Washington, D.C. – The Center for Responsible Lending released today Policy Recommendations for Rooftop Solar Financing, a report outlining how policymakers and regulators can enact reforms to ensure responsible rooftop solar installation and financing is available for all homeowners.

With the federal government recently scaling back oversight and enforcement of consumer protections, the report strongly urges states to take the lead in enforcing laws that protect consumers and create a fairer and more transparent market.

“Now more than ever, state action will play a critical role to restore trust and ensure the solar industry’s long-term success,” said Andrew Kushner, senior policy counsel at CRL and co-author of the report. “We urge policymakers and regulators to enact reforms to combat abusive practices that could harm the very communities that stand to benefit most.”

“Solar panels play a critical role in increasing access to clean energy,” said Anneliese Lederer, senior policy counsel at CRL and co-author of the report. “By enacting policies that require both transparency and truthfulness in solar financing, policymakers can help create a market that better benefits both consumers and lenders. CRL urges officials at both the state and federal level to consider enacting rules implementing the report’s recommendations.”

Key policy recommendations mentioned in the report include:

  • Require states to conduct a specific "ability to repay" analysis for solar loans, cap hidden “dealer fees” and ensure that any such fees actually reduce interest rates. Some lenders inflate the cash price of solar systems by 25% or more, adding undisclosed costs to loans.
  • Require accurate, good-faith estimates of energy production and savings, backed by enforceable guarantees for at least five years.
  • Require clear, written information about how tax credits work and their limitations for low- and moderate-income households.
  • Enforce existing consumer protection laws against fraudulent or high-pressure sales tactics, and ensure solar systems are installed by licensed professionals.

For more detailed state and federal policy recommendations, read the full report.

Additional Background

A previous report by CRL, The Shady Side of Solar System Financing, discusses how some unscrupulous lenders mislead consumers about the cost of solar financing products, often resulting in borrowers being saddled by unaffordable loans.

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Press Contact: Vincenza Previte vincenza.previte@responsiblelending.org