230-RICR-30-45-1. Residential Solar Retailer Registration and Solar Agreements

1.1 Authority A. This Part is promulgated pursuant to the authority granted in R.I. Gen. Laws § 5-93-18. 1.2 Purpose A. The purpose of this Part is to establish standards, procedures, and requirements for the registration of residential solar retailers who conduct business in Rhode Island and for residential solar agreements and disclosures in connection therewith. 1.3 Definitions A. In addition to the terms defined in R.I. Gen. Laws § 5-93-2, for this Part, the following terms shall have the following meanings: 1. “Act” means the Residential Solar Energy Disclosure and Homeowners Bill of Rights Act, R.I. Gen. Laws Chapter 5-93. 2. “DPS” means the Department of Public Safety Division of the State Police. 3. “OER” means the Office of Energy Resources. 4. “Registrant” means the solar retailer registered with the Department as required by R.I. Gen. Laws § 5-93-4. 5. “Registration” means a solar retailer registration as required by R.I. Gen. Laws § 5-93-4. 6. “RIAG” means the Office of the Attorney General. 7. "Solicit" means offering or attempting to sell or lease a residential solar energy system to a person or requesting, urging, or attempting to persuade a person to purchase, lease or apply for a particular kind of solar system from a particular solar retailer. 8. “Sell” means to transfer a residential solar energy system to a customer on behalf of a solar retailer in return for monetary payment or other consideration. 1.4 Solar Retailer Registrations A. In accordance with R.I. Gen. Laws § 5-93-4, all solar retailers selling, leasing, and/or soliciting residential solar energy systems for purchase or lease must be registered with the Department prior to conducting such activities with respect to persons or property in the state of Rhode Island. 1.4.1 Applications for Solar Retailer Registration A. Every solar retailer subject to R.I. Gen. Laws § 5-93-4 shall submit a complete application for registration to the Department along with the applicable registration fee. B. The Department will evaluate applications based upon the information provided by the applicant on the forms/submissions and otherwise obtained during the application process. C. Every application for registration as a residential solar retailer shall be on such forms and through such submission mechanisms as designated by the Department and shall include the information set forth in R.I. Gen. Laws § 5-93-4 and any other information the Department may require, including, but not limited to the following: 1. Evidence of general liability insurance coverage for bodily injury and property damage of not less than $500,000 per occurrence and in the aggregate and, if requested by the Department, financial statements confirming the ability to meet financial obligations and claims; 2. Along with the roster of employees and third-party sales representatives who are or will be soliciting, leasing, and/or selling solar energy systems on behalf of the solar retailer applicant , a copy of the standards and qualifications the solar retailer has implemented for such employees and third-party sales representatives pursuant to R.I. Gen. Laws § 5-93-5 (b); 3. For each owner, member, director, and principal officer of the solar retailer applicant, each manager of the applicant, and every person who will engage in the solicitation, lease, and/or sale of residential solar energy systems on behalf of the solar retailer applicant, including third-party sales representatives, the results of a national criminal records check from the RIAG’s bureau of criminal identification, the DPS, or local police department in accordance with R.I. Gen. Laws § 5-93-4(d); 4. The form of identification badge to be worn by employees and third-party sales representatives who are or will be soliciting, leasing and/or selling solar energy systems on behalf of the solar retailer; 5. The forms of solar agreement, which must include notice of the right to cancel or rescind as set forth in R.I. Gen. Laws § 5-93-11, that will be used by the solar retailer and its employees and third-party sales representatives for the solicitation, lease, and/or sale of residential solar energy systems in this state; 6. The disclosure form, which must comply with the requirements set forth in R.I. Gen. Laws §§ 5-93-6 and 5-93-7 and § 1.6 of this Part, that will be provided to customers by the solar retailer and its employees and third-party sales representatives in connection with the solicitation, lease and/or sale of residential solar energy systems in the state of Rhode Island; and 7. Any other information that the Department shall require. D. No registration will be issued for incomplete or deficient applications. E. All applications for registration and renewal shall be submitted electronically through a registration system as directed by the Department. 1.4.2 Background Checks A. Pursuant to R.I. Gen. Laws § 5-93-14(a)(9), the Department may deny a solar retailer application for registration, or grant a registration application with conditions, if the results of the national criminal records checks of any owner, member, director, principal officer, manager, or sales representative, including third-party sales representatives, required under § 1.4.1(C)(3) of this Part reveals conviction of or nolo contendere plea to an offense involving theft, embezzlement, or mishandling of funds, including without limitation any offense under R.I. Gen. Laws Chapters 11-41 and 11-68, or to a felony that is substantially related to the solar retailer registration consistent with R.I. Gen. Laws § 28-5.1-14. B. As to any solar retailer applicant that is a public company, national criminal background checks will be required for all officers, directors, managers, members, employees, agents and sales representatives, including third-party agents and sales representatives, who will have managerial or operational oversight and/or control with respect to the solar retailer’s conduct of activities and business in Rhode Island or who will have contact and/or communicate with Rhode Island residents. 1.4.3 Term of Registration A. The term of the registration shall be one (1) year from the date on which it was issued. B. The expiration date of the registration shall appear on the registration. It is the obligation of the registrant to timely renew its registration. Failure to receive a renewal notice shall not be an excuse for failure to renew. 1.4.4 Annual Renewal of Registration A. Registrants shall apply for the renewal of the registration with the Department in the manner designated for renewal by the Department. B. Annual renewal applications shall be submitted on such forms and include such information as required by the Department. C. Renewal applications must be received by the Department prior to the expiration of the registration. D. Registrations that are not renewed prior to their expiration date shall expire. 1.4.5 Transfer of Registration Prohibited A. A registration shall be granted only to the registrant. A registration is not subject to transfer or assignment without prior approval of the Department. 1.4.6 Duty to Update Information on File with the Department A. It is the responsibility of the registrant to ensure that all application information is accurate and current for the duration of the registration. B. Registrants shall notify the Department within ten (10) business days of any material change in the information contained in the registration, including but not limited to: 1. Any change as to the registrant’s designated person in “responsible charge” and/or such person’s contact information on record with the Department as provided in R.I. Gen. Laws § 5-93-4(b)(1); 2. Any change as to the registrant’s appointed agent for the acceptance of service of process and/or such agent’s contact information on record with the Department as provided in R.I. Gen. Laws § 5-93-4(b)(2)(iii); 3. Any change of the registrant’s forms of solar agreement on record with the Department as provided in § 1.4.1(C)(6) of this Part; 4. Any change of the registrant’s disclosure form on record with the Department as provided in § 1.4.1(C)(7) of this Part; and/or 5. As to any owner, member, director, principal officer, manager, or sales representative of registrant, any conviction or nolo contendere plea that has not been previously disclosed on a criminal records check provided to the Department in accordance with R.I. Gen. Laws § 5-93-4 and § 1.4.2 of this Part. C. Registrants shall notify the Department no later than the last day of each quarter (March 31st, June 30th, September 30th, and December 31st) of any change to the registrant’s roster of employees and third-party sales representatives who are or will be soliciting, leasing, and/or selling solar energy systems on behalf of the solar retailer on record with the Department as provided in R.I. Gen. Laws § 5-93-4(b)(3) and this Regulation; D. The registrant shall provide written notice to the Department, within five (5) days, of the denial, suspension, or revocation by any other state, province, district, or territory of any registration, license, permit, approval, or other authorization to engage in the solicitation, sale, and/or lease of residential solar energy systems, or the commencement of any proceedings to effect such denial, suspension, or revocation. E. If after registration, a solar retailer registrant ceases residential solar energy system solicitation, sales and/or leasing in the state of Rhode Island, the registrant shall provide written notice thereof to the Department within ten (10) days, and such notice shall include the name, address, phone number and email address of one or more natural persons, reasonably acceptable to the Department, who registrant has designated to be the point of contact and person responsible to receive and address any complaints, inquiries and communications regarding residential solar energy systems sold, leased and/or installed in Rhode Island by or on behalf of registrant and any system purchase or lease agreements made in connection therewith. 1.5 Solar Agreement Requirements A. Statement of Additional Charges 1. Pursuant to R.I. Gen. Laws § 5-93-9(3)(ii), each proposal and/or contract for the purchase or lease of a residential solar energy system must state and include an itemized description of any and all fees, costs and charges that are in addition to the solar system installation costs, including, without limitation, any of the following that will be paid or payable by the customer or that will be paid or payable by the solar retailer to any third party and included or factored into the system price and/or financing or otherwise assessed to the customer: a. Fees, costs, and charges for financing and/or loan origination; b. Fees, costs, and charges included or factored into or otherwise related to establishing or securing the interest rate, purchase or lease pricing, and any adjustments thereof; c. Any other purchase or financing terms; d. Fees, costs, and charges for tree or shrub removal; and e. Fees, costs, and charges for roof replacement or repair. 2. Promptly following a customer’s request, residential solar retailers must provide a detailed itemization of all charges related to a residential solar system purchase or lease, which separately states the costs of the solar system panels and/or other electrical equipment and components, labor and design, and any other anticipated permitting or application fees. B. Customer Copies 1. In addition to providing consumer customers the disclosure form and right of rescission notice as provided in R.I. Gen. Laws §§ 5-93-6 and 5-93-11(b), residential solar retailers must provide electronic or physical hard copies of all executed solar agreements and installation contract(s), financing agreement(s), and any other agreement signed by the customer. 2. Customer copies may be hand-delivered with a receipt, sent by certified mail, or e-mailed using an application that tracks the recipient’s review of the attachment. C. Right to Rescind 1. The seven (7) day right of rescission period provided under R.I. Gen. Laws § 5-93-11 shall commence upon the customer’s actual receipt of the fully executed residential solar agreement. Failure of the solar retailer to provide the customer with a copy of the fully executed residential solar agreement shall toll the commencement and running of the rescission period until the customer’s receipt of the fully executed agreement as provided herein. 1.6 Standard Disclosure Forms A. The standard disclosure form(s), which must be provided by residential solar retailers to all potential customers prior to entering a solar purchase or lease agreement pursuant to the Act, specifically including R.I. Gen. Laws §§ 5-93-6, 5-93-7, 5-93-9 and 5-93-10, shall be consistent with the standard disclosure form developed by OER, as the same may be amended from time to time. 1.7 Fees and Charges A. Registration fees are payable to the “General Treasurer, State of Rhode Island” and are not refundable. B. Annual Fees: Registration Fee $ 750.00 Renewal Fee $ 750.00 C. Late Renewal Fee: 1. Solar retailers will be subject to a $50.00 late fee for failure to timely submit the annual renewal application and fee. 1.8 Notices of Violation and Penalties A. Penalties may be imposed on a solar retailer for failure to register or for any other violation of the Act or this Regulation in accordance with R.I. Gen. Laws § 5-93-14. B. Enforcement proceedings shall be conducted in accordance with the Administrative Procedures Act, R.I. Gen. Laws Chapter 42-35 and the Department’s Rules of Procedure for Administrative Hearings, Part 10-00-2 of this Title. 1.9 Severability A. If any section, term, or provision of this Regulation is adjudged invalid for any reason, all remaining sections, terms, and provisions shall remain in full force and effect.