In 2017, the California Legislature passed a bill that resulted in Business and Professions Code (BPC) section 7169, which ultimately would require Home Improvement Contractors, which include contractors that install solar systems on residences, to issue specific disclosures to any residential consumers who may want to purchase, finance or lease, and install a solar system on their property. Recently in August, the California Public Utilities Commission “endorse[d] the solar energy systems disclosure document as being compliant with [BPC section 7169]….” The Disclosure terms include:

  • The total cost for the solar system, including financing and energy/power costs (if applicable);
  • The statutory License Board Disclosure statement for contractors and / or the home improvement salesperson who sold the system information regarding with whom to file if there are complaints; and
  • The statutory Three-Day Right to Cancel Disclosure if the contract is not negotiated at the contractor’s place of business.

The disclosure document can be found here:

This new disclosure is in addition to existing required contractor disclosures for Home Improvement Projects, as well as licensing requirements, and also adds to the Property Assessed Clean Energy (PACE) disclosure requirements in California law related to contractor licensing and financing under PACE (which can be found here:

While the mandatory disclosure form is important, several aspects of the statutory obligations under BPC section 7169 must be understood by the contractor as well, such as:

  • Where the disclosure must be placed in the contract, the font and the font size; and
  • Language and translation obligations of the form for the consumer by the contractor.

Finally, BPC section 7169 included additional disclosure obligations which are being developed and reviewed by the Contractors State License Board, and will be subject to public comment prior to final implementation.