New Texas Law Expands Consumer Protections in Residential Solar Contracts: Texas Senate Bill 1036

Texas Senate Bill 1036, officially titled the Residential Solar Retailer Regulatory Act, recently passed and established new licensing, disclosure, and consumer protection requirements for residential solar energy transactions. This law directly impacts homeowners who are considering or have recently signed solar contracts in the state of Texas.

Effective September 1, 2025, SB 1036 adds Chapter 1806 to the Texas Occupations Code, and introduces major new safeguards for homeowners. This includes clear disclosures, licensing requirements for solar salespeople and retailers, and enhanced rights for consumers to cancel contracts.

Key Protections for Homeowners Under SB 1036

1. Five-Day Right to Cancel

As of June 20, 2025, homeowners in Texas now have five business days to cancel a solar contract without penalty or further obligation. This is a major shift that empowers consumers to reconsider and evaluate high-pressure solar sales tactics or confusing contract terms.

2. Required Disclosures and Licensing

All solar salespeople and retailers must register with the Texas Department of Licensing and Regulation (TDLR). The TDLR requires that they provide detailed disclosures. They also must follow specific rules governing what can and cannot be said during a solar sales pitch.

3. Oversight and Enforcement

Violations of the new law carry various consequences, including potential administrative and civil penalties of up to $2,500 per incident, or $10,000 per violation when violations affect senior citizens. In some cases, the TDLR or Commission may even cancel the contract and order refunds for victims.

4. Who Must Comply?

The law applies to most residential solar sales or leases, including systems for single-family homes and small multifamily dwellings. It specifically targets door-to-door or high-pressure solar sales and applies whether the system is purchased outright or financed through a lease or power purchase agreement.

What This Means for Texas Homeowners

This new law is a direct response to a rise in deceptive solar sales practices across Texas and other states. Many of which involve misleading claims, predatory financing, or faulty installations. 

With SB 1036, Texas joins a growing list of states taking steps to protect consumers in an industry that has long operated in a regulatory gray area.

Did you or someone you know sign a solar contract on or after June 20, 2025? You may have new rights under this law. The new rights include the ability to cancel, demand disclosures, or take legal action if the contract was misleading or noncompliant.

How Prevost Law Firm Can Help

At Prevost Law Firm, we’ve helped thousands of homeowners fight back against deceptive solar contracts. We understand how complex these agreements can be, and how easy it is for solar companies to take advantage of loopholes and fine print. With the passage of SB 1036, Texans now have more power than ever to hold solar companies accountable.

If you believe your solar contract was unfair, misleading, or forced upon you under pressure, you may be entitled to cancel the contract, remove a lien, or seek financial compensation.

Act fast. Your cancellation window is limited.

 📞 Call us now at (855) 584-3576 or request your no-cost claim review to speak with an attorney about your options.

Learn More

You can read the full bill text here:
🔗 Senate Bill 1036 – Texas Legislature Online (PDF)

Or visit the bill’s page for updates and legislative history:
🔗 SB 1036 – Texas Legislature Online