Nevada’s SB293 is Protection for Solar Customers
As the nation’s sixth largest solar market with more than 8,000 MW deployed in the state and more than 8,600 solar jobs, Nevada has enough solar deployed to power 1.3 million homes! With that much solar activity going on in the state, many companies are competing for your solar dollar, but as you’ve probably heard, not all of them are on the up-and-up.
The solar industry here in NV (and all over the US) has been dogged by bad press from solar contractors who have unhappy customers who feel they have been subject to deceptive sales practices and misleading promises about how the system will perform or what their power bill will be after solar. About 20 percent of the complaints filed to the Nevada State Contractors Board (NSCB) – the state agency that licenses and regulates contractors – deal with solar. It has become such a big part of what their investigators are looking into that NSCB recently launched a Solar Investigations Unit in June 2024.
On January 1, 2024, Nevada became the first state to enact strict guidelines on who can and cannot sell solar in the state as well as many other consumer protections for solar customers with SB293 going into effect. The law was passed in the 2023 NV Legislative Session. This law builds upon earlier protections in NRS Chapter 598.9801 to NRS 598.9822 – Deceptive Trade Practices.
How SB293 Protects Solar Customers
No more independent contractors.
Since solar really took off in Nevada in the 2010’s, the NV Bureau of Consumer Protection (BCP) has received a flood of consumer complaints regarding solar. A pattern to the complaints quickly emerged pointing to the often high pressure presentations of the many door-to-door solar sales representatives containing false claims or omissions of material fact that obscured the true price of the solar system, the amount of the expected after-solar bill from NV Energy, claims that the customer would never receive an after solar bill from NV Energy, or that tax credits or rebates would cover the cost of the system. Customers also frequently reported being told that they would “definitely receive the tax credit” which is only true IF the customer has federal income tax liability, among many other misleading statements made by these representatives.
When the disputes reached the BCP or the Nevada State Contractor’s Board, finger-pointing ensued between the sales organization or independent contractor who sold the system and the licensed contractor who was installing the system over who was responsible for misleading the customer. By then, these 1099 contractors had often left the state with their commission in hand to move on to the next “blitz” in another city. They were usually impossible to track down and hold accountable.
Under the new law, any independent contractors selling solar panels must hold a C-2 or C2-G electrical license issued by the Nevada State Contractor’s Board. If the seller does not have this license personally, they must be hired as W-2 employees of a person/company who holds the required license. Any independent contractor selling solar panels (i.e., a person providing a bid for or executing a contract to perform the work) without the required license cannot continue to be an independent contractor and must be hired as an employee on or before January 1, 2024. This also applies to any company advertising, soliciting, or offering to enter into an agreement concerning a solar system in Nevada.
This legislation bans 1099 independent contractors who sell solar systems door-to-door and “solar brokers” who sell solar for multiple companies based on whomever gave them the highest commission. This consumer protection aims to eliminate finger-pointing between the solar installer and the sales representative over who misled the customer by eliminating the ability of anyone who doesn’t work for the solar installer as a W-2 employee to sell a system in Nevada.
Enhanced Disclosure Requirements for solar contracts.
Under existing law, all solar contracts in the state of NV were required to list specific items on the cover page such as the system’s total cost, installation timeline, estimated monthly payment, estimated annual production and so on. SB293 adds the requirement to inform customers of Nevada’s 3-day Right to Rescind, notice of the new SB293 recorded call requirement, notice regarding offset and additional energy use added after solar is installed, and notice that the customer will have the opportunity to confirm that no other promises or representations were made outside the cover page to secure the sale. The solar contract and cover page must also be available in the consumer’s native language.
Recorded confirmation call before solar installation.
SB293 also seeks to resolve the difficulty in proving where and how a deceptive sales act occurred during a solar transaction. The new law requires solar companies to have a recorded conversation with the customer at the time of the execution of the solar contract (or within 48 hours after execution but before any installation commences) in which the solar representative verbally obtains confirmation of the customer’s identity, communicates each provision contained in the cover page, and obtains verbal confirmation that the customer understands each provision. This recorded conversation can take place in person, by telephone, or videoconference, and the solar company must maintain the recording for four years after the final solar inspection. The system cannot be installed until the recorded conversation is had. If the solar company does not obtain the recording or a written opt out from the customer, the transaction is voidable at the purchaser’s election. If a solar company violates this or any of the other provisions in SB293, the solar contract is voidable by the purchaser.
SB 293 aims to prevent deceptive representations by solar company representatives and false accusations by consumers, provide a mechanism for solar companies to accurately represent the products they are selling, and help consumers fully understand what they are purchasing. It also affords consumers a cancellation period for such an important purchase.
Contractors can face potential penalties for violations of the new law, including disciplinary action by the Nevada State Contractor’s Board, deceptive trade practice violations, administrative fines, criminal charges, and various monetary damages. Many factors, including the misclassification of workers as independent contractors, can quickly escalate legal issues, and penalties can become quite substantial.
This legislation is an essential step in protecting Nevada homeowners who decide to purchase solar. Although we have never had a single complaint filed against us in our 28 years of serving NV, we understand that not all companies act with integrity like we do. Robco started the solar division 14 years ago and has only had W-2 employees for solar sales. Today, we have six friendly and knowledgeable Solar Consultants ready to assist you with your transition to solar. Our solar installation crews are also all Robco Electric employees with full benefits. We do it all “in house” from start to finish and service long after the sale to ensure that your solar project is smooth and professional without any high pressure or misleading sales tactics. Our many 5-star reviews speak to our integrity, quality workmanship, exceptional customer service, and transparent and honest sales practices.
Click here to read more about SB293
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