New California Law SB 784 Strengthens Solar Consumer Protections: What Homeowners Need to Know
LOS ANGELES, CA — March 10, 2026 — ANCA Solar, a locally owned solar installation company serving Southern California since 2000, is informing homeowners about significant new consumer protections under Senate Bill 784 (SB 784), which took effect on January 1, 2026.
The legislation, introduced by Senators Maria Elena Durazo and Ben Allen, was enacted in direct response to thousands of complaints regarding deceptive sales practices in the residential solar industry — particularly those targeting senior citizens and non-English-speaking communities.
Why This Law Was Needed
The rapid growth of residential solar in California between 2020 and 2024 attracted both legitimate companies and predatory operators. Common complaints included:
Inflated savings projections — Sales representatives promising unrealistic utility bill reductions based on outdated NEM 2.0 economics
Hidden dealer fees — Installation costs inflated by 20% to 30% through undisclosed financing markups
High-pressure door-to-door tactics — Targeting elderly homeowners with same-day contract signing pressure
Misrepresentation of loan terms — Customers unknowingly signing 25-year solar loans at 6% to 9% interest rates while being told the system would "pay for itself"
The California Department of Financial Protection and Innovation (DFPI) has responded with aggressive investigation into these practices, setting a March 15, 2026 deadline for commercial financing providers to report transaction volumes and APR metrics.
Key Provisions of SB 784
1. Mandatory Pre-Loan Verification Calls
Lenders are now legally required to conduct a live phone call with the consumer before any loan documents are finalized. During this call, the lender must confirm that the borrower understands:
The total cost of the system including all fees
The interest rate and monthly payment amount
The total amount paid over the life of the loan
The difference between a lease, PPA, and loan
This provision directly addresses the complaint that many homeowners didn't understand what they were signing because the salesperson — not the lender — explained the financing.
2. Extended Right to Cancel
The cancellation window for home solicitation contracts has been significantly expanded:
General public: Extended from 3 days to 5 business days
Consumers aged 65 and over: Extended from 5 days to 7 business days
This gives homeowners more time to review contracts, get second opinions, and consult with family members before committing to a 20-to-25-year financial obligation.
3. Expanded "Holder Rule" Legal Defenses
Perhaps the most impactful provision: under the expanded "Holder Rule," consumers can now assert legal claims against the financing company for misrepresentations made by the salesperson or installing contractor.
Previously, lenders could claim ignorance of what a salesperson promised during the sale. Under SB 784, if a salesperson tells a customer their system will "eliminate their electric bill" and that turns out to be false, the customer has legal recourse against both the installer and the financing company.
"These protections are exactly what our industry needed. For years, we've watched bad actors damage the reputation of solar energy by making promises they couldn't keep. At ANCA Solar, we've always provided written savings estimates based on actual utility data and current NEM 3.0 economics. SB 784 simply makes that level of transparency the legal standard."
— Carlos Vega, Founder of ANCA Solar (CSLB License #873768)
How to Protect Yourself When Shopping for Solar
ANCA Solar recommends the following steps for any homeowner considering a solar installation:
Never sign a contract on the first visit — Any reputable installer will give you time to review and compare
Request a written savings analysis — Based on your actual utility bills, not generic estimates
Ask about the interest rate and total cost — A $30,000 system at 7% over 25 years costs over $63,000 total
Verify the contractor's license — Check CSLB.ca.gov for license status, bond, and complaint history
Understand NEM 3.0 economics — Any company still quoting NEM 2.0 savings rates is being dishonest
Get at least three quotes — Compare system sizes, equipment brands, and total costs
Ask about the dealer fee — This hidden cost can add $5,000 to $10,000 to a system price
What to Do If You've Been a Victim
If you believe you were misled during a solar purchase:
File a complaint with the CSLB at www.cslb.ca.gov
File a complaint with the DFPI at dfpi.ca.gov for financing-related issues
Contact your lender and reference SB 784's Holder Rule provisions
Consult a consumer protection attorney — Under the new law, you may have expanded legal options
About ANCA Solar
Founded in 2000 by Carlos Vega, ANCA Solar is a licensed and insured solar installation company (CSLB License #873768) serving residential and commercial customers across Los Angeles, Orange, and Ventura Counties. ANCA Solar provides transparent, written savings estimates based on actual utility data and current NEM 3.0 economics.
For a free, no-pressure consultation, visit www.ancasolar.com or call (805) 410-0494.
Media Contact:
ANCA Solar
Los Angeles, California
Website: www.ancasolar.com
Phone: (805) 410-0494
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