Congressman Castro Introduces Sunshine on Solar Lending Act to Provide Transparency and Lower Costs for Consumers
WASHINGTON, D.C. — Today, Congressman Joaquin Castro (TX-20) and Congresswoman Eleanor Holmes Norton (DC-AL) introduced the Sunshine on Solar Lending Act, legislation that protects consumers from loopholes lenders use in solar financing arrangements, resulting in inflated costs, deceptive practices, and financial harm to families seeking to go solar.
The introduction comes after reports of lenders in the residential solar financing industry hiding substantial “dealer fees” that increase the cost of credit to unsuspecting homeowners. Investigations in Texas revealed that solar lenders add 10 to 30 percent in these fees to the loan balance, without clearly informing consumers.
“As more folks consider going solar, a consistent and safe system is needed to eliminate deceptive practices," said Congressman Castro. “The Sunshine on Solar Lending Act fills current gaps and protects those considering purchasing a solar system and signing a loan. This legislation will empower consumers and protect them from hidden charges that lead to financial harm.”
"Solar panels help consumers reduce their carbon footprints and save money on energy bills, but deceptive lending practices will inevitably lead to fewer Americans embracing this green technology," Congresswoman Norton said. "Consumers deserve transparency in solar lending practices, and the reforms in the Sunshine on Solar Lending Act will help ensure that Americans interested in purchasing solar systems can do so without being taken advantage of by deceptive lending practices."
"Solar power is an important tool for energy independence, decreasing greenhouse gas pollution, and mitigating climate financial risk," said Jessica Garcia, senior policy analyst at Americans for Financial Reform. "Representative Castro's bill is responsive to the need for more transparent and fair financial contracts for households seeking solar panels."
"As homeowners turn to solar panels and other home improvements to embrace potential energy savings, unscrupulous lending practices and shady sales tactics increasingly have hijacked their experience,” said Christine Hines, senior policy director at the National Association of Consumer Advocates. “Rep. Castro’s timely legislation will expose hidden fees and finance charges in solar financing and ensure that ripped-off consumers are empowered to hold violators accountable.”
"Homeowners purchasing rooftop solar face fraudulent and abusive sales," said Alys Cohen, director of Federal Housing Advocacy at the National Consumer Law Center. "This bill will help families understand the solar deals they are getting and protect them from hidden fees and surprise costs. It will also ensure they have help when they face problems with their solar purchase."
The Sunshine on Solar Lending Act:
- Closes a loophole that allows lenders to hide substantial “dealer fees” in solar financing arrangements.
- Ensures that all costs including dealer fees are clearly disclosed to consumers before they commit to purchasing a solar system and signing a loan.
- Allows harmed consumers to seek justice in court by prohibiting forced arbitration clauses in solar finance contracts.
- Mandates clear, written disclosures including paper copies for in-person sales.
- Empowers consumers to make informed decisions by comparing loan-financed costs with cash prices.
The bill is endorsed by the Americans for Financial Reform (AFR), the National Association of Consumer Advocates (NACA), and the National Consumer Law Center (NCLC) on behalf of its low-income clients.
The full text of the Sunshine on Solar Lending Act can be found here.
Congressman Castro is committed to protecting consumers who purchase solar panels. San Antonio residents who are facing issues with the solar financing industry are encouraged to get in touch with his District Office by calling 210-348-8216.