Virginia Law

A. As used in this section:

"Lease" means an agreement that arranges for the design, permitting, and installation of a solar energy system owned by a party other than the residential customer, in the form of a bailment or lease for the use of personal property by an individual primarily for personal, family, or household purposes, for a period exceeding four months and for a total contractual obligation not exceeding the applicable threshold amount, whether or not the lessee has the option to purchase or otherwise become the owner of the property at the expiration of the lease.

"Power purchase agreement" means a contract that arranges for the design, permitting, and installation of a solar energy system owned by a party other than the residential customer where the electric energy generated by the system is sold to the residential customer.

"Solar energy system" means a residential solar energy system mounted on a residential structure or installed on the ground of a residential property.

"Solar installation company" means a licensee that contracts with residential customers to install residential solar energy systems, or to install solar energy systems owned by third parties from which customers lease solar energy systems or purchase electric energy generated by such systems. "Solar installation company" does not include (i) a third-party owner of solar energy systems or a solar energy system financing company that does not sell or install solar energy systems or (ii) individuals who self-install solar energy systems.

B. Any sale, lease, or power purchase agreement for a solar energy system shall require the execution of a written contract that includes the following in at least 10-point font:

1. The name, address, telephone number, email address, and state contractor license number of the solar installation company and third party providing the lease, as applicable;

2. If the solar installation company will be using subcontractors known at the time the contract is executed, the name, address, telephone number, email address, and state contractor license number, if applicable, of each subcontractor used. If information on subcontractors is not available at the time of executing the written contract, the installer shall be required to provide such information to the customer within five business days of contracting with any subcontractor;

3. Information on the amounts and schedule for progress payments, including a specific statement of the down payment amount;

4. Solar energy system design assumptions, including system size, estimated first year production, estimated annual system production degradation, presence of energy storage, energy storage capacity, maximum power output of energy storage, and energy storage model information. If there are equipment substitutions that differ from the contracted system design, the solar installation company shall notify the customer within five business days. A copy of any documents presented to the customer or purchaser using solar energy system design assumptions, such as sales proposals, shall be provided at the same time as the written contract;

5. Payment due dates, the manner in which the customer will receive invoices, and how to pay for the lease of the solar energy system or the purchase of power from the solar energy system. No payment shall be due from the customer to a third-party owner of a solar energy system until the solar energy system is installed, has achieved permission to operate and interconnection, and is functioning;

6. Any one-time or recurring fees, including the circumstances triggering any late fees, estimated solar energy system removal fees, Uniform Commercial Code notice removal and refiling fees, internet connection fees, or Automated Clearing House fees. If the solar installation company obtains, arranges for, negotiates, places, or finds credit for the consumer in connection with the purchase of a solar energy system, the solar installation company shall disclose all loan fees, dealer fees, program fees, or buyer or seller points, provided that the provisions of this subdivision shall not affect or limit disclosures otherwise required under the laws of the Commonwealth or federal law;

7. A description of all performance or production guarantees or estimates of performance or production; and

8. The right to cancel the contract, without penalty, within five business days of contract execution.

C. A contract for the sale of a solar energy system shall list the total cost of the system, including the costs of all equipment, the energy storage system, and other charges, as well as reasonable estimates of labor and installation costs. Any adjustment to the total cost of the system after execution arising from equipment substitutions, code or permitting requirements, interconnection requirements, or unforeseen site conditions shall require a written change order signed by both parties before additional or modified work is performed.

D. A lease shall also include the following information:

1. The term and amount of monthly payments under the lease, including any payment increases and the date of the first increase; and

2. The total number of payments and estimated payments over the term of the lease.

E. A power purchase agreement shall also include the following information:

1. The term and amount of monthly payments under the power purchase agreement, including any payment increases and the date of the first increase;

2. Rates applicable for the first year under the power purchase agreement; and

3. The total number of payments and estimated payments over the term of the power purchase agreement.

F. Any sale, lease, or power purchase agreement for a solar energy system shall require the following written disclosures in at least 10-point font:

1. Whether and to what extent maintenance and repairs are included, and any solar energy system maintenance costs for which the customer will be responsible.

2. The following statement: "Comparable equipment may be installed. Such comparable equipment shall be substantially similar equipment to the proposed solar energy system and will not result in a reduction of the estimated first year production by more than five percent, a decrease in the solar energy system's kilowatts-AC and kilowatts-DC size, or an increase in the purchase price for the solar energy system."

3. A description of the workmanship warranty that covers repairs for any damage to the customer's residential property in connection with the solar energy system installation.

4. For a lease, whether the cost of removal of the solar energy system is included in the contract.

5. A brief description of the basis for any savings estimates that were provided to the customer or purchaser, with a copy of such savings estimates, which shall include the applicable electric utility rates for service, assumptions for increases to future rates for electric service, estimated solar energy system production, and the availability of programs that provide utility compensation for excess energy generated by the solar energy system at the time of contract execution.

6. Information concerning the retention and ownership of any renewable energy credits associated with the solar energy system.

7. The individual or entity responsible for obtaining electric interconnection approval for the solar energy system.

8. A notice that the customer or purchaser has the right to cancel the contract, without penalty, within five business days of contract execution, including the date and time at which such right expires and the method for canceling the contract.

9. The following statement: "The assumptions used to estimate savings such as utility rates may change. There may be fees and standby and demand charges that cannot be offset with solar energy, and excess electricity sent back to the grid may be credited at rates below what you pay for electricity. For further information regarding rates, you may contact your local utility or the State Corporation Commission. Tax and other state and federal incentives are subject to change or termination by executive, legislative, or regulatory action, which may impact savings estimates. Please read your contract carefully for more details."

10. If applicable, whether the owner or lessor of the solar energy system will be submitting a financing statement for the system. If a solar financing statement is submitted, the following statement shall also be included: "A solar loan, lease, or power purchase agreement may affect your ability to sell your home. A buyer may not be willing to assume such obligations, which may affect a home sale."

11. If applicable, information regarding transferability of the lease and any conditions for lease transfers in connection with a customer selling his home.

G. All disclosures required by subsection F shall be provided to the customer or purchaser either through a separate document, signed by the customer or purchaser prior to the execution of the written contract, or through disclosures that are included as a cover sheet to the written contract.

H. If the Board finds that a person has willfully engaged in an act or practice in violation of this section, the Board shall impose a civil penalty of no more than $2,500 per violation to be remitted to the Low-to-Moderate Income Solar Loan and Rebate Fund established in § 45.2-1916. For the purposes of this subsection, prima facie evidence of a willful violation may be shown when the Board notifies the alleged violator in a manner that allows for confirmation of delivery that an act or practice is a violation of this chapter, and the alleged violator, after receipt of such notice, continues to engage in the act or practice.

2026, cc. 851, 852.