Tennessee mandates net metering disclosure for solar energy system installations

Tennessee's Senate Bill 1124, introduced on February 12, 2025, aims to enhance transparency and consumer protection in the solar energy market. The bill mandates that companies selling or installing solar energy systems provide written proof of net metering programs from local utilities before entering into agreements with customers. This requirement is designed to ensure that potential solar energy users are fully informed about the benefits and costs associated with net metering, which allows them to receive credits for excess energy produced by their systems.

Key provisions of the bill include a detailed description of how net metering programs operate, including participation requirements and applicable fees. Additionally, companies must secure a notarized document from the utility confirming the existence of a net metering program in the area where the solar system will be installed. Violations of this provision are classified as unfair or deceptive trade practices, subjecting offenders to penalties.

The introduction of Senate Bill 1124 has sparked discussions among stakeholders in the renewable energy sector. Proponents argue that the bill will protect consumers from misleading sales practices and promote the adoption of solar energy by providing clear information about potential savings. Critics, however, express concerns that the additional requirements could create barriers for solar companies, potentially slowing the growth of the solar market in Tennessee.

The implications of this legislation are significant, as it seeks to balance consumer protection with the promotion of renewable energy sources. By ensuring that residents have access to accurate information about net metering, the bill could encourage more homeowners to consider solar energy, contributing to broader environmental goals and energy independence.

As the bill moves forward, its impact on the solar industry and consumer choices will be closely monitored. If enacted, Senate Bill 1124 will take effect on July 1, 2025, applying to all agreements entered into or modified after that date. This legislative effort reflects Tennessee's ongoing commitment to fostering a sustainable energy future while safeguarding the interests of its residents.