Adam-GlickTexas “Solar Scams Laws” (Texas SB 1036) Update

By Adam Glick, Solar Sherpa, NATiVE Solar

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

Back in June, we published The End of Solar Scams in Texas, celebrating the passage of SB 1036 -the Texas Solar Consumer Protection Act. That post explained how the law was designed to end misleading solar sales tactics, require clear contract language and terms, and level the playing field for ethical installers.Now, as of late September, many of the most important provisions are officially in effect for newly completed and commissioned systems in Texas. But not everything went live at once, and understanding what’s active today (and what’s still coming in 2026) is important if you’re trying to stay up with this stuff.

Quick Refresher: What SB 1036 Covers

  • Requiring plain-language contract disclosures
  • Mandating a 5-day cancellation window
  • Registering solar salespeople and subjecting them to background checks (and big potential fines!)
  • Requiring solar retailers to carry general liability insurance (reputable firms like us have *ALWAYS* carried this)
  • Giving state regulators power to audit and enforce compliance (big potential fines!)

What’s Live Now vs. Coming in 2026

Provision Effective What It Means
Plain-language contract templates Live now Every solar contract must clearly state system size, cost, financing terms, and expected performance.
5-day right of rescission Live now Homeowners can cancel within five business days without penalty.
General liability insurance Live now Solar retailers must carry adequate coverage, protecting homeowners from contractor negligence.
Ban on misleading savings claims Live now No more “free solar forever” or exaggerated bill-savings pitches.
Mandatory registration & background checks for sales reps Sept 2026 Sales personnel must be registered; background checks and tracking increase accountability.
Random audits by TDLR; full enforcement Sept 2026 Regulators gain teeth to audit, penalize, or revoke non-compliant operators.

Bottom line: We’re in a transition period until full enforcement ramps in 2026.

Key Nuances Homeowners Should Know

  • Electrical contractor exemption: If a licensed electrical contractor employs salespeople, some registration requirements don’t apply — but disclosure and contract rules still do.
  • Statewide preemption: The law overrides conflicting municipal ordinances, creating consistency across Texas.
  • Enhanced penalties for targeting vulnerable Texans: Higher fines apply if violations affect seniors (65+) or limited-English speakers.

We highlighted why these protections matter in our original explainer, but they’re worth repeating — especially as enforcement begins.

What Homeowners Should Do Right Now

  • Check your contract: Make sure it uses the new disclosure format. Look for clear system specs, total cost, financing terms, and performance guarantees.
  • Confirm insurance: Ask your installer for proof of liability coverage.
  • Use your 5-day window: If you feel rushed or pressured, you can cancel in writing within five business days.
  • Beware high-pressure deals: Some bad actors may try to sign customers before 2026’s tougher rules kick in.

Pro tip: Bookmark this page — we’ll update it again when TDLR launches its public contractor lookup tool.

How NATiVE Solar Is Staying Ahead

  • Adopting contract templates that meet or exceed state requirements
  • Training our team on compliance and transparent sales practices
  • Maintaing robust general liability insurance for every project
  • Refining internal QA and customer journey processes to keep every project aligned with best practices

We wrote about SB 1036 before it was cool — and we’ve been running our business as if it were already law. That’s why homeowners and builders (and architects!) trust NATiVE for ethical, transparent solar design and installation.

Remaining Risks & What to Watch Next

  • Companies claiming they “aren’t covered yet”
  • High-pressure pitches that gloss over financing terms
  • Missing or non-compliant contract language

The next big milestone comes in mid-2026, when mandatory registration, background checks, and TDLR audits begin. We’ll post another update then — and help keep you, dear reader, ahead of the curve.

Resources & Call to Action

If you have a solar proposal and want to confirm it’s SB 1036-compliant,
send it to us for a no-hassles/no cost review. We’ll shoot straight with you.