225 C.M.R. 28.12 – Consumer Protection

(1) Unfair Methods of Competition and Unfair or Deceptive Acts or Practices. Unfair methods of competition and unfair or deceptive acts or practices regarding an STGU or the SMART 3.0 Program, as addressed under M.G.L. c. 93A, § 2, 940 CMR 3.00: General Regulations, and 940 CMR 19.00: Retail Marketing and Sale of Electricity, are prohibited under 225 CMR 28.00. Additionally, Applicants, Owners, and Authorized Agents under 225 CMR 28.00 are required to follow all applicable provisions of 225 CMR 28.00 and state and federal laws, including M.G.L. c. 93A, § 2.
(2) Department Monitoring. Applicants, Owners, and Authorized Agents shall comply with all requirements of 225 CMR 28.00, including 225 CMR 28.12(1). The Department may consult with other state entities, Municipalities, governmental bodies, or other parties to ensure such requirements are met. The Department may conduct audits by requesting information from the Applicants of STGUs pursuant to 225 CMR 28.16 to ensure compliance with 225 CMR 28.12(1) and all other provisions of 225 CMR 28.00. The Department may contract with third parties to assist with such audits.
(3) Enforcement. If the Department determines that an Applicant, Owner, or Authorized Agent has violated 225 CMR 28.12(1) or not complied with the requirements of an audit under 225 CMR 28.12(2), the Department may take non-compliance actions pursuant to 225 CMR 28.17. The Department may temporarily suspend all STGU Statements of Qualification or Compensation Rate Adders submitted by an Applicant, Owners, or Authorized Agent during the pendency of an audit if the Department determines there is a reasonable likelihood that 225 CMR 28.00 has been violated and that the violation poses a risk of ongoing harm to the ratepayers of the Commonwealth, Owners, or Customers of Record.
(4) Customer Disclosure Forms for Community Shared STGUs. Community Shared STGUs shall provide consumer information in a form and manner as prescribed by the Department, including, but not limited to, proper sizing to achieve customer benefits, contract pricing for the length of the agreement, complete system cost information, operation and maintenance responsibilities, disposition of associated RECs and tariff terms, and anticipated production. Such disclosure shall contain a statement that bill impacts may fluctuate from month to month and that customers are at risk of possible bill increases. Such disclosure shall be provided to the consumer prior to entering into any contract for Community Shared STGU services.
(5) Customer Disclosure Forms for STGUs 25 kW or Less. A provider of STGUs 25 kW or less shall provide consumer information in a form and manner as prescribed by the Department, including, but not limited to, contract pricing for the length of the agreement, complete system cost information, operation and maintenance responsibilities, disposition of associated RECs and tariff terms, and anticipated production. Such disclosure shall be provided to the consumer prior to entering into any contract for any such STGU.
(6) Contract Requirements for STGUs 25 kW or Less. Contracts executed for STGUs 25 kW or less shall meet the following requirements.
1. (a) Parties. The contract shall be between the Primary Installer and the Customer of Record. For an STGU for which the Owner is a Third-party Owner and the Primary Installer is a subcontractor to the Owner, an executed contract between the Owner and the Primary Installer and an executed contract between the Owner and Customer of Record shall be provided.
2. (b) Application Preparation Responsibilities. The contract shall identify a project manager, and shall include Statement of Qualification Application preparation, equipment procurement and installation, site preparation, permitting and interconnection support, Statement of Qualification Application completion paperwork, training, operations and maintenance, and compliance with all applicable state and local laws.
3. (c) Budget. The contract shall include a budget that identifies key project components and a timeline and corresponding payment schedule for installation of the project.
4. (d) Contract Service. Contract Service shall include responsibility for the Statement of Qualification Application process including submittal of authorization to interconnect, securing required permits and engineering approvals, installation of the project, scheduling and participation in all required inspections, and providing warranty services, as required.
(7) Special Contract Requirements. Contracts for the below specified STGU types shall contain the following requirements in addition to the applicable provisions of 225 CMR 28.12(6).
1. (a) Residential Direct Ownership Contract Requirements.
  1. 1. A wet signature or signature using an electronic signature software from the Owner;
  2. 2. A right of recission within three or more Business Days;
  3. 3. The annual degradation and estimated first year production for the STGU;
  4. 4. The allocation of maintenance obligations between the Owner and the Applicant or Primary Installer;
  5. 5. The Owner's remedy for maintenance/service in case of Applicant or Primary Installer bankruptcy.
2. (b) Residential Third-party Ownership Contract Requirements.
  1. 1. A wet signature or signature using an electronic signature software from the Customer of Record;
  2. 2. Pricing Terms and length of Power Purchase Agreement;
  3. 3. Explanation of Power Purchase Agreement term renewal;
  4. 4. Explanation of any early termination fees;
  5. 5. Terms for system removal upon Solar Contract termination;
  6. 6. Explanation of purchase option and economic terms for purchase;
  7. 7. The Owner's rights and obligations upon selling the property where the STGU is sited; and
  8. 8. Allocation of risk of loss in case of damage to system.
3. (c) Community Shared Solar Contract Requirements.
  1. 1. A wet signature or signature using an electronic signature software from the Customer of Record;
  2. 2. Terms under which pricing will be calculated over life of the Solar Contract;
  3. 3. Explanation of billing procedures, subscription sizing, historic household usage evaluation, and impacts to utility bill;
  4. 4. All possible fees or charges under the Solar Contract;
  5. 5. Terms and conditions for early termination on the part of the customer, Applicant, and Primary Installer;
  6. 6. In the case of early termination on the part of the customer, the termination shall be processed and effective within 60 days;
  7. 7. Explanation of contract renewal terms and procedures;
  8. 8. Transferability of community solar subscription; and
  9. 9. Early termination fees shall not be included in the Solar Contract.