VirginiaSB8232026 Regular SessionSenateWALLET

Contractors; regulation, solar installation companies, sale, lease, etc., of solar energy systems.

Sponsored By: Lamont Bagby (Democratic)

Became Law

Summary

Regulation of contractors; solar installation companies; sale, lease, or power purchase of solar energy systems; civil penalty. Authorizes the Board for Contractors (the Board) to require specific contract provisions and disclosures relating to the sale, lease, or power purchase agreement for a residential solar energy system, as defined in the bill. The bill requires a sale, lease, or power purchase agreement for a residential solar energy system to have a written contract that includes specific provisions related to the solar installation company, system design and performance or production guarantees, and information related to invoices and payments. The bill includes several mandatory disclosures to be included with a sale, lease, or power purchase agreement for a residential solar energy system. Under the bill, a willful violation of such requirements shall be subject to a civil penalty of no more than $2,500 per violation. The bill also directs the Board to adopt regulations and update existing regulations to implement the provisions of the bill by January 1, 2027. The remaining provisions of the bill have a delayed effective date of January 1, 2027. This bill is identical to HB 1439.

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Bill Overview

Analyzed Economic Effects

6 provisions identified: 2 benefits, 3 costs, 1 mixed.

Stronger protections in home solar contracts

Beginning January 1, 2027, home solar sales, leases, and PPAs must use clear written contracts in at least 10-point font. Contracts must show company and license info, payment amounts and schedule (including any down payment), and system design and battery details. Installers must list any subcontractors, or give that info within five business days. They must disclose fees and finance charges, any performance estimates, who handles interconnection, who owns renewable energy credits, maintenance duties, and any lease removal costs. They must explain how savings were calculated, warn that incentives and utility rates can change, say if a financing statement will be filed that could affect a home sale, and note if a lease can transfer. You have five business days to cancel without penalty. For third-party systems, you owe no payments until the system is installed, has interconnection and permission to operate, and is working. Disclosures must be on a separate signed page before you sign the contract or on a cover sheet.

Contractors face tougher worker classification rules

Contractors must classify workers correctly as employees or independent contractors under the law. The Board can discipline licensees who willfully misclassify workers. This adds compliance duties and risk of penalties for businesses.

Clear written contracts for home projects

The law requires clear written contracts for Class A, B, and C residential work. Contracts must describe the work, give a fixed price or total estimate with any down payment and progress payments, and list start and finish dates. They must include the contractor’s contact info and license or certification number. For door-to-door sales, the Board may require a protections statement for homeowners.

Fines and deadlines for solar installers

Beginning January 1, 2027, the Board can fine up to $2,500 per willful violation of the solar contract and disclosure rules. Continuing the violation after Board notice counts as evidence of willfulness. Fines go to the Low-to-Moderate Income Solar Loan and Rebate Fund. By January 1, 2027, the Board issues a standard solar disclosure form and guidance on handling unknown structural or repair costs found during or after installation. The law’s first provisions take effect January 1, 2027.

New business course for contractor licenses

To get an initial contractor license, your designated employee or a responsible manager must complete a Board‑approved basic business course. The course is no more than eight hours of classroom instruction.

State Contractors Board expanded and reorganized

The state has a 16‑member Contractors Board with seats for major trades and two citizen members. Members serve four‑year terms, the Board elects a chair and vice‑chair each year, and nine members make a quorum. The Board meets at least once a year and runs contractor licensing and discipline.

Sponsors & Cosponsors

Sponsor

  • Lamont Bagby

    Democratic • Senate

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 404 • No: 48

House vote 3/13/2026

Conference report agreed to by House

Yes: 92 • No: 3

Senate vote 3/13/2026

Conference report agreed to by Senate

Yes: 39 • No: 0

Senate vote 3/12/2026

Senate acceded to request Block Vote

Yes: 40 • No: 0

Senate vote 3/12/2026

House substitute rejected by Senate

Yes: 0 • No: 40

House vote 3/11/2026

Passed House with substitute

Yes: 95 • No: 4

House vote 3/5/2026

Reported from Labor and Commerce with substitute

Yes: 20 • No: 1

House vote 3/3/2026

Subcommittee recommends reporting with substitute

Yes: 9 • No: 0

Senate vote 2/13/2026

Read third time and passed Senate Block Vote

Yes: 39 • No: 0

Senate vote 2/12/2026

Finance and Appropriations Substitute agreed to

Yes: 0 • No: 0

Senate vote 2/12/2026

General Laws and Technology Substitute rejected

Yes: 0 • No: 0

Senate vote 2/11/2026

Passed by for the day Block Vote (Voice Vote)

Yes: 0 • No: 0

Senate vote 2/11/2026

Constitutional reading dispensed Block Vote (on 1st reading)

Yes: 40 • No: 0

Senate vote 2/10/2026

Reported from Finance and Appropriations with substitute

Yes: 15 • No: 0

Senate vote 2/4/2026

Reported from General Laws and Technology with substitute and rereferred to Finance and Appropriations

Yes: 15 • No: 0

Actions Timeline

  1. Acts of Assembly Chapter text (CHAP0852)

    4/13/2026Governor
  2. Approved by Governor-Chapter 852 (Effective - see bill)

    4/13/2026Governor
  3. Fiscal Impact Statement from Department of Planning and Budget (SB823)

    4/1/2026Senate
  4. Governor's Action Deadline 11:59 p.m., April 13, 2026

    3/31/2026Governor
  5. Enrolled Bill communicated to Governor on March 31, 2026

    3/31/2026Senate
  6. Signed by Speaker

    3/31/2026House
  7. Bill text as passed Senate and House (SB823ER)

    3/30/2026Senate
  8. Enrolled

    3/30/2026Senate
  9. Signed by President

    3/30/2026Senate
  10. Fiscal Impact Statement from Department of Planning and Budget (SB823)

    3/17/2026Senate
  11. Conference report agreed to by Senate (39-Y 0-N 0-A)

    3/13/2026Senate
  12. Conference report agreed to by House (92-Y 3-N 0-A)

    3/13/2026House
  13. Conference Report released

    3/13/2026
  14. House Conferees: Shin, Maldonado, Pence

    3/12/2026House
  15. Conferees appointed by House

    3/12/2026House
  16. Senate acceded to request Block Vote (40-Y 0-N 0-A)

    3/12/2026Senate
  17. House requested conference committee

    3/12/2026House
  18. House insisted on substitute (0-Y 40-N 0-A)

    3/12/2026House
  19. House substitute rejected by Senate

    3/12/2026Senate
  20. Senate acceded to request

    3/12/2026Senate
  21. Conferees appointed by Senate

    3/12/2026Senate
  22. Senate Conferees: Bagby, McPike, DeSteph

    3/12/2026Senate
  23. Fiscal Impact Statement from Department of Planning and Budget (SB823)

    3/11/2026Senate
  24. Passed House with substitute (95-Y 4-N 0-A)

    3/11/2026House
  25. Engrossed by House - committee substitute

    3/11/2026House

Bill Text

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