TXSES has been working with the Texas Department of Licensing and Regulation (TDLR) on new rules to protect solar consumers by requiring licensing of solar retailers and salespeople. The rules were open for public comment until April 12th.
Senate Bill (SB) 1036, the Residential Solar Retailer Regulatory Act, passed during the last regular session in 2025 (89th Legislature), and took effect on September 1, 2025. However, registration requirements and certain enforcement provisions begin on September 1, 2026. TDLR is now writing those rules, and you can help shape them.
SB 1036 provides TDLR with regulatory authority over residential solar transactions, and directed them to form and consult a stakeholder workgroup for the development of rules implementing that legislation. The proposed rules were developed with the assistance of that workgroup.
WHAT SB 1036 DOES:
- Requires all solar retailers and salespeople to register with the state and pass background checks.
- Mandates plain-language contract disclosures: total costs, financing terms, realistic savings estimates, and ownership details before you sign anything.
- Gives homeowners a five business day window to cancel any solar contract without penalty.
- Backs up the law with real consequences: civil fines up to $10,000 per violation, and up to $100,000 for repeat offenses targeting seniors or vulnerable consumers.
The proposed rules define key concepts, clarify the Department’s regulatory scope, provide details regarding registration and insurance requirements, state requirements for the form and format of solar contracts, and create a code of conduct for solar retailers and salespersons. Further, the proposed rules set out requirements for solar salespersons and solar retailers to provide consumers with disclosures and educational materials, specify the manner in which solar contracts can be cancelled, and include provisions relating to fees and enforcement provisions.