Skip to content

Residential Solar Retail Sales Now Regulated By TDLR  

| |

AUSTIN – Starting September 1, 2025, sales contracts for residential solar energy panels are prohibited from making misleading statements about the performance or cost of solar energy panels and must have contracts that include the consumer’s right to cancel the contract within five business days.

Under Senate Bill 1036 (89th Texas Legislature), authored by state Senator Judith Zaffirini of Laredo, the Texas Department of Licensing and Regulation (TDLR) now regulates the sale or lease of solar energy systems intended or designed primarily for family, personal, or household use to collect and use solar energy to generate electricity. (The department already regulates their installation by TDLR-licensed electrical contractors, but now also regulates the sales process.)

“Now that my Senate Bill (SB) 1036 has become law, Texas has taken a major step forward to protect homeowners from deceptive solar energy sales,” Sen. Zaffirini said. “I filed this legislation to address the alarming rise in misleading and predatory tactics that disproportionately harmed elderly and non-English-speaking Texans. With the new authority granted under SB 1036, TDLR can hold bad actors accountable and rebuild consumer trust in residential solar energy.”

The new law says that residential solar retailers in Texas cannot state or imply that they’re affiliated with a public utility or government agency. They also cannot attempt to sell a system at a residence that has “no soliciting” signs posted unless invited by the occupant of the residence.  Residential solar retailers also are required to ensure that licensed electrical contractors perform the work of installing the system.

Residential solar retailers and solar salespersons will be required to register with TDLR beginning Sept. 1, 2026.

TDLR can begin accepting consumer complaints against residential solar retailers for contracts entered into starting on or after Sept. 1, 2025. For incidents involving residential solar retailers occurring before Sept. 1, 2025, consumers should file a complaint with the Texas Attorney General’s Office of Consumer Protection. TDLR can accept complaints against electrical contractors for work they performed at any time when installing or repairing solar panels.

TDLR is establishing a stakeholder workgroup made up of business, consumer and government members to provide advice and recommendations on the residential solar retailer program and rules in preparation for June 1, 2026, when rules must be adopted, and Sept. 1, 2026, when residential solar retailers and solar salespersons must be registered with TDLR. Licensing applications will be available in advance of this date.

For news and information about the Residential Solar Retailers program, please sign up for email updates.

If you’re considering buying or leasing solar energy panels, ask these questions:

  • Is my home or business an appropriate choice for installing solar panels?
  • How large is the roof?
  • Will the building’s positioning allow the panels to get enough sunlight to make installing solar panels economically effective?
  • Is the roof strong enough to support the solar panels’ extra weight?

Warning signs to be aware of:

  • Beware of anyone who promises they can install “free” or extremely low-cost solar panels
  • Don’t be pressured to make a decision quickly by sales tactics touting product scarcity or a pricing special that’s ending “soon”
  • Never provide personal information like Social Security numbers or bank account numbers to someone who offers to check whether you’re eligible for special financing or to complete government paperwork on your behalf
  • Never pay upfront for the full amount of a project – only pay for fully completed work, including all required city inspections.

Before signing a lease or purchase contract, do these things:

  • Obtain additional bids from other companies.
  • Ask for references from other customers – and talk with those customers about their experiences.
  • Check for a TDLR electrical contractor license: https://www.tdlr.texas.gov/LicenseSearch/. (A journeyman or master electrician can perform work alone. An apprentice electrician requires the on-site supervision of a more qualified licensee, such as a journeyman or a master electrician.)
  • Check whether a TDLR-licensed electrical contractor has received an administrative penalty or sanction in the past two years: https://www.tdlr.texas.gov/cimsfo/

Hire a TDLR-licensed electrical contractor to install your solar energy system. Licensed electrical contractors must either hold a license as a master electrician or employ a master. They are required to carry insurance, which protects you as a consumer on completed jobs. It’s important to hire a licensed electrical contractor because:

  • they have passed examinations covering the National Electrical codes;
  • they have been educated on Texas laws and rules;
  • they have undergone criminal background checks; and,
  • they have insurance to cover any damage that might happen on the job.
Posted in News

Leave a Comment