Three major solar-related laws that TXSES worked on getting passed in the last Texas legislative session went into effect on September 1, 2025. One was on streamlining solar permitting (SB 1202) and two were on consumer protection (SB 1697 & SB 1036). Details for each are laid out below.
Permitting – SB 1202
Streamlines permitting for Distributed Energy Resources (DER)
- Applies to home backup power installations, including BESS (Battery Energy Storage Systems), DER, standby systems, and any associated equipment connected at < 600 volts
- Persons authorized to review development documents or conduct inspections may do so without requesting inspection from the regulatory authority; they must follow any formats specified by the regulatory authority and notify the regulatory authority within 15 days
- Specifies that such authorized people can use an automated system (such as SolarApp+)
- The regulatory authority:
- Shall issue permits within two business days of receiving notice of the inspection / document approval; following that, construction can begin
- Cannot impose fees related to review or inspection; need to provide a fee schedule for any fees related to permit issuance
Consumer Protection – SB 1697
Requires the Public Utilities Commission of Texas (PUC) to develop a guide of best practices, resources, and guidelines for prospective solar owners
- Guide must include:
- Suggested questions to ask the utility about its solar offerings (ex., net metering, rebates)
- Identification of provided services
- Design elements to consider for efficiency purposes
- Financial considerations like tax credits and financing costs
- Contact information for a PUC employee who can assist customers
- Utilities must include a link to the online guide with each bill they send for at least 12 months
Consumer Protection – SB 1036
Residential Solar Retailer Regulatory Act
Powers and Duties
- Prevails over all municipal ordinances relating to the topic
- Requires the Texas Department of Licensing and Regulation (TDLR) to adopt rules prohibiting deceptive residential solar retail tactics
- Requires solar retailers/salespeople to provide disclosures and educational materials when selling
- TDLR must regulate the format of a solar sales agreement and establish insurance requirements for solar retailers
- Permitted to collect administrative fees
- TDLR must develop educational materials informing consumers of their rights and may require solar retailers to provide customers with these
Registration
- Registration required for solar salespeople and retailers
- Required to provide registration information within each sales agreement
- Retailer applications must include:
- Name and registration number of each solar salesperson
- Evidence that the retailer has the required insurance
- TDLR can conduct a criminal history check of applicants
- Retailers are exempt from continuing education requirements
Practice by Registrants
- Retailers must supervise their salespeople and make “reasonable efforts” to correct violations of this bill
- Retailers and salespeople must comply with any code of conduct and the Truth in Lending Act
- Sales agreement for installation must give electrical contractor information and utility approval (if applicable)
- Buyer can cancel the agreement without penalty within 5 business days
- Third-party lenders must cancel buyer loans if the buyer cancels the agreement
Enforcement
- Prohibited actions include:
- False implication of affiliation with a public utility or government agency
- Failure to provide disclosure statements
- Violating no soliciting signs
- Allowing installation by someone who isn’t an electrical contractor
- TDLR executive director can:
- Deny or refuse to renew registration if the applicant violates these rules
- Issue a warning and/or cease and desist letter before penalizing
- Penalty for violation:
- < $2,500 each; < $50k aggregate
- Penalty if a person over 55 was harmed: < $10k each, < $100k aggregate
- TDLR can order cancellation and refund of sale/lease if there’s a violation
- Does not prohibit an injured party from suing