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ARIZONA STATE SENATE
Fifty-Seventh Legislature, Second Regular Session
AMENDED
solar energy; inspection; contractors
Purpose
Prescribes requirements relating to the installation and inspection of solar energy devices. Outlines requirements for distributed energy generation system agreements and disclosure requirements for sales presentations or documents relating to a distributed energy generation system.
Background
An individual who is a licensed solar contractor and who installs a solar energy device in Arizona must: 1) possess the general license that is appropriate to the type of solar energy device that is installed; 2) meet any education and training standards that have been adopted by the registrar of contractors; and 3) pass an examination on the installation of the type of solar energy device to be installed, if the registrar of contractors has adopted such an examination. The installation of a solar energy device must meet the requirements of: 1) all applicable fire, safety and building codes; 2) consumer protection standards including any freeze protection and temperature related damage standards; and 3) all other applicable federal state and local laws. A contractor who fails to meet safety, installation or other statutorily prescribed standards is subject to disciplinary action (A.R.S. § 44-1762).
An agreement governing the financing, sale or lease of a distributed energy generation system to any person or political subdivision of Arizona must: 1) be signed by the person buying, financing or leasing the distributed energy generation system and must be dated; 2) include a provision, which must be separately acknowledged by the buyer or lessee, granting the buyer or lessee the right to rescind the financing, sale or agreement for a period of not less than three business days after the agreement is signed by the buyer or lessee and before the distributed energy generation system is installed; 3) provide a description of the distributed energy generation system, which must be separately acknowledged by the buyer or lessee, or a guarantee concerning energy production output that the distributed energy generation system being sold or leased will provide over the life of the agreement; and 4) contain other statutorily outlined disclosures, summaries and estimates. Recurring payments under a distributed energy generation system lease may not begin until the distributed energy generation system is energized and interconnected (A.R.S. § 44-1763).
A distributed energy generation system is a device or system that is used to generate or store electricity, that has an electric delivery capacity, singly or in connection with other similar devices or systems, greater than one kilowatt or one kilowatt-hour, that is primarily for on-site energy consumption and does not include an electric generator intended for occasional use (A.R.S. § 44-1761).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
Solar Energy Devices
1. Requires a licensed solar contractor to evaluate and verify the structural integrity of the roof and roofing components before installing a solar energy device.
2. Deems that the licensed solar contractor, upon installation of a solar energy device, has accepted the surface of the roof for the purposes of installation and is responsible for repairs to the roof that are caused by the installation.
3. Subjects a licensed solar contractor who does not evaluate and verify the structural integrity of the roof and roofing components before installing a solar energy device to disciplinary action.
4. Requires the installation of a solar energy device to meet the requirements of wind, load, structural and seismic building codes and the manufacturer's installation requirements.
5. Requires a licensed solar contractor, if a third-party inspector identifies any deficiency in the installation of the solar energy device, to correct the deficiencies.
6. Deems that the failure to correct the deficiencies is subject to disciplinary action.
7. Requires a licensed solar contractor who installs solar energy devices in Arizona to obtain a third-party inspection verification.
Distributed Energy Generation System Agreements
8. Requires the length of the warranty, if the warranty period for any major component of a distributed energy generation system is less than the duration of an agreement governing the financing, sale or lease of the distributed energy generation system, to be written in bold type and separately initialed by the buyer or lessee.
9. Requires the statutorily prescribed items that must be separately set forth in a distributed energy generation system agreement to be in bold type and initialed by the buyer or lessee, if applicable.
10. Requires the summary of the total cost under distributed energy generation system agreements for maintaining and operating the distributed energy generation system over the life of the system to be acknowledged and initialed by the buyer or lessee.
11. Requires an agreement that contains an estimate of the buyer's or lessee's future utility charges based on projected utility rates to substantiate the methodology that was used to calculate the utility charges and comparative estimates.
12. Requires the outlined disclosure that must be included in a distributed energy generation system agreement to be written in bold type and all capital letters.
13. Requires an agreement, if a document or sales presentation relating to a distributed energy generation system contains financial savings comparative estimates or utility rate comparative estimates, to substantiate the methodology that was used to calculate financial savings or utility rate comparative estimates.
14. Requires an agreement, if a document or sales presentation relating to a distributed energy generation system contains an estimate of the buyer's or lessee's future utility charges based on projected utility rates, to substantiate the methodology that was used to estimate the utility charges based on utility rates.
15. Prohibits recurring payments under a distributed energy generation system lease from beginning until the distributed energy generation system is approved by a local utility.
16. Requires the licensed contractor, before entering into a contract for the purchase or lease of a residential solar energy system, to obtain a written acknowledgement from the buyer or lessee stating that the buyer or lessee understands that the roofing materials or the structure may require repair or replacement before the purchase or lease agreement term expires.
17. Requires the written acknowledgement to include an outlined clear and conspicuous disclosure.
Miscellaneous
18. Defines Trombe wall as a massive equator-facing wall that is painted in a dark color to absorb thermal energy from incident sunlight.
19. Makes technical and conforming changes.
20. Becomes effective on the general effective date.
Amendments Adopted by Committee of the Whole
1. Requires the installation of a solar energy device to meet the requirements of wind, load, structural and seismic building codes.
2. Removes the requirement that an individual who is a licensed solar contractor and who had a disciplinary action within the previous two years obtain a third-party inspection to verify that the installation complies with the applicable safety standards, workmanship and other prescribed standards.
3. Requires a licensed solar contractor to evaluate and verify the structural integrity of the roof and roofing components before installing a solar energy device.
4. Deems that the licensed solar contractor, upon installation of a solar energy device, has accepted the surface of the roof for the purposes of installation and is responsible for repairs to the roof that are caused by the installation.
5. Modifies the list of what must be included in an agreement governing the financing, sale or lease of a distributed energy generation system to any person or political subdivision of Arizona.
6. Reinstates statutorily prescribed requirements relating to documents or sales presentations for distributed energy generation systems that:
a) state or suggest that the distributed energy generation system will result in financial savings for a buyer or lessee;
b) contain financial savings comparative estimates or utility rate comparative estimates; and
c) contain a financial estimate of the buyer's or lessee's future utility charges based on projected utility rates.
7. Removes the prohibition on a contractor or the agent of a contractor for a distributed energy generation system from making a written or oral statement regarding any estimated savings that the buyer or lessor may receive.
8. Requires the licensed solar contractor, before entering into a contract for the purchase or lease of a residential solar energy system, to obtain a written acknowledgment from the buyer or lessee stating that the buyer or lessee understands that the roofing materials or the structure may require repair or replacement before the purchase or lease agreement expires.
9. Removes the definition of third-party inspection.
10. Makes conforming changes.
Senate Action
NR 2/10/26 DP 6-2-0
Prepared by Senate Research
March 2, 2026
SB/ci