Stronger Solar Installer Regulations Could Be Coming to Texas (Fingers Crossed!)

Last month, we briefly mentioned potential new legislation aimed at protecting consumers from shady solar companies. Now, there’s an update!

SB 1036 had its first reading in the Texas State Senate this past Monday. It’s currently with the Senate Committee on Business & Commerce for further discussion. While it’s still early, this is a big step toward greater oversight in the Texas solar market.

At NATiVE Solar, we fully support this proposed legislation because it prioritizes transparency and accountability in the industry.

What is SB 1036?

Dubbed the “Residential Solar Retailer Regulatory Act,” this bill is designed to establish clear rules for companies that sell or lease residential solar and battery storage systems.

Key Points of SB 1036:

• Registration Requirements: All solar design and installation firms must register with the Texas Department of Licensing and Regulation (TDLR).
• Consumer Protections:
  • Solar companies must provide educational materials to potential customers.
  • Homeowners will have a five-day window to cancel a solar contract—no strings attached.
  • Firms will be required to carry additional malpractice insurance to ensure financial responsibility and quality service.
• Exemptions: Licensed electrical contractors who handle their own solar sales may be exempt from certain registration and insurance requirements. However, they still need to comply with other parts of the Act.

Why Does This Matter?

The Texas solar industry is booming, but unfortunately, that growth has attracted bad actors using deceptive sales tactics and poor installation practices.

Some companies have already been exposed for fraud (see report here). SB 1036 aims to eliminate these bad practices and ensure homeowners receive quality service with clear, honest information before committing to solar.

🚧 Room for Improvement:

• While SB 1036 is a great first step, it doesn’t cover everything.
• Past bills included financial recourse for failed inspections—this aspect still needs refining.
• Some consumer advocacy groups are pushing for stronger protections before the bill comes up for a vote.

Senator Judith Zaffirini (bill sponsor) puts it simply:

“This legislation is designed to ensure that Texans can confidently invest in solar energy without falling victim to deceptive practices.”

What’s Next?

If passed, SB 1036 will bring much-needed standards to the Texas residential solar market—protecting homeowners and ensuring fair business practices.

👀 Stay tuned to our blog for more updates on this bill and other Texas solar news. At NATiVE Solar, we’re committed to keeping you informed and helping you make the best solar choices.