HB 1644

HOUSE OF REPRESENTATIVES
H.B. NO.
1644
THIRTY-THIRD LEGISLATURE, 2026
H.D. 2
STATE OF HAWAII
S.D. 1
A BILL FOR AN ACT
RELATING TO CONSUMER PROTECTION.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
���� 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 agreement
terms and the right to rescind and cancel;
���� (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;
��������� (C)� The estimated annual utility
bill savings and assumptions used;
��������� (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 create a template of the
standardized cover page described in this subsection. �Beginning January 1, 2027, the department of
commerce and consumer affairs shall publish and make available free of charge
the template required by this subsection in electronic format on a website
maintained by the department. �In
creating or revising the template required by this subsection, the department
of commerce and consumer affairs may consult with a public utility, as defined
in section 269-1, domestic nonprofit corporation, or limited liability company
that represents the interests of any person or entity that sells or leases
residential solar energy devices.
���� (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 residential 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.
Report Title:
DCCA;
Consumer Protection; Residential Solar Energy Devices; Power Purchase
Agreements; Agreement Cover Page; Disclosures; Contractors; Voidable
Description:
Requires purchase, lease, and power purchase agreements
for residential solar energy devices to include a cover page with certain
required disclosures.� Requires any
person or entity that markets, sells, leases, or solicits a residential solar
energy device or markets, sells, or solicits power purchase agreements to
comply with consumer protection laws.�
Prohibits any person or entity from installing, marketing, offering
financing, or engaging in customer acquisition for a residential solar energy
device without holding a contractor's license or having a contractual
affiliation with a licensed contractor.�
Allows for rescission or cancellation of the agreement.� Specifies that agreements in violation of the
law are voidable.� Effective 7/1/3000.� (SD1)
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.