Jaewon Jung, Reporter
Adrian Crooks, Photojournalist
Published: September 2, 2026 at 3:20 PM
Updated: September 2, 2026 at 5:08 PM
Jaewon Jung, Reporter
Adrian Crooks, Photojournalist
HOUSTON – New requirements for residential solar companies and salespeople took effect Tuesday, Sept. 1, as Texas begins enforcing a law designed to give homeowners more protections when buying or leasing solar panels.
The new requirements are part of Senate Bill 1036, known as the Residential Solar Retailer Regulatory Act, which Texas lawmakers passed in 2025.
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While much of the law took effect Sept. 1, 2025, lawmakers delayed two major portions until Sept. 1, 2026: requirements that residential solar retailers and salespeople register with the state and enforcement provisions allowing regulators to penalize violations.
The law regulates the sale and lease of solar energy systems designed primarily for residential use.
People who engage in residential solar sales for compensation generally must be registered with the Texas Department of Licensing and Regulation as solar salespeople and work on behalf of a registered solar retailer.
TDLR has extended the deadline to register to November 1, 2026.
Companies also cannot employ or contract with someone to conduct residential solar sales on their behalf unless the company is registered as a solar retailer.
Solar retailer applications must identify the salespeople working on the company’s behalf and include evidence that the company meets insurance requirements established by state regulators. The Texas Department of Licensing and Regulation may also conduct criminal history checks on applicants and certain people who control solar companies.
The law gives consumers a way to verify who is trying to sell them a residential solar system.
If requested by a prospective or existing customer, a solar retailer or salesperson must provide their name and registration number.
Solar contracts must also include the names and registration numbers of both the retailer and salesperson involved in the transaction.
One of the law’s major consumer protections gives Texans five business days after signing a residential solar contract to cancel it without penalty or further obligation.
The contract must state the final calendar date on which the homeowner can cancel and provide a mailing or email address where the cancellation notice can be sent.
If the solar sale or lease involves a third-party lender affiliated with or referred by the solar retailer, the agreement must also require that lender to cancel the accompanying loan if the homeowner properly cancels the solar agreement.
The enforcement provisions that took effect Tuesday specifically prohibit several practices.
A person cannot intentionally, knowingly or recklessly make a false, misleading or deceptive oral or written statement while engaging in residential solar sales.
Solar sellers are also prohibited from falsely stating or implying that they are affiliated with a public utility or government agency.
The law also prohibits solar sales at homes with posted signs saying solicitation is prohibited unless an occupant says otherwise.
Residential solar installations covered by the law must be performed by an electrical contractor.
Solar retailers are required to provide “reasonable supervision” of salespeople authorized to sell on their behalf.
That includes making reasonable efforts to correct violations the retailer knows about — or that a reasonable person under the same circumstances would know about.
The law also makes the retailer responsible for violations committed by an authorized salesperson.
When a residential solar sale or lease includes installation at someone’s home, the agreement must state that the installation will be performed by an electrical contractor.
It must also identify the contractor and license number, or provide a list of electrical contractors from which one will be selected.
The agreement must provide that the solar retailer or electrical contractor will obtain required government permits and applicable utility approval for connecting the system to the electric grid.
The law gives state regulators several tools to enforce the new requirements.
Civil penalties can reach $2,500 for each violation, with a maximum of $50,000 for violations of a similar nature.
Penalties can be significantly higher when an older Texan is harmed. If a court finds that a person over 65 was harmed by a violation, the civil penalty can reach $10,000 per violation or $100,000 for violations of a similar nature.
The Texas Department of Licensing and Regulation can also deny or refuse to renew registrations for certain violations, and the executive director can issue warning letters or cease-and-desist orders.
The law gives regulators another potentially significant enforcement option.
After notice and a hearing, if regulators determine the law or its accompanying rules were violated, the Texas Commission of Licensing and Regulation or TDLR’s executive director may order a residential solar agreement canceled and require a refund of money paid under the agreement.
The refund cannot exceed the amount the customer paid, and receiving a refund through this process does not prevent an injured party from pursuing other damages or equitable relief in court under other applicable laws.
The timing matters.
The law says Chapter 1806 applies only to contracts entered into on or after the act’s effective date. Contracts entered into before the effective date continue to be governed by the law that was in place when they were signed.
That means the law does not automatically provide a way out of older solar contracts simply because the new registration and enforcement provisions took effect Sept. 1, 2026.
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