[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4489 Introduced in House (IH)]
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119th CONGRESS
1st Session
H. R. 4489
To amend the Truth in Lending Act to require certain creditors to
disclose dealer fees in solar financing transactions, and for other
purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
July 17, 2025
Mr. Castro of Texas (for himself and Ms. Norton) introduced the
following bill; which was referred to the Committee on Financial
Services
_______________________________________________________________________
A BILL
To amend the Truth in Lending Act to require certain creditors to
disclose dealer fees in solar financing transactions, and for other
purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Sunshine on Solar Lending Act''.
SEC. 2. FINDINGS.
Congress finds the following:
(1) Homeowners are increasingly installing solar energy
systems, including battery storage systems and other related
systems, to reduce electricity costs and maintain power during
grid outages.
(2) The high upfront cost of purchasing and installing
solar energy systems often requires consumers to obtain
financing, typically through loans or leases facilitated by
solar installers and originated by third-party creditors.
(3) Solar financing arrangements are frequently marketed by
third-party sales representatives or installers who partner
with creditors to offer loans at the point of sale. In some
cases, these arrangements include dealer fees that are not
clearly disclosed to consumers, leading to inflated financing
costs and a lack of transparency regarding the true cost of
credit.
(4) The ``Seller's Point'' exemption under Regulation Z is
sometimes improperly used to exclude dealer fees from the
calculation of the finance charge in solar financing
transactions. The use of this exemption has led to confusion
and inconsistent treatment of such fees, particularly in
transactions involving third-party financing and indirect
compensation structures.
(5) The Truth in Lending Act applies to creditors, as
defined in the Act, that offer or extend credit for solar
energy systems. All such creditors are required to comply with
the disclosure and consumer protection provisions of the Act.
(6) This Act is necessary to clarify and reinforce the
application of the Truth in Lending Act to solar financing
transactions, ensure consistent treatment of dealer fees as
finance charges where applicable, and promote transparency and
accountability in credit transactions related to solar energy
systems.
SEC. 3. DISCLOSURE OF DEALER FEES IN SOLAR FINANCING TRANSACTIONS.
Section 106 of the Truth in Lending Act (15 U.S.C. 1605) is
amended--
(1) in subsection (a), by adding at the end the following:
``(7) in any consumer credit transaction for solar
financing, as defined in subsection (h), any seller's points or
other charges imposed by the creditor upon a noncreditor seller
for providing credit to the consumer or for providing credit on
certain terms.''; and
(2) by adding at the end the following:
``(g) Disclosure of Dealer Fees for Solar Financing Transactions.--
``(1) In general.--A creditor for a solar financing
transaction shall clearly and conspicuously disclose in writing
to the consumer--
``(A) any fee charged to a third party by the
creditor relating to the solar financing transaction;
``(B) any fee imposed directly or indirectly by the
creditor or a third party, that is payable directly or
indirectly by the consumer, relating to the solar
financing transaction;
``(C) the identification of any third party that is
a party to the solar financing transaction; and
``(D) a comparison of the amount financed by the
solar financing transaction, including the amount of
any finance charges with--
``(i) the total cash price for each product
obtained by the consumer through the solar
financing transaction, including infrastructure
and labor costs; and
``(ii) the total cash price for each
service obtained by the consumer through the
solar financing transaction, including
maintenance and repair costs.
``(2) In-person transactions.--With respect to a solar
financing transaction negotiated (in part or in whole) with the
consumer in person, a creditor or third party (as applicable)
shall provide the consumer with a paper copy of the disclosures
described in paragraph (1).
``(3) Arbitration.--A solar financing transaction may not
include terms which require arbitration or any other
nonjudicial procedure as the method for resolving any
controversy or settling any claims arising out of the
transaction.
``(h) Solar Financing Transaction Defined.--In this section, the
term `solar financing transaction' means a consumer credit transaction
to finance the purchase, installation, or associated costs of a solar
energy system, including solar panels, inverters, battery storage
systems, electric vehicle charging stations, and any related
infrastructure required for the operation of such solar energy
system.''.
SEC. 4. EFFECTIVE DATE; APPLICABILITY.
This Act and the amendments made by this Act shall take effect not
later than 60 days after the date of the enactment of this Act and
shall apply with respect to a solar financing transaction (as defined
in subsection (h) of section 106 of the Truth in Lending Act (15 U.S.C.
1605), as added by this Act) entered into on or after such effective
date.
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