Sunshine on Solar Lending Act

This legislation, known as the "Sunshine on Solar Lending Act," amends the Truth in Lending Act to enhance transparency in solar energy system financing. It aims to ensure consumers are fully aware of all costs, particularly hidden dealer fees that can inflate expenses, by clarifying that such fees must be included as part of the finance charge. Congress found that the "Seller's Point" exemption under Regulation Z has been misused, leading to inconsistent treatment of these fees. The bill mandates that creditors clearly and conspicuously disclose in writing any fees charged to third parties or imposed directly or indirectly on the consumer, along with identifying all third parties involved. These disclosures must also provide a comparison between the financed amount and the total cash price for both products and services. Furthermore, the legislation prohibits the inclusion of mandatory arbitration clauses in solar financing agreements, safeguarding consumers' ability to seek redress. A "solar financing transaction" is broadly defined to include credit for purchasing, installing, or covering associated costs of solar energy systems and related infrastructure, with these new requirements taking effect 60 days after the bill's enactment.