Increased advocacy for robust financial safeguards in solar panel loans for homeowners

Center for Responsible Lending Advocates for Stronger Consumer Protections in Rooftop Solar Financing

The Center for Responsible Lending (CRL) has released a new report, urging policymakers and regulators to enact reforms to combat abusive practices in the rooftop solar industry. The goal of these recommendations is to ensure fair access to rooftop solar for low- and moderate-income homeowners, protect families, particularly those in vulnerable communities, and secure the industry's long-term success.

According to the report, abusive practices in the rooftop solar industry could harm homeowners and threaten the industry's long-term success. Such practices can inflate solar system prices by 25 percent or more, as CRL's earlier study suggests.

To address these concerns, the report recommends several measures. Installations must be done by licensed professionals, and solar panel financing needs transparency and truthfulness. The report calls for enforcing consumer protection laws against fraudulent or high-pressure sales tactics.

Mandatory clear, written explanations of tax credits and their limitations, especially for low- and moderate-income households, are also recommended. The report urges policymakers and regulators to provide accurate, good-faith estimates of energy production and savings, guaranteed for at least five years.

The report further suggests enforcing an "ability to repay" analysis for solar loans and capping hidden dealer fees in solar financing. It also advocates for providing accurate information about true costs in solar system financing and combating practices that mislead consumers about these costs.

The reforms suggested in the report aim to protect families and restore trust in the solar industry. Andrew Kushner, senior policy counsel at CRL and co-author of the report, emphasizes the importance of state action to ensure the solar industry's long-term success.

However, there is no publicly available information indicating that any U.S. states have implemented the Center for Responsible Lending's recommended reforms for fairer and more transparent solar financing in the past months. None of the recent documents or sources mention specific states adopting these reforms.

The report urges policymakers and regulators to take action, particularly at the state level, due to the federal government scaling back oversight. CRL's policy recommendations include limits on hidden fees, enforceable savings guarantees, and stricter sales protections in rooftop solar financing.

In conclusion, the Center for Responsible Lending's report underscores the need for stronger consumer protections in the rooftop solar industry. By implementing these recommendations, policymakers and regulators can ensure fair access to rooftop solar for all homeowners and secure the industry's long-term success.