Texas residential solar companies and salespeople must now register with the state under a new regulatory program governing residential solar sales and leases.
Beginning September 1, 2026, residential solar retailers and salespeople operating in Texas must hold registrations from the Texas Department of Licensing and Regulation (TDLR)latest to ensure compliance with the state’s Residential Solar Retailer regulatory deadlines and avoid penalties.
New set of Texas solar rules in place
Under the program, businesses engaged in residential solar retail must obtain a solar retailer registration. At the same time, individual salespeople must hold their own registrations and conduct sales on behalf of a registered retailer. Retailer registrations cost $350 annually, while salesperson registrations cost $56 annually.
Retailers must also carry at least $1 million in general liability insurance per occurrence and $2 million in aggregate coverage. Applicants must provide TDLR with proof of coverage as well as identifying information for company owners or other controlling persons and registered salespeople working on the company’s behalf.
Salespeople do not face experience or examination requirements, but TDLR conducts a criminal history background check as part of the registration process.
Licensed electrical contractors and their employees are generally exempt from the new solar retailer and salesperson registration requirements, although TDLR said they remain subject to most other provisions of the law and its implementing rules.
The consumer protection rules effective since September 1, 2025, require residential solar contracts to clearly identify the responsible electrical contractor and confirm permit and interconnection obligations, directly affecting industry practices and consumer trust.
Five-business-day cancellation period established
Buyers or lessees can cancel a solar agreement during that window without penalty or further obligation, and contracts must specify the final cancellation date and provide a mailing or email address for submitting notice. When financing comes from a third-party lender affiliated with or referred by the solar retailer, the contract must require the lender to cancel the associated loan when the solar contract is canceled.
Additional enforcement provisions took effect at the beginning of this month. The law prohibits retailers and salespeople from making false or misleading statements, falsely suggesting affiliation with a utility or government agency, withholding required disclosures and educational materials, disregarding posted no-solicitation notices, or allowing installation by someone other than a licensed electrical contractor.
TDLR also adopted implementing rules this summer that establish a code of conduct and additional requirements for contracts and sales practices. Retailers must supervise their salespeople, provide training, and take corrective action when they become aware of violations. The rules also require retailers to process valid contract cancellations and maintain certain transaction records.
Two requirements receive temporary enforcement delay
TDLR announced a temporary enforcement delay until Nov. 1, 2026, for rules requiring disclosure forms and educational materials, providing industry stakeholders additional time to prepare for full compliance.
TDLR began accepting online registration applications August 10. The department said in August that multiple retailers and salespeople had already registered ahead of the September 1 requirement.
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