Rep. Norm Thurston — Voting Record

Bill

Number

H.B. 57 (2025GS)

Sponsor

Rep. Jack, Colin W.

Final action

Governor Signed 3/25/2025

Outcome

Became law — signed by Gov. Spencer J. Cox

Summary

What it does

• This bill:
• defines terms;
• creates additional disclosure language;
• mandates that a solar retailer's good faith estimate of energy production be within a specified percentage of the actual energy production;
• requires the solar retailer repair the solar panels if the actual energy production is not within a specified percentage of the good faith estimate of energy production;
• creates a registration and security requirement for a solar retailer to do business in Utah;
• provides an exception to the background check for a publicly traded corporation registered with the Securities and Exchange Commission;
• requires a solar retailer sales representative be employed by the solar retailer as a W-2 employee;
• delays a customer's financial obligation on a residential solar energy system until the system is active and producing usable energy; and
• makes technical changes.

Every vote on this bill

Bill text

17
13-2-1
13-52-102
13-52-202
13-52-206
13-52-302
13-52-401
13-52-501
0
Residential Solar Panel Consumer Protection Amendments
2025 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Colin W. Jack
Senate Sponsor: Scott D. Sandall
LONG TITLE
General Description:
This bill establishes additional protections for residential solar panel customers. 
Highlighted Provisions:
This bill:
defines terms; 
creates additional disclosure language; 
mandates that a solar retailer's good faith estimate of energy production be within a 
specified percentage of the actual energy production;
requires the solar retailer repair the solar panels if the actual energy production is not 
within a specified percentage of the good faith estimate of energy production;
creates a registration and security requirement for a solar retailer to do business in Utah; 
provides an exception to the background check for a publicly traded corporation 
registered with the Securities and Exchange Commission;
requires a solar retailer sales representative be employed by the solar retailer as a W-2 
employee;
delays a customer's financial obligation on a residential solar energy system until the 
system is active and producing usable energy; and
makes technical changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
None
Utah Code Sections Affected:
AMENDS:
13-2-1
, as last amended by Laws of Utah 2024, Chapter 132
13-52-102
, as enacted by Laws of Utah 2018, Chapter 290
13-52-202
, as last amended by Laws of Utah 2024, Chapter 136
13-52-206
, as enacted by Laws of Utah 2018, Chapter 290
ENACTS:
13-52-302
, Utah Code Annotated 1953
13-52-401
, Utah Code Annotated 1953
13-52-501
, Utah Code Annotated 1953
Be it enacted by the Legislature of the state of Utah:
Section 1, Section 
13-2-1
 is amended to read:
13-2-1
. Consumer protection division established -- Functions.
(1)
There is established within the Department of Commerce the Division of Consumer 
Protection.
(2)
The division shall administer and enforce the following:
(a)
Chapter 10a, Music Licensing Practices Act;
(b)
Chapter 11, Utah Consumer Sales Practices Act;
(c)
Chapter 15, Business Opportunity Disclosure Act;
(d)
Chapter 20, New Motor Vehicle Warranties Act;
(e)
Chapter 21, Credit Services Organizations Act;
(f)
Chapter 22, Charitable Solicitations Act;
(g)
Chapter 23, Health Spa Services Protection Act;
(h)
Chapter 25a, Telephone and Facsimile Solicitation Act;
(i)
Chapter 26, Telephone Fraud Prevention Act;
(j)
Chapter 28, Prize Notices Regulation Act;
(k)
Chapter 32a, Pawnshop, Secondhand Merchandise, and Catalytic Converter 
Transaction Information Act;
(l)
Chapter 34, Utah Postsecondary School and State Authorization Act;
(m)
Chapter 41, Price Controls During Emergencies Act;
(n)
Chapter 42, Uniform Debt-Management Services Act;
(o)
Chapter 49, Immigration Consultants Registration Act;
(p)
Chapter 51, Transportation Network Company Registration Act;
(q)
Chapter 52, Residential Solar Energy 
Disclosure
Consumer Protection
 Act;
(r)
Chapter 53, Residential, Vocational and Life Skills Program Act;
(s)
Chapter 54, Ticket Website Sales Act;
(t)
Chapter 56, Ticket Transferability Act;
(u)
Chapter 57, Maintenance Funding Practices Act;
(v)
Chapter 61, Utah Consumer Privacy Act;
(w)
Chapter 63, Utah Social Media Regulation Act;
(x)
Chapter 64, Vehicle Value Protection Agreement Act;
(y)
Chapter 65, Utah Commercial Email Act;
(z)
Chapter 67, Online Dating Safety Act; 
(aa)
Chapter 68, Lawyer Referral Consultants Registration Act;
(bb)
Chapter 70, Automatic Renewal Contracts Act; and
(cc)
Chapter 71, Utah Minor Protection in Social Media Act.
(3)
In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the 
division may make rules to establish:
(a)
a public list that identifies a person who:
(i)
violates a chapter described in Subsection (2);
(ii)
without proper legal justification, fails to comply with an order, subpoena, 
judgment, or other legal process issued by:
(A)
the division; or
(B)
a court of competent jurisdiction; or
(iii)
breaches a settlement agreement, stipulation, assurance of voluntary compliance, 
or similar instrument signed by the person and the division; and
(b)
a process by which a person may be removed from the list the division establishes as 
described in Subsection (3)(a).
Section 2, Section 
13-52-102
 is amended to read:
52. RESIDENTIAL SOLAR ENERGY CONSUMER PROTECTION 
ACT
13-52-102
. Definitions.
As used in this chapter:
(1)
"Actual energy production" means the average kilowatt-hours produced and measured 
by the residential solar energy system during the 12 consecutive months immediately 
following the residential solar energy system's activation.
(2)
"Customer" means a person who, for primarily personal, family, or household purposes:
(a)
purchases a residential solar energy system under a system purchase agreement;
(b)
leases a residential solar energy system under a system lease agreement; or
(c)
purchases electricity under a power purchase agreement.
(2)
(3)
"Division" means the Division of Consumer Protection, established in Section 
13-2-1
.
(4)
(a)
"Employee" means an individual whose compensation for federal income tax 
purposes is reported, or is required to be reported, on a W-2 form the employer issues.
(b)
"Employee" does not include an independent contractor whose manner and means of 
work performance are not subject to direction, supervision, or instruction from the 
person who employed the independent contractor.
(5)
"Estimated energy production" means the solar retailer's estimate, measured by 
kilowatt-hour, of how much energy the residential solar energy system will produce.
(6)
"Nameplate capacity" means the sum of the maximum rated outputs of all electrical 
generating equipment under specific conditions designated by the manufacturer, as 
indicated on the nameplate physically attached to the equipment.
(7)
"Participant" means an owner, officer, director, member or manager of a limited liability 
company, principal, trustee, general or limited partner, sole proprietor, or an individual, 
with a controlling interest in an entity.
(3)
(8)
"Power purchase agreement" means an agreement:
(a)
between a customer and a solar retailer;
(b)
for the customer's purchase of electricity generated by a residential solar energy 
system owned by the solar retailer; and
(c)
that provides for the customer to make payments over a term of at least five years.
(4)
(9)
(a)
"Residential solar energy system"
:
 means a solar energy system that:
(a)
means a solar energy system that:
(i)
is installed in the state;
(ii)
generates electricity primarily for on-site consumption for personal, family, or 
household purposes;
(iii)
is situated on no more than four units of residential real property; and
(iv)
has an electricity delivery capacity that exceeds one kilowatt
; and
.
(b)
"Residential solar energy system" 
does not include a generator that:
(i)
produces electricity; and
(ii)
is intended for occasional use.
(10)
"Sales representative" means an individual who:
(a)
(i)
enters into a business relationship with a solar retailer to sell or attempt to sell a 
residential solar energy system through direct contact with customers and 
potential customers; and
(ii)
as part of the business relationship described in Subsection (10)(a), is 
compensated, in whole or in part, by commission; or
(b)
sets appointments or discusses the benefits of solar energy with a potential customer 
on behalf of a solar retailer.
(5)
(11)
"Solar agreement" means a system purchase agreement, a system lease agreement, 
or a power purchase agreement.
(6)
(12)
"Solar energy system" means a system or configuration of solar energy devices 
that collects and uses solar energy to generate electricity.
(7)
(13)
"Solar retailer" means a person who:
(a)
sells or proposes to sell a residential solar energy system to a customer under a 
system purchase agreement;
(b)
owns the residential solar energy system that is the subject of a system lease 
agreement or proposed system lease agreement; or
(c)
sells or proposes to sell electricity to a customer under a power purchase agreement.
(8)
(14)
"System lease agreement" means an agreement:
(a)
under which a customer leases a residential solar energy system from a solar retailer; 
and
(b)
that provides for the customer to make payments over a term of at least five years for 
the lease of the residential solar energy system.
(9)
(15)
"System purchase agreement" means an agreement under which a customer 
purchases a residential solar energy system from a solar retailer.
Section 3, Section 
13-52-202
 is amended to read:
13-52-202
. Contents of disclosure statement for any solar agreement.
If a solar retailer is proposing to enter any solar agreement with a potential customer, the 
disclosure statement required in Subsection 
13-52-201
(1) shall include:
(1)
a statement indicating that operations or maintenance services are not included as part 
of the solar agreement, if those services are not included as part of the solar agreement;
(2)
if the solar retailer provides any written estimate of the savings the potential customer is 
projected to realize from the 
residential solar energy 
system:
(a)
(i)
the estimated projected savings over the life of the solar agreement; and
(ii)
at the discretion of the solar retailer, the estimated projected savings over any 
longer period not to exceed the anticipated 
20-year 
useful life of the
 residential 
solar energy
 system;
(b)
any material assumptions used to calculate estimated projected savings and the 
source of those assumptions, including:
(i)
if an annual electricity rate increase is assumed, the rate of the 
increase
assumed 
increase, which may not be greater than 3%,
 and the solar retailer's basis for the 
assumption of the rate increase;
(ii)
the potential customer's eligibility for or receipt of tax credits or other 
governmental or utility incentives;
(iii)
residential solar energy 
system production data, including production 
degradation;
(iv)
the 
residential solar energy 
system's eligibility for interconnection under any net 
metering or similar program;
(v)
electrical usage and the 
residential solar energy 
system's designed offset of the 
electrical usage;
(vi)
historical utility costs paid by the potential customer;
(vii)
any rate escalation affecting a payment between the potential customer and the 
solar retailer; and
(viii)
the costs associated with replacing equipment making up part of the
 residential 
solar energy
 system or, if those costs are not assumed, a statement indicating that 
those costs are not assumed; and
(c)
two 
three 
separate statements in capital letters in close proximity to any written 
estimate of projected savings, with substantially the following form and content:
(i)
"THIS IS AN ESTIMATE. UTILITY RATES MAY GO UP OR DOWN AND 
ACTUAL SAVINGS, IF ANY, MAY VARY. HISTORICAL DATA ARE NOT 
NECESSARILY REPRESENTATIVE OF FUTURE RESULTS. FOR 
FURTHER INFORMATION REGARDING RATES, CONTACT YOUR 
LOCAL UTILITY OR THE STATE PUBLIC SERVICE COMMISSION.";
 and
(ii)
"ESTIMATES OF ENERGY PRODUCTION GENERATED BY A 
RESIDENTIAL SOLAR ENERGY SYSTEM MAY VARY. THE 
RESIDENTIAL SOLAR ENERGY SYSTEM MAY PRODUCE MORE OR 
LESS THAN THE ESTIMATED ENERGY PRODUCTION."; and
(ii)
(iii)
"TAX AND OTHER FEDERAL, STATE, AND LOCAL INCENTIVES 
VARY AS TO REFUNDABILITY AND ARE SUBJECT TO CHANGE OR 
TERMINATION BY LEGISLATIVE OR REGULATORY ACTION, WHICH 
MAY IMPACT SAVINGS ESTIMATES. CONSULT A TAX PROFESSIONAL 
FOR MORE INFORMATION.";
(3)
a notice with substantially the following form and content: "Legislative or regulatory 
action may affect or eliminate your ability to sell or get credit for any excess power 
generated by the system, and may affect the price or value of that power.";
a notice 
stating: "Legislative or regulatory action may affect or eliminate your ability to sell or 
get credit for any excess power generated by the solar energy system, and may affect the 
price or value of that power.";
(4)
a notice describing any right a customer has under Section 
13-52-207
, and any other 
applicable law to cancel or rescind a solar agreement;
the notice described in Subsection 
13-11-4(2)(m)
 or Subsection 
13-26-5(2)(a)
, if applicable;
(5)
a statement describing the 
solar energy 
system and indicating the 
solar energy 
system 
design assumptions, including the make and model of the solar panels and inverters, 
solar energy 
system size, positioning of the panels on the customer's property, estimated 
first-year energy production, and estimated annual energy production degradation, 
including the overall percentage degradation over the term of the solar agreement or, at 
the solar retailer's option, over the estimated useful life of the 
solar energy 
system;
(6)
a description of any warranty, representation, or guarantee of energy production of the 
solar energy 
system;
(7)
the approximate start and completion dates for the installation of the 
solar energy 
system;
(8)
a statement that the solar retailer may not begin installation of the system until at least 
four business days after the day on which the solar retailer and customer enter into a 
contract;
the statement: "The solar retailer may not begin installation of the system until 
at least four business days after the day on which the solar retailer and customer enter 
into a contract.";
(9)
(a)
a statement indicating whether any warranty or maintenance obligations related 
to the system may be transferred by the solar retailer to a third party and, if so, a 
statement with substantially the following form and content
a statement indicating 
whether the solar retailer may transfer any warranty or maintenance obligations 
related to the solar energy system to a third party; and
(b)
if the solar retailer may transfer any warranty or maintenance obligations related to 
the solar energy system, the statement
: "The maintenance and repair obligations 
under your contract may be assigned or transferred without your consent to a third 
party who will be bound to all the terms of the contract. If a transfer occurs, you will 
be notified of any change to the address, email address, or phone number to use for 
questions or payments or to request 
solar energy 
system maintenance or repair.";
(10)
if the solar retailer will not obtain customer approval to connect the 
solar energy 
system to the customer's utility, a statement to that effect and a description of what the 
customer must do to interconnect the 
solar energy 
system to the utility;
(11)
a description of any roof penetration warranty or other warranty that the solar retailer 
provides the customer or a statement, in bold capital letters, that the solar retailer does 
not provide any warranty;
(12)
a statement indicating whether the solar retailer will make a fixture filing or other 
notice in the county real property records covering the 
solar energy 
system, including a 
Notice of Independently Owned Solar Energy System, and any fees or other costs 
associated with the filing that 
may be charged to
the solar retailer may charge
 the 
customer;
(13)
a statement in capital letters with 
substantially 
the following form and content: "NO 
EMPLOYEE OR REPRESENTATIVE OF [name of solar retailer] IS AUTHORIZED 
TO MAKE ANY PROMISE TO YOU THAT IS NOT CONTAINED IN THIS 
DISCLOSURE STATEMENT CONCERNING COST SAVINGS, TAX BENEFITS, 
OR GOVERNMENT OR UTILITY INCENTIVES. YOU SHOULD NOT RELY 
UPON ANY PROMISE OR ESTIMATE THAT IS NOT INCLUDED IN THIS 
DISCLOSURE STATEMENT.";
(14)
a statement in capital letters with substantially the following form and content: "[name 
of solar retailer] IS NOT AFFILIATED WITH ANY UTILITY COMPANY OR 
GOVERNMENT AGENCY. NO EMPLOYEE OR REPRESENTATIVE OF [name of 
solar retailer] IS AUTHORIZED TO CLAIM AFFILIATION WITH A UTILITY 
COMPANY OR GOVERNMENT AGENCY.";
 and
(15)
a statement with the name and contact information of the person that will perform the 
installation;
(16)
a notice that the solar retailer may not sell the contract to another solar company 
without express customer approval;
(17)
a conspicuous list of:
(a)
finance fees, including those not charged directly to the customer; and
(b)
solar energy system operation and maintenance that the customer is obligated to 
perform to comply with the terms of the guarantee of the minimum energy 
production; and
(15)
(18)
any additional information, statement, or disclosure the solar retailer considers 
appropriate, as long as the additional information, statement, or disclosure does not have 
the purpose or effect of obscuring the disclosures required under this part.
Section 4, Section 
13-52-206
 is amended to read:
13-52-206
. Good faith estimate -- Obligation to repair.
(1)
A solar retailer that does not
 have
, at the time of providing a disclosure statement 
required 
in
by
 Subsection 
13-52-201(1)
, 
have 
information required under Section 
13-52-202
, 
13-52-203
, 
13-52-204
, or 
13-52-205
 to be included in the disclosure 
statement may make a good faith estimate of that information
 to the customer
, if the 
solar retailer clearly indicates that the information is an estimate and provides the basis 
for the estimate.
(2)
For 18 months after the day on which a residential solar energy system begins 
producing usable power, a customer may notify the solar retailer that the residential 
solar energy system is producing less than 80% of the solar retailer's good faith estimate 
of energy production.
(3)
(a)
A solar retailer that receives a notification described in Subsection (2) shall repair 
or improve a residential solar energy system's performance so that the residential 
solar energy system produces 90% or more of the original estimated energy 
production.
(b)
A solar retailer shall make the repairs or improvements described in Subsection (3)(a) 
within six months after the day on which the solar retailer receives notification from 
a customer.
(4)
(a)
A customer that notifies the solar retailer in accordance with Subsection (2) may 
pursue any other available remedies or rights authorized under the laws of this state.
(b)
A solar retailer may offer warranty terms that exceed the protection offered by this 
section.
Section 5, Section 
13-52-302
 is enacted to read:
13-52-302
. Registration and security required.
(1)
(a)
On or after July 1, 2026, a solar retailer may not operate in this state without being 
registered with the division.
(b)
The registration is valid for one year except as provided in Subsection 
(1)
(c).
(c)
The division may extend the period for which a solar retailer's registration is 
effective by up to six months so that expiration dates are staggered throughout the 
year.
(2)
(a)
A solar retailer shall submit an application for registration to the division in a 
manner the division establishes by rule in accordance with Title 63G, Chapter 3, Utah 
Administrative Rulemaking Act, if:
(i)
the solar retailer's sales representative communicates with customers or potential 
customers in the state; or
(ii)
the solar retailer, or the solar retailer's sales representative, conducts any business 
operations in the state.
(b)
The application for registration shall designate an agent residing in this state who is 
authorized by the solar retailer to receive service of process in any action this state or 
a resident of this state brings to the court.
(c)
If a solar retailer fails to designate an agent to receive service or fails to appoint a 
successor to the agent, the division shall deny the solar retailer's application for 
registration.
(d)
For purposes of this section only, the registered agent of a solar retailer shall provide 
the division the registered agent's proof of residency in the state in the form of:
(i)
a valid Utah driver license;
(ii)
a valid governmental photo identification issued to a resident of this state; or
(iii)
other verifiable identification indicating residency in this state.
(e)
As a part of the registration, each solar retailer shall submit proof of obtaining and 
maintaining the following security in a form approved by the division:
(i)
a performance bond issued by a surety authorized to transact surety business in 
this state; or
(ii)
a certificate of deposit in a financial institution authorized under the laws of this 
state or the United States to accept deposits from the public.
(3)
(a)
The division shall impose an annual registration fee set in accordance with 
Section 
63J-1-504
 that shall include the cost of the criminal background check 
described in this Subsection 
(3)
.
(b)
To register as a solar retailer, the solar retailer and the solar retailer's participants:
(i)
may not have been convicted of a felony or misdemeanor involving theft, fraud, or 
dishonesty, in the 10-year period immediately before the day on which the solar 
retailer files the application; and
(ii)
shall submit to the division:
(A)
the participant's fingerprints, in a form acceptable to the division, for purposes 
of a criminal background check;
(B)
consent to a criminal background check by the Bureau of Criminal 
Identification created in Section 
53-10-201
; and
(C)
payment for the cost of the fingerprint card and criminal background check 
described by Subsections 
(3)(b)(ii)
(A) and (B).
(c)
A solar retailer shall update registration information within 30 days after the day on 
which information provided on the application becomes incorrect or incomplete.
(d)
A solar retailer that is a publicly traded corporation registered with the Securities and 
Exchange Commission is exempt from the requirements described in Subsection 
(3)(b).
(4)
(a)
(i)
The division may claim a solar retailer's bond or certificate of deposit for the 
benefit of any customer who incurs damages as the result of the solar retailer's 
failure to comply with this chapter.
(ii)
For purposes of this section, damages incurred by a customer include:
(A)
labor and materials necessary to complete the installation of a residential solar 
energy system that is partially installed; and
(B)
damage to a customer's home caused during installation or repair of the 
residential solar energy system.
(b)
After the customer recovers full damages, the division may recover from the bond or 
certificate of deposit any administrative fines, civil penalties, investigative costs, 
attorney fees, and other costs of collecting and distributing funds under this section.
(c)
The solar retailer shall post a bond or certificate of deposit in the amount of:
(i)
$100,000 if:
(A)
the solar retailer or any affiliated person has not violated a chapter enforced 
by the division, as described in Section 
13-2-1
, the three-year period 
immediately before the day on which the solar retailer files the application;
(B)
the solar retailer has fewer than ten employees; and
(C)
the solar retailer sells fewer than 500 kilowatts nameplate capacity annually;
(ii)
$200,000 if:
(A)
the solar retailer or any affiliated person has not violated a chapter enforced 
by the division, as described in Section 
13-2-1
, the three-year period 
immediately before the day on which the solar retailer files the application;
(B)
the solar retailer has ten or more employees; or
(C)
the solar retailer sells more than 500 kilowatts nameplate capacity annually; or
(iii)
$300,000 if the solar retailer or any affiliated person has violated a chapter 
enforced by the division, as described in Section 
13-2-1
, the three-year period 
immediately before the day on which the solar retailer files the application.
(d)
Beginning July 1, 2026, a solar retailer that operates in this state violates this chapter 
each time the solar retailer sells a residential solar energy system without first 
registering with the division.
(5)
The division director may deny, suspend, or revoke a solar retailer's registration if:
(a)
a solar retailer or a solar retailer's participant:
(i)
violated a statute enforced by the division within the preceding five years; or
(ii)
fails to pay a fine or comply with a term of settlement with the division;
(b)
the division claims the solar retailer's bond or certificate of deposit; or
(c)
the division receives ten or more complaints from consumers about the solar retailer 
related to the solar energy system's energy production and finds substantial evidence 
that the solar retailer has provided good faith estimates for residential solar energy 
systems that do not produce 80% or more of the solar retailer's estimated energy 
production.
Section 6, Section 
13-52-401
 is enacted to read:
4. Sales Representative
13-52-401
. Sales representative relationship.
A sales representative shall be an employee of the solar retailer.
Section 7, Section 
13-52-501
 is enacted to read:
5. Financial Obligations
13-52-501
. Customer financial obligations.
(1)
A customer shall pay, on the date provided in the solar agreement, the costs of the solar 
energy system's:
(a)
design, not to exceed the greater of $1,500 or 3% of the total cost of the solar 
agreement;
(b)
equipment procurement, not to exceed 25% of the total cost of the solar agreement; 
and
(c)
installation, not to exceed 80% of the total cost of the solar agreement inclusive of 
payments due in accordance with Subsections 
(1)(a)
 and (1)(b).
(d)
A solar retailer may not collect the remaining balance of the solar agreement from a 
customer until the residential solar energy system is producing usable energy.
Section 8. 
Effective Date.
This bill takes effect on 
May 7, 2025
.
3-7-25 9:48 PM