy generation system is being financed through a lease or solar163
energy procurement agreement, a disclosure as to whether the lease or the solar energy164
procurement agreement may be transferred to a purchaser upon sale of the home or real165
property to which the system is affixed, and any conditions for such transfer;166
(28) The address of and specific link to the commission's internet website where the solar167
awareness presentation required under Code Section 46-3-602 is available. The seller168
may also include the internet website address of or specific link to another consumer169
information video that it has produced or that is publicly available; and170
(29) A blank section that allows the seller to provide additional relevant disclosures or171
explain disclosures made elsewhere in the written disclosure statement.172
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(b) The requirement to provide a written disclosure statement under subsection (a) of this173
Code section may be satisfied by the electronic delivery of such written disclosure174
statement if the intended recipient of the electronically delivered written disclosure175
statement affirmatively acknowledges its receipt. An electronic document satisfies the font176
and other formatting standards required for the written disclosure statement if the format177
and the relative size of characters of the electronic document are reasonably similar to178
those required in subsection (a) of this Code section or if the contents of such electronic179
document are otherwise displayed in a reasonably conspicuous manner.180
46-3-602.181
Prior to January 1, 2025, the commission shall:182
(1) Publish on its internet website separate standard written disclosure statement forms183
that may be used to comply with the requirements of Code Section 46-3-601. Written184
disclosure statements provided in substantially the same configuration as the forms185
published by the commission or containing the information and disclosures required by186
Code Section 46-3-601 shall satisfy the disclosure requirements of this article; and187
(2)(A) Develop and make available to the public on its website a solar awareness188
presentation.189
(B) Such solar awareness presentation shall be prerecorded and shall include consumer190
information related to:191
(i) Written disclosure statements and other requirements of this article;192
(ii) The ongoing costs and maintenance associated with distributed energy generation193
systems; and194
(iii) The current laws in this state relating to metering and connecting distributed195
energy generation systems to an electric supplier's distribution system.196
(C) The commission shall consult with and solicit proposals from the solar industry197
when developing the solar awareness presentation.198
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(D) The commission may contract with or hire any experts, consultants, or other199
individuals as may be necessary to develop and publish the solar awareness200
presentation.201
46-3-603.202
(a) A seller that willfully:203
(1) Fails to provide a written disclosure statement as required under Code204
Section 46-3-601; or205
(2) Fails to provide a written disclosure statement that meets all of the applicable206
requirements of Code Section 46-3-601207
shall be liable for a civil penalty for each violation, provided that the maximum civil208
penalty for violations associated with one distributed energy generation system shall not209
exceed the amount provided for in the agreement as the purchase price if the distributed210
energy generation system is purchased or, if the agreement is for the financing of the211
distributed energy generation system, the maximum civil penalty shall not exceed the212
amount the financed distributed energy generation system would have cost the lessee to213
purchase at the time the agreement is signed.214
(b) A civil penalty under subsection (a) of this Code section may only be imposed by the215
commission and only after notice and hearing. In determining the amount of the penalty,216
the commission shall consider the gravity and number of violations. The amount of such217
penalty may be collected by the commission in the manner provided in Code218
Section 9-11-69 for the enforcement of money judgments.219
(c) The civil penalty provided for in this Code section shall be in addition to any criminal220
or civil penalties otherwise provided by law.221
46-3-604.222
The provisions of this article shall not apply to:223
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(1) A person acting through officers, employees, brokers, or agents that markets, sells,224
solicits, negotiates, or enters into an agreement for the purchase or financing of a225
distributed energy generation system as part of a transaction involving the sale or transfer226
of the real property on which the system is or will be affixed;227
(2) A transaction involving the sale or transfer of the real property on which a distributed228
energy generation system is affixed;229
(3) The sale or lease of a distributed energy generation system that will be installed on230
nonresidential real property; or231
(4) A person, other than the seller, that installs a distributed energy generation system232
on residential property."233
SECTION 2.234
This Act shall become effective on July 1, 2024, and shall apply to contracts executed on or235
after January 1, 2025, for the purchase of a distributed energy generation system or for the236
financing of a distributed energy generation system either through a lease or a solar energy237
procurement agreement.238
SECTION 3.239
All laws and parts of laws in conflict with this Act are repealed. 240
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