Consumer Protection & Solar Claims

Transcription

1 Consumer Protection & Solar Claims Rick Umoff Regulatory Counsel and Director, State Affairs Solar Energy Industries Association 2017 Solar Energy Industries Association

2 Why SEIA Action on Consumer Protection? Consumer protection (CP) is a top priority to SEIA Solar reached 1 million installations in 2016 after 40+ years, and the industry is expected to hit 2 million installations by 2018 and 4 million by 2022 Need for leadership in CP as industry grows Need for more specific tools & resources for consumers and companies Goal: Increase consumers and business understanding of solar and regulations November 1, Solar Energy Industries Association 2

3 Topics of Interest Savings claims RECs and green marketing claims Telemarketing practices and TSR and TCPA compliance Lead generation Deceptive marketing ( free solar, government programs ) Representations made by sales personnel High-pressure sales tactics associated with door-to-door sales Sales personnel training Consumer confusion (e.g., lease vs. owned) November 1, Solar Energy Industries Association 3

4 Existing Regulations and Regulators The solar industry is already highly regulated by federal, state, and local laws which have existed for decades. Every state in the nation has some form of deceptive trade practice, consumer protection, or consumer fraud act on the books. States look to federal laws, interpretations, and cases for guidance on consumer protection issues Consumer protection regulators include the FTC, State AGs, FCC, and Contractors Board Topic Advertisements and product/service claims Door-to-Door Sales Telemarketing and robocalls Contract terms, language, formatting, etc. Loan agreements Warranties Construction Law(s) FTC Act, Lanham Act, State false and deceptive advertising laws FTC Act, State laws on home solicitations Telephone Consumer Protection Act, FTC Do- Not-Call rules, Truth in Caller ID Act, State telemarketing laws FTC Act, Consumer Leasing Act, State contract laws (e.g., Home Improvement Contracts) Truth in Lending Act Magnuson Moss Warranty Act State contractor registration and local inspection rules November 1, Solar Energy Industries Association 4

5 Examples of Government Activity State(s) Activity Summary and Examples New York Florida, Nevada and New Mexico Illinois Texas Federal Regulatory Proceeding Legislation Regulatory Proceeding AG Enforcement Action FTC Enforcement Action Examine existing consumer protections and whether to impose additional rules on contractors as part of the REV proceeding Disclosure forms must accompany residential solar contracts Examine existing consumer protections and whether additional rules are necessary for the state s renewables procurement program In one case, the Attorney General s office took action against a solar panel manufacturer for labeling Chinese panels as Made in the USA Topics of relevant cases from other industries: 1) unsubstantiated energy savings claims; 2) falsely claiming to be from the government or utility; 3) key terms hidden in small font or obscure locations; 4) spamming consumers with robocalls Mississippi Education Published a consumer guide on going solar November 1, Solar Energy Industries Association 5

6 Advertising Considerations Truthful and non-deceptive? Can you support your claims? Factual claims vs. Puffery Reasonable basis Omissions and disclaimers can make a claim misleading Think about how a consumer may reasonably interpret a claim You are responsible for third-parties that you hire When in doubt, think about the golden rule! Would you be happy if someone said the same thing to you or your family/friends?

7 Telemarketing Telemarketing calls are highly regulated Calls to cellphones typically need prior consent from the consumer Robocalls need prior written consent Must respect a consumer s wish to cease future calls Fines can be over $500 per call with no limit on penalties!

8 SEIA Consumer Protection Resources All available for free at Consumer Resources SEIA Residential Consumer Guide to Solar Power (Spanish Version available) Residential Consumer Guide to Community Solar SEIA Solar Disclosure Forms for leases, PPAs, and purchases SEIA Guide to Land Leases for Solar Industry Resources SEIA Solar Business Code Industry updates on relevant consumer protection topics Model contracts for residential leases and PPAs Compliance guides Webinars and Conferences November 1, Solar Energy Industries Association 8

9 Consumer Guides to Residential and Community Solar Goal: make 'going solar' as effortless and streamlined as possible for informed consumers Financing options available Important contracting terms Questions to ask yourself before you begin to go solar Questions to ask solar installers (e.g., are RECs transferred?) Spanish version is available Community Solar version is available November 1, Solar Energy Industries Association 9

10 Language re: REC Ownership and Green Claims Understand Renewable Energy Certificates (RECs) RECs or SRECs (Solar Renewable Energy Certificates) are tradeable tags representing the renewable qualities of the electricity your solar system generates and are used to track the use of renewable energy from solar systems. If you own RECs or the RECs are retired on your behalf, you can claim you use solar or renewable electricity from the system. Selling or transferring your RECs can help lower the cost of your system, but you lose the ability to make renewable or similar claims about your home. Check your contract to see who will own the RECs. It s a new topic for residential consumers and solar companies should explain RECs and REC ownership to you. FAQ s Who will keep the RECs generated by the system? Will you retire the RECs on my behalf? Can you explain how RECs work in my situation? If I don t keep the RECs, is there an option to purchase the RECs? If not, what can I say about my home? If I want to sell my home and don t own the RECs, how can I describe my home to potential buyers? Can you explain how RECs apply to my transaction/situation? I want to sell or transfer my subscription and don t own the RECs, how can I describe my interest to interested persons? November 1, Solar Energy Industries Association 10

11 SEIA Solar Business Code Foundation of our consumer protection efforts First national business code for the solar industry All members of SEIA agree to abide by the Code by terms of their membership Designed to fundamentally increase consumer understanding in solar power transactions Adopted by CCSA and state afffiliates Some topics covered: Production Calculations Savings Claims Sponsorship RECs November 1, Solar Energy Industries Association 11

12 Language re: RECs and Green Claims 5.12 Renewable Energy Certificate ( REC ) ownership is a Material Term in a solar contract, regardless of ownership structure (e.g., purchase, lease, power purchase agreement) RECs may not be double counted. If a Company sells a REC, after the sale, it may no longer count the sold REC towards any REC or clean energy requirements, renewable portfolio standard requirements, greenhouse gas emission requirements, or similar government, utility or voluntary compliance, incentive or similar program Many Consumers are unfamiliar with RECs and their characteristics. In a solar transaction in a state in which a REC market exists; in a state in which a Company mentions RECs or implies their value in calculations in any advertisement or promotional material; where RECs are included in the contract, sales materials, calculations of cost or value; in which Company discusses RECs with Consumer; or in which Consumer asks about RECs; The Company must take steps to educate its Consumer about RECs, including providing the Consumer with a copy of or link to the following publication or a similarly informative publication: Guidelines for Renewable Energy Claims: Guidance for Consumers and Electricity Providers, Center for Resource Solutions (Feb. 26, 2015) 5.15 If an agreement assigns RECs to a Company instead of a Consumer, the Company should explain to the Consumer that: The Consumer does not have the right to trade or sell RECs from the solar system The Consumer is hosting a solar system that generates clean energy, but a third-party, not the Consumer, owns the right to claim the clean energy attributes for such energy The Company may state to the Consumer that sells its RECs that, by purchasing, leasing or hosting a solar system, the Consumer is helping advance solar energy in the United States, or similar broad policy or market statements. November 1, Solar Energy Industries Association 12

13 Disclosure Forms Snapshot of the key terms in an agreement Help consumers understand an agreement and compare offers Help companies engage with consumers Available for purchases, PPAs, and leases Commitment from major companies to use the forms November 1, Solar Energy Industries Association 13

14 Language re: REC Ownership and Green Claims November 1, Solar Energy Industries Association 14

15 Consumer Complaint Process Consumer complaints sent to SEIA Depending on the type of complaint, SEIA will refer the matter to the appropriate government agency for review. SEIA process all consumer complaints through its complaint resolution process. SEIA will attempt to resolve with the solar company and the consumer. November 1, Solar Energy Industries Association 15

16 Thank You! Questions? For more information, contact SEIA at: Tom Kimbis, EVP & General Counsel: Amir Yazdi, Assistant General Counsel: All materials available for free on November 1, Solar Energy Industries Association 16