(Reprinted with amendments adopted on April 24, 2023)
FIRST REPRINT S.B. 293
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SENATE BILL NO. 293–SENATORS DONATE AND DALY
MARCH 15, 2023
____________
Referred to Committee on Growth and Infrastructure
SUMMARY—Revises provisions relating to distributed generation
systems. (BDR 52-459)
FISCAL NOTE: Effect on Local Government: May have Fiscal Impact.
Effect on the State: Yes.
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EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.
AN ACT relating to energy; revising certain contractual
requirements for an agreement for the purchase or lease of
a distributed generation system and a power purchase
agreement; imposing various requirements on solar
installation companies; revising the definition of
“distributed generation system”; prohibiting a person
from engaging in certain activities relating to residential
photovoltaic systems unless the person is licensed by the
State Contractors’ Board or is an employee of such a
person; and providing other matters properly relating
thereto.
Legislative Counsel’s Digest:
Existing law imposes certain requirements on solar installation companies that 1
sell and install distributed generation systems in this State. Existing law prescribes 2
certain contractual requirements for an agreement for the purchase or lease of a 3
distributed generation system and a power purchase agreement. (NRS 598.9801-4
598.9822) Section 3 of this bill authorizes a purchaser or lessee who enters into or 5
signs an agreement for the purchase or lease of a distributed generation system or a 6
power purchase agreement to rescind the agreement by providing certain notice to 7
the solar installation company within 3 business days after the agreement was 8
entered into or signed. 9
Existing law requires an agreement for the purchase or lease of a distributed 10
generation system or a power purchase agreement to include a cover page 11
containing certain information. (NRS 598.9809, 598.9813, 598.9816) Sections 6-8 12
of this bill require such a cover page to include certain additional information. 13
Section 2 of this bill requires a solar installation company to: (1) verbally 14
communicate the information that is required to be included in the cover page to a 15
purchaser or lessee, as applicable, via a telephone call that is recorded; and (2) 16
maintain each recording of such a telephone call for not less than 10 years after the 17
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date on which the telephone call is made. Section 9 of this bill requires a solar 18
installation company, before the execution of an agreement for the purchase or 19
lease of a distributed generation system or a power purchase agreement, to provide 20
a copy of the cover page to the purchaser or lessee, as applicable, in the language 21
that the majority of the solicitation, offer or transaction for the agreement occurred, 22
if the majority of the language that was used was a language other than English. 23
Section 4 of this bill makes a conforming change to indicate the proper placement 24
of sections 2 and 3 in the Nevada Revised Statutes. 25
Existing law defines “distributed generation system” as a system or facility for 26
the generation of electricity: (1) that uses solar energy to generate electricity; (2) 27
that is located on the property of a customer of an electric utility; (3) that is 28
connected on the customer’s side of the electricity meter; (4) that provides 29
electricity primarily to offset customer load on that property; and (5) the excess 30
generation from which is periodically exported to the grid in accordance with the 31
provisions governing net metering systems. (NRS 598.9804) Section 5 of this bill 32
revises the definition of “distributed generation system” to mean a system or 33
facility for the generation of electricity that uses solar energy to generate electricity. 34
Section 9 of this bill provides that if a solar installation company executes an 35
agreement for the purchase or lease of a distributed generation system or a power 36
purchase agreement and fails to comply with requirements set forth under existing 37
law governing such agreements and sections 2-9 of this bill, the agreement is 38
voidable by the purchaser or lessee, as applicable. 39
Existing law prohibits a person from performing any work on residential 40
photovoltaic systems used to produce electricity without the proper license or other 41
authorization under state law. (NRS 624.860) Section 10 of this bill revises that 42
prohibition to: (1) prohibit a person from performing such work unless the person 43
holds a license issued by the State Contractors’ Board or is an employee of such a 44
person; and (2) additionally prohibit a person from advertising, soliciting or 45
offering to enter into an agreement for the purchase or lease of a distributed 46
generation system or a power purchase agreement unless the person holds such a 47
license or is an employee of such a person. Section 10 provides that a person who 48
does not hold such a license and is not an employee of a person who holds such a 49
license is authorized to generate leads or referrals for a residential photovoltaic 50
system used to produce electricity if the person does not provide a quote or offer for 51
the sale or installation of such a system. 52
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. Chapter 598 of NRS is hereby amended by adding 1
thereto the provisions set forth as sections 2 and 3 of this act. 2
Sec. 2. 1. A solar installation company shall, through 3
telephone, verbally communicate to a purchaser or lessee under 4
an agreement for the purchase or lease of a distributed generation 5
system or a host customer under a power purchase agreement the 6
information required to be included in a cover page pursuant to 7
NRS 598.9809, 598.9813 or 598.9816, as applicable. 8
2. The verbal communication required by subsection 1 must 9
be: 10
(a) Recorded by the solar installation company; and 11
(b) Provided: 12
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(1) At the time of the execution of the agreement or within 1
48 hours after the execution of the agreement; and 2
(2) Before the installation of any distributed generation 3
system under the agreement. 4
3. A solar installation company shall maintain the recording 5
of a verbal communication made pursuant to this section for not 6
less than 10 years after the recording is made. 7
Sec. 3. Any purchaser or lessee who enters into or signs an 8
agreement for the purchase or lease of a distributed generation 9
system or host customer who enters into a power purchase 10
agreement may rescind the agreement by giving notice in writing 11
to the solar installation company either by delivering, mailing or 12
telegraphing such notice or sending such notice by electronic mail 13
not later than midnight of the third business day after the date the 14
agreement was entered into or signed. The notice must be 15
addressed to the solar installation company at the solar 16
installation company’s place of business or sent to the electronic 17
mail address set forth on the cover page required by NRS 18
598.9809, 598.9813 or 598.9816, as applicable, and must contain 19
words indicating the intent of the purchaser, lessee or host 20
customer to rescind the transaction previously entered into. 21
Sec. 4. NRS 598.9801 is hereby amended to read as follows: 22
598.9801 As used in NRS 598.9801 to 598.9822, inclusive, 23
and sections 2 and 3 of this act, unless the context otherwise 24
requires, the words and terms defined in NRS 598.9802 to 25
598.9808, inclusive, have the meanings ascribed to them in those 26
sections. 27
Sec. 5. NRS 598.9804 is hereby amended to read as follows: 28
598.9804 “Distributed generation system” means a system or 29
facility for the generation of electricity [: 30
1. That] that uses solar energy to generate electricity . [; 31
2. That is located on the property of a customer of an electric 32
utility; 33
3. That is connected on the customer’s side of the electricity 34
meter; 35
4. That provides electricity primarily to offset customer load on 36
that property; and 37
5. The excess generation from which is periodically exported 38
to the grid in accordance with the provisions governing net metering 39
systems used by customer-generators pursuant to NRS 704.766 to 40
704.776, inclusive.] 41
Sec. 6. NRS 598.9809 is hereby amended to read as follows: 42
598.9809 An agreement for the lease of a distributed 43
generation system must include a cover page that [provides] : 44
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1. Prominently displays the following information at the top 1
of the cover page in at least 16-point font: 2
(a) Notice of the right to cancel the agreement with 3 business 3
days after the execution of the agreement, as provided in section 3 4
of this act. 5
(b) An electronic mail address to which a notice of 6
cancellation may be sent pursuant to section 3 of this act and 7
notice that the lessee may send such a notice to that electronic 8
mail address. 9
2. Provides the following information in at least 10-point font: 10
[1.] (a) The amounts due at the signing for and at the 11
completion of the installation or any inspection of the distributed 12
generation system. 13
[2.] (b) An estimated timeline for the installation of the 14
distributed generation system. 15
[3.] (c) The estimated amount of the monthly payments due 16
under the lease in the first year of operation of the distributed 17
generation system. 18
[4.] (d) The length of the term of the lease. 19
[5.] (e) A description of any warranties. 20
[6.] (f) The rate of any payment increases. 21
[7.] (g) The identification of any state or federal tax incentives 22
that are included in calculating the amount of the monthly payments 23
due under the lease. 24
[8.] (h) The estimated production of the distributed generation 25
system in the first year of operation. 26
[9.] (i) A description of the terms for renewal or any other 27
options available at the end of the term of the lease. 28
[10.] (j) A description of any option to purchase the distributed 29
generation system before the end of the term of the lease. 30
[11.] (k) Notice of the existence of the Recovery Fund 31
administered by the State Contractors’ Board pursuant to 32
NRS 624.470. 33
[12.] (l) Notice that a person financially damaged by a licensed 34
contractor who performs work on a residence may be eligible to 35
recover certain financial damages from the Recovery Fund. 36
[13.] (m) Notice that a host customer may file a complaint with 37
the Public Utilities Commission of Nevada. 38
[14.] (n) Contact information for the State Contractors’ Board 39
and the Public Utilities Commission of Nevada, including, without 40
limitation, a telephone number. 41
(o) Notice that the lessee, before the execution of the 42
agreement, may request any document used in the solicitation, 43
offer or transaction for the agreement in any language. 44
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Sec. 7. NRS 598.9813 is hereby amended to read as follows: 1
598.9813 An agreement for the purchase of a distributed 2
generation system must include a cover page that [provides] : 3
1. Prominently displays the following information at the top 4
of the cover page in at least 16-point font: 5
(a) Notice of the right to cancel the agreement with 3 business 6
days after the execution of the agreement, as provided in section 3 7
of this act. 8
(b) An electronic mail address to which a notice of 9
cancellation may be sent pursuant to section 3 of this act and 10
notice that the purchaser may send such a notice to that electronic 11
mail address. 12
2. Provide the following information in at least 10-point font: 13
[1.] (a) The size of the distributed generation system. 14
[2.] (b) The length of the term of the warranty for the 15
distributed generation system. 16
[3.] (c) An estimated timeline for the installation of the 17
distributed generation system. 18
[4.] (d) A description of any warranties. 19
[5.] (e) The total cost of the distributed generation system. 20
[6.] (f) The estimated value of any portfolio energy credits and 21
rebates of any incentives included in the calculation of the total cost 22
of the distributed generation system. 23
[7.] (g) The amounts due at the signing for and at the 24
completion of the installation of the distributed generation system. 25
[8.] (h) The estimated production of the distributed generation 26
system in the first year of operation. 27
[9.] (i) Notice of the existence of the Recovery Fund 28
administered by the State Contractors’ Board pursuant to 29
NRS 624.470. 30
[10.] (j) Notice that a person financially damaged by a licensed 31
contractor who performs work on a residence may be eligible to 32
recover certain financial damages from the Recovery Fund. 33
[11.] (k) Notice that a host customer may file a complaint with 34
the Public Utilities Commission of Nevada. 35
[12.] (l) Contact information for the State Contractors’ Board 36
and Public Utilities Commission of Nevada, including, without 37
limitation, a telephone number. 38
(m) Notice that the purchaser, before the execution of the 39
agreement, may request any document used in the solicitation, 40
offer or transaction for the agreement in any language. 41
Sec. 8. NRS 598.9816 is hereby amended to read as follows: 42
598.9816 A power purchase agreement for the sale of the 43
output of a distributed generation system must include a cover page 44
that [provides] : 45
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1. Prominently displays the following information at the top 1
of the cover page in at least 16-point font: 2
(a) Notice of the right to cancel the agreement with 3 business 3
days after the execution of the agreement, as provided in section 3 4
of this act. 5
(b) An electronic mail address to which a notice of 6
cancellation may be sent pursuant to section 3 of this act and 7
notice that the host customer may send such a notice to that 8
electronic mail address. 9
2. Provides the following information in at least 10-point font: 10
[1.] (a) The rate of any increase in the payments to be made 11
during the term of the agreement and, if applicable, the date of the 12
first such increase. 13
[2.] (b) An estimated timeline for the installation of the 14
distributed generation system. 15
[3.] (c) The rate of electricity per kilowatt-hour of electricity for 16
the first year of the agreement. 17
[4.] (d) The length of the term of the agreement. 18
[5.] (e) The amounts due at the signing for and at the 19
completion of the installation or any inspection of the distributed 20
generation system. 21
[6.] (f) The estimated production of the distributed generation 22
system in the first year of operation. 23
[7.] (g) A description of the options available at the end of the 24
term of the agreement. 25
[8.] (h) A description of any option to purchase the distributed 26
generation system before the end of the term of the agreement. 27
[9.] (i) Notice of the existence of the Recovery Fund 28
administered by the State Contractors’ Board pursuant to 29
NRS 624.470. 30
[10.] (j) Notice that a person financially damaged by a licensed 31
contractor who performs work on a residence may be eligible to 32
recover certain financial damages from the Recovery Fund. 33
[11.] (k) Notice that a host customer may file a complaint with 34
the Public Utilities Commission of Nevada. 35
[12.] (l) Contact information for the State Contractors’ Board 36
and the Public Utilities Commission of Nevada, including, without 37
limitation, a telephone number. 38
(m) Notice that the host customer, before execution of the 39
agreement, may request any document used in the solicitation, 40
offer or transaction for the power purchase agreement in any 41
language. 42
Sec. 9. NRS 598.9822 is hereby amended to read as follows: 43
598.9822 1. A host customer may file a complaint 44
concerning a solar installation company with the Public Utilities 45
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Commission of Nevada. Upon receipt of a complaint, the 1
Commission may direct the host customer to the appropriate agency 2
or person to resolve the complaint. 3
2. The failure of a person to comply with NRS 598.9801 to 4
598.9822, inclusive, and sections 2 and 3 of this act constitutes a 5
deceptive trade practice for the purposes of NRS 598.0903 to 6
598.0999, inclusive. 7
3. If a solar installation company executes with a purchaser 8
or lessee an agreement for the purchase or lease of a distributed 9
generation system or with a host customer a power purchase 10
agreement and fails to comply with any requirement of NRS 11
598.9801 to 598.9822, inclusive, and sections 2 and 3 of this act, 12
including, without limitation, by failing to include any disclosure 13
or information required by NRS 598.9801 to 598.9822, inclusive, 14
and sections 2 and 3 of this act, or failing to maintain a recording 15
of a verbal communication as required by section 2 of this act, the 16
agreement is voidable by the purchaser, lessee or host customer. 17
4. A violation of any provision of NRS 598.9801 to 598.9822, 18
inclusive, and sections 2 and 3 of this act constitutes consumer 19
fraud for the purposes of NRS 41.600. 20
[4.] 5. Any document described in NRS 598.9809 to 598.9821, 21
inclusive, and sections 2 and 3 of this act must be provided in: 22
(a) English; or 23
(b) [Spanish,] Any other language, if any person so requests. 24
6. A solar installation company, before the execution of an 25
agreement for the purchase or lease of a distributed generation 26
system or a power purchase agreement, shall provide the 27
purchaser, lessee or host customer, as applicable, a copy of the 28
cover page required by NRS 598.9809, 598.9813 or 598.9816, as 29
applicable, in the language that the majority of the solicitation, 30
offer or transaction for the agreement occurred, if the majority of 31
the language that was used was a language other than English. 32
Sec. 10. NRS 624.860 is hereby amended to read as follows: 33
624.860 1. A person shall not, directly or indirectly [,] on his 34
or her own behalf or on behalf of another, perform or offer to 35
perform any work concerning a residential photovoltaic system used 36
to produce electricity , or advertise, solicit or offer to enter into an 37
agreement described in NRS 598.9801 to 598.9822, inclusive, and 38
sections 2 and 3 of this act unless the person [holds: 39
1. A] : 40
(a) Holds a license issued pursuant to this chapter which 41
authorizes the person to perform [such] work [; or] concerning a 42
residential photovoltaic system used to produce electricity; or 43
(b) Is an employee of a person described in paragraph (a). 44
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2. [Any other license, certificate, registration or permit under 1
state law which authorizes the person to perform such work.] The 2
provisions of this section do not prohibit a person who does not 3
hold a license issued pursuant to this chapter and who is not an 4
employee of a person who holds a license issued pursuant to this 5
chapter from generating leads or referrals for a residential 6
photovoltaic system used to produce electricity if the person does 7
not provide a quote or offer for the sale or installation of such a 8
residential photovoltaic system. 9
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