HB1644 HD1

SECTION 1. The legislature finds that deceptive or misleading solar energy device sales practices undermine consumer confidence, impose hardship on homeowners, and impede the State's clean energy goals. This Act enhances enforcement of existing law without imposing new licensing requirements on legitimate sales activities.

Accordingly, the purpose of this Act is to:

(1) Require a person or entity marketing or contracting for a residential solar energy device to provide the consumer a one-page standardized disclosure form;

(2) Require any person or entity marketing, selling, or soliciting a residential solar energy device or financing product to comply with consumer protection laws; and

(3) Prohibit any person or entity from selling a residential solar energy device without holding a contractor's license or having a contractual affiliation with a licensed contractor.

SECTION 2. Section 481B-6, Hawaii Revised Statutes, is amended to read as follows:

"§481B-6 Sale of solar energy devices; disclosure requirements[.]; sales practices. (a) No person shall advertise, offer to sell, or sell a solar energy device unless the person clearly discloses separately the following information concerning the sale price of the solar energy device to the consumer:

(1) The cost of the solar energy device and accessories related to the operation of the solar energy device and for their installation; and

(2) The cost of items unrelated to the operation of the solar energy device, including but not limited to, "free gifts", offers to pay electric bills, rebates, and other incentives designed to promote the sale of the solar device.

(b) In addition to the requirements under subsection (a), a person or entity marketing or contracting for a residential solar energy device shall provide the consumer, before contract execution, a one-page standardized disclosure form in plain language, which shall appear as the first page of any proposal or contract and shall include:

(1) The total system price;

(2) The estimated annual energy production and methodology used to determine the estimate;

(3) The estimated annual utility bill savings and assumptions used;

(4) The following tax incentive eligibility statement: "Eligibility for state and federal tax incentives depends on individual circumstances and is not guaranteed by the solar company.";

(5) Payment terms;

(6) The escalation rate, if applicable;

(7) The ownership structure, whether purchase, lease, loan, or power purchase agreement;

(8) The name and license number of the installing contractor;

(9) Warranty terms; and

(10) Consumer cancellation rights.

The department of commerce and consumer affairs shall design, publish, and periodically update as needed, a template of the standardized disclosure form described in this subsection in consultation with representatives from the solar industry.

(c) Any person or entity that markets, sells, or solicits a residential solar energy device, or that markets, sells, or solicits financing products, whether loans, leases, or power purchase agreements, associated with a residential solar energy device in the State shall comply with the consumer protection requirements of this chapter and chapter 444, and any rules adopted thereunder, relating to truthful advertising, disclosures, contract terms, or cancellation rights.

(d) A person or entity that does not hold an active contractor's license under chapter 444 shall not:

(1) Represent that the person or entity is authorized to install or supervise the installation of a residential solar energy device;

(2) Enter into or offer to enter into a contract for the installation of a residential solar energy device; or

(3) Market, offer financing, or engage in customer acquisition or lead generation activities for a residential solar energy device, without being contractually affiliated with one or more contractors holding licenses allowing them to install a residential solar energy device. The contractors' names and license numbers shall be disclosed on all marketing materials, proposal documents, and contract documents.

(e) Violation of this section constitutes an unfair or deceptive act or practice under chapter 480.

(f) Nothing in this section shall be construed to prohibit solar energy device marketing, sales, or financing activities; provided that the person or entity complies with the requirements of this section.

(g) The department of commerce and consumer affairs may adopt rules pursuant to chapter 91 necessary for the purposes of this section.

[~~(b)~~] (h) As used in this section, "solar energy device" means any new identifiable facility, equipment, apparatus, or the like [~~which~~] that makes use of solar energy for energy storage or heating, cooling, or reducing the use of other types of energy dependent upon fossil fuel for its generation."

SECTION 3. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

SECTION 4. If any provision of this Act, or the application thereof to any person or circumstance, is held invalid, the invalidity does not affect other provisions or applications of the Act that can be given effect without the invalid provision or application, and to this end the provisions of this Act are severable.

SECTION 5. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 6. This Act shall take effect on July 1, 3000.

HOUSE OF REPRESENTATIVES	H.B. NO.	1644
THIRTY-THIRD LEGISLATURE, 2026		H.D. 1
STATE OF HAWAII