A new Texas law requiring solar salespeople to register with the state took effect Tuesday, Sept. 1, giving Woodlands homeowners a five-day window to cancel contracts and new tools to report deceptive sales.
Senate Bill 1036, the Residential Solar Retailer Regulatory Act, requires solar salespeople and the companies they work for to register with the Texas Department of Licensing and Regulation (TDLR). It also bans deceptive sales tactics and gives regulators the power to penalize violators, KPRC 2 reported. Texas lawmakers passed the bill in 2025. Some provisions took effect in September 2025, but the registration mandate and enforcement tools were delayed until Sept. 1, 2026.
What homeowners should know
The law gives Texans five business days after signing a residential solar contract to cancel without penalty. The contract must state the final cancellation date and provide a mailing or email address for the notice. If a third-party lender is involved, that lender must also cancel the loan when the homeowner cancels the solar agreement.
Salespeople must provide their name and registration number when a customer asks. Contracts must list registration numbers for both the salesperson and the retailer.
The law prohibits making false or misleading statements during a solar sale, falsely claiming affiliation with a utility or government agency, and soliciting at homes with posted "no solicitation" signs.
One Houston-area homeowner showed why the law matters. She told KPRC 2 that she and her husband were promised solar panels would eliminate their electric bill. Three years later, she said they pay roughly $450 a month for panels and electricity combined, more than before they went solar. "We're literally throwing money out the window," she said.
Penalties and enforcement
Civil penalties can reach $2,500 per violation, up to $50,000 for similar violations. When a person over 65 is harmed, fines jump to $10,000 per violation or $100,000 for similar offenses. After a hearing, regulators can cancel a solar contract and order a refund.
The law applies only to contracts signed on or after its effective date. Older solar agreements are not covered.
Next steps
TDLR has temporarily suspended enforcement of two administrative rules, one on contract disclosures and one on educational materials, until Nov. 1. Separately, the agency extended the registration deadline to the same date.
Homeowners can verify a salesperson's or retailer's registration at tdlr.texas.gov. Those who believe a company used misleading tactics or failed to honor the cancellation window can file a complaint with TDLR at 1-800-803-9202 or contact the Texas Attorney General's Consumer Protection Hotline at 1-800-621-0508.
