SB 1124
FISCAL NOTE
Fiscal Review Committee
Tennessee General Assembly
March 19, 2025
Fiscal Analyst: Arielle Woodmore | Email: arielle.woodmore@capitol.tn.gov | Phone: 615-741-2564
SB 1124
SUMMARY OF BILL: Requires a company offering to sell or install a solar energy system
to provide written proof that the utility serving the area has a net metering program or otherwise
offers net metering credits to an owner or user of a system before the company enters into an
agreement to sell or install the system. Establishes a violation of such as an unfair or deceptive act or
practice under the Consumer Protection Act of 1977.
FISCAL IMPACT:
NOT SIGNIFICANT
Assumptions:
• Net metering programs, as that phrase is generally understood in the solar energy industry,
are not currently available in Tennessee. However, other renewable energy programs that
may serve similar purposes, or operate on similar premises exist in the state.
• Any increase in the number of complaints handled by the Attorney General is estimated to
be not significant and can be handled by existing staff during normal work hours.
• Committing an unfair or deceptive practice under the Consumer Protection Act of 1977 is a
Class B misdemeanor offense.
• There will not be a sufficient number of violations for state or local government to
experience any significant increase in expenditures related to prosecutions or incarceration.
• Any additional workload on the courts can be accommodated within existing resources.
IMPACT TO COMMERCE:
OTHER COMMERCE IMPACT
The legislation could result in a significant decrease in revenue to certain solar energy system
providers. The precise decrease in business revenue cannot be quantified with reasonable certainty.
Assumptions:
• Since net metering, as generally understood, is not available in Tennessee, the language in
the proposed legislation may present significant challenges for certain providers of solar
energy systems to continue to do business in this state, by predicating their ability to
SB 1124 2
lawfully conduct significant business transactions on those companies making assurances
about net metering they cannot accurately or truthfully provide.
• Whether or not this is truly disruptive to such businesses, and the extent to which it may be,
could depend upon how the relevant language is interpreted by the courts.
• It is unknown how many businesses could be impacted, or the extent to which they will be.
• Due to multiple unknown variables, the decrease in business revenue cannot be quantified
with reasonable certainty.
CERTIFICATION:
The information contained herein is true and correct to the best of my knowledge.
Bojan Savic, Executive Director