Texas Takes Charge on Residential Solar Scams

Texas has seen explosive residential solar growth—jumping from about 1,300 rooftop systems in 2010 to nearly 271,000 by 2023. But with this boom came bad actors: aggressive door-to-door sales teams promising free panels, zero electric bills, federal tax credits that magically covered everything, and sign-first-ask-questions-later financing schemes. These tactics often targeted seniors, non-English speakers, and low-income homeowners, resulting in faulty installations, hidden loans, and roofs literally falling in.

Breaking Down Senate Bill 1036

• Salesperson Registration & Licensing: All solar retailers and sales agents must register with the Texas Department of Licensing and Regulation (TDLR), undergo criminal background checks, and carry liability insurance.
• Standard Disclosures & Contracts: Contracts must follow state-defined format and include transparent, easy-to-understand disclosures about costs, financing, and performance estimates.
• Right to Cancel: Buyers get a 5-business-day "cooling-off" window to cancel without consequences.
• Professional Installers Only: Installations must be led by licensed electricians; solar sales teams can no longer promise fast service with no credentials.
• Strong Penalties for Scams: Misleading statements (like false utility affiliation claims) can trigger civil penalties up to $2,500 per offense—or up to $50,000 for repeat violations. If victims are 65 or older, fines may reach $10,000–$100,000.
• TDLR Enforcement Powers: The agency can revoke registrations, cancel contracts, and order refunds when violations are proven.

Additional Protections & Timing

• Consumer Education Mandated: Texas Public Utility Commission must publish a guide on solar rights and regulations—sales reps are required to provide it at point of sale, or contract is invalid.
• Inspection Safeguards: Senate companion bills may also allow customers to cancel contracts and get refunds if installations fail inspections and are left unrepaired.
• When It Goes Live: Most provisions (like 5-day cancellation, licensing, professional installers, disclosures) take effect September 1, 2025. Full licensing and penalty enforcement begin September 2026.

What This Means for Central Texas Homeowners

• Power to Walk Away – No more signing contracts on the spot; you have time to review and rethink.
• Inbox of Knowledge – A consumer guide at signing helps you ask the right questions—like what permits are needed, what utility savings to expect, and whether performance estimates are realistic.
• Backed by Enforcement – If you’re misled, TDLR can step in, cancel the contract, revoke the salesperson’s license, and ensure you get your money back.
• Quality Matters – Licensed electricians ensure jobs meet Texas building codes and inspection standards.

Red Flags to Watch Out For

• Pressure tactics like “limited-time offers” or claiming solar will eliminate your electric bills entirely.
• Reps flashing tax credit claims without documentation or attachment to financing terms.
• No paperwork in hand—or contracts signed via smartphone or iPad before you read it.
• Promise of “no out-of-pocket costs” without clear loan or PPA (purchase power agreement) terms.
• Installation without a licensed electrician or permits from the city.

Tips for Smart Solar Shopping

• Stay Cool and Check the Terms – Use your 5-day review window. Read every word.
• Ask for Licenses – Request the salesperson’s TDLR number and verify via the TDLR website.
• Compare Quotes – Look into at least two reputable local installers.
• Track the Money – Be cautious of high-interest loans or hidden financing fees.
• Listen to Your Gut—and Your Roof – If smaller systems or DIY options make sense, explore those too.

Bottom Line

Texas is finally unshackling homeowners from high-pressure solar scam artistry. With Senate Bill 1036 and companion consumer education bills, solar buyers will soon have clear legal rights, contract protections, and recourse. For Central Texas homeowners—well-known for being savvy and community-focused—this is a win: cleaner energy without the guilt trip.

Whether you’re exploring solar to save money, go green, or boost your home’s value—don’t go it alone. As your trusted Central Texas real estate expert, I’m here to connect you with vetted professionals, review contracts with a critical eye, and protect your investment every step of the way.

Brandon Holley | Holley Homes Realty | 512.487.9242 | brandon@holleyhomesrealty.com