Texas Senate Bill 1036, the "Residential Solar Retailer Regulatory Act," has successfully passed both chambers of the Texas Legislature and now awaits Governor Greg Abbott's signature. This legislation will create new registration requirements for residential solar sales in Texas, overseen by the Texas Department of Licensing and Regulation (TDLR).
Legislative Timeline
Filed in Legislature
January 31, 2025
Senate Passed
April 7, 2025 (25-5)
House Passed
May 22-23, 2025 (100-36 final)
Signed by Chambers
May 26, 2025
Sent to Governor's desk
Governor's Desk
Awaiting Governor Abbott's signature
⏳ Pending signature
Implementation Timeline (If Signed)
Phase 1: September 1, 2025
Consumer Protections & Contract Requirements
- • 5-day cancellation period required (Section 1806.156)
- • Licensed electrical contractor installation mandate (Section 1806.155)
- • Required contract provisions take effect
- • Prohibited practices defined (but limited enforcement)
Key Point: Registration NOT required yet - focus on contract compliance and consumer protections
Phase 2: September 1, 2026
Registration Requirements & Full Enforcement
- • Solar retailer registration required (Section 1806.102)
- • Solar salesperson registration required (Section 1806.101)
- • Full enforcement powers active (Subchapter E)
- • Civil penalties up to $2,500/$50,000 (or $10,000/$100,000 for seniors)
Critical: Cannot operate without TDLR registration after this date
Key Difference
2025: Contract and consumer protection rules take effect, but no registration required and limited enforcement.
2026: Registration becomes mandatory and full enforcement powers (including penalties) become active.
Why This Legislation Matters
SB 1036 responds to a dramatic surge in consumer complaints about solar sales practices. According to data from the Texas Attorney General's office, solar panel-related complaints jumped from 154 in 2020 to 696 in 2024—a 350% increase. The Better Business Bureau reported similar trends, with complaints rising from 166 in 2019 to 1,069 in 2024.
Common issues include false promises about eliminating electric bills entirely, claims about non-existent government rebates, and aggressive door-to-door sales tactics that disproportionately target elderly homeowners. Importantly, many legitimate solar companies support increased regulation to help clean up the industry.
Who Must Register
Solar Retailers
Companies that employ or contract with individuals to sell or lease residential solar energy systems must register with TDLR.
Exemptions: Licensed electrical contractors performing work under their license, and persons selling solar energy systems they manufacture are exempt from retailer registration requirements.
Solar Salespersons
Individual salespeople who engage in residential solar retail for compensation must register with TDLR, unless they are licensed electrical contractors working under their license.
Key Requirements
5-Day Cancellation Period
Customers can cancel solar contracts without penalty within five business days after the later of: (1) contract execution, or (2) receipt of required contract disclosures.
Licensed Installation Required
All solar energy system installations must be performed by or under the supervision of a licensed electrical contractor.
Prohibited Practices
Specific prohibited practices include making false statements about savings or financing, misrepresenting affiliation with utilities or government entities, and soliciting at residences with "No Soliciting" signs.
Required Contract Provisions
Contracts must include specific disclosures about total cost, financing terms, cancellation rights, and installation requirements in clear, conspicuous language.
Enhanced Penalties for Seniors
Higher penalties apply when violations harm individuals over 65, with maximum penalties doubling to $10,000 per violation and $100,000 aggregate.
Penalty Structure
Civil Penalty Amounts
What Happens Next
Immediate Timeline
Industry Preparation Survey
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Disclaimer: This article provides general information about SB 1036 for industry professionals and should not be considered legal advice. For specific compliance questions, consult with qualified legal counsel or contact the Texas Department of Licensing and Regulation directly.
