AN ACT RELATING TO BUSINESSES AND PROFESSIONS -- RESIDENTIAL SOLAR ENERGY DISCLOSURE AND HOMEOWNERS BILL OF RIGHTS ACT (Defines catastrophic loss and requirements for suspension of payments.)

S2762

2026 -- S 2762
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LC005855
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STATE OF RHODE ISLAND
IN GENERAL ASSEMBLY
JANUARY SESSION, A.D. 2026
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A N A C T
RELATING TO BUSINESSES AND PROFESSIONS -- RESIDENTIAL SOLAR ENERGY
DISCLOSURE AND HOMEOWNERS BILL OF RIGHTS ACT

Introduced By:
Senators Vargas, Valverde, Zurier, Urso, and DiPalma

Date Introduced:
March 04, 2026

Referred To:
Senate Commerce
It is enacted by the General Assembly as follows:
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SECTION 1. Sections 5-93-2, 5-93-8 and 5-93-9 of the General Laws in Chapter 5-93
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entitled "Residential Solar Energy Disclosure and Homeowners Bill of Rights Act" are hereby
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amended to read as follows:
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5-93-2. Definitions.
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As used in this chapter:
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(1) "Catastrophic loss" means damage to a residential property that renders the structure
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uninhabitable and requires full reconstruction or replacement.
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(1)
(2)
“Customer” means a person who, for primarily personal, family, or household
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purposes:
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(i) Purchases a residential solar energy system under a system purchase agreement;
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(ii) Leases a residential solar energy system under a system lease agreement; or
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(iii) Purchases electricity under a power purchase agreement.
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(2)
(3)
“Department” means the department of business regulation.
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(3)
(4)
“Lease” means to transfer the right to possession and use of a residential solar energy
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system for a term to a customer on behalf of a solar retailer in return for monetary payment or
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consideration.
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(4)
(5)
“Power purchase agreement” means an agreement:
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(i) Between a customer and a solar retailer;

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(ii) For the customer’s purchase of electricity generated by a residential solar energy system
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owned by the solar retailer; and
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(iii) That provides for the customer to make payments over a term of at least five (5) years.
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(5)
(6)
“Residential solar energy system” means a solar energy system that:
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(i) Is installed in the state;
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(ii) Generates electricity primarily for on-site consumption for personal, family, or
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household purposes;
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(iii) Is situated on no more than four (4) units of residential real property;
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(iv) Has an electricity delivery capacity that exceeds one kilowatt; and
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(v) Does not include a generator that:
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(A) Produces electricity; and
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(B) Is intended for occasional use.
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(6)
(7)
“Sell” means to transfer a residential solar energy system to a customer on behalf of
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a solar retailer in return for monetary payment or other consideration.
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(7)
(8)
“Solar agreement” means a system purchase agreement, a system lease agreement,
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or a power purchase agreement.
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(8)
(9)
“Solar energy system” means a system or configuration of solar energy devices that
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collects and uses solar energy to generate electricity.
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(9)
(10)
“Solar retailer” means a person who:
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(i) Sells or proposes to sell a residential solar energy system to a customer under a system
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purchase agreement;
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(ii) Owns the residential solar energy system that is the subject of a system lease agreement
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or proposed system lease agreement; or
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(iii) Sells or proposes to sell electricity to a customer under a power purchase agreement.
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(10)
(11)
“Solicit” means offering or attempting to sell or lease a residential solar energy
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system to a person or requesting, urging, or attempting to persuade a person to purchase, lease, or
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apply for a particular kind of solar system from a particular solar retailer.
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(11)
(12)
“System lease agreement” means an agreement:
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(i) Under which a customer leases a residential solar energy system from a solar retailer;
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and
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(ii) That provides for the customer to make payments over a term of at least five (5) years
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for the lease of the residential solar energy system.
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(12)
(13)
“System purchase agreement” means an agreement under which a customer
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purchases a residential solar energy system from a solar retailer.

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5-93-8. Standard form addendum for system lease agreement.
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(a)
The standard disclosure form shall include an addendum that applies if a solar retailer
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is proposing to enter into a system lease agreement with a potential customer. The standard
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disclosure form will include details about the lease price and its associated escalator, if any.
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(b) Provided that, in the event of a catastrophic loss, the customer shall be discharged from
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their responsibility to make payment on the first lease payment installment date that follows the
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date of the catastrophic loss. This section shall not be construed to discharge the customer from
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making the total number of payments agreed to in the system lease agreement.
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(c) Pursuant to subsection (b) of this section the standard disclosure form shall include
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provisions informing the customer of the necessary procedure to temporarily suspend a lease
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payment in the event of a catastrophic loss, and that such a temporary suspension will result in an
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updated lease payment schedule, which will be provided to the customer by the solar retailer.
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(1) A customer shall provide the solar retailer with reasonable documentation of the
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property's destruction including, but not limited to, an insurance claim or fire department report in
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order to qualify for a temporary suspension of a lease payment as a result of catastrophic loss.
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(d) Subsections (b) and (c) of this section shall apply only to system lease agreements
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entered into after the effective date of this section.
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5-93-9. Standard disclosure form addendum for system purchase agreement.
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The standard disclosure form shall include an addendum that applies if a solar retailer is
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proposing to enter into a system purchase agreement with a potential customer. The system
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purchase addendum shall include:
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(1) The following statement: “You are entering into an agreement to purchase an energy
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generation system. You will own the system installed on your property. You may be entitled to
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federal tax credits because of the purchase. You should consult your tax advisor”;
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(2) A field for the price quoted to the potential customer for a cash purchase of the system;
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(3) Fields requiring:
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(i) The schedule of required and anticipated payments from the customer to the solar
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retailer and third parties over the term of the system purchase agreement, including application
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fees, up-front charges, down payment, scheduled payments under the system purchase agreement,
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payments at the end of the term of the system purchase agreement, payments for any operations or
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maintenance contract offered by or through the solar retailer in connection with the system purchase
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agreement, and payments for replacement of system components likely to require replacement
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before the end of the useful life of the system as a whole; and the total of all payments referred to
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in this subsection;

LC005855 - Page 3 of 5
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(ii) An itemized description of all additional fees or charges;
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(4) A statement indicating that the cost of insuring the system is not included within the
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schedule of payments under subsection (3);
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(5) A field to indicate whether the customer is responsible for insurance coverage. The
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field shall be accompanied by the statement: “If so indicated above, you are responsible for
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obtaining insurance coverage for any loss or damage to the system. You should consult an insurance
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professional to understand how to protect against the risk of loss or damage to the system. You
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should also consult your home insurer about the potential impact of installing a system.”;
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(i) Provided that, in the event of a catastrophic loss, the customer shall be discharged from
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their responsibility to make payment on the first lease payment installment date that follows the
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date of the catastrophic loss. This section shall not be construed to discharge the customer from
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making the total number of payments agreed to in the system lease agreement.
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(ii) Pursuant to subsection (i) of this section the standard disclosure form shall include
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provisions informing the customer of the necessary procedure to temporarily suspend a lease
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payment in the event of a catastrophic loss, and that such a temporary suspension will result in an
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updated lease payment schedule, which will be provided to the customer by the solar retailer.
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(A) A customer shall provide the solar retailer with reasonable documentation of the
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property's destruction including, but not limited to, an insurance claim or fire department report in
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order to qualify for a temporary suspension of a lease payment as a result of catastrophic loss.
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(6) Fields requiring information about whether the system may be transferred to a purchaser
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of the home or real property where the system is located and any conditions for a transfer;
and
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(7) A field requiring a detailed comparison of the costs of purchasing as compared to
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leasing the system
.
; and
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(8) Subsections (5)(i) and (5)(ii) of this section shall apply only to system purchase
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agreements entered into after the effective date of this section.
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SECTION 2. This act shall take effect upon passage.
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EXPLANATION
BY THE LEGISLATIVE COUNCIL
OF
A N A C T
RELATING TO BUSINESSES AND PROFESSIONS -- RESIDENTIAL SOLAR ENERGY
DISCLOSURE AND HOMEOWNERS BILL OF RIGHTS ACT
***
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This act would define a "catastrophic loss" to a residential property. It would allow a
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customer to be discharged from making the first payment following the date of a catastrophic loss.
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The solar customer would be required to provide the retailer with documentation of the loss in order
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to qualify for a temporary suspension of payments.
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This act would take effect upon passage.
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