“To amend the Truth in Lending Act to require certain creditors to disclose dealer fees in solar financing transactions, and for other purposes.”
No CRS summary available for this bill.
This section states congressional findings regarding (1) the increasing installation of residential solar energy systems, including battery storage, to reduce electricity costs and provide power during outages; (2) the reliance on financing through loans or leases originated by third-party creditors and facilitated by installers; (3) the marketing of such financing by sales representatives or installers, sometimes with undisclosed dealer fees that inflate costs; (4) the improper use of the Seller’s Point exemption under Regulation Z to exclude dealer fees from finance charges; (5) the applicability of the Truth in Lending Act to creditors offering credit for solar systems; and (6) the need to clarify the Act’s requirements, ensure consistent treatment of dealer fees, and promote transparency in solar financing.
This section amends the Truth in Lending Act's definition of finance charge to include, in solar financing transactions, any seller’s points or other charges imposed by the creditor on a noncreditor seller for providing credit to the consumer or on certain terms. It further establishes disclosure requirements for creditors in solar financing transactions, including any fees charged to or payable by third parties, identification of third parties, and a comparison of the financed amount (including finance charges) to cash prices for products and services obtained; requires paper copies for in-person transactions; and prohibits arbitration or other nonjudicial dispute resolution clauses. (Solar financing transaction is defined as a consumer credit transaction to finance the purchase, installation, or associated costs of a solar energy system, including solar panels, inverters, battery storage systems, electric vehicle charging stations, and related infrastructure.)
This section sets the effective date of this Act and its amendments as not later than 60 days after enactment and limits applicability to solar financing transactions—as defined in new subsection (h) of section 106 of the Truth in Lending Act (15 U.S.C. 1605)—entered into on or after such date.