Relating to the regulation of residential solar retail transactions; requiring an occupational registration; authorizing fees; providing civil and administrative penalties.
SB 1036 creates a new regulatory framework for residential solar retail transactions in Texas by adding Chapter 1806 to the Occupations Code. The bill defines “solar retailer” and “solar salesperson,” requires registration with the Texas Department of Licensing and Regulation, and authorizes the Texas Commission of Licensing and Regulation to adopt rules governing disclosures, educational materials, contract form, insurance requirements, continuing education for salespersons, and unfair or deceptive practices. It also directs the Public Utility Commission to develop consumer education materials about rights and remedies related to residential solar purchases and leases.
The bill imposes operational requirements on solar retailers and salespersons, including notice to the department, supervision obligations, contract disclosures, and a mandatory five-business-day cancellation right for buyers or lessees. It requires installation work to be performed by an electrical contractor and, where applicable, requires permits and utility interconnection approvals to be obtained. The bill also addresses third-party lender arrangements by requiring loan cancellation provisions tied to contract cancellation. Certain electrical contractors and their employees are exempt from some registration and insurance requirements when acting within the scope of electrical contracting work.
SB 1036 also establishes enforcement tools and penalties. It prohibits false or misleading statements, misrepresentations of utility or government affiliation, failure to provide required disclosures, solicitation in violation of posted no-solicitation signage, and other violations of the chapter or related rules. The department may deny or refuse to renew registrations based on violations or prior discipline, issue warning letters, and seek cease-and-desist orders. Civil and administrative penalties are capped, but higher limits apply if a person age 65 or older was harmed, and the commission may order cancellation of agreements and refunds in appropriate cases.
The bill’s impact on state law is to preempt conflicting municipal ordinances and certain provisions of the Business & Commerce Code, while also tying the new solar retail rules to existing consumer protection and lending laws. It applies prospectively to contracts entered into on or after the effective date, with registration and enforcement provisions taking effect later in 2026. The bill therefore expands state oversight of residential solar sales, standardizes contract and disclosure practices, and creates a new licensing-style regime for participants in the residential solar market.
Overall sentiment appears mixed but generally supportive of consumer protection goals, as reflected by the bill’s passage in both chambers, though not without significant opposition. The votes show meaningful minority resistance in the Senate and House, suggesting concern about the scope of regulation or its effects on the solar industry. The main points of contention likely center on whether the new registration and compliance requirements are necessary and proportionate, whether they could burden legitimate solar businesses, and whether the bill’s preemption and enforcement provisions go too far or not far enough in protecting consumers from deceptive sales practices.
SB 1036 adds a new chapter to the Occupations Code regulating residential solar retail transactions, creating registration requirements for solar retailers and solar salespersons, rulemaking authority for the licensing commission, consumer disclosure and cancellation rights, and enforcement mechanisms including administrative and civil penalties. It also affects related statutes by requiring compliance with Chapter 115 and Subchapter E of Chapter 17 of the Business & Commerce Code, referencing the Truth in Lending Act, and preempting conflicting municipal ordinances and certain Business & Commerce Code provisions. Electrical contractors are partially exempt when they are the seller/lessor or employ the salesperson, but they remain subject to related licensing and enforcement rules.
The bill appears to have been framed as a consumer-protection measure for the residential solar market and ultimately passed both chambers, indicating enough support to enact the new regulatory scheme. At the same time, the recorded votes show substantial opposition in both the Senate and House, suggesting that while many lawmakers supported tighter oversight of solar sales practices, a notable minority was skeptical of the bill’s regulatory burden, preemption effects, or enforcement structure. The absence of committee transcript material limits insight into specific floor arguments, but the vote margins indicate a contested measure rather than a consensus bill.
The likely points of contention are the bill’s new registration regime, its preemption of local ordinances, and the extent of state control over solar sales contracts and disclosures. Industry stakeholders may have objected to added fees, insurance requirements, supervision duties, and delayed implementation, while consumer advocates likely supported the cancellation rights, disclosure rules, and penalties for deceptive conduct. The special treatment of electrical contractors and the higher penalties when seniors are harmed also suggest debate over how broadly to regulate the market and how strongly to punish misconduct affecting older Texans.