Reports of misleading solar sales and surprise liens have rattled homeowners across Texas. In response, lawmakers passed the Residential Solar Retailer Regulatory Act (SB 1036) to rein in deceptive tactics and add licensing and disclosure rules to residential solar sales. Parts of the law started September 1, 2025, with more requirements phasing in through 2026.
The short version
- New rules: SB 1036 requires state registration/licensing for solar sellers, bans false utility/government affiliations, and adds penalties (up to $100,000 in severe cases, especially when seniors are targeted).
- Who’s in charge: TDLR now regulates residential solar retail sales and has published consumer guidance on red flags and where to file complaints.
- Why it matters: Texas complaints about solar have surged—Dallas County led the state, and statewide complaints rose >800% (2018–2023).
How the scams usually work
- False promises: “Free” solar, guaranteed bill elimination, or exaggerated savings; fake utility/government ties. The FTC flags these as classic misrepresentations.
- Confusing financing: Homeowners sign long-term loans or PPAs with teaser terms that escalate later. Some are told tax credits cover everything—then learn they don’t. (Cases documented in Texas media investigations.)
- Lien or filing surprises: Contractors or lenders may record mechanics liens or UCC filings if there’s a payment dispute or default risk—putting title and refinancing at risk until released. Texas Property Code Chapter 53 governs liens; owners can seek releases or challenge fraudulent liens.
What SB 1036 changes
- Registration & oversight: Residential solar retailers and salespeople must register with TDLR (phasing in). TDLR can investigate and penalize bad actors.
- No fake affiliations: Sellers cannot claim or imply they work for your utility or a government agency.
- Stronger disclosures: The law requires state-authored consumer guides and clearer contract terms so buyers see costs, savings limits, service-call issues, warranty terms, and lien/financing impacts before they sign.
- Higher penalties: Civil penalties escalate for repeat or egregious conduct, with enhanced fines when seniors are targeted.
If the incident occurred before Sept. 1, 2025, TDLR advises filing with the Texas Attorney General’s Consumer Protection division. After the effective dates, TDLR can take complaints tied to SB 1036.
Spot the red flags (and what to ask for)
Red flags
- “This offer expires today,” or door-to-door reps pushing you to sign on an iPad now.
- “Free solar,” or guaranteed $0 electric bills.
- Refusal to show license/registration, insurance, or permit plans.
- No mention of interconnection approval with your utility or HOA rules.
Ask for
- TDLR registration/license info (seller) and insurance (installer).
- A written, itemized proposal: equipment list, production estimate assumptions, price, incentives, loan APR/term, and total lifetime cost.
- Interconnection steps and who handles permits/inspections.
- A lien waiver plan and UCC/lien disclosure from any lender. (Texas Property Code requires releases on payment.)
A safe way to shop solar in Texas
- Verify credentials first. Check TDLR’s updates and the seller’s registration/licensing status as requirements roll in. (Until then, lean on references and insurance proof.)
- Get three written bids on the same scope (panel count, inverter type, warranty). Use a simple comparison sheet.
- Check assumptions in production and savings (utility rate, escalation, shading).
- Read financing terms: APR, term, dealer fees, prepayment rules, and whether a UCC will be filed.
- Insist on lien waivers with progress payments; keep copies until the final release is recorded.
- Confirm interconnection and meter change timing with your utility.
- Know where to complain: ReportFraud.FTC.gov, Texas AG Consumer Protection, and TDLR for SB 1036 issues.
Quick checklist
- Seller’s TDLR registration/license confirmed (as rules phase in) + installer insurance COI.
- Three comparable bids with equipment, production, warranties, and total cost.
- Financing terms in writing (APR, fees, prepay).
- Interconnection steps and permit plan documented.
- Lien waiver workflow + understanding of any UCC filing; final release on completion.
- Bills, photos, approvals, and contracts saved in Property Journal; Jack Report™ attached to each bid.
Need a fast gut-check on a solar proposal or lien language? Ask a vetted expert at letsaskjack.com before you sign.
Bottom line
Texas is tightening the rules on residential solar sales with SB 1036, giving TDLR new tools to license, investigate, and penalize bad actors. You still need to protect yourself: verify credentials, compare real numbers, understand financing and lien implications, and keep organized records. Do that, and you can get the benefits of solar—without the headaches.