What License Do You Need to Sell Solar in California

Accounting for 30% of all PV energy produced in the United States, California is the number one market for solar energy in our entire country. Even so, competition to earn the business of customers is fierce. With over 2,400 solar companies operating in our great state, differentiating yourself in the marketplace is essential. Maintaining the necessary licenses can help you establish credibility and help you to gain valuable experience in the solar industry.

What is the Contractors State License Board (CSLB)?

The Contractors State License Board (CSLB) is the California state agency responsible for regulating and licensing contractors in the state. It was formed nearly 100 years ago with the goal of establishing that certain ethical and competency standards are met in the business sector. CSLB has four main functions: licensing, regulation, consumer protection, and enforcement. In other words, CSLB generates criteria you must meet in order to legally operate your business, adapts these regulations to meet evolving technology and standards, conducts outreach to protect consumer interests, and enforces these standards through an investigation and disciplinary process.

Do I Need a License to Sell Solar in California?

The short answer is "Yes!" There are no grey areas when it comes to California's laws on solar licensing. In 2019, California became the first state to require prospective solar sales reps to obtain a home improvement salesperson (HIS) registration.

According to the CSLB website, as of July 2019 all solar sales representatives must register to work in California. It is illegal to sell residential home improvement goods or services (including solar energy systems) to an owner-occupant at their home without a Home Improvement Salesperson (HIS) Registration.

What is a Home Improvement Salesperson (HIS) Registration?

A HIS registration is required by the CSLB for any individual who sells home improvement goods or services on behalf of a licensed contractor. This includes both residential solar energy systems and domestic water-heating devices. This applies to sales that are made directly to homeowner-occupants – in other words, if you want to sell solar to someone who lives in their own home, you need a HIS registration.

The HIS registration must be obtained before you begin working. If you sell to a homeowner-occupant before you register with CSLB, you risk legal action.

How to Get Your HIS License

To register as an HIS, you must complete the following steps:

1. Complete the application form
2. Pay the required fees
3. Pass the background check
4. Receive your registration number

Application Requirements

The application process requires you to provide:

• Personal identification information
• Employment history
• Criminal history disclosure (if applicable)
• Employer information (the contractor you'll be working for)

Criminal History Considerations

If you have a criminal record with arrests or convictions resulting in a conviction, this information will be reported to the Contractors State License Board (CSLB). This applies even if you pled "no contest," had the conviction set aside, or had the judgment deferred (commonly understood as "expunged"). However, having a criminal record does not automatically disqualify you from obtaining a license.

When assessing criminal convictions, CSLB considers several factors, including the nature and severity of the crimes, the amount of time that has passed since the convictions, and any evidence of rehabilitation that you may provide.

Why HIS License Requirements Matter

The complicated nature of our industry makes licensing and regulations wholly necessary for all parties involved.

Next time you think to yourself, "Do I need a license to sell solar in California?" remember the importance of industry standards. It's one thing to change out all your light fixtures; any relatively capable person can handle that task. To equip your whole house with solar equipment to power all your lights and appliances via the sun is a whole different scale of home improvement and construction project. Just as you would not hire a lawyer who has not passed the bar, you can't expect your potential customers to feel comfortable hiring an unlicensed solar professional for their energy needs.

Right to Cancel

Just as important as understanding how to obtain a HIS license is understanding what it means to operate under one. It is imperative that all solar sales reps understand the Right to Cancel laws. When signing a solar contract, homeowners must be made aware that they have the right to cancel within three business days. In most cases (unless the contract was negotiated at your office), you are legally obligated to cancel the contract at no penalty to the customer within this Right To Cancel period.

3 Questions CSLB Urges Your Customers to Ask

In an effort to foster a more educated consumer base, the CSLB encourages people to ask solar providers the following questions:

• What is the business' CSLB license or registration number?
• What is the total cost of the solar energy system?
• If I sell my home, what are my options and what do I need to do?

ESP's license number is #619149, and is listed prominently on the agreement. Your individual HIS license number will also be included when you populate an agreement to be signed.

Study these questions intently. Be prepared to answer them all – and with ease. Better yet, demonstrate your professionalism by volunteering this information even before it is asked. You will be amazed by how much credibility this builds with your customers!