Establishes "Solar Roof Installation Warranty Program" in EDA and transfers $2 million from societal benefits charge to initially fund program.
The proposed program aims to create a warranty fund which will indemnify building owners for damages not covered by existing warranties or insurance policies. This fund will pay claims up to $50,000 for each roof installation, contingent on the submission of a valid application that demonstrates the lack of comprehensive warranty coverage. Moreover, the bill mandates an application fee of $1,000, which contributes to the warranty fund, thereby ensuring that the program is financially sustainable.
Senate Bill S2427 establishes a 'Solar Roof Installation Warranty Program' under the New Jersey Economic Development Authority (EDA). The intent of the bill is to provide a safety net for building owners - including commercial, industrial, and institutional entities - who install solar photovoltaic equipment but face difficulties obtaining adequate warranty coverage for damage caused to roofs due to such installations. The bill allocates initial funding of $2 million from a societal benefits charge to support this program.
One notable aspect of the bill is the requirement for building owners to inform the installer of any roof damage and allow time for repairs before filing a claim against the warranty fund. This stipulation raises questions about the clarity of responsibilities for both installers and building owners, particularly in instances where timely repairs may not be made. Additionally, the EDA is tasked with investigating each claim to ensure that payments are warranted, leading to further scrutiny of claim validity and possible hearings for contested awards, adding an administrative layer to the implementation.
The EDA will manage the warranty fund, which will be regularly funded by subsequent annual transfers from the Board of Public Utilities, increasing annually until a total of $5 million is achieved. Provisions in the bill also highlight the measures for maintaining the fund's sufficiency, including potential surcharges for building owners with excessive claims, which underlines the bill’s aim to balance risk and sustainability of the warranty fund.