(a) A utility may enter into a written on-bill financing agreement with a customer to finance the purchase and installation of a renewable energy system, energy efficiency device, energy storage device, or energy conservation system in a residence or building that is eligible under (b) of this section by assessing a meter conservation charge on the customer's utility bill.

(b) A residence or building is eligible for on-bill financing under (a) of this section if, at the time the financing agreement is entered into, the residence or building

(1) is occupied or in use; and

(2) is not under initial construction.

(c) An on-bill financing agreement must clearly state the interest rate to be charged for financing the purchase and installation of the renewable energy system, energy efficiency device, energy storage device, or energy conservation system. The interest shall be set at a rate that is fixed over the term of the agreement.

(d) An on-bill financing agreement is not valid under this section unless the utility has offered the customer in writing the option of purchasing a repair and maintenance agreement for the renewable energy system, energy efficiency device, energy storage device, or energy conservation system before the purchase and installation of the system or device. A repair and maintenance agreement under this section must

(1) be for a term of not less than the duration of the on-bill financing agreement;

(2) benefit the customer and any subsequent owner of the residence or building from whom the utility may recover the costs under the on-bill financing agreement under AS 42.05.753;

(3) for a fixed periodic fee, maintain the original function and performance of the renewable energy system, energy efficiency device, energy storage device, or energy conservation system.

(e) A customer may decline to purchase a repair and maintenance agreement described under (d) of this section only if the customer enters into an agreement in writing with the utility to pay the balance of the on-bill financing agreement before transferring ownership of the residence or building. At the time of transfer of ownership, the subsequent owner may waive the requirement that the customer pay the balance of the on-bill financing agreement by notifying the utility in writing that the subsequent owner assumes the balance owed on the on-bill financing agreement.

(f) The balance owed on an on-bill financing agreement may be paid in full at any time without penalty.

(g) Nothing in this section requires a utility to enter into an on-bill financing agreement with a specific customer or for a specific device or system.