CNMI Solar Energy Bill of Rights

Phil Yorio is the general manager of Micronesia Renewable Energy, Inc.-CNMI. (Contributed Photo)

Like any industry getting off the ground, the CNMI is starting to see exponential growth in the renewable energy industry over the last few years, and a lot more to come with solar energy systems getting cheaper and now the introduction of different programs to enable all homeowners to take advantage of solar energy. With that being said when you have that type of growth in any industry there needs to be some type of protection for the consumer. I believe it’s time that the CNMI adopts a Solar Energy Bill of Rights. We have in the CNMI a few good solid solar energy contractors but we also need to be careful to educate the consumer being a relatively new industry so predatory companies do not take advantage of consumers that are not up to speed with an industry that is growing well, at lighting speed. What are the basics that consumers should know regarding solar energy before they jump in to save money, control their energy future, and take advantage of the net metering laws in the CNMI.

There are a few ways to become a patriot for the Green Energy Revolution while saving money and helping clean up our planet. You as a homeowner can do a direct purchase, this along with tax credits and the lower price of solar energy components should enable a hom owner to be debt free of the system and enjoy free energy from the sun for 25 plus years with a low monthly service fee from the utility. This still requires a big expense out of pocket but the payoff is rather quickly. If you cannot afford the out-of-pocket expense, you can still enjoy the benefits of solar energy with a power purchase agreement or lease arrangement. Power purchase agreements or leases are great but the devil is in the details the contractor should thoroughly explain these type of contracts in detail to the customer. A few items to watch out for that should be in these agreements are is the power production guaranteed. This is very important, If you lease a car and don’t drive the car for a year every month you are still going to make that payment so you want a PPA or lease to state specifically that the power they are saying the system will produce they are backing this up in writing with a yearly review or true up, you do not want to get stuck paying for a solar system that does not work, has diminished production or is not maintained properly, and does not produce the power stated in the agreement there has to be a true up to see what the system has produced that year. Has the contractor thoroughly explained the contract, how much will the solar energy system offset your utility bill, if not 100 percent, what will you still be paying the utility, and never take anything for face value if they are giving you information ask them to show you this in the contract. Make sure that the expectations that were given are adhered to, timelines, milestones, other items to check such as is the contractor licensed to perform this work in the CNMI, are they getting CUC interconnection agreements and DPW permits. The last piece to the puzzle is and this is very important please check references ask them if they can give you a list of customers to call. A solar energy system can work well if installed correctly and pay for itself over time. But there are many factors that homeowners and businesses need to consider when choosing a solar contractor. Choosing a contractor who is knowledgeable and trustworthy while educating yourself in these programs will avoid any unwanted experiences and I cannot stress that enough educating yourself. Here are 10 items that I believe can be the start of the foundation to a check list for consumers to be aware of to join the green team to hedge your energy costs over the next 25 years and become a steward for a better community and a better planet.

Seller or installer shall provide consumer with all of the factual information that they will need to make a well-informed decision when purchasing, leasing or signing up for a power purchase agreement.

1. Seller or installer shall insure the customer that the renewable energy system being offered meets all of the standards of that particular type of technology being wind, solar energy or solar thermal systems adopted by the federal and local jurisdictions and that all materials being used have the Industry standard certification listed as approved products by the Underwriters Laboratory Association.

2. Seller or installer shall ensure the customer that all material being used meets or exceed Industry standards for that particular technology an example would be providing the consumer a certification that a solar energy module is warranted for the 25-year term. All products in the renewable energy industry do have industry standards for production output, warranties and installation conditions that the seller or installer can educate the consumer so they can make an educated decision on what is being purchased and installed.

3. Seller or installer shall also educate the consumer on how they are installing the equipment, assuring the consumer that the product is being installed is per manufacturer’s recommendation, and that all materials are approved for exterior and interior installation per the DPW local codes and the CNMI environment.

4. Seller or installer shall provide a detailed invoice clearly indicating the price of the technology being offered and clear details of parts, warranties and installation. If this is a lease or a PPA, the seller or installer shall go through the contract and have the consumer fully understand every aspect of the contract before final signature

5. Seller or installer shall guarantee customers that all systems installed will provide the maximum yield committed to by the seller on an annual basis. This is called a production guarantee and this shall be stated on the contract. If annual production guarantees are not met than the seller or installer shall be liable to the consumer for the amount of energy the system did not produce. On every system installed there will be a true up annually and for energy shortage on the system the consumer shall be reimbursed for this expense at the delta between the utility rate and the contractual rate per Kwh guaranteed.

6. Seller or installer shall notify the consumer of the assurance that the materials install are built to the CNMI wind loading per the Department of Public Works

7. Seller or installer shall guarantee a maintenance, trouble shooting and insurance program free of charge to the consumer for the life of the contract for lease and power purchase agreement financial structures

8. Seller or installer shall insure the customer that they respect all consumer protection laws and practices including the seven-day rescission period. After this period consumer can be liable for damages and this should be fully explained to the consumer.

9. The customer shall be promptly provided with all documents necessary claiming any and all tax credits or other incentives applicable, or notified in writing if the customer is required to give up any tax or other incentives associated with their renewable energy system per any lease or PPA agreements

10. No lien shall be placed upon a residential dwelling or commercial building as collateral for a renewable energy system. Fixture fillings or mechanics liens are acceptable.