Findings

Congress finds the following: (1) Homeowners are increasingly installing solar energy systems, including battery storage systems and other related systems, to reduce electricity costs and maintain power during grid outages. (2) The high upfront cost of purchasing and installing solar energy systems often requires consumers to obtain financing, typically through loans or leases facilitated by solar installers and originated by third-party creditors. (3) Solar financing arrangements are frequently marketed by third-party sales representatives or installers who partner with creditors to offer loans at the point of sale. In some cases, these arrangements include dealer fees that are not clearly disclosed to consumers, leading to inflated financing costs and a lack of transparency regarding the true cost of credit. (4) The Seller’s Point exemption under Regulation Z is sometimes improperly used to exclude dealer fees from the calculation of the finance charge in solar financing transactions. The use of this exemption has led to confusion and inconsistent treatment of such fees, particularly in transactions involving third-party financing and indirect compensation structures. (5) The Truth in Lending Act applies to creditors, as defined in the Act, that offer or extend credit for solar energy systems. All such creditors are required to comply with the disclosure and consumer protection provisions of the Act. (6) This Act is necessary to clarify and reinforce the application of the Truth in Lending Act to solar financing transactions, ensure consistent treatment of dealer fees as finance charges where applicable, and promote transparency and accountability in credit transactions related to solar energy systems.