AUSTIN, TX – Starting September 1, 2025, Texas homeowners will receive new protections when purchasing or leasing residential solar energy panels, as the state begins regulating the sales process for these systems under Senate Bill 1036.
Authored by State Senator Judith Zaffirini of Laredo, SB 1036 grants the Texas Department of Licensing and Regulation (TDLR) authority over the sale and lease of residential solar energy systems, in addition to its existing oversight of licensed contractors who install solar panels.
“This law is a major step forward to protect homeowners from deceptive solar energy sales,” Sen. Zaffirini said. “It addresses misleading and predatory tactics that disproportionately harmed elderly and non-English-speaking Texans. With TDLR now able to hold bad actors accountable, we can rebuild consumer trust in residential solar energy.”
Key Consumer Protections Under SB 1036:
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Sales contracts cannot make misleading statements about system performance or costs.
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Contracts must include a five-business-day right of cancellation.
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Solar retailers cannot claim affiliation with utilities or government agencies.
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Retailers may not solicit homes with “no soliciting” signs unless invited.
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Installation work must be performed by licensed electrical contractors.
TDLR will begin accepting complaints regarding contracts entered into on or after September 1, 2025. Complaints regarding solar sales before that date should be directed to the Texas Attorney General’s Office of Consumer Protection.
Beginning September 1, 2026, all residential solar retailers and salespersons must register with TDLR, following the adoption of program rules by June 1, 2026. TDLR is establishing a stakeholder workgroup to provide guidance on program rules, including input from business, consumer, and government representatives.
Homeowners Considering Solar Panels Should Ask:
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Is my roof suitable for solar panels?
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Will my home receive enough sunlight to make solar economically effective?
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Is my roof structurally able to support the panels?
Warning Signs of Predatory Solar Sales:
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Promises of “free” or unusually low-cost installations.
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High-pressure tactics emphasizing limited-time offers.
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Requests for personal information like Social Security numbers or bank account details.
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Demands for full upfront payment before work is completed and inspected.
Before Signing a Contract:
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Obtain bids from multiple companies.
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Ask for references from previous customers.
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Verify the electrical contractor is TDLR-licensed and has insurance.
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Confirm the contractor has no recent administrative penalties.
TDLR emphasizes that hiring licensed electricians ensures proper training, background checks, and insurance coverage, protecting homeowners from incomplete or unsafe installations.
