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HOUSE DOCKET, NO. 4015 FILED ON: 1/17/2025
HOUSE . . . . . . . . . . . . . . . No. 450
The Commonwealth of Massachusetts
_________________
PRESENTED BY:
Steven Owens and Mark D. Sylvia
_________________
To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General
Court assembled:
The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill:
An Act relative to protections for solar customers.
_______________
PETITION OF:
NAME:DISTRICT/ADDRESS :DATE ADDED:Steven Owens29th Middlesex1/17/2025 1 of 13
HOUSE DOCKET, NO. 4015 FILED ON: 1/17/2025
HOUSE . . . . . . . . . . . . . . . No. 450
By Representatives Owens of Watertown and Sylvia of Fairhaven, a petition (accompanied by
bill, House, No. 450) of Steven Owens relative to protections for solar customers. Consumer
Protection and Professional Licensure.
The Commonwealth of Massachusetts
_______________
In the One Hundred and Ninety-Fourth General Court
(2025-2026)
_______________
An Act relative to protections for solar customers.
Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority
of the same, as follows:
1 SECTION 1:
2 Section 2 of chapter 142A of the General Laws, as appearing in the 2022 Official Edition,
3is hereby amended by inserting the following definitions:-
4 “Residential Solar electric system”, a system or facility for the generation of electricity
5that (1) uses solar energy to generate electricity; (2) is located on the property of a customer of
6an electric utility; (3) is connected on the customer’s side of the electricity meter; (4) provides
7electricity primarily to offset customer load on that property; and (5) is primarily for personal,
8family, or household purposes.
9 “Agreement”, a contract for the purchase of a residential solar electric system; a lease for
10a third-party owned residential solar electric system; or a residential power purchase agreement.
11An agreement under this Act is between a solar company and a consumer. 2 of 13
12 “Power Purchase Agreement”, a financial agreement where a solar company arranges for
13the design, permitting, financing and installation of a solar electric system and sells the power
14generated to the consumer.
15 “Solar Company” or "Solar Installation Company”, any form of business organization or
16any other nongovernmental legal entity, including, without limitation, a corporation, partnership,
17association, trust or unincorporated organization that engages in transactions directly with
18residential consumers to sell and install Residential solar electric systems, or to install
19Residential solar electric systems owned by third parties from whom consumers will lease
20Residential solar electric systems or purchase electricity generated by such systems. An entity
21that is a third-party owner of systems or a financier of such systems who does not sell or install
22Residential solar electric systems are not considered solar companies under this Act. Individuals
23who self-install a system are not considered solar companies under this Act.
24 “Salesperson”, a salesperson means an employee or independent contractor hired by a
25licensed Solar Company and who solicits, sells, negotiates or executes agreements for Solar
26Electric Systems. Salesperson does not include 1) An officer of record of a corporation licensed
27pursuant to this chapter, or a manager, member, or officer of record of a limited liability
28company; 2) A general partner listed on the license record of a partnership; 3) A person who
29contacts the prospective buyer for the exclusive purpose of scheduling appointments for a
30Salesperson; 4) Every person listed in the records of the Office of Consumer Affairs and
31Business Regulation as then associated with a licensee; and 5) Persons or businesses who solely
32provide referrals to a licensed Solar Company or contact information for licensed Solar
33Companies. 3 of 13
34 “Consumer”, a natural person who seeks or acquires goods or services for personal,
35family, or household use.
36 “Loan”, a credit offered or extended to a consumer primarily for personal, family, or
37household purposes.
38 “Lease”, a contract, as understood under 12 CFR 1013.2, in the form of a bailment or
39lease for the use of personal property by a natural person primarily for personal, family, or
40household purposes, for a period exceeding four months and for a total contractual obligation not
41exceeding the applicable threshold amount, whether or not the lessee has the option to purchase
42or otherwise become the owner of the property at the expiration of the lease.
43 “Comparable equipment”, similar equipment to the proposed system design that
44maintains at least the same kilowatt-AC and kilowatt DC system size.
45 SECTION 2: Applicability of Chapter.
46 Chapter 142A of the General Laws is hereby amended by inserting after Section 21 the
47following section:
48 Section 22. Sections 23, 24, and 25 apply to each solar electric system agreement entered
49into on or after 180 days after the enactment of this act. Sections 23, 24, and 25 of this chapter do
50not apply to: the transfer of title or rental of real property on which a residential Solar Electric
51System is or is expected to be located; A lender, governmental entity, or other third party that
52enters into an agreement with a customer to finance a residential Solar Electric System but is not
53a party to a system purchase agreement, Power Purchase Agreement, or lease agreement; An 4 of 13
54Agreement for a Solar Electric Systems that is not for residential use; or An Agreement for a
55Solar Electric System that is installed as a feature on new construction.
56 SECTION 3: Disclosures Required for Solar Electric Systems.
57 Chapter 142A of the General Laws is hereby amended by inserting after Section 22 the
58following section:
59 Section 23. (a) Before entering into an agreement for a solar electric system with any
60consumer, the solar company shall provide the consumer with a separate written disclosure form
61of no more than four pages with font no smaller than 10-points. The Department of Energy
62Resources and the Office of Consumer Affairs and Business Regulation shall develop the
63consumer disclosure form required by this section through a process with input from Solar
64Companies and the public. The Department of Energy Resources and the Office of Consumer
65Affairs and Business Regulation may consider use of any existing disclosure forms for solar
66transactions published by the state and any national standards regarding solar disclosure forms in
67their development of the disclosure form required by this section. The disclosure form shall be
68required for use with all new agreements that are entered into 180 days after the final disclosure
69form is published by the Department of Energy Resources and the Office of Consumer Affairs
70and Business Regulation.
71 This section does not apply to the following: (1) The transfer of title or rental of real
72property on which a residential Solar Electric System is or is expected to be located; (2) A
73lender, governmental entity, or other third party that enters into an agreement with a customer to
74finance a residential Solar Electric System but is not a party to a system purchase agreement,
75Power Purchase Agreement, or lease agreement; (3) An Agreement for a Solar Electric Systems 5 of 13
76that is not for residential use; or (4) An Agreement for a Solar Electric System that is installed as
77a feature on new construction.
78 (b) A disclosure form shall contain: (1) The name, address, telephone number, email
79address, and state contractor license or registration number of the solar company; (2) The name,
80address, telephone number, email address, and state contractor license or registration number of
81the installer if different from the solar company; (3) The name, address, telephone number, email
82address, and state contractor license or registration number of the system maintenance provider if
83different from the solar company; (4) The payment schedule for upfront costs, including any
84payments due at signing, commencement of installation, and completion of installation, if
85applicable; (5) System design assumptions, including system size, estimated first year
86production, estimated annual system production degradation, presence of energy storage, energy
87storage capacity, and a description of the equipment needed to provide backup power. (6) A
88disclosure notifying the consumer whether and to what extent system maintenance and repairs
89are included in the agreement, and any system maintenance costs for which the consumer will be
90responsible; (7) If applicable, a statement in close proximity to the description of the project that
91must be separately acknowledged by the customer and reads: “I understand comparable
92equipment may be installed but the proposed kilowatts-AC system size and kilowatts-DC system
93size will not decrease”; (8) A disclosure describing warranties for the repair of any damage to the
94consumer’s residence in connection with the system installation or removal; (9) A description or
95location in the agreement of any performance or production guarantees, if applicable; (10) A
96brief description of the basis for any savings estimates that were provided to the purchaser, if
97applicable. The description shall include, at a minimum, the applicable utility rates, assumptions
98for increases to future electricity rates, and estimated system production and status of utility 6 of 13
99compensation for excess energy generated by system at the time of contract signing; (11) A
100disclosure concerning the retention of any renewable energy credits; and (12) A statement using
101the following language: “The assumptions used to estimate savings such as utility rates may
102change. There may be fees that cannot be offset with solar. Excess electricity sent back to the
103grid may be credited at rates below what you pay for electricity. For further information
104regarding rates, you may contact your local utility or the Department of Public Utilities. Tax and
105other state and federal incentives are subject to change or termination by executive, legislative or
106regulatory action, which may impact savings estimates. Please read your Contract carefully for
107more details.”
108 (c) In the case of a lease for a solar system, the disclosure form required in subsection (b)
109shall include: (1)The length of the lease; (2) Monthly payments for the first year of the lease;
110(3)Total estimated lease payments over the term of the lease; (4) Any payment increases and the
111timing of any such increase, if applicable; (5) The total number of lease payments; (6) Payment
112due dates and the manner in which the consumer will receive invoices; (7) Any one-time or
113recurring fees, including but not limited to the circumstances triggering any late fees, estimated
114system removal fees, UCC notice removal and refiling fees, internet connection fees and
115Automated Clearing House fees, if applicable; (8) A disclosure notifying the consumer whether
116the lessor will be filing a fixture filing on the system; and (9) A disclosure describing the
117transferability of the lease, and any conditions for lease transfers in connection with a consumer
118selling their home;
119 (d) In the case of a Power Purchase Agreement, the disclosure form required in
120subsection (b) shall include: (1) The length of the Power Purchase Agreement; (2) Rates for the
121first year of the Power Purchase Agreement; (3) Any rate or payment increases and the timing of 7 of 13
122any such increase, if applicable; (4) the total number of Power Purchase Agreement payments;
123(5) Payment due dates and the manner in which the consumer will receive invoices; (6) Any one-
124time or recurring fees, including but not limited to the circumstances triggering any late fees,
125estimated system removal fees, UCC notice removal and refiling fees, internet connection fees
126and Automated Clearing House fees, if applicable; (7) A disclosure notifying the purchaser if the
127owner of the system will be filing a fixture filing on the system; and (8) A disclosure describing
128the transferability of the system in connection with the consumer selling their home;
129 (e) In the case of a purchase of a solar electric system, the disclosure form required in
130subsection (b) shall include: (1) Purchase price for the system; (2) Estimated start and
131completion dates for installation; (3) A disclosure notifying the purchaser of the responsible
132party or parties for obtaining interconnection approval; and (4) A statement using the following
133language: “The federal tax credit for residential solar systems can only reduce your taxes and is
134not refundable. Any unused tax credit can be carried forward to the following tax year for as long
135as the federal tax credit under Sec. 25D is in effect. For more information, visit the Internal
136Revenue Service (IRS) website.” and (4) Subsection (e) shall be updated to reflect any material
137changes to federal tax policy related to refundability.
138 (f) The Department of Energy Resources and the Office of Consumer Affairs and
139Business Regulation shall develop a consumer educational brochure that must be provided no
140later than when the disclosure form required by this section is provided to the consumer. The
141brochure may include, but is not limited to, information regarding solar photovoltaic technology,
142solar compensation policies such as net metering, federal tax credits, questions to ask solar
143companies, consumer rights, and sources of additional information that are available to assist
144consumers. 8 of 13
145 SECTION 4: Contract Requirements for Residential Solar Electric Systems.
146 Chapter 142A of the General Laws is hereby amended by inserting after Section 23 the
147following section:
148 Section 24. (a) Agreements shall adhere to the requirements set forth in section 2 of
149chapter 142A of the General Laws and the additional contracting requirements in this section.
150 (b) This section does not apply to the following: (1) The transfer of title or rental of real
151property on which a residential Solar Electric System is or is expected to be located; (2) A
152lender, governmental entity, or other third party that enters into an agreement with a customer to
153finance a residential Solar Electric System but is not a party to a system purchase agreement,
154Power Purchase Agreement, or lease agreement; (3) An Agreement for a Solar Electric Systems
155that is not for residential use; or (4) An Agreement for a Solar Electric System that is installed as
156a feature on new construction.
157 (c) A solar company shall retain a copy of all signed agreements for a period of not less
158than the duration of the agreement not less than four years after the date of consummation.
159 (d) A solar company must provide a physical or electronic copy of the signed agreement
160to the consumer at the time the agreement is entered into, whichever format was used by the
161consumer to sign the agreement.
162 (e) An agreement for the purchase of a Residential solar electric system shall be in
163writing with font no smaller than 10-points. The agreement shall include the following terms: (1)
164The name, license or registration number, address, telephone number, and email address of the
165solar company; (2) the name, license or registration number, address, telephone number, and 9 of 13
166email address of the installer, if different from the solar company; (3) If applicable, the name,
167license or registration number, telephone number, and email address of the salesperson who
168solicited or negotiated the agreement; (4) The purchase price for the system; (5) The payment
169schedule for the system, if any; (6) A description of the project, including the system size
170(expressed in kilowatts-DC and kilowatts-AC), the solar modules to be installed, the inverters to
171be installed, the monitoring to be installed, and, if applicable, the energy storage system to be
172installed; (7)If applicable, a statement in close proximity to the description of the project that
173must be separately acknowledged by the customer and reads: “I understand comparable
174equipment may be installed but the proposed kilowatts-AC system size and kilowatts-DC system
175size will not decrease”: (8) Estimated start and completion dates for installation and a statement
176in close proximity which reads; “The actual start and completion date depends on many factors
177such as delays related to permitting and interconnection approvals which are controlled by your
178local jurisdiction and local utility respectively.” (9) An explanation of any warranties and
179guarantees, including the transferability of any obligations; Which parties are responsible for
180filing the interconnection application and permits;
181 (f) An agreement for the lease of a solar electric system shall be in writing with font no
182smaller than 10-points. The agreement shall include the following terms: (1) The name, license
183or registration number, address, telephone number, and email address of the lessor; (2) The
184name, license or registration number, address, telephone number, and email address of the
185installer, if different from the lessor; (3) If applicable, the name, telephone number, license or
186registration number, and email address of the salesperson who solicited or negotiated the
187agreement; (4) The total of payments under the lease; (5) The payment schedule for the leased
188system, including the number, amount, and due dates or periods of payments; (6) A description 10 of 13
189of the project, including the system size (expressed in kilowatts-DC), the solar modules to be
190installed, the inverters to be installed, and, if applicable, the energy storage system to be
191installed; (7) Estimated start and completion dates for installation and a statement in close
192proximity which reads: “The actual start and completion date depends on many factors such as
193delays related to permitting and interconnection approvals which are controlled by your local
194jurisdiction and local utility respectively.” (8) An explanation of any warranties and guarantees,
195including the transferability of any obligations; (9) A description of any maintenance and repair
196responsibilities for each party; (10) A description of whether the consumer has the right to
197purchase the leased system either during the lease term or at the term of the lease and the
198purchase price; (11) A description of the options to transfer the lease to third-parties and the
199conditions for the transfer; (12) Which parties are responsible for filing interconnection
200application and permits; and (13) A description of any security interest filed against the system,
201including Uniform Commercial Code-1 filings;
202 (g) A Power Purchase Agreement shall be in writing with font no smaller than 10-points.
203The agreement shall include the following terms: (1) the name, license or registration number,
204address, telephone number, and email address of the solar company; (2) The name, license or
205registration number, address, telephone number, and email address of the solar installation
206company, if different from the company who sells a Power Purchase Agreement; (3) If
207applicable, the name, telephone number, license or registration number, and email address of the
208salesperson who solicited or negotiated the agreement; (4) The payment schedule for the sale of
209output of the solar electric system, including the number, amount, and due dates or periods of
210payments; (5) A description of the project, including the system size (expressed in kilowatts-DC
211and kilowatts-AC), the solar modules to be installed, the inverters to be installed, the monitoring 11 of 13
212to be installed and, if applicable, the energy storage system to be installed; (6) Estimated start
213and completion dates for installation and a statement in close proximity which reads; “The actual
214start and completion date depends on many factors such as delays related to permitting and
215interconnection approvals which are controlled by your local jurisdiction and local utility
216respectively.”; (7) An explanation of any warranties and guarantees, including the transferability
217of any obligations; (8) A description of any maintenance and repair responsibilities for each
218party; (9) A description of whether the consumer has the right to purchase the system either
219during the term of the Power Purchase Agreement or at term of the Power Purchase Agreement
220and the purchase price; (10) A description of the options for the consumer to transfer the contract
221to third parties and the conditions for the transfer; (11) Which parties are responsible for filing
222interconnection application and permits; and (12) A description of any security interest filed
223against the system, including Uniform Commercial Code-1 filings.
224 (h) In connection with any sale of a Solar Electric System, the consumer shall have at
225least five business days after the date of the transaction and receipt of the signed agreement to
226cancel the agreement without any financial penalty. The seller shall verbally explain to the
227consumer their right to rescind the agreement without penalty upon the consumer signing the
228agreement.
229 Agreements must include a notice in immediate proximity to the signature line, in bold
230face font and in substantially the following form: “You, the buyer, may cancel this transaction at
231any time prior to midnight of the fifth day after the date of this transaction. See the attached
232notice of cancellation form for an explanation of this right.” 12 of 13
233 The agreement shall include copies of a cancellation form in substantially the form set
234forth in 16 CFR 429 et seq.
235 Duplicate requirements can be met by providing a signed copy of the notification form
236 Compliance with 16 CFR 429 et seq. shall constitute compliance with the notification
237requirements of this section.
238 SECTION 5: Salespersons for Residential Solar Electric Systems
239 Chapter 142A of the General Laws is hereby amended by inserting after Section 24 the
240following section:
241 Section 25. (a)An independent contractor may be retained as a Salesperson by one, or
242more than one, licensed solar company.
243 (b) A Salesperson may be employed by one, or more than one, licensed solar company.
244 (c) Prior to engaging in any sales or marketing of a Solar Electric System, a Salesperson
245shall state the name of the solar company that they are selling on behalf of and the purpose of the
246engagement. Salespersons must wear an identification badge with their name, photo, company
247name, company license number, and salesperson registration number.
248 (d) In the absence of a state or local government ordinance, Salespersons shall not visit
249any residence to conduct sales except between the hours of 9:00 a.m. and 8:00 p.m.
250 (e) Notwithstanding Subsection (25(c)), nothing shall prevent a consumer from
251scheduling an in person meeting time with a Salesperson between the hours of 8:00 p.m. and
2529:00 a.m. 13 of 13
253 (f) Salespersons are prohibited from wearing apparel, carrying equipment, or distributing
254materials that include the logo or emblem of an electric distribution company, or using any
255language suggesting a relationship with an electric distribution company or government agency
256where no actual relationship exists.
257 (g) All salespersons selling residential solar electric systems shall register with the Office
258of Consumer Affairs and Business Regulation.