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ARIZONA HOUSE OF REPRESENTATIVES57th Legislature, 2nd Regular Session |
Senate: NR DP 6-2-0-0 | Third Read: 17-12-1-0-0House: NREW DPA 6-1-2-1 | Third Read 51-0-9-0-0 Final Read: 29-0-1-0-0 |Chapter: 175 |
SB 1419: solar energy; inspection; contractors
Sponsor: Senator Carroll, LD 28
Signed by the Governor
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).
Installation Standards
1. Expands the installation standards a solar energy device must meet to include:
a. building codes as prescribed by a local authority; and
b. a manufacturer's installation requirements. (Sec. 2)
2. Requires a licensed contractor who installs a solar energy device on a roof to evaluate if the roof is deemed acceptable for the solar panel. (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 and the structure is not used primarily for shade. (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. Requires the warranty periods for a purchased DEGS, major components and labor be disclosed to and separately initialed by the buyer. (Sec.3)
7. Defines major components as they relate to a purchased DEGS. (Sec. 3)
8. 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)
9. Outlines required information a contractor must disclose if they provide credit to purchase a DEGS. (Sec. 3)
10. Modifies information that must be included in the identification of tax obligations the buyer or lessee may be required to pay relating to a purchased or leased DEGS. (Sec. 3)
11. Requires that the agreement notify the consumer whether and to what extent system maintenance and repairs are included and the estimated system maintenance cost the consumer is responsible to pay. (Sec. 3)
12. Requires the agreement include a specified brief description of the basis for any savings estimate provided to the purchases at the time the contract was signed. (Sec. 3)
13. Modifies language relating to a document or sales presentation relating to a DEGS. (Sec. 3)
14. Mandates a DEGS lease cannot begin until the system is granted permission to operate by a local utility and energized and interconnected by the lessor. (Sec. 3)
15. 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)
16. Outlines requirements of the aforementioned written acknowledgement. (Sec. 3)
17. Outlines separate disclosures of major components if the system is leased. (Sec. 3)
18. Requires the disclosure of the system maintenance and repairs included and estimates for system maintenance cost. (Sec. 3)
Miscellaneous
19. Clarifies solar energy device to not include a utility scale solar project. (Sec. 1)
20. Defines trombe wall. (Sec. 1)
21. Makes technical and conforming changes. (Sec. 2, 3)
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Initials CW/HC SB 1419
7/6/2026 Page 0 Signed by the Governor
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