OK. I know many of our readers have been staying tuned in on this topic. So here’s the latest on how state legislators and regulatory agencies are pushing for constraints on how the coming wave of data centers operators (and their enormous expected power demands) will get access to the Texas grid.

On June 10, Governor Abbott directed the Public Utility Commission of Texas (PUC) and ERCOT (the Electric Reliability Council of Texas, which operates the state’s power grid) to keep the cost of data center growth off residential electric bills. On July 24, the two agencies reported back with specifics. Here’s what they actually committed to, what it doesn’t cover, and why on-site power harvesting/generation/stroage remains the one variable homeowners and businesses can control directly. (Governor’s office, June 10 directive; KVIA, July 24 response)

What the State Actually Committed To

Per the PUC and ERCOT’s joint response, the state is moving to:

• Require data centers to fully fund the transmission infrastructure built to serve them, and to contribute toward reducing residential electric bills -not just avoid raising them.
• Adopt rules preventing large data centers from diverting existing power away from residential and small-business customers during periods of grid stress.
• Implement a new interconnection screening process before large loads can connect to the grid.
• Mandate that data centers reduce power draw quickly when ERCOT instructs them to.
• Require data centers to register with the PUC and ERCOT so the state has accurate visibility into electricity and water use.

Both agencies also recommended legislative changes for the next session, including expanding the Lone Star Infrastructure Protection Act to cover large data centers and clarifying PUC/ERCOT authority to set additional reliability requirements. Governor Abbott said he’ll work with lawmakers to codify the protections. (KVIA)   

What This Doesn’t Do

These are regulatory and administrative actions, not law yet -the legislative pieces won’t move until the next session convenes. And the underlying pressure hasn’t gone away: ERCOT is currently tracking more than 438,000 MW of large-load interconnection requests, the vast majority from data centers, a queue NATiVE Solar covered in more detail after ERCOT’s record-breaking demand week earlier this month. Cost-allocation rules can slow how much of that growth lands on residential rates, but they don’t change the fact that Texas electricity demand is climbing faster than in past cycles — a dynamic Austin Energy itself flagged earlier this year. (NATiVE Solar)

Oh, then there’s the Texas energy lobby…we expect them to push back hard.   There’s an industry on the other side of this, and it hasn’t gone quiet. The Data Center Coalition -the sector’s main trade group — responded to the July 24 announcement by saying it “shares” Abbott’s commitment to responsible growth and will “work with” his office, the PUC, ERCOT, and the Legislature. That’s cooperative language, but the coalition has a track record worth noting: during the 2025 fight over SB 6’s cost-allocation rules, it argued that changing terms on data centers would make developers “rethink their investments in Texas,” and said afterward that the final law still didn’t address all its concerns. (KVIA) Separately, some Republican lawmakers are pushing to pause a related $100 billion transmission expansion tied to data center growth until the 2027 session can review it — a sign the fight over pace and cost isn’t settled, even inside the governor’s own party. (KSST Radio) The PUC’s actual rulemaking on cost allocation and curtailment mechanics is still in progress through the rest of 2026 — which is exactly where a well-resourced trade group has the most room to shape outcomes without ever staging public opposition.

Why On-Site Generation Still Matters Here

These rules govern who pays for new infrastructure. They don’t change how much electricity you pull from the grid, or when you pull it. That’s still on you — and it’s the part battery energy storage and solar actually affect, no matter how the cost-allocation fight in Austin plays out, or how the rulemaking ultimately lands.

For commercial and industrial facilities, that’s a demand charge mitigation story: behind-the-meter generation cutting exposure during peak-draw periods, especially for manufacturers, healthcare facilities, and other high-electricity-cost operations that feel rate volatility first. For homeowners, it’s energy resilience — less dependence on a grid now carrying an entirely new category of industrial load on top of everyday household demand.

None of this is a guarantee against rising rates; how much a given system reduces exposure depends on load profile, system sizing, and how a project is designed and dispatched. But it’s a lever you control directly, on a timeline you set — which is more than can be said for the outcome of next session’s legislative fights.

NATiVE Solar’s Perspective

We’ve watched this exact dynamic play out before: policy responds to a stressor after the stressor is already visible in the data. That’s not a criticism of the state’s approach here — fully funding data center infrastructure and requiring fast curtailment are genuinely useful tools. But we design systems for the property owners who’d rather not wait to find out how a future legislative session resolves cost allocation on a grid serving an entirely new category of industrial customer. Fifteen-plus years of working inside ERCOT’s interconnection and rate structures is what lets us size a system around your actual exposure, not a headline.

If you want to understand what rising data center-driven demand means for your specific facility or home, talk with our team about a system built for the Texas grid as it actually exists — not as the next legislative session might reshape it.

Texas Homeowners, It’s Here: SB 1036 Goes Live

This new Texas law should shut down all the bad actors that remain.

Starting September 1, 2025, the Texas solar industry is about to change—for the better.

A new era of consumer protection is coming to Texas solar. That’s right, dear reader. The recently passed Texas solar scams law—SB 1036—is designed to shut down unethical sales tactics and restore homeowner trust in the Texas residential solar industry. Starting September 1, 2025, the Texas solar industry is about to change—for the better.

Aggressive door-to-door sales, exaggerated savings claims, opaque lending terms, and confusing contracts have made it difficult for Texans to trust what should be a clean, empowering energy solution. The poor folks who got taken have gone through hell. And it isn’t right.

But, dear readers, a new law –Senate Bill 1036, known as the Texas Residential Solar Consumer Protection Act- is going to put an end to all that.  And all of us here at NATiVE Solar are 100% in support of it!  *I reported on this (now passed) legislation back in January when it was slated for a debate and a vote.

Why the Texas Solar Scams Law SB 1036 Matters (and what it actually does).

SB 1036 was recently passed the Texas Senate and introduces fairly sweeping consumer protections (that’s you) designed to restore faith in residential solar -and to severely punish bad actors, including flat-out shutting them down.  It’s scheduled to take effect Jun 1 of 2026. Here’s what the law requires solar contractors (that’s us) to do :

• Licensing for Salespeople: Solar sales representatives must now be registered, fingerprinted, and pass a background check with the Texas Department of Licensing and Regulation.
• Mandatory Insurance: Solar companies must carry general liability insurance to operate legally in Texas.
• Stiff Penalties for Bad Actors: Civil fines of up to $10,000 per violation—and up to $100,000 for repeat violations targeting seniors or vulnerable consumers.
• Consumer Education: All solar proposals must include a state-approved consumer guide outlining homeowner rights, financing risks, and what to expect from installation.

These changes don’t just target shady companies -although it will force them to change (or die!). I think the new state law actually (finally!) creates a clear framework of accountability for legitimate installers to stand apart from (and push back against) all of what has for decades been the unfortunate “dark side” of the solar industry here in Texas.

SB 1036 Timeline

• September 1, 2025: Core provisions take effect. (*NATiVE Solar has pretty much *ALWAYS* implemented these as standard practices)

• Mid-2026: State releases official consumer guide and seller licensing rules.
• Late 2026: Enforcement begins; all residential solar sellers must be licensed and compliant.

What This Means for You -the Homeowner

For Texas homeowners, this is a game-changer. You’ll soon be able to:

• Verify the credentials of anyone selling solar to you.
• Understand your solar investment before signing anything.
• Report unethical behavior and expect real consequences for deceptive practices.

In short: solar in Texas is about to get safer, smarter, and more transparent.

What This Means for Reputable Installers

For ethical solar companies like us, this law is a welcome evolution. We’ve built our reputation on integrity, transparency, and long-term client success—not gimmicks or high-pressure sales. For us, SB 1036 rewards that commitment.

And for those other solar firms who took folks for a ride? Well, all i can say is: “Bubbeye now!”

As the solar market matures, we believe consumer trust will be the most valuable currency. This law helps make that possible.

Final Thoughts

We (here at NATiVE) support the Texas solar scams law SB 1036 and believe it will raise the bar for ethics in our industry. I don’t really understand why it took so long.  This measure passed the state house and senate by a huge margin.  And I don’t know of any reputable people or firms in this market who oppose these new laws.  In any case, it’s a major step toward a better solar future for Texas.

Of course, NATiVE Solar clients have always been safe. And we’re super-greatful to all the folks that have placed their trust in us over the years.

Here’s a link to the bill’s actual final text, as well as the related procedural /legislative data bits for anybody that’s interested in going deeper…

And until next time – be well, dear reader.

NATiVE Solar has been helping Texas homeowners and businesses go solar the right way for over 18 years. If you’re ready to talk to a team that leads with ethics, experience, and service—let’s talk.

Here’s some good news, dear reader!   In a major win for supporters of Texas renewable energy legislation, several controversial bills aimed at curbing clean power development failed to pass in the 2025 legislative session. Although they gained traction in the Senate, proposals like SB 388, SB 715, and SB 819 were ultimately left to die on the House floor at the last minute. As a result, our state’s massive forward momentum in solar and wind energy growth was preserved.

Could New Texas Bills Undermine Utility-Scale Solar + Battery Growth?

You’ve probably heard the phrase “don’t mess with Texas”—but lately, renewable energy advocates (like me!) are wondering if that’s exactly what’s happening at the legislative level. Two new proposals in the Texas Legislature—House Bill 3356 and Senate Bill 715—are sending some waves of uncertainty through the solar and storage industry. And that’s putting it mildly.  So, could new Texas bills undermine utility-Scale solar?

These bills would require all existing and future wind and solar farms in Texas to provide “backup” power. This would come from either natural gas-powered electric generators or very large battery energy storage (BESS) arrays. This or else face heavy penalties, including shutdowns. One catch? This requirement would be retroactive, meaning it doesn’t just affect future projects. It would hit systems that are already installed and operating today. So, could new Texas bills undermine the utility grid and clean energy advances? (hint: yes. definitely.)

What’s at Stake?

It’s not totally bad policy. Some of these measures could help grid reliability. HB 3356 and SB 715 may be framed as reliability measures, but their real-world impact could be both economically and operationally disruptive. Here’s a deeper look at what’s on the line for Texas:

•  Higher Electricity Prices for Consumers
  Requiring solar and wind projects to add backup capacity adds significant capital and operating costs. These costs will likely be passed down the line:
  • Power producers may raise wholesale rates to recoup new infrastructure investments.
  • Retail electricity providers could respond by increasing prices for residential, commercial, and industrial customers.
  • The most impacted consumers will be in competitive markets without long-term fixed-rate plans.

•  Greater Grid Reliability Concerns in the Short Term
  Ironically, forcing wind and solar operators to retrofit with dispatchable resources—or risk penalties—could backfire:
  • Some operators may shut down altogether rather than make costly upgrades, reducing available generation during high-demand periods.
  • Texas could see a shortfall of available capacity during heat waves or winter freezes, especially if gas plants or firming resources can’t be built in time.
  • This could actually increase blackout risks during grid emergencies—the very thing these bills claim to prevent.

•  Loss of Investor Confidence in Texas Clean Energy
  Our state has historically been a magnet for renewable investment. This due to our deregulated market, low land costs, and abundant sun and wind. These bills introduce retroactive rules that change the game midstream and will likely create confusion and delay in the industry:
  • Retroactive regulation undermines contractual stability and project bankability—key drivers of large-scale energy finance.
  • Uncertainty around future compliance costs could stall both in-state and out-of-state capital from funding new Texas-based projects.
  • Investors may redirect funds to states with more consistent, market-aligned energy policies.

•  Loss of Intertia in Lowering Carbon Outputs and Pollution
  The option here for these operators to build large natural gas-fired backup generators in leu of more costly battery storage arrays has trade-offs. They may allow for decision-making shortcuts that could dramatically reduce the velocity towards which Texas has been (mostly) embracing the clean energy economy. While cleaner than diesel-powered electrical generators, burning natural gas is much dirtier than battery installations over time.

The Industry Responds

The renewable energy community’s backlash has been swift and loud. Organizations like Public Citizen have flagged potential constitutional issues with the bills. Especially concerning to them are retroactive regulation and the impairment of existing contracts. That could open the door to legal challenges.

Even beyond the solar and wind sectors, businesses are raising red flags. The Texas Association of Manufacturers warned that increased electricity costs will be passed on to commercial and industrial customers, which could impact prices and operations across the board.

The Bigger Picture

This legislative push comes at a time when Texas needs more energy resilience—not less. Events like Winter Storm Uri and record-breaking summer demand have already shown that the grid is under pressure. Battery energy storage and distributed solar play a critical role in adding flexibility, reliability, and backup power to the state’s electric system.

While mandating more instant backup power for our grid sounds like a logical plan, it’s the details that matter. Jammig through one-size-fits-all legislation is never the best policy – just the most expeditious. Plus, there’s a ton of evidence that our state’s electrical distribution lines are about to run out of capacity (projected to happen in 2026). We (as a state) desperately need to invest money on that too. And building new grid capacity ain’t cheap either.

Our Take

Suppose Texas truly wants a stable, self-reliant, and diversified grid. In that case, we shouldn’t mandate statewide retroactive policy without a better look at the tradeoffs for a more balanced, all-of-the-above approach. Penalizing the ratepayers and forcing technology implementation in a ham-fisted way is not the path to our brightest solution. The importance of this topic demands more discussion, more stakeholder discussions, and more flexibility in proposed solutions.

We’ll be watching how these bills progress—and as always, we’re here to help you understand how policy changes could affect your energy choices.

Want to future-proof your residence or business and further embrace the new energy economy? Get in touch and let’s talk about building smarter energy solutions—regardless of what the legislature is up to.

Sources:

• Aurora Energy Research Report on SB 715 and HB 3356
• Public Citizen testimony against retroactive legislation