Consumer Protection: Empowering Companies...

Consumer Protection: Empowering Companies with

Knowledge

Amir Yazdi, Solar Energy Industries Association

Nick Hylla, Midwest Renewable Energy Association

Jarrod Loadholt, SolarCity

Consumer Protection: Empowering Companies

with Knowledge

Amir Yazdi, Assistant General Counsel

Why SEIA Action on Consumer Protection?

• Consumer protection (CP) is a top priority to SEIA

– Solar reached 1 million installations after 40+ years, and the next 1

million will come in 24 months

– Industry success depends on consumers having great experiences

– Need for leadership in CP as industry grows

– Need for more specific tools & resources for companies and

consumers

• Increase consumers’ understanding of solar transactions.

• Ensure a level playing field for companies.

• We need you and your company to recognize these issues!

Consumer protection must work in the field, not just on slides or

conferences….

November 14, 2016© 2015 Solar Energy Industries

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SEIA Consumer Protection Committee


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Mission

• To improve consumer understanding of the solar

transaction

Key audiences: consumers, industry,

government, and media

• Increase their understanding of solar energy

transactions

• Inform them of solar technical capabilities, and

characteristics

• While maintaining a pro-growth, pro-competitive

stance

Members

• National developers to regional installers

Considerations for Companies

• Topics

– Advertising

– Marketing

– Contracts

• What can I do?

• Where can I learn more?


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Educational Materials

• All available for free at www.seia.org/consumers

• Industry Resources

– SEIA Solar Business Code and Complaint Resolution Process

– Industry updates on relevant consumer protection topics

– Model contracts for residential leases and PPAs

– Compliance tools

– Webinars

• Customer Resources

– SEIA Residential Consumer Guide to Solar Power

– Residential Consumer Guide to Community Solar

– SEIA Solar Disclosure Forms for leases and PPAs


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http://www.seia.org/consumers


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• Goal: make 'going solar' as

effortless and streamlined as

possible for informed consumers

• Financing options available

• Important contracting terms

• Questions to ask yourself before

you begin to go solar

• Questions to ask solar installers


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• Snapshot of the key terms in

an agreement

• Help consumers understand

an agreement and compare

offers

• Help you engage with

consumers

• Versions for lease and PPAs

are available

• Version for system

purchases in development

• Commitment from major

companies to use the forms

by the end of the year

What Can I Do to Help?

• All materials available at www.seia.org/consumers

– Review the free materials on SEIA’s website

– Get the free materials into consumers’ hands

• Consider importance of consumer protection, its implication on your business &

our industry

• Let others know you’re following the Solar Business Code, and that they should

too

• Educate your employees about consumer protection – some of the best in

business are doing right now

• Contact us with any questions

– Amir Yazdi, [email protected]

– [email protected]


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http://www.seia.org/consumers

mailto:[email protected]



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Polling Question


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Consumer Protection: Empowering Consumers with Knowledge

Jarrod F. Loadholt

Consumer Compliance Counsel

November 2016

Forward-Looking Statements

This presentation contains forward-looking statements that involve risks and uncertainties, including statements regarding SolarCity’s customer and market growth opportunities; SolarCity’s operational growth and expansion; projections regarding the overall solar industry’s growth and expansion; SolarCity’s expectations regarding the Riverbend agreement and the development, construction and operations of the Riverbend facility; and assumptions relating to the foregoing.

Forward-looking statements should not be read as a guarantee of future performance or results, and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved, if at all. Forward-looking statements are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements. In order to meet our projections, we will need to expand our workforce and raise significant additional capital. Additional key risks and uncertainties include the level of demand for our solar energy systems, the availability of a sufficient, timely, and cost-effective supply of solar panels and balance of system components, our ability to successfully integrate acquired businesses, operations and personnel, our ability to achieve manufacturing economies of scale and associated cost reductions, our expectations regarding the Riverbend agreement and the development and construction of the Riverbend facility, including expected capital and operating expenses and the performance of our manufacturing operations, the effect of electric utility industry regulations, net metering and related policies, the availability and amount of rebates, tax credits, and other financial incentives, the effects of future tariffs and other trade barriers, changes in federal tax treatment, the effect of electric utility industry regulations, net metering and related policies, the availability and amount of rebates, tax credits and other financial incentives, the availability and amount of financing from fund investors, the retail price of utility-generated electricity or the availability of alternative energy sources, risks associated with SolarCity’s rapid growth, risks associated with international expansion, the success of our product development efforts and customer preferences, risks that consumers who have executed energy contracts included in reported nominal contracted payments remaining and backlog may seek to cancel those contracts, SolarCity’s limited operating history, particularly as a new public company, changes in strategic planning decisions by management or reallocation of internal resources, and general market, political, economic and business conditions. You should read the section entitled “Risk Factors” in our most recent Quarterly Report on Form 10-Q and subsequent Current Reports on Form 8-K, which have been filed with the Securities and Exchange Commission, which identify certain of these and additional risks and uncertainties. We do not undertake any obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise, except as otherwise required by law.

Why should I spend money on compliance that I can spend on making money?

– According to GTM Research Solar Analyst, 50% of all residential solar sales are derived from referrals.

– Compliance should be viewed as a means of maximizing the customer experience and boosting the likelihood of referrals

– Legal/regulatory risk (investigations, enforcement actions, fines, litigation, legal fees)

– Reputational/headline risk

– Additional regulation (more compliance costs)

– In short, either you voluntarily make compliance a priority or regulators will make it a priority for you.

Prioritizing consumer compliance

Mapping sources of consumer and compliance risk

– Relevant state and federal consumer protection laws and regulations

– Hot topics: deceptive marketing, telemarketing, lead generators, home sales with third-party owned systems, system performance, estimated savings, door-to-door sales, warranties, data security

– Map every interaction your company has with consumers – sales/marketing, installation, contracts, disclosures, cancellation/refund policies, billing, fees, warranties, repairs – with all applicable state and federal law

– Knowing your regulators

– State attorneys general, state departments of consumer affairs, FTC, FCC, CFPB, state contractor boards, public service commissions

– Know their “trip wires”

– Developing written policies

– Your company MUST develop written policies for EVERY consumer-facing event

– Policies should include SOPs for product and document reviews, employee training, procedures for escalation and incident response and proper reporting to senior management

Building a robust solar consumer compliance program

Employee training

– Onboarding and annual training for all consumer-facing personnel (e.g. sales, customer care, installers, etc.). Written policies should form the basis for all employee training

– End game: for employees to have a basic understanding of what is required for their function, that there are consequences for non-compliance, and they know where to go with questions

– Vendor oversight

– VITALLY IMPORTANT for lead generators and telemarketing vendors

– Require that vendors provide (or at least make available upon request) all relevant written policies demonstrating their compliance with relevant law

– Example: DNC scrubbing software for telemarketing vendors, marketing reviews for lead generators

– Auditing

– Compliance should be a living, breathing, organism within your organizations; not just policies in a binder

– Annual auditing and reporting to senior management and your board

– Data security audits should be ongoing and subject to frequent monitoring and testing

Building a robust solar consumer compliance program

Federal laws

– Federal Trade Commission Act (UDAAP) (FTC)

– Truth-in-Lending Act (FTC/CFPB)

– Equal Credit Opportunity Act (FTC/CFPB/DOJ)

– Consumer Leasing Act (FTC)

– Dodd-Frank Wall Street Reform and Consumer Protection Act (UDAAP) (CFPB)

– Magnuson-Moss Warranty Act (FTC)

– Fair Credit Reporting Act (FTC/CFPB)

– Fair Debt Collection Practices Act (FTC/CFPB)

– Electronic Funds Transfer Act (FTC)

– Gramm-Leach-Bliley Act (FTC/CFPB)

– FCC Telemarketing Rules and the Telephone Consumer Protection Act (FCC/FTC/CFPB)

– CAN-SPAM Act (FTC)

– Servicemembers Civil Relief Act

– State laws

– State unfair trade practices and licensing statutes

– Other state consumer protection laws (e.g. warranties, door-to-door sales, telemarketing)

What consumer protection laws apply to solar transactions?

Compliance audits for all existing products and consumer-facing materials for compliance with relevant state and federal law

– Full reviews of all marketing materials

– Top complaint to state and federal regulators involves deceptive marketing regarding savings, system performance and representations made during the sales process

– If there is even a possibility that someone could be misled by any consumer-facing documents, assume that a regulator will find it deceptive and adjust it accordingly

– Take advantage of SEIA model contracts, SEIA’s Business Code, and disclosures

– All materials have already been vetted by industry consumer protection experts for compliance with all relevant state and federal law

– Develop internal compliance SOPs for all new product launches and all changes to consumer-facing documents and materials

– Take consumer complaints seriously and respond to them (and document it all)

– Will help identify compliance blind spots and areas for improvement in sales training, marketing, etc.

– Also provides a line of sight into what regulators are hearing about your business

– Frequent audits of sales scripts and sales personnel and ongoing sales training

Where do you start?

Your Chief Marketing Officer has asked you to approve a series of print and digital ads that will appear in mailers and digital ads to new markets in South Florida. The marketing materials will include the following:

What does a compliance review look like?

Always begin reviews of consumer-facing materials with the least sophisticated consumer in mind (e.g. Earnest P. Worrell, Peggy Bundy, Barney Fife and Cole Brown)

– Assume that regulators will also view your marketing materials with those consumers in mind as well

– Compliance reviews of all consumer-facing materials should reflect this reality and companies should be prepared to substantiate all claims made in all marketing materials

– Companies should be particularly careful about quoting savings estimates and should NEVER use the words “free” or “no cost” unless you’re giving away solar systems

– Companies should prepare sales personnel to be able to explain all references to government programs , and they should be prepared to identify the specific tax incentives, rebates, or other programs that consumers qualify for and be prepared to answer any questions consumers may have in their presentations


Your CFO approaches you about a loan product designed to target lower-income consumers in suburban Atlanta –particularly South Fulton County and South DeKalb County. He wants a loan product that is geared toward consumers with lower FICO scores because your current loan product only caters to consumers with FICO scores of 700 above. Your sales team has been making rounds in neighborhoods, grocery stores, and appliance stores in South Fulton County and South DeKalb County and there is substantial customer interest in owning solar systems but a substantial number of prospective consumers don’t qualify for the current loan product.

– What does the compliance review look like for this new loan product?


Questions & Answers

Thank You

[email protected]

1.888.765.2489 Ext. 62118


Consumer Protection: Solar Training and Market Development Efforts

MREA Overview

RE education and demonstration

• Custer, WI

• Milwaukee, WI

• Saint Paul, MN

• Founded in 1990

• 3000 members

• Provide the highest quality renewable energy education and training experiences available.

Photovoltaics (PV) – Solar Electricity

Solar Thermal (Hot Water and Space Heating)

Small Wind Energy Systems

National Electric Code (NEC) Training

• Online, face-to-face, blended course formats

• 2015 – 74 renewable energy courses taught, 1260 students

Training

Energy Fair (WI and MN)

• 250+ workshops

• Renewables

• Energy efficient construction

• Professional CECs

• Etc.

• 13,000 attendees

• Home and business owners

• Non-profit stakeholders

• Solar professionals seeking CECs

Midwest Grow Solar Partnership

Coordinated effort among Midwest organizations and municipalities to build an open and advantageous solar market that provides long-term benefits to communities.

• Technical Assistance• Permitting and Planning• Inspector Training• Solar Power Hour• State Conferences• Growsolar.org

http://www.growsolar.org/

• Basic Photovoltaics – PV 101 (8 hours)

• PV Site Assessor Training – PV 201 (16 hours)

• PV System Design – PV 202 (16 hours)

• PV Sales and Finance – PV 203 (8 hours)

• PV Design and Installation Lab – PV 301 (24 hours)

Training – Courses

Training – Certificates

Professional Directory

IREC Solar Career Map

www.irecusa.org/workforce-education/training-resources/solar-career-map/

Interstate Renewable EnergyCouncil (IREC)

http://www.irecusa.org/workforce-education/training-resources/solar-career-map/

• “Gold standard” for solar industry credentials

• Credentials require combination of classroom education, experience, and continuing education

• NABCEP.org

North American Board of Certified Energy Practitioners

http://www.nabcep.org/wp-content/uploads/2013/10/NABCEP-Technical-Sales-JTA-Guide-10-2013.pdf

Internships (Real On the Job Training)

Site Assessor Internship Pre-screening Lead generation Site assessment

Design and Sales Internship Site assessment Engineering/design Proposal development

Solarize Programs

90 presentations to 2,200+ people resulting in:

• MKE Neighborhood (700+kW)

• Solar Urbana-Champagne (605kW)

• Solar Bloomington-Normal (429kW)

• Minnesota Power Pack (103kW)

The Solar Endowment

Define opportunities for universities to invest in MW+ solar

1. Campus Deployment Teams

2. PV Training and Internships

3. PV Development Roadmaps and Case Studies

4. PV Investment Models

Consumer Protection Issues

1. PV Sales Proposals• Assumed Energy Escalation Rate

• Over-sizing Array

• Misleading state, utility, and tax benefit calculations

2. PV Contract for Purchase• Added Fees

• 5-year Labor Guarantee (recommended)

• Module Warranty Insurance (recommended)

• For PPAs: Escalators, Penalties, FMV calculations

3. PV Installation• Inverter issues

• Roof structural integration and penetration

Midwest Renewable Energy Association

www.midwestrenew.org46

Questions?

Nick HyllaExecutive Director, MREA

715-592-6595 [email protected]

http://www.midwestrenew.org/


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