Texas homeowners shopping for rooftop solar now have a new set of consumer protections to understand before signing a contract. As of September 1, 2026, most residential solar retailers and salespeople who sell or lease covered residential solar systems in Texas must be registered with the Texas Department of Licensing and Regulation (TDLR).
The registration requirement builds on contract protections that began a year earlier. Since September 1, 2025, covered residential solar agreements have been required to include specific contract information and a five-business-day right to cancel. TDLR also says certain prohibited practices and additional requirements became enforceable on September 1, 2026.
Important timing note: TDLR announced that it is temporarily suspending enforcement of two administrative rules—§71.41 on contract disclosures and §71.43 on educational materials—until November 1, 2026. That temporary suspension does not erase the broader statutory registration requirement or the existing five-business-day cancellation protection described by TDLR.
What changed on September 1, 2026
TDLR’s consumer guidance says residential solar retailers and solar salespersons must be registered to conduct covered sales or leases beginning September 1, 2026. The agency’s program page is accepting applications and provides a license-search function that consumers can use to check registrations.
The underlying law is Senate Bill 1036, the Residential Solar Retailer Regulatory Act. The Texas Legislature’s enrolled bill summary says the law created occupational registration requirements for residential solar salespersons and retailers, with the registration provisions taking effect one year after the law’s September 1, 2025 effective date.
What the five-business-day cancellation right means
For covered residential solar sales and leases, TDLR says the contract must allow the buyer or lessee to cancel without penalty or further obligation by giving written notice on or before the fifth business day after the agreement is executed.
The agreement should state the final calendar date of the cancellation period and provide a mailing address or email address for sending the cancellation notice. TDLR says that if the agreement omits the required cancellation address, the consumer may give written notice to the retailer by any reasonable method.
For homeowners, that makes the first few days after signing especially important. Keep a copy of the signed agreement, note the execution date, identify the stated cancellation deadline, and save proof of any cancellation notice you send. If a salesperson pressures you to ignore the written cancellation terms or says there is no cancellation period, compare that claim with TDLR’s official guidance before proceeding.
What should be in a Texas residential solar contract
TDLR says contracts involving installation at a residence must provide that the installation will be performed by a licensed electrical contractor. The agreement must also conspicuously state the name and license number of the electrical contractor who will perform the installation.
Before signing, a homeowner should therefore be able to identify both the company selling or leasing the system and the electrical contractor responsible for the installation. Those are different roles, and the new registration system is designed to make the retail side of the transaction more visible to regulators and consumers.
How to check a solar seller before you sign
1. Check the TDLR registration. Start with TDLR’s Residential Solar Retailers page and use its license-search tool to look for the retailer and salesperson. If a seller says registration is unnecessary, ask which exemption they rely on and verify it with TDLR rather than relying only on a sales pitch.
2. Confirm the electrical contractor. The contract should identify the licensed electrical contractor who will perform the installation. Verify the name and license number before work begins.
3. Find the cancellation deadline before signing. Do not wait until the next day to figure out when the cancellation period ends. The final calendar date should be stated in the agreement.
4. Separate the cash price from the financing terms. A solar purchase, a solar lease, and a financed solar purchase can have very different long-term costs and obligations. Read the financing documents separately from the sales presentation, and do not assume an estimated utility-bill reduction is a guaranteed return.
5. Keep copies of everything. Save the proposal, signed contract, financing documents, emails, text messages, advertisements, and any performance estimates. Those records can matter if there is later a dispute about what was promised.
What is temporarily not being enforced until November 1, 2026
TDLR said in an August 21, 2026 update that it would temporarily suspend enforcement of two administrative rules until November 1, 2026: §71.41, Requirements of Contract—Disclosures, and §71.43, Educational Materials. The agency said the pause was intended to give retailers extra time to adjust to new compliance requirements.
This distinction matters. A temporary enforcement pause for two administrative rules should not be read as a general delay of the entire residential solar law. TDLR’s current program page still says it is accepting retailer and salesperson applications, while its effective-date guidance says registration is required beginning September 1, 2026.
Which solar transactions are covered
The law defines a residential solar energy system as a solar energy system intended or designed primarily for family, personal, or household use. TDLR describes the regulated activity as selling or leasing residential solar panels and residential solar energy systems. The statute includes limited exceptions, so unusual transactions may require a closer look at the law or direct confirmation from TDLR.
Where to complain or verify a seller
TDLR’s Residential Solar Retailers page provides links for license searches, complaints, disciplinary actions, laws, rules, and program updates. If you are uncertain whether a seller is properly registered or whether a contract complies with the new requirements, using the agency’s official resources is safer than relying on a salesperson’s explanation alone.
Texas consumers can also review the Office of the Attorney General’s consumer-protection resources for broader guidance on deceptive practices and consumer complaints.
A practical checklist for Texas homeowners
Before committing to a residential solar deal, verify the seller’s registration, identify the licensed electrical contractor, locate the five-business-day cancellation deadline, compare the total cash and financed costs, and keep every document connected with the transaction. Those steps will not tell you whether solar is financially right for your home, but they can help you verify that the sales process matches the protections Texas has put in place.
For another recent Texas consumer-policy change, see our guide to the Texas insurance price optimization ban.
Sources
Primary sources used for this article: Texas Department of Licensing and Regulation — Residential Solar Retailers; TDLR — What’s in Effect When; TDLR — August 21, 2026 program update; and the enrolled text of Senate Bill 1036.
