“We’re literally throwing money out the window”: New Texas law targets deceptive solar sales

HOUSTON – A Houston-area homeowner says she and her husband were promised that solar panels would eliminate their electric bill. Three years later, she says they are paying roughly $450 a month for the panels and electricity combined — more than their power bill cost before going solar.

Now, new Texas regulations aim to hold residential solar retailers and salespeople accountable for misleading homeowners.

Melba Trevino-Ware said a door-to-door salesperson came to her home three years ago despite a “No Soliciting” sign outside. She said the salesperson continued pitching the couple after they repeatedly told him they were not interested.

“He gave us this real big spiel and gave us this great story of how we were going to save energy and then we wouldn’t have to have a light bill anymore,” Ware said.

Ware said she refused to sign the agreement, but her husband ultimately did.

The next morning, Ware said they decided to cancel. Their contract gave them three business days to rescind the agreement, but she said crews installed the panels before the couple returned home that afternoon.

“When we tried to rescind, they were like, ‘Well, the panels are already on,’” Ware said. “They gave us the runaround, and the next thing you know, we were stuck with them.”

KPRC 2 has reached out to the solar companies involved in Ware’s sale, installation and financing for responses to her allegations.

Homeowner says promised savings disappeared

Ware said no one initially explained that she would need to find an electricity provider with a solar buyback plan, which credits customers for excess electricity their panels send to the power grid.

She eventually enrolled with Chariot Energy after Ware said the salesperson recommended the company. During the first year, she said the arrangement appeared to work: The company credited the electricity her panels produced on a dollar-for-dollar basis, and her account sometimes carried a negative balance.

Ware said that changed after the first year.

She said Chariot reduced what it paid for excess electricity after telling her the system generated too much power. Ware tried other electricity providers, but she said none produced the savings she expected.

She now pays $316 a month toward the solar panels and about $150 a month for electricity. Before the panels were installed, Ware said her monthly electricity bill was typically between $150 and $200.

“I’m paying for something that’s not working,” Ware said. “We’re literally throwing money out the window right now.”

Ware said the solar panels are financed through a 25-year agreement, leaving the couple with about 22 years of payments. She is looking for an attorney who could help them challenge the agreement, but she worries that stopping payments could damage their credit or lead to a lien against their home.

Texas begins regulating residential solar sellers

Ware’s experience predates Senate Bill 1036, known as the Residential Solar Retailer Regulatory Act.

Most of the law took effect Sept. 1, 2025. On Tuesday, Sept. 1, 2026, additional provisions took effect requiring residential solar retailers and salespeople to register with the Texas Department of Licensing and Regulation before selling or leasing residential solar systems for compensation.

The state can also now enforce provisions prohibiting solar sellers from intentionally, knowingly or recklessly making false, misleading or deceptive statements.

Sellers are prohibited from falsely claiming or implying that they are affiliated with a utility or government agency. The law also generally prohibits soliciting solar sales at a home with a posted “No Soliciting” sign unless an occupant directs otherwise.

“Long overdue,” solar consultant Gage Mueller said of the regulations. “Because we weren’t regulated, people were coming in and just spewing lies and misinformation on what solar can do for a house.”

Mueller, who works for Solstice Solar, said the new system will make it easier for consumers to check who is selling them a system and hold individual salespeople accountable.

“Solar is a great thing if it’s done the right way,” Mueller said. “When you set the wrong expectation and a homeowner doesn’t do their homework and just believes whatever a salesperson says, you’re kind of now stuck.”

TDLR says it is accepting applications and provides an online tool for consumers to search registrations.

The agency has extended the deadline to November 1, 2026 for solar retailers and salespeople to register.

Homeowners can ask for a salesperson’s registration number

The law gives consumers a way to verify who is trying to sell them a residential solar system.

If requested by a prospective or existing customer, a solar retailer or salesperson must provide their name and registration number.

Solar contracts must also include the names and registration numbers of both the retailer and salesperson involved in the transaction.

Homeowners have five business days to cancel

One of the law’s major consumer protections gives Texans five business days after signing a residential solar contract to cancel it without penalty or further obligation.

The contract must state the final calendar date on which the homeowner can cancel and provide a mailing or email address where the cancellation notice can be sent.

If the solar sale or lease involves a third-party lender affiliated with or referred by the solar retailer, the agreement must also require that lender to cancel the accompanying loan if the homeowner properly cancels the solar agreement.

Solar companies can’t make false or misleading claims

The enforcement provisions that took effect Tuesday specifically prohibit several practices.

A person cannot intentionally, knowingly or recklessly make a false, misleading or deceptive oral or written statement while engaging in residential solar sales.

Solar sellers are also prohibited from falsely stating or implying that they are affiliated with a public utility or government agency.

The law also prohibits solar sales at homes with posted signs saying solicitation is prohibited unless an occupant says otherwise.

Residential solar installations covered by the law must be performed by an electrical contractor.

Solar retailers are responsible for supervising salespeople

Solar retailers are required to provide “reasonable supervision” of salespeople authorized to sell on their behalf.

That includes making reasonable efforts to correct violations the retailer knows about — or that a reasonable person under the same circumstances would know about.

The law also makes the retailer responsible for violations committed by an authorized salesperson.

Solar contracts must contain specific information

When a residential solar sale or lease includes installation at someone’s home, the agreement must state that the installation will be performed by an electrical contractor.

It must also identify the contractor and license number, or provide a list of electrical contractors from which one will be selected.

The agreement must provide that the solar retailer or electrical contractor will obtain required government permits and applicable utility approval for connecting the system to the electric grid.

Violations could result in thousands of dollars in penalties

The law gives state regulators several tools to enforce the new requirements.

Civil penalties can reach $2,500 for each violation, with a maximum of $50,000 for violations of a similar nature.

Penalties can be significantly higher when an older Texan is harmed. If a court finds that a person over 65 was harmed by a violation, the civil penalty can reach $10,000 per violation or $100,000 for violations of a similar nature.

The Texas Department of Licensing and Regulation can also deny or refuse to renew registrations for certain violations, and the executive director can issue warning letters or cease-and-desist orders.

Regulators could cancel a solar contract and order a refund

The law gives regulators another potentially significant enforcement option.

After notice and a hearing, if regulators determine the law or its accompanying rules were violated, the Texas Commission of Licensing and Regulation or TDLR’s executive director may order a residential solar agreement canceled and require a refund of money paid under the agreement.

The refund cannot exceed the amount the customer paid, and receiving a refund through this process does not prevent an injured party from pursuing other damages or equitable relief in court under other applicable laws.

What about people who already signed solar contracts?

The timing matters.

The law says Chapter 1806 applies only to contracts entered into on or after the act’s effective date. Contracts entered into before the effective date continue to be governed by the law that was in place when they were signed.

That means the law does not automatically provide a way out of older solar contracts simply because the new registration and enforcement provisions took effect Sept. 1, 2026.