by Patrice “Pete” Parsons, TXSES Executive Director
Over the past few years, TXSES has received a growing number of calls from consumers who were misled by inaccurate information from solar salespeople or harmed by poor installation practices. In some cases, systems were installed that produced little to no energy—what I’ve come to call “solar decorations.”
As media coverage of these issues increased, so did concerns about the broader impact on the solar industry’s reputation. In response, TXSES began working with the Texas Department of Licensing and Regulation (TDLR) to explore solutions, including licensing and training requirements for solar sales professionals.
When the last legislative session began, TXSES learned that Texas Senator Judith Zaffirini was developing consumer protection legislation. TXSES, alongside partner organizations, began to work closely with her office to provide industry insight and help shape effective safeguards.
The result of this collaborative effort was the passage of Senate Bill 1036 (SB 1036), which directs TDLR to implement new rules to protect consumers and improve accountability across the solar marketplace. TXSES is proud to have served on the steering committee to develop these new consumer protection rules. They will take effect in September 2026, and include the following key provisions:
Registration Requirements
- Solar Retailer Registration Fee: $350
- Solar Salesperson Registration Fee: $56
Insurance Requirements
- Minimum coverage of $1 million per occurrence and $2 million aggregate
- Policies must cover liability to consumers for actions taken by retailers and their sales representatives
Consumer Contract Protections
- Contracts must be in writing (electronic copies allowed upon request)
- Must be provided in English unless another language is requested by the consumer
- Clear, easy-to-understand language is required
- Includes a standardized disclosure form outlining key terms
- Must list contact and registration details for both retailer and salesperson
- Must identify the installer (or list electrical contractors from which the installer will be selected) and their license numbers
- Consumers have a 5-business-day right to cancel
Salesperson and Retailer Accountability
- Mandatory registration for both salespeople and retailers
- TDLR may conduct criminal background checks
- Retailers are required to supervise sales staff and make “reasonable efforts” to address violations
- Salespeople must respect “No Soliciting” signs
- Continuing education will be required after the first year
Enforcement and Penalties
- Violations: up to $2,500 per incident, with a $50,000 cap
- Enhanced penalties if the consumer is over age 55: up to $10,000 per violation, with a $100,000 cap
Criminal Eligibility Standards
Applicants may be denied based on convictions related to fraud, deceptive practices, theft, organized crime, or violent offenses.
Third-Party Lending Protections
- Requires solar retailers to pay off loan balances if a contract is canceled
These new protections mark a significant step forward in ensuring transparency, accountability, and consumer confidence in the Texas solar market. TXSES remains committed to supporting policies that strengthen the industry while protecting the communities it serves.