ARIZONA HOUSE OF REPRESENTATIVES

57th Legislature, 2nd Regular Session

Majority Research Staff

Senate: NR DP 6-2-0-0 | Third Read: 17-12-1-0-0

☐ Prop 105 (45 votes)	     ☐ Prop 108 (40 votes)      ☐ Emergency (40 votes)	☐ Fiscal Note


SB 1419: solar energy; inspection; contractors

Sponsor: Senator Carroll, LD 28

Committee on Natural Resources, Energy & Water

Overview

Expands requirements relating to the installation standards and inspections of solar energy devices. Prescribes requirements of distributed energy generation system agreements.

History

Distributed energy generation system (DEGS) means a device or system that is used to generate or store electricity, that has an electric delivery capacity greater than one kilowatt or one kilowatt-hour and that is primarily for on-site energy consumption (A.R.S. § 44-1761).

Current law requires an agreement governing the financing, sale or lease of a DEGS to any person or political subdivision of the state to meet certain requirements including, but not limited to: 1) a buyer's or lessee's signature; 2) being in at least ten-point type; 3) a provision granting the buyer or lessee the right to rescind the agreement for a period of not less than three business days; and 4) a description of the DEGS's major component's warranty or guarantee concerning energy production output over the life of the agreement (A.R.S. § 44-1763).

Provisions

Installation Standards

1.   Expands the installation standards a solar energy device must meet to include:

a.   wind, load, structural and seismic codes as prescribed by a local authority; and

b.   a manufacturer's installation requirements. (Sec. 2)

2.   Requires a licensed contractor to evaluate and verify the structural integrity of the roof and its components before installing a solar energy device. (Sec. 2)

3.   Designates the contractor as responsible for repairs to the roof that are caused by the installation, if the contractor installs the solar energy device. (Sec. 2)

4.   Outlines penalties of a contractor that does not comply with this requirement. (Sec. 2)

DEGS Agreement Disclosures

5.   Requires the following disclosures in a DEGS agreement to be written in bold type and separately initialed by the buyer or lessee:

a.   the warranty period for any major component that is less than the duration of the agreement; and

b.   prescribed items relating to the total cost, interest and payment scheduled that are required to be set forth separately, if applicable. (Sec. 3)

6.   Mandates the full summary of total costs for maintaining and operating a DEGS over the life of the system be acknowledged and initialed by the buyer or lessee. (Sec. 3)

7.   Requires that the following items substantiate the methodology used to calculate the any utility charges and comparative estimates:

a.   the agreement; and

b.   a document or sales presentation related to the DEGS (Sec. 3)

8.   Requires the disclosure regarding potential utility rate tax incentive changes to be written in bold type and all capital letters. (Sec. 3)

9.   Mandates a DEGS lease cannot begin until the system is approved by a local utility. (Sec. 3)

10.  Requires a licensed contractor to obtain a written acknowledgement from the buyer or lessee stating that the buyer or lessee understands that the roofing materials or structure may require repair or replacement before the purchase or lease agreement expires. (Sec. 3)

11.  Outlines requirements of the aforementioned written acknowledgement. (Sec. 3)

Miscellaneous

12.  Defines trombe wall. (Sec. 1)

13.  Makes technical and conforming changes. (Sec. 2, 3)

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17.  Initials CW                      SB 1419

18.  3/13/2026  Page 0 Natural Resources, Energy & Water

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