Residential Solar Retailer Regulatory Act
A new bill has been proposed in the state of Texas, Senate Bill 1036 by Senator Judith Zaffirini, and is known as the Residential Solar Retailer Regulatory Act. This bill aims to regulate residential solar retail transactions in Texas. As of 2/18/25 this bill has only been filed and has yet to even be seen by the Senate floor.
Table of Contents
Registration and Licensing:
- Solar Retailers and Salespersons must register with the Texas Department of Licensing and Regulation (TDLR).
- If electrical contractors employ or contract individuals for residential solar retail, they are exempt from some registration and insurance requirements but must comply with specific sections of the act.
- The TDLR will establish a stakeholder work group to provide advice and recommendations on implementing the act.
- The group will consist of stakeholders such as: Residential solar retailers, Solar salespersons, Electrical contractors, Consumer protection advocates, and Other relevant industry experts.
Definitions:
- Residential Solar Energy System: A solar energy system primarily for family, personal, or household use.
- Solar Retailer: A person registered to sell or lease residential solar energy systems.
- Solar Salesperson: An individual registered to sell residential solar energy systems
Penalties:
- There will be civil and administrative penalties for violations of the act, including non-compliance with registration and insurance requirements.
- These may include: “DENIAL OR REFUSAL TO RENEW”, “ADMINISTRATIVE PENALTY”, “WARNING LETTER”, “CEASE AND DESIST ORDER”, “AMOUNT OF CIVIL PENALTY ($2,500 -$100,000)”
The Residential Solar Retailer Regulatory Act (SB 1036) is set to be enacted by June 1, 2026. This gives the TDLR time to establish the necessary regulations and procedures for implementing the act.
Some best practices going forward are to make sure that homeowners are educated on the products and process of the installation as well as the costs, savings, and warranty information. It will also be pertinent to have strong customer service and support, even post-installation. So long as businesses are working with honesty and integrity there won’t be issues with this new bill.
