Bill > AB5

This bill revises regulations for contractors performing work on residential photovoltaic (solar) systems by mandating stricter bonding requirements. Specifically, the bill requires all contractors in this field to obtain two types of bonds before starting work: a performance bond and a payment bond, each equal to at least 100% of the contract amount (previously this was optional and set at 50%). These bonds must be issued by a surety listed in the U.S. Department of the Treasury's Approved Sureties list and have a long-term debt rating of "A" or better. The new requirements will not immediately apply to contractors already licensed before July 1, 2025, until their license is renewed, unless they have been found to have committed certain violations, voided a contract, or received five valid complaints within a 15-day period. The performance bond protects the property owner by ensuring the work is completed as specified, while the payment bond protects subcontractors and material suppliers by guaranteeing they will be paid. This legislation aims to increase consumer protection and ensure greater financial accountability in the residential solar installation industry by requiring more comprehensive bonding from contractors.

Business and Industry

Commerce and Labor (Assembly)

https://www.leg.state.nv.us/App/NELIS/REL/83rd2025/Bill/11751/Overview