In 2025, the Texas Legislature passed Senate Bill 1036, the Residential Solar Retailer Regulatory Act. It created Chapter 1806 of the Texas Occupations Code and put the Texas Department of Licensing and Regulation, or TDLR, in charge of residential solar sales and leases.

The law phased in over a year. Since September 1, 2026, solar retailers and salespeople must be registered with TDLR to sell or lease residential solar in Texas.

When each part took effect

The contract rules and cancellation right came first. Registration and most enforcement came a year later.

Timeline of Texas SB 1036 from September 1, 2025 contract rules to required registration on September 1, 2026
How Texas Occupations Code Chapter 1806 phased in. Sources: SB 1036 enrolled text and TDLR.

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Who has to register

  • Solar retailers. A company that employs or contracts with people to sell or lease residential solar must register as a solar retailer. Its application lists its controlling owners and managers, its salespeople, and proof of insurance.
  • Solar salespeople. An individual who sells or leases residential solar for pay must be registered and must work for a registered retailer.
  • Electrical contractors. Licensed electrical contractors that sell through their own employees are mostly exempt from retailer registration, and their employees do not need salesperson registration. The contract and cancellation rules still apply when the contractor is the seller.

TDLR may run criminal history checks on applicants. The law does not require a bond. Retailers are responsible for supervising their salespeople and for violations those salespeople commit.

How to look up a registration

Every agreement must list both the retailer’s and the salesperson’s names and registration numbers, and a seller must give you its number if you ask.

  • Search the number or name in the TDLR license search.
  • Check that the electrical contractor named in the agreement is licensed, using the same search.
  • Do not give your Social Security or bank account number to someone offering to check your financing, and do not pay the full price up front. TDLR advises paying only for completed work.
  • Check for recent penalties against a contractor in TDLR’s disciplinary search at tdlr.texas.gov/cimsfo/.
  • Not sure? Call TDLR at 1-800-803-9202, weekdays 8 a.m. to 5 p.m.
A homeowner holding a phone while looking at a printed solar proposal on a coffee table
Ask for the retailer and salesperson registration numbers, then look them up before you sign.

Contract rules and your right to cancel

For agreements signed on or after September 1, 2025, the law requires:

  • A five business day right to cancel without penalty, by written notice. The agreement must state the last calendar day to cancel and an email or mailing address for the notice. If it leaves out the address, any reasonable written method works.
  • A licensed electrical contractor to do the installation, named in the agreement with a license number, or chosen from a listed set.
  • Permits and utility approval handled by the retailer or contractor.
  • Loan cancellation. If the retailer referred you to a lender or is affiliated with one, the agreement must require that lender to cancel the loan when you cancel.

The law also bars sellers from making false or misleading statements, falsely implying a connection to a utility or government agency, and knocking at homes posted against soliciting unless invited. TDLR said it would hold off enforcing its new disclosure and educational materials rules until November 1, 2026.

If a seller is not registered

The law does not say that a contract with an unregistered seller is automatically void, so do not assume it is. What you can do:

  • If you are within five business days of signing, cancel in writing now. Our cancellation letter builder can help.
  • File a complaint with TDLR. After a hearing, TDLR can order an agreement canceled and a refund of what you paid, and it can impose penalties.
  • A TDLR order does not stop you from seeking other damages, so talk with a lawyer if you lost money.

Penalties can be steep. In a court case, the law allows civil penalties of up to $2,500 per violation, or up to $10,000 per violation if a person 65 or older was harmed. TDLR can also deny or refuse to renew a registration.

If you signed before September 1, 2025

Chapter 1806 does not apply to systems sold before September 1, 2025. For older agreements, the Texas Attorney General’s Consumer Protection Division and the Deceptive Trade Practices Act are the main routes. See our Texas solar rights page and the Texas Attorney General solar investigation.

Common questions

Do solar salespeople need a license in Texas?

Since September 1, 2026, a person who sells or leases residential solar for pay in Texas must be registered with TDLR as a solar salesperson and work for a registered solar retailer. Employees of licensed electrical contractors are exempt.

How do I check if a Texas solar company is registered?

Use the TDLR license search at tdlr.texas.gov/LicenseSearch/. Your agreement must list the retailer’s and salesperson’s registration numbers, and a seller must give you its number on request.

How long do I have to cancel a solar contract in Texas?

For agreements signed on or after September 1, 2025, you can cancel without penalty by written notice on or before the fifth business day after you sign. The agreement must state the last day.

Does the Texas solar sales law cover my older contract?

No. Chapter 1806 applies only to agreements signed on or after September 1, 2025. Older agreements may still be covered by the Deceptive Trade Practices Act and your contract’s own terms.

Where do I complain about a Texas solar salesperson?

For agreements signed on or after September 1, 2025, file with TDLR at tdlr.texas.gov/complaints-and-enforcement/. For older agreements, file with the Texas Attorney General’s Consumer Protection Division.

Sources

  1. Texas Legislature: SB 1036, enrolled version. Occupations Code Chapter 1806: registration, contract rules, prohibited acts, and effective dates
  2. TDLR: Residential Solar Retailers information. Effective dates and temporary enforcement suspension until November 1, 2026
  3. TDLR: residential solar consumer brochure. How to verify registrations and file complaints
  4. TDLR: Commission adopts rules. 16 TAC Chapter 71 rules effective July 1, 2026
  5. TDLR: residential solar retail sales now regulated. Complaint routing and customer service hours

This post is educational.

It reports public information as of the date above. It is not legal advice and cannot tell you how a change applies to your agreement. For that, talk with a licensed attorney in your state.