Consumer Portable Energy Freedom
Draft Disclaimer
Prior to task force meetings, ALEC posts these legislative member-submitted draft model policies to our website. The draft model policies are then discussed, debated, and voted on by ALEC task force members. Policies that receive final approval by legislators on the ALEC Board of Directors become official ALEC model policy. Draft model policies that fail to become official ALEC model policy are removed from the website.
Summary
The Consumer Portable Energy Freedom Act expands consumer choice by allowing individuals to install and use small, portable solar devices without unnecessary utility or regulatory barriers. It makes affordable, plug-in solar technology more accessible while preserving essential safety protections. The Act prohibits providers from requiring prior approval, imposing device-related fees, or mandating additional equipment beyond the device’s applicable listing. It protects the use of these devices on private property while allowing reasonable notice and safety restrictions. By reducing barriers to entry, the policy promotes energy affordability, innovation, and grid resilience while expanding access to distributed energy resources, including for renters and low-income households.Model Policy
Section 1. Statement of Principles.
The legislature of [INSERT STATE] adopts the following principles:
- Energy Freedom. Individuals should have the right to generate and use their own energy without unnecessary interference from utilities or government.
- Consumer Choice. Consumers should be free to adopt emerging energy technologies, including portable-scale energy, that meet their needs and financial circumstances.
- Affordability and Accessibility. Energy policy should reduce barriers to entry and make small-scale energy technologies affordable and accessible.
- Innovation and Competition. Policies should encourage innovation and market competition in distributed energy technologies rather than protect incumbent systems through restrictive regulation.
- Reasonable Safety Standards. Nationally recognized standards, building codes, and fire codes should ensure safety without duplicative or internally contradictory requirements. Safety standards should be written in a way that avoids benefitting individual companies by requiring the use of their proprietary products.
- Property Rights. Property owners should be able to use lawful energy technologies on their property, subject only to reasonable health and safety restrictions.
- Limited Government. Regulatory frameworks should eliminate unnecessary permitting, fees, and administrative burdens that hinder adoption of small-scale energy solutions.
Section 2. Purpose.
This Act protects customers’ right to install and use safe, portable-scale energy generation devices, reduces unnecessary utility barriers, and preserves reasonable health, safety, building, and fire code protections.
Section 3 Definitions. For purposes of this Act:
(a) “Portable-scale energy generation device” means a photovoltaic system and associated equipment that:
- Is designed or commissioned to supply a maximum power output of not more than watts to the electric grid; and
- Is labeled and listed by a nationally recognized testing laboratory.
(b) “Device” means a portable-scale energy generation device.
(c) “Provider” means a provider of retail electric service or wholesale energy.
Section 4 Device Safety Requirements.
A device must include a feature that prevents it from energizing the electric grid during a power outage.
Section 5 Utility Approval Fees and Equipment Restrictions. A provider may not require a customer to:
- Obtain the provider’s approval before installing or using a device;
- Pay the provider a fee related to the device; or
- Install additional controls or equipment beyond those integrated into the device pursuant to its applicable listing.
Section 6 Small Device Exemption.
A device with a power output of not more than 391 watts is exempt from building safety codes or product listing provisions that would require alterations to a building’s electrical wiring.
Section 7 Property Rights and Reasonable Restrictions.
Except for the reasonable restrictions permitted under this section, a person, property owner, landlord, common interest community, homeowners association, or similar entity may not directly or indirectly prohibit or restrict the installation, use, or operation of a device.
Any covenant, restriction, rule, bylaw, or similar provision that prohibits or restricts the installation, use, or operation of a device, other than as permitted under this section, is unenforceable and void as a matter of public policy.
A person or entity identified in this section may impose reasonable restrictions related to:
- Prior notice of installation;
- Fire prevention;
- Electrical overload prevention;
- Protection against damage or injury to persons or property;
- Location of the device; and
- Reasonable securing of the device to a unit, patio, deck, balcony, or similar area.