H.R. 4489

[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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