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Committee adopts house position on consumer-protection bill for residential solar sales
Summary
SB2032, which would require seller licensing, a standardized disclosure and other protections for residential solar transactions, was advanced with the House companion language. The Office of Consumer Protection urged adding a three-day cancellation right and removing a safe-harbor clause to strengthen enforcement.
The committee moved SB2032 forward Tuesday, adopting the House companion's position to require that sellers of residential solar devices comply with state consumer protection laws, hold or affiliate with a licensed contractor and use a standardized disclosure form for solar proposals and contracts.
Office of Consumer Protection attorney Monom Morardi recommended the bill be strengthened to give consumers a three-day right to cancel contracts and to make contracts voidable if the required disclosure is not provided. He also recommended that the bill remove a proposed "safe harbor" clause that could limit enforcement of existing consumer-protection statutes. "We need more protection for consumers," Morardi told the committee, urging concrete rights beyond a disclosure requirement.
Industry groups including the Hawaii Solar Energy Association and several solar installers testified in support of regulation that protects consumers but requested clarifications and carve-outs for lenders and financing arrangements. The Hawaii Credit Union League asked that consumer-protection requirements not be applied to lenders who do not control the use of loan proceeds.
The committee adopted the House language and advanced SB2032 SD2 with a defective effective date in the year 3000 to allow final drafting. Members said the adopted approach balances consumer protections and industry concerns while leaving room for technical fixes before final enactment.
The committee asked the Office of Consumer Protection and stakeholders to continue working on specific definitions and the proposed safe-harbor language before the next decision-making date.
