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House tightens consumer protections for residential solar sales, requires worker registration and payment safeguards

2435558 · February 27, 2025

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Summary

Third substitute H.B. 57, a residential solar consumer protection bill, passed the House unanimously after sponsors and industry reached agreement on disclosures, employee classification, payment schedules and performance thresholds.

Representative Jack, sponsor of third substitute H.B. 57, told colleagues the bill is the product of more than a year of stakeholder work and seeks to reduce consumer harm in rooftop solar contracting. "We have worked with all of the stakeholders, and, the whole object is to protect, the residents of Utah," Jack said.

Key changes in the third substitute include expanded disclosure requirements, a requirement that sales representatives and installers be W-2 employees rather than independent 1099 contractors, a performance threshold tied to expected electrical generation (the bill references a minimum of 80% of promised generation), and a structured payment schedule that withholds a final balloon payment until installation and performance meet expectations. Jack said those payment guardrails and employee classification rules are intended to increase accountability and make it easier for the Division of Consumer Protection to hold companies to their promises.

Representative Albrecht and other supporters praised the compromise and the work with industry. The House adopted the third substitute and passed H.B. 57 by voice vote, 72-0. The bill will be sent to the Senate.

Why it matters: The bill targets recurring consumer complaints about door-to-door sales, misleading performance claims and companies that take advance payments and fail to complete projects. By requiring registration, background checks, W-2 employment and payment protections, the measure changes the compliance landscape for solar installers doing business in Utah.

Votes at a glance: Third substitute H.B. 57 — passed House, 72 yes, 0 no; transmitted to the Senate.