This bill will regulate the business practices of solar sales companies in Colorado and protect consumers through required disclosures, cancellation rights, and enforcement mechanisms.
Definition of a Solar Sales Company - Applies to any entity that:
Sells, leases, or enters into a power purchase agreement (PPA) for residential solar systems or battery storage
Acts as a community solar garden subscriber organization
Consumer Agreement Requirements
Solar sales companies must provide clear disclosures at the time of agreement. Agreements must include payment terms, company contact information, and consumer cancellation rights. The agreements must be retained for at least 4 years.
Consumer data privacy must comply with existing state laws
Consumer Cancellation Rights
Consumers have a minimum 3 business day cancellation period. There is no penalty except for nonrefundable deposits.
The cancellation period is paused until a required welcome call is completed
Welcome Call Requirement must be conducted by the solar sales company:
By phone, in person, or via video conference
Must include required disclosures
Must be recorded and retained
Financing and Marketing Regulations
Financing documents must include specific consumer protections
Companies may not use names, logos, or imagery of public utilities, cooperative electric associations, and municipal utilities unless explicitly authorized.
Companies must provide installation and workmanship warranties for residential solar systems
Investor-Owned Utility (IOU) Obligations
If IOUs offer solar incentives, they must provide clear information about those programs to customers
Enforcement
Violations are considered deceptive trade practices under the Colorado Consumer Protection Act
Effective Date
Applies to all consumer agreements entered into on or after December 31, 2025
Overall Effect
Establishes strong consumer protections and transparency requirements in the residential solar market
Limits misleading sales practices and strengthens consumer rights around cancellation, privacy, and warranties
Aligns solar sales practices with Colorado’s existing consumer protection framework
Summary
The bill defines a solar sales company as an entity that: •
Transacts with a consumer to sell, or negotiate or execute a contract for the sale of, a residential solar electric system or residential battery energy storage system (system);
•
Transacts with a consumer to lease or enter into a power purchase agreement for a system; or •
Is a community solar garden subscriber organization.
The bill requires a solar sales company to provide to a consumer
certain disclosures when entering into an agreement with the consumer for the purchase or lease of a system, a power purchase agreement for a system, or a community solar garden subscription (agreement). The bill also specifies the terms that an agreement must contain, including payment terms and contact information for the solar sales company. A solar sales company is required to retain a copy of a signed agreement for at least 4 years after the date the agreement is entered into. The personal information of a consumer must be maintained consistent with applicable data privacy laws.
In the event of a sale of a system, the consumer has at least 3
business days after the date of the transaction to cancel the agreement without financial penalty, besides any nonrefundable deposits. The bill requires a solar sales company to conduct a welcome call with the consumer, either telephonically, in person, or through video conference. The welcome call must include certain disclosures and be recorded and retained by the solar sales company. The consumer's 3-day cancellation period is tolled until the welcome call is conducted. The bill describes the terms that any financing documents must contain if the purchase of a system is financed.
The bill sets forth requirements for a salesperson of a solar sales
company and prohibits a solar sales company from using written or digital sales materials with names, logos, pictures, or other indicia of association with a public utility, cooperative electric association, or municipal utility, unless the solar sales company has received authorization from the relevant utility to do so.
The bill requires a solar sales company to provide certain
warranties for the installation and workmanship of a residential solar electric system.
Lastly, the bill requires an investor-owned utility that offers
financial incentives for a system to provide certain information about the offered incentives to customers.
A violation of the requirements of the bill is enforceable as a
deceptive trade practice under the Colorado Consumer Protection Act. The bill's requirements apply to agreements between a solar sales company and a consumer that are entered into on or after December 31, 2025.
