§ 13-52-302 — Registration and security required.

(1) (1)(a) On or after July 1, 2026, a solar retailer may not operate in this state without being registered with the division.
(1)(b) The registration is valid for one year except as provided in Subsection (1)(c).
(1)(c) The division may extend the period for which a solar retailer's registration is effective by up to six months so that expiration dates are staggered throughout the year.
(2) (2)(a) A solar retailer shall submit an application for registration to the division in a manner the division establishes by rule in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, if:
(2)(a)(i) the solar retailer's sales representative communicates with customers or potential customers in the state; or
(2)(a)(ii) the solar retailer, or the solar retailer's sales representative, conducts any business operations in the state.
(2)(b) The application for registration shall designate an agent residing in this state who is authorized by the solar retailer to receive service of process in any action this state or a resident of this state brings to the court.
(2)(c) If a solar retailer fails to designate an agent to receive service or fails to appoint a successor to the agent, the division shall deny the solar retailer's application for registration.
(2)(d) For purposes of this section only, the registered agent of a solar retailer shall provide the division the registered agent's proof of residency in the state in the form of:
(2)(d)(i) a valid Utah driver license;
(2)(d)(ii) a valid governmental photo identification issued to a resident of this state; or
(2)(d)(iii) other verifiable identification indicating residency in this state.
(2)(e) As a part of the registration, each solar retailer shall submit proof of obtaining and maintaining the following security in a form approved by the division:
(2)(e)(i) a performance bond issued by a surety authorized to transact surety business in this state; or
(2)(e)(ii) a certificate of deposit in a financial institution authorized under the laws of this state or the United States to accept deposits from the public.
(3) (3)(a) The division shall impose an annual registration fee set in accordance with Section 63J-1-504 that shall include the cost of the criminal background check described in this Subsection (3).
(3)(b) To register as a solar retailer, the solar retailer and the solar retailer's participants:
(3)(b)(i) may not have been convicted of a felony or misdemeanor involving theft, fraud, or dishonesty, in the 10-year period immediately before the day on which the solar retailer files the application; and
(3)(b)(ii) shall submit to the division:
(3)(b)(ii)(A) the participant's fingerprints, in a form acceptable to the division, for purposes of a criminal background check;
(3)(b)(ii)(B) consent to a criminal background check by the Bureau of Criminal Identification created in Section 53-10-201; and
(3)(b)(ii)(C) payment for the cost of the fingerprint card and criminal background check described by Subsections (3)(b)(ii)(A) and (B).
(3)(c) A solar retailer shall update registration information within 30 days after the day on which information provided on the application becomes incorrect or incomplete.
(3)(d) A solar retailer that is a publicly traded corporation registered with the Securities and Exchange Commission is exempt from the requirements described in Subsection (3)(b).
(4) (4)(a) (4)(a)(i) The division may claim a solar retailer's bond or certificate of deposit for the benefit of any customer who incurs damages as the result of the solar retailer's failure to comply with this chapter.
(4)(a)(ii) For purposes of this section, damages incurred by a customer include:
(4)(a)(ii)(A) labor and materials necessary to complete the installation of a residential solar energy system that is partially installed; and
(4)(a)(ii)(B) damage to a customer's home caused during installation or repair of the residential solar energy system.
(4)(b) After the customer recovers full damages, the division may recover from the bond or certificate of deposit any administrative fines, civil penalties, investigative costs, attorney fees, and other costs of collecting and distributing funds under this section.
(4)(c) The solar retailer shall post a bond or certificate of deposit in the amount of:
(4)(c)(i) $100,000 if:
(4)(c)(i)(A) the solar retailer or any affiliated person has not violated a chapter enforced by the division, as described in Section 13-2-1, the three-year period immediately before the day on which the solar retailer files the application;
(4)(c)(i)(B) the solar retailer has fewer than ten employees; and
(4)(c)(i)(C) the solar retailer sells fewer than 500 kilowatts nameplate capacity annually;
(4)(c)(ii) $200,000 if:
(4)(c)(ii)(A) the solar retailer or any affiliated person has not violated a chapter enforced by the division, as described in Section 13-2-1, the three-year period immediately before the day on which the solar retailer files the application;
(4)(c)(ii)(B) the solar retailer has ten or more employees; or
(4)(c)(ii)(C) the solar retailer sells more than 500 kilowatts nameplate capacity annually; or
(4)(c)(iii) $300,000 if the solar retailer or any affiliated person has violated a chapter enforced by the division, as described in Section 13-2-1, the three-year period immediately before the day on which the solar retailer files the application.
(4)(d) Beginning July 1, 2026, a solar retailer that operates in this state violates this chapter each time the solar retailer sells a residential solar energy system without first registering with the division.
(5) The division director may deny, suspend, or revoke a solar retailer's registration if:
(5)(a) a solar retailer or a solar retailer's participant:
(5)(a)(i) violated a statute enforced by the division within the preceding five years; or
(5)(a)(ii) fails to pay a fine or comply with a term of settlement with the division;
(5)(b) the division claims the solar retailer's bond or certificate of deposit; or
(5)(c) the division receives ten or more complaints from consumers about the solar retailer related to the solar energy system's energy production and finds substantial evidence that the solar retailer has provided good faith estimates for residential solar energy systems that do not produce 80% or more of the solar retailer's estimated energy production.

Legislative History

Enacted by Chapter 181, 2025 General Session