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S 2762Renewable Energy

Businesses and Professions - Residential Solar Energy Disclosure and Homeowners Bill of Rights Act

Allows homeowners to temporarily suspend solar energy contract payments if their home is destroyed or rendered uninhabitable.

Held for study
Population
Affected
15
Email Legislator
Introduced Mar 4, 2026Committee Senate Commerce

Plain-English Summary

This legislation amends the "Residential Solar Energy Disclosure and Homeowners Bill of Rights Act" to provide financial relief to homeowners facing disasters. It defines "catastrophic loss" as damage rendering a home uninhabitable. The bill mandates that solar retailers include provisions in new lease and purchase agreements allowing customers to temporarily suspend payments if such a loss occurs. Customers must provide documentation, such as an insurance claim or fire report. While payments are paused, the total debt is not forgiven; instead, the payment schedule is updated to accommodate the suspension. These protections apply to agreements signed after the bill passes.

For younger readers

This rule helps families who have solar panels on their houses. Sometimes, a really bad thing happens, like a big fire or storm, and the house gets so broken that the family can't live there anymore. This rule says that if that happens, the family can stop making their solar panel payments for a little while. They still have to pay the money later, but they get a break while their house is being fixed. They just need to show a paper, like a report from the fire department, to prove the house is broken.

Who & Where It Applies

Impacted groups
Solar retailersHomeowners with solar panelsSolar leasing companiesDepartment of Business RegulationHome insurers
Impacted communities
All

Constitutional & Fiscal Check

None Likely

Estimated cost
None
Estimated revenue
None

Bill Analysis

Both viewpoints
For Progressives
  • Protect consumers facing housing insecurity by allowing them to pause financial obligations when their homes are destroyed, preventing immediate financial ruin during a crisis.
  • Strengthens the social safety net by mandating that corporations accommodate homeowners suffering from catastrophic losses, rather than prioritizing profit collection over human welfare.
  • Increases transparency in solar contracts, ensuring that buyers understand their rights and are not exploited by predatory financial terms during vulnerable moments.
  • Fails to offer debt forgiveness for victims of catastrophic loss, merely deferring the payments so that struggling families remain burdened by the full cost later.
  • Places the administrative burden of proof on displaced families to provide documentation like police reports while they are likely dealing with trauma and homelessness.
  • Applies only to new agreements entered into after the bill passes, leaving current solar customers without these protections if disaster strikes immediately.
For Conservatives
  • Upholds the sanctity of contracts by ensuring that the debt is legally owed and must be paid in full, rejecting any handouts or debt forgiveness schemes.
  • Prevents fraud by requiring strict documentation, such as insurance claims or fire reports, before an individual can pause their payment obligations.
  • Provides regulatory clarity for businesses by clearly defining "catastrophic loss," allowing solar retailers to manage their accounts receivable predictably.
  • Interferes with the free market by dictating the terms of private contracts between solar retailers and customers, rather than allowing businesses to set their own policies.
  • Imposes additional regulatory burdens on businesses, forcing them to update standard forms and manage new administrative procedures for payment suspensions.
  • Disrupts the cash flow of private companies by government mandate, potentially forcing businesses to carry the costs of non-paying customers for extended periods.

Votes

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Full Bill Text

Changes to existing Rhode Island law · 45 additions · 14 deletions

SECTION 1. Sections 5-93-2, 5-93-8 and 5-93-9 of the General Laws in Chapter 5-93 entitled "Residential Solar Energy Disclosure and Homeowners Bill of Rights Act" are hereby amended to read as follows: 5-93-2. Definitions. As used in this chapter:

(1) "Catastrophic loss" means damage to a residential property that renders the structure uninhabitable and requires full reconstruction or replacement. (1)(2) “Customer” means a person who, for primarily personal, family, or household purposes:

(i) Purchases a residential solar energy system under a system purchase agreement;

(ii) Leases a residential solar energy system under a system lease agreement; or

(iii) Purchases electricity under a power purchase agreement. (2)(3) “Department” means the department of business regulation. (3)(4) “Lease” means to transfer the right to possession and use of a residential solar energy system for a term to a customer on behalf of a solar retailer in return for monetary payment or consideration. (4)(5) “Power purchase agreement” means an agreement:

(i) Between a customer and a solar retailer;

(ii) For the customer’s purchase of electricity generated by a residential solar energy system owned by the solar retailer; and

(iii) That provides for the customer to make payments over a term of at least five (5) years. (5)(6) “Residential solar energy system” 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 (4) units of residential real property;

(iv) Has an electricity delivery capacity that exceeds one kilowatt; and

(v) Does not include a generator that:

(A) Produces electricity; and

(B) Is intended for occasional use. (6)(7) “Sell” means to transfer a residential solar energy system to a customer on behalf of a solar retailer in return for monetary payment or other consideration. (7)(8) “Solar agreement” means a system purchase agreement, a system lease agreement, or a power purchase agreement. (8)(9) “Solar energy system” means a system or configuration of solar energy devices that collects and uses solar energy to generate electricity. (9)(10) “Solar retailer” means a person who:

(i) Sells or proposes to sell a residential solar energy system to a customer under a system purchase agreement;

(ii) Owns the residential solar energy system that is the subject of a system lease agreement or proposed system lease agreement; or

(iii) Sells or proposes to sell electricity to a customer under a power purchase agreement. (10)(11) “Solicit” means offering or attempting to sell or lease a residential solar energy system to a person or requesting, urging, or attempting to persuade a person to purchase, lease, or apply for a particular kind of solar system from a particular solar retailer. (11)(12) “System lease agreement” means an agreement:

(i) Under which a customer leases a residential solar energy system from a solar retailer; and

(ii) That provides for the customer to make payments over a term of at least five (5) years for the lease of the residential solar energy system. (12)(13) “System purchase agreement” means an agreement under which a customer purchases a residential solar energy system from a solar retailer. 5-93-8. Standard form addendum for system lease agreement.

(a) The standard disclosure form shall include an addendum that applies if a solar retailer is proposing to enter into a system lease agreement with a potential customer. The standard disclosure form will include details about the lease price and its associated escalator, if any.

(b) Provided that, in the event of a catastrophic loss, the customer shall be discharged from their responsibility to make payment on the first lease payment installment date that follows the date of the catastrophic loss. This section shall not be construed to discharge the customer from making the total number of payments agreed to in the system lease agreement.

(c) Pursuant to subsection (b) of this section the standard disclosure form shall include provisions informing the customer of the necessary procedure to temporarily suspend a lease payment in the event of a catastrophic loss, and that such a temporary suspension will result in an updated lease payment schedule, which will be provided to the customer by the solar retailer.

(1) A customer shall provide the solar retailer with reasonable documentation of the property's destruction including, but not limited to, an insurance claim or fire department report in order to qualify for a temporary suspension of a lease payment as a result of catastrophic loss.

(d) Subsections (b) and (c) of this section shall apply only to system lease agreements entered into after the effective date of this section. 5-93-9. Standard disclosure form addendum for system purchase agreement. The standard disclosure form shall include an addendum that applies if a solar retailer is proposing to enter into a system purchase agreement with a potential customer. The system purchase addendum shall include:

(1) The following statement: “You are entering into an agreement to purchase an energy generation system. You will own the system installed on your property. You may be entitled to federal tax credits because of the purchase. You should consult your tax advisor”;

(2) A field for the price quoted to the potential customer for a cash purchase of the system;

(3) Fields requiring:

(i) The schedule of required and anticipated payments from the customer to the solar retailer and third parties over the term of the system purchase agreement, including application fees, up-front charges, down payment, scheduled payments under the system purchase agreement, payments at the end of the term of the system purchase agreement, payments for any operations or maintenance contract offered by or through the solar retailer in connection with the system purchase agreement, and payments for replacement of system components likely to require replacement before the end of the useful life of the system as a whole; and the total of all payments referred to in this subsection;

(ii) An itemized description of all additional fees or charges;

(4) A statement indicating that the cost of insuring the system is not included within the schedule of payments under subsection (3);

(5) A field to indicate whether the customer is responsible for insurance coverage. The field shall be accompanied by the statement: “If so indicated above, you are responsible for obtaining insurance coverage for any loss or damage to the system. You should consult an insurance professional to understand how to protect against the risk of loss or damage to the system. You should also consult your home insurer about the potential impact of installing a system.”;

(i) Provided that, in the event of a catastrophic loss, the customer shall be discharged from their responsibility to make payment on the first lease payment installment date that follows the date of the catastrophic loss. This section shall not be construed to discharge the customer from making the total number of payments agreed to in the system lease agreement.

(ii) Pursuant to subsection (i) of this section the standard disclosure form shall include provisions informing the customer of the necessary procedure to temporarily suspend a lease payment in the event of a catastrophic loss, and that such a temporary suspension will result in an updated lease payment schedule, which will be provided to the customer by the solar retailer.

(A) A customer shall provide the solar retailer with reasonable documentation of the property's destruction including, but not limited to, an insurance claim or fire department report in order to qualify for a temporary suspension of a lease payment as a result of catastrophic loss.

(6) Fields requiring information about whether the system may be transferred to a purchaser of the home or real property where the system is located and any conditions for a transfer; and

(7) A field requiring a detailed comparison of the costs of purchasing as compared to leasing the system.; and

(8) Subsections (5)(i) and (5)(ii) of this section shall apply only to system purchase agreements entered into after the effective date of this section.

SECTION 2. This act shall take effect upon passage.