Solar Consumer Protection Workshop May 17, 2018 www.cesa.org - - PowerPoint PPT Presentation

Solar Consumer Protection

Workshop

May 17, 2018

www.cesa.org

Sustainable Solar Education Project

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A project to provide information to state and municipal officials on strategies to ensure distributed solar

• Remains consumer friendly
• Benefits low- and moderate-

income households The project is managed by CESA and is funded through the U.S. Department of Energy Solar Energy Technologies Office.

Sustainable Solar Education Project Resources

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The project has produced a variety of resources on solar equitability and consumer protection:

• Guides
• Webinars
• Monthly e-newsletter
• In-person workshops

www.cesa.org/projects/sustainable-solar

Why States Should Care About Solar Consumer Protection

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• States have the ability to adopt solar programs, policies, and

rules that inform and protect consumers. People look to state and local government for information.

• If states don’t address these issues proactively, they may

have to expend resources to redress problems after they arise.

• Government’s job is to set rules and ensure they are

followed for the benefit of all.

• States have an interest in promoting economic development

and maintaining a robust, competitive, and fair marketplace for solar businesses.

Potential Reasons Why Solar Consumer Protection Issues Have Cropped Up

• Solar is entering into market maturity in some

areas

• Lower barriers to entry and more product options

(e.g., availability of third-party ownership, solar loans, incentives, and community solar)

• Decline of state incentive programs means some

states no longer have as much control over solar marketing, contracting, and installation processes

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Solar Consumer Protection Industry Challenges

• 1. Adopting solar can involve complicated financing and ownership

models, long-term contracts, and large financial obligations.

• 2. Value propositions vary; solar quotes may rely on a range of

assumptions and may involve different products.

• 3. Well known, proven brands haven’t been firmly established.
• 4. Solar-specific regulatory protections have only begun to emerge.
• 5. Solar consumer awareness may be low in some areas where the

industry is moving into new market niches.

• 6. Solar has lots of industry jargon.
• 7. Solar companies often have similar-sounding names.

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Consumer Protection Issues

Solar Marketing

➢ Consumers have difficulty identifying reputable and reliable installers ➢ Incomplete or misleading projections of consumers' cost savings ➢ False advertising claims ➢ High-pressure sales tactics

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Consumer Protection Issues

Solar Products & Contracting

➢ Product confusion (e.g., owning panels, financing panels, leasing roof space, purchasing electricity from certain panels, or purchasing a portion of electricity from an array) ➢ Confusing contract terms and unexpected costs or fees (escalators, high-cost loans, late-payment penalties, termination fees) ➢ Confusion about the applicability of incentives ➢ Confusion about who owns Renewable Energy Credits (RECs) and misleading claims about who receives solar electricity ➢ Solar-related real estate restrictions (UCC filings)

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Consumer Protection Issues

Solar In Installation & Performance

➢ Inadequate warranties or consumers are unable to collect on warranty claims ➢ Installations do not produce as much electricity or otherwise perform as promised

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➢ Installations are poor quality or have improper wiring

• r safety problems

Solar Oversight Agencies

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Contracting & Financing Construction & Electrical Technology Manufacturing

• Consumer Financial

Protection Bureau

• Federal Trade

Commission

• Securities Exchange

Commission

• State Lenders Licensing

Regulators

• State Consumer

Protection Agencies

• State Attorneys General
• State Contractor

Licensing Boards

• Local Municipality /

Permitting Agency

• State Engineering

Licensing Boards

• Occupational Safety

and Health Administration

• Federal Trade

Commission

• Federal

Communications Commission

• State Attorneys

General

• Federal Trade

Commission

• National

Electric Code

• State

Attorneys General

Source: Adapted from Solar Energy Industries Association

State Solar Consumer Protection Tools

➢ Consumer Education ➢ Equipment Standards and Warranties ➢ Installation Codes and Regulation ➢ Installer Licensing and Certification and State Rating Systems and Contractor Lists ➢ Program Rules (e.g., community solar, incentive programs, Solarize) ➢ Solar Contract Disclosure Requirements ➢ Grievance Procedures and Enforcement

Workshop Agenda

• 8am-9am—Session 1: Introduction to Meeting Participants and to Solar

Consumer Protection Issues

• 9am-10am—Session 2: What Is the Role of the States?
• 10am-10:15am—Break
• 10:15am-11:15am—Session 3: Model Contracts and Customer Disclosure

Requirements

• 11:15am-12:15pm—Session Four: Strategies for Ensuring High Standards for

Installations

• 12:15pm-1:15pm—Lunch Discussions
• 1:15pm-1:45pm—Session 5: Renewable Energy Certificates—Why You and

Consumers Should Understand Them?

• 1:45pm-2:45pm—Session 6: Concurrent Sessions—Community Solar Consumer

Protection Issues / Grievance Processes and Dealing with Consumer Complaints

• 2:45pm-3pm—Break
• 3pm-4pm—Session 7: What Are You Going to Do?
• 4-4:30pm—Session 8: Next Steps and Resource Material
• 4:30pm—Adjourn

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Nate Hausman Project Director, CESA (802) 223-2554 x206 nate@cleanegroup.org

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