Texas ruling tightens oversight of residential solar sales

Texas homeowners shopping for residential solar have new consumer protections to know about. Since September 1, 2025, solar sales contracts in the state must clearly name the licensed electrical contractor responsible for the job and confirm who handles permits and utility interconnection. As of this month, sales reps and companies are also barred from lying about the deal, falsely claiming ties to a utility or government agency, withholding required disclosures, ignoring posted "no solicitation" signs, or letting anyone other than a licensed electrical contractor do the installation.

There's also a new cooldown period: once you sign a solar purchase or lease agreement, you have five business days to cancel with no penalty. Your contract has to spell out the exact cancellation deadline and give you a mailing or email address to send your cancellation notice. If you financed through a lender connected to or referred by the solar company, canceling the solar contract also cancels that loan.

Behind the scenes, starting September 1, 2026, every solar retailer and salesperson in Texas will need to register with the Texas Department of Licensing and Regulation, carry liability insurance, and pass a background check (for salespeople). Licensed electrical contractors are mostly exempt from the registration piece but still have to follow the other rules. Two related requirements — disclosure forms and educational materials for buyers — won't be enforced until November 1, 2026, giving companies extra time to comply. For you, the practical effect is a contract that should be clearer about who's responsible for the work and a guaranteed window to back out if you change your mind.