UPCOMING REQUIREMENT FOR RESIDENTIAL SOLAR ENERGY SYSTEM CONTRACTS

Business and Professions Code (BPC) section 7169, which became effective January of this year,
requires that the Contractors State License Board (CSLB), in collaboration with the Public Utilities
Commission (PUC), develop and make a solar energy system disclosure document available on its
website on or before July 1, 2018.

Solar energy system companies must provide the “Solar Energy System Disclosure Document” to
consumers prior to the completion of a sale, financing, or lease of a residential solar energy system.
The disclosure document and contract must be written in the same language principally used in the
sales presentation or marketing material given to the consumer. Proposed drafts of the disclosure
document are available here in English and Spanish. Contractors must translate the document into other
languages, as necessary.

If the sale of the solar energy system utilizes Property Assessed Clean Energy (PACE) financing, the
PACE Financing Estimate and Disclosure form may be used in place of the new disclosure document. The
required elements of the PACE form can be found here.

PUC has not yet taken action on the Solar Energy System Disclosure Document but is expected to do
so before the end of 2018. CSLB will post notification on its website when that occurs and when CSLB
expects contractors to comply with this requirement.