S.C. Code Regs. § § 111-32

Current through Register Vol. 48, No. 11, November 22, 2024

Section 111-32 - Requirements for Lease Agreements

A. Lease Agreements must contain provisions as required by Title 37 and applicable regulations, Title 58, Chapter 27, Article 23 and these regulations.

B. In addition to the requirements contained in Title 37 and applicable regulations, the Lease Agreements and appropriate disclosures shall include the following provisions:

1. Lease Agreements shall include:

a. Prominent display of the Certificate number issued by ORS.

b. ORS phone number and e-mail address for Consumer Complaints including the statement in bold 12-point font 'If you are unable to resolve your complaint with the Lessor, you have the right to contact the South Carolina Office of Regulatory Staff.'

c. A copy of any warranties for renewable energy facilities.

2. Appropriate disclosures as required by Title 37 and applicable regulations, shall include the following additional provisions:

a. ORS phone number and e-mail address for Customer Complaints including the statement in bold 12-point font 'If you are unable to resolve your complaint with the Lessor, you have the right to contact the South Carolina Office of Regulatory Staff.'

b. A description of the renewable energy facility, including the make and model of the renewable energy facility's major component(s).

c. A guarantee concerning the energy production output that the renewable energy facility will provide, and the impact of such guarantee on monthly payments as set forth in the Lease Agreement. A production guarantee that meets these requirements does not violate Section 111-31(D)(1)(a).

d. A description of any warranties to include, but not limited to:

i. A disclosure notifying the Lessee of the transferability of the obligations under the warranty to a subsequent Lessee.

ii. A disclosure describing any warranty for the repair of any damage to the roof of the premises in connection with the installation or removal of renewable energy facilities.

iii. A disclosure regarding whether the warranty or maintenance obligations related to renewable energy facilities may be sold or transferred to a third party.

e. An explanation of any interest, installation fees, document preparation fees, service fees, escalation rates, cancellation fees, roof repair costs or other costs to be paid by the Customer.

f. In the event that a Lessor causes a financing statement to be filed pursuant to the Uniform Commercial Code-Secured Transactions, the Lessor, or any successor in interest to the Lessor, shall provide to the Lessee a copy of the filed financing statement within thirty calendar days of the filing.

g. A disclosure describing the transferability of the Lease Agreement and any conditions on transferring the Lease Agreement in connection with the Lessee selling his or her premises.

h. A description of any restrictions the Lease Agreement imposes on the modification or transfer of the premises to which the renewable energy facility serves.

i. The total number of payments, including the interest, the payment frequency, the estimated amount of the payment expressed in dollars, and the payment due date over the leased term.

j. The estimated amount of the total payments due under the Lease Agreement, including, without limitation, any incentives that are included in the estimated lease payments.

k. A description of any state or federal tax incentives that are included in the calculation of Lease payments.

l. A description of the billing and payment procedures.

m. A statement in bold 12-point font with substantially the following same form and content: "Utility rates, structures and estimated savings are subject to change, and incentives may change or be terminated by executive, legislative or regulatory action."

n. A statement in bold 12-point font with substantially the following form and content: "All provisions contained in the Lease Agreement and disclosures are considered agreed to by the Lessee upon signature. NO employee or representative of [name of Lessor] is authorized to make any promise to you that is not contained in the Lease Agreement or disclosures concerning the cost savings, tax benefits, or government or utility incentives. You should not rely upon any promise or estimate received verbally or in writing which is not clearly contained in this Lease Agreement or disclosures."

S.C. Code Regs. § 111-32

Added by State Register Volume 45, Issue No. 05, eff. 5/28/2021.