Residential Solar Panel Retailers

Definitions

A residential solar energy system means a solar energy system that is installed in the state; generates electricity primarily for on-site consumption for personal, family, or household purposes; is situated on no more than four units of residential real property; and has an electricity delivery capacity that exceeds one kilowatt.

A residential solar energy system does not include a generator that produces electricity and is intended for occasional use. (Utah Code § 13-52-201(9))

An employee means an individual whose compensation for federal income tax purposes is reported, or is required to be reported, on a W-2 form that the employer issues.

An employee does not include an independent contractor whose manner and means of work performance are not subject to direction, supervision, or instruction from the person who employed the independent contractor. (Utah Code § 13-52-201(4))

A sales representative means an individual who: enters into a business relationship with a solar retailer to sell or attempt to sell a residential solar energy system through direct contact with customers and potential customers; and as part of the business relationship described in Subsection (10)(a), is compensated, in whole or in part, by commission; or sets appointments or discusses the benefits of solar energy with a potential customer on behalf of a solar retailer. (Utah Code § 13-52-201(10))

Registration Questions

Yes. The solar retailer shall update registration information within 30 days after the day on which information provided on the application becomes incorrect or incomplete. (Utah Code § 13-52-302(3)(c))

Additionally, if information in an application for registration or for renewal of registration materially changes or becomes incorrect or incomplete, the applicant or solar retailer shall, within 30 days after the information changes or becomes incomplete: submit to the Division the correct information; and submit to the Division a written explanation of the correction, including what information is being added, removed or modified. (Utah Admin. Code R152-52-4(3))

Yes. The Division can deny, suspend, or revoke a solar retailer’s registration if: a solar retailer or a solar retailer’s participant: violated a statute enforced by the Division within the preceding five years; or fails to pay a fine or comply with a term of settlement with the Division; the Division claims the solar retailer’s bond or certificate of deposit; or the Division receives ten or more complaints from consumers about the solar retailer related to the solar energy system’s energy production and finds substantial evidence that the solar retailer has provided good faith estimates for residential solar energy systems that do not produce 80% or more of the solar retailer’s estimated energy production. (Utah Code § 13-52-302(5))

A solar retailer shall submit the renewal no fewer than 30 days before its registration is due to expire. (Utah Admin. Code R152-52-4(4)

Security Requirement Questions

Yes. As part of the registration, a solar retailer shall submit proof of obtaining and maintaining security in a form approved by the Division. The two types of security are a performance bond issued by a surety authorized to transact surety business in this state; or a certificate of deposit in a financial institution authorized under the laws of this state or the United States to accept deposits from the public. (Utah Code § 13-52-302(2)(e))

Yes. For purposes of this section, damages incurred by a customer include: labor and materials necessary to complete the installation of a residential solar energy system that is partially installed; and damage to a customer’s home caused during installation or repair of the residential solar energy system. (Utah Code § 13-52-302(4)(a))

After the customer recovers full damages, the Division may recover from the bond or certificate of deposit any administrative fines, civil penalties, investigative costs, attorney fees, and other costs of collecting and distributing funds under this section. (Utah Code § 13-52-302(4)(b))

The security amount depends on the following circumstances:

The solar retailer shall post a bond or certificate of deposit in the amount of:

$100,000 if: the solar retailer or any affiliated person has not violated a chapter enforced by the division, as described in Section 13-2-1, the three-year periodimmediately before the day on which the solar retailer files the application; the solar retailer has fewer than ten employees; and the solar retailer sells fewer than 500 kilowatts nameplate capacity annually;
$200,000 if: the solar retailer or any affiliated person has not violated a chapter enforced by the division, as described in Section 13-2-1, the three-year period immediately before the day on which the solar retailer files the application; the solar retailer has ten or more employees; or the solar retailer sells more than 500 kilowatts nameplate capacity annually; or
$300,000 if the solar retailer or any affiliated person has violated a chapter enforced by the division, as described in Section 13-2-1, the three-year period

immediately before the day on which the solar retailer files the application.

(Utah Code § 13-52-302(4)(c)))