The Texas residential solar market has exploded over the past decade. With rooftop solar installations surging—from just over 1,300 systems in 2010 to nearly 270,000 by 2023—consumer demand has outpaced regulatory oversight. In response to a wave of complaints and investigative reports revealing deceptive sales tactics and faulty installations, State Senator Judith Zaffirini has introduced Senate Bill 1036, the Residential Solar Retailer Regulatory Act, which aims to create a more transparent, accountable marketplace for Texas homeowners.
What’s Behind SB 1036?
SB 1036 is designed to tackle a variety of issues plaguing the residential solar industry in Texas. Recent investigations, such as the four-part series “In Broad Daylight” by the San Antonio Express-News, have highlighted how unscrupulous sales practices have left consumers—particularly vulnerable populations—facing unfinished installations, inflated financing costs, and systems that fall woefully short of performance promises.
Key Provisions of the Bill
Registration and Oversight:
Under SB 1036, all residential solar retailers and their sales representatives must register with the Texas Department of Licensing and Regulation. This registration requirement ensures that all sales contracts include the registration numbers of both the company and the salesperson, providing consumers with a clear way to verify the credentials of those selling solar systems.
Mandatory Educational Materials:
The bill mandates that registered solar salespersons provide prospective customers with standardized educational materials. This measure aims to demystify solar energy systems by clearly outlining the costs, performance expectations, and financing details involved—helping consumers make informed decisions.
Consumer Protection and Cancellation Rights:
One of the bill’s most consumer-friendly provisions is the right for homeowners to cancel a solar contract without penalty within five business days after the agreement is executed. This cooling-off period is designed to protect buyers from high-pressure sales tactics and allows them time to review contract details and seek independent advice.
Penalties for Deceptive Practices:
To deter misleading behavior, SB 1036 imposes civil penalties of up to $2,500 for each violation, with higher fines for repeat offenses. The penalties escalate if a victim aged 55 or older is harmed, with fines reaching up to $10,000 per violation—up to an aggregate of $100,000.
Where Does SB 1036 Stand in the Legislative Process?
SB 1036 was filed on January 31, 2025, and has since been moving through the legislative process. It underwent a public hearing in the Texas Senate on March 18, 2025, where committee members and stakeholders provided testimony. Following the hearing, the bill was left pending in committee—a critical stage before it can reach the full Senate floor for debate and voting.
What’s Next?
As the Texas Legislature continues its 89th Regular Session (January 14 – June 2, 2025), stakeholders—from solar installers to consumer advocacy groups—are keeping a close eye on SB 1036. With further committee deliberations and possible amendments on the horizon, the final shape of the law remains to be seen. For now, the bill stands as the most comprehensive effort yet to rein in deceptive sales practices in the residential solar market, potentially setting new industry standards that could have a lasting impact on how Texans invest in clean energy.