HB1644 HD2

SECTION 1. The legislature finds that deceptive or misleading solar energy device business 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 purchase, lease, and power purchase agreements to include a cover page with required disclosures about the right to rescind and cancel and agreement terms;

(2) Require any person or entity that markets, sells, leases, or solicits a residential solar energy device or that markets, sells, or solicits power purchase agreements to comply with consumer protection laws;

(3) Prohibit any person or entity from installing, marketing, offering financing, or engaging in customer acquisition for residential solar energy devices without holding a contractor's license or having a contractual affiliation with a licensed contractor;

(4) Allow a purchaser, lessee, or host customer to rescind or cancel the agreement without penalty or obligation within a certain period; and

(5) Specify that an agreement executed in violation are voidable by the purchaser, lessee, or host customer.

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

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

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

(2) The cost of items unrelated to the operation of the residential 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 residential solar energy device.

(b) An agreement for the purchase or lease of a residential solar energy device, or a power purchase agreement for the sale of the output of a residential solar energy device, shall include a cover page that:

(1) Prominently displays the following information at the top of the cover page in at least sixteen-point type:

(A) Notice of the right to rescind or cancel the agreement, without any penalty or obligation, within three business days after the execution of the agreement;

(B) An electronic mail address to which a notice of recission or cancellation may be sent and notice that the purchaser, lessee, or host customer may send a rescission or cancellation notice to that electronic mail address; and

(C) Notice that, before the installation of the residential solar energy device, the purchaser, lessee, or host customer will have the opportunity to confirm that no representations, offers, or promises were made at any time concerning the purchase or lease of the residential solar energy device or the power purchase agreement for the sale of the output of a residential solar energy device, other than what is contained in the agreement; and

(2) Provides the following information in at least ten-point type:

(A) The total system price, including the total cash price and the total price with financing costs, where the cash price and the financed price differ;

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

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

(E) Payment terms;

(F) The escalation rate, if applicable;

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

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

(I) Warranty terms; and

(J) Consumer cancellation rights.

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

(c) Any person or entity that markets, sells, leases, or solicits a residential solar energy device, or that markets, sells, or solicits 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. This subsection shall not apply to financial institutions.

(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 contractor holding a license allowing the contractor to install a residential solar energy device. The contractor's name and license number shall be disclosed on all marketing materials, proposal documents, and contract documents.

(e) Any purchaser or lessee who enters into or signs an agreement for the purchase or lease of a residential solar energy device or host customer who enters into a power purchase agreement may rescind or cancel the agreement, without any penalty or obligation, by giving notice in writing to the installer either by delivering or mailing notice in writing or sending notice by electronic mail no later than 11:59 p.m. on the third business day after the date the agreement was entered into or signed. The notice shall be addressed to the installer at the installer's place of business, or another place designated in the agreement, or sent to the electronic mail address set forth on the cover page required by this section, as applicable, and shall contain words indicating the intent of the purchaser, lessee, or host customer to rescind or cancel the transaction previously entered into.

(f) If any person executes with a purchaser or lessee an agreement for the purchase or lease of a solar energy device or with a host customer a power purchase agreement and fails to comply with any requirement of this section, the agreement shall be voidable by the purchaser, lessee, or host customer.

(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~~]:

"Financial institution" has the same meaning as defined in section 412:1-109.

"Host customer" means:

(1) The customer of record of an electric utility at the location where a residential solar energy device will be located; or

(2) A person who has been designated by the customer of record of an electric utility in a letter to the utility explaining the relationship between that person and the customer of record.

"Power purchase agreement" means an agreement in which a person or entity:

(1) Arranges for the design, installation, maintenance, and energy output of a residential solar energy device; and

(2) Sells the electricity generated from a residential solar energy device to the host customer.

"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. 2
STATE OF HAWAII