New York Sets Up Stronger Consumer Protection in Growing Community Solar Market

The New York State Public Service Commission capped early termination fees for community distributed generation project members and mandated production guarantees for on-site mass-market solar projects as well as clear disclosure of escalation clauses in contracts between customers and developers, according to a March 14 press release.

• Termination fees for distributed generation projects will be capped at $200. Additionally, termination fees must be waived where the customer provides appropriate notice and finds a replacement.
• The new rules also require that a production guarantee must be included in the contract for any project where the customer pays a fixed amount regardless of actual generation. This guarantee ensures the installer’s commitment that the project’s design is accurate.
• In October 2017, the commission issued an order adopting rules, requirements, and business practices for distributed energy companies to protect customers and prevent false promises, exploitative and predatory pricing, and other deceptive or intentionally confusing behavior in marketing to residential customers and small businesses. These are contained in the Uniform Business Practices for Distributed Energy Resource Suppliers (UBP-DERS)
• The rulebook applies to companies that provide residential rooftop solar systems, on-site generating systems for small business, large community-solar projects and other community systems.