Texas Solar Contract Cancellation
How Texas Homeowners Can Cancel a Solar Lease, Loan, or PPA Under SB 1036 and the DTPA
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If your monthly solar bill is higher than promised, your panels are not producing what the salesperson said, or you signed a 20- or 25-year contract that you now want out of — you are not alone. Solar complaints to the Texas Office of the Attorney General climbed more than 800 percent between 2018 and 2023, and complaints to the Texas Department of Licensing and Regulation rose nearly 600 percent over the same period. Harris, Tarrant, Dallas, Bexar, and El Paso counties have the highest complaint volumes in the state.
Texas now has some of the strongest solar consumer protection rules in the country. In 2025 the legislature passed Senate Bill 1036, the Residential Solar Retailer Regulatory Act (Texas Occupations Code Chapter 1806), which gives Texas homeowners a five-business-day right to cancel residential solar contracts — longer than the federal three-day cooling-off rule. The Texas Deceptive Trade Practices Act (DTPA), the Home Solicitation Transactions Act, and the federal Truth in Lending Act may also provide grounds for review depending on what was promised at the point of sale and what was actually installed.
Texas Solar Cancellation collects and organizes Texas homeowners’ contract documents and connects qualifying homeowners to our supported law group, a law firm that handles Texas solar contract cancellation matters. We are a marketing and intake service — we are not a law firm. The page below explains, in plain language, what Texas law may say about your situation, what types of solar contracts homeowners typically have, and how the intake review process works.
WHAT'S NEW IN TEXAS: Senate Bill 1036 (effective September 1, 2025)
Texas homeowners now have FIVE BUSINESS DAYS to cancel a residential solar contract without penalty (longer than the federal 3-day rule).
Solar retailers must include the last day of the cancellation period and a cancellation address (mailing or email) in every contract.
If the contract does not include the cancellation address, the cancellation period does not start running — and the homeowner may be able to cancel by any reasonable written method.
Beginning September 1, 2026, residential solar retailers and salespeople must be registered with TDLR.
Solar retailers must also comply with the Texas DTPA, Chapter 115 (sales and leasing of distributed renewable generation), and the federal Truth in Lending Act.
The Four Types of Texas Solar Contracts
(and Why They Matter)
Cancellation rights and remedies depend on which type of contract a Texas homeowner signed. The four most common are summarized below.
Solar Lease
Why Texas homeowners want out
Solar Loan
Why Texas homeowners want out
Solar PPA
Why Texas homeowners want out
Cash Purchase
Why Texas homeowners want out
Texas Solar Cancellation collects information about all four contract types during intake. The contract type determines which Texas and federal laws may apply, and an attorney reviews that combination as part of the legal review.
Texas and Federal Laws
That May Apply
Several Texas-specific and federal laws may govern a residential solar contract. None of these laws guarantees that a contract will be cancelled — eligibility depends entirely on the facts of each homeowner’s situation, what’s in the contract, and what was said at the point of sale. A qualified attorney reviews how these laws may interact with a homeowner’s specific documentation.
Texas / Federal Law
What it covers (in plain language)
SB 1036 / Texas Occupations Code Chapter 1806 (Residential Solar Retailer Regulatory Act)
Effective September 1, 2025. Five business days to cancel without penalty. Mandatory contract disclosures, including a cancellation address. Beginning September 1, 2026, mandatory TDLR registration for residential solar retailers and salespeople.
Texas DTPA — Business & Commerce Code §17.46(b), §17.50
Prohibits false, misleading, or deceptive acts and practices. §17.46(b) lists examples — misrepresenting characteristics, failing to disclose material information, and unconscionable conduct. §17.50 allows actual damages plus up to three times actual damages for knowing violations, plus attorney’s fees. §17.505 requires a 60-day pre-suit notice before filing.
Home Solicitation Transactions Act — Business & Commerce Code Chapter 601
Applies to door-to-door solar sales. Three-business-day right to cancel home solicitation sales (§601.052). The seller must provide a written cancellation notice (§601.053); failure to provide it can extend the cancellation period.
Truth in Lending Act (TILA) — 15 U.S.C. §1601 et seq.
Federal law. Requires lenders to disclose APR, finance charges, and payment terms. For certain home-secured loans, provides a three-day right of rescission. May apply to financed solar transactions depending on how the loan was structured.
Texas Tax Code §11.27 — Solar Property Tax Exemption
Owned solar systems may qualify for a 100% property tax exemption on the added value. Leased systems do NOT qualify. Some Texas homeowners who were sold a lease were told they would receive a property tax benefit they were never eligible for — a potential disclosure issue.
Texas Occupations Code Chapter 1305 — Electrical Licensing
Solar installation involves electrical work that must be performed by properly licensed electrical contractors. If a system was installed without proper licensing, that may be a separate issue a qualified attorney could review.
Texas Solar Cancellation does not analyze or interpret these laws. We collect and organize the homeowner’s documentation, and that documentation may be reviewed by a qualified law firm during the intake review process.
TEXAS ATTORNEY GENERAL INVESTIGATION (April 2026)
On April 3, 2026, Texas Attorney General Ken Paxton announced a major initiative against companies engaged in alleged fraudulent and deceptive solar sales practices. The Office of the Attorney General issued Civil Investigative Demands to several solar companies, including Sunrun, Freedom Forever (Freedom Solar), Lone Star Solar Services, and CAM Solar.
The OAG cited more than 100 formal complaints and thousands more online complaints. Reported issues include misrepresentations about energy-bill savings, system performance, equipment installation, and contract terms.
If a homeowner has a solar contract with one of these companies — or with any other Texas solar retailer where the homeowner believes there were misrepresentations at sale — the homeowner may want to organize their contract documents and consider an intake review.
Common Reasons Texas Homeowners Seek a Cancellation Review’
Across the homeowner intakes that come into Texas Solar Cancellation, certain themes appear repeatedly. None of these alone guarantees that a contract qualifies for cancellation — they are simply the facts most often described by Texas homeowners.
Bills higher than promised
The salesperson promised the system would zero out the electric bill, or cut it by 80–90%, or generate a credit. Months later the homeowner is paying both a solar payment AND a meaningful electric bill. In Texas’s deregulated market, the homeowner’s REP rate, the system’s actual production, and any buyback rate all interact in ways the original sales pitch may not have explained.
Misrepresented federal tax credit
A salesperson said the homeowner would receive a specific federal tax credit (often quoted at 26–30% of system cost). The homeowner then learned at tax time they did not qualify (insufficient tax liability, leased system rather than owned, etc.). Misrepresenting tax credits is a specific category under Texas DTPA §17.46(b)(12).
System not producing in Texas heat
Solar panels lose efficiency at high temperatures — a phenomenon called “derating.” In Texas, summer rooftop temperatures routinely exceed 100°F, which can reduce panel output 10–20% from rated capacity. A homeowner whose system was sold based on rated capacity (not real-world Texas-summer capacity) may have a documentation issue worth reviewing.
Hurricane or hail damage on the Gulf Coast or in North Texas
Texas is one of the most hail-prone states in the country and the Gulf Coast sees regular hurricane impact. Damaged panels that the solar company will not repair, or warranty disputes after a storm, are common Texas issues. If the homeowner is paying on a system that does not function, that may be reviewable as a non-performance issue.
Contract blocks home sale
A Texas homeowner sells the home (or tries to) and the buyer refuses to assume the solar lease. The deal stalls or falls through. Title companies sometimes flag UCC-1 financing statements filed against the solar equipment — these are filed against the equipment, not the home, but they still raise questions during a sale.
Door-to-door sale with high-pressure tactics
The homeowner signed at the kitchen table after a 2-hour pitch, sometimes from a salesperson who did not adequately explain the cancellation rights. Door-to-door solar sales in Texas are governed by both the Home Solicitation Transactions Act (Chapter 601) and SB 1036’s five-day rule. If the cancellation disclosures were missing or incomplete, that may extend the cancellation window.
Solar company is out of business or unresponsive
The installer is no longer answering calls. Warranty claims go unanswered. The homeowner does not know who owns the contract or who is responsible for repairs. This is increasingly common as several solar companies have shut down or filed for bankruptcy in 2024–2026.
Recognize your situation?
See if you may be eligible for a legal review.
Submit your information for a free intake | Call 888-918-2083
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How the Texas Intake Review
Process Works
The intake review process is designed to be straightforward for Texas homeowners. It is not a guarantee of cancellation. It is a structured way to collect documentation, get it in front of a qualified attorney, and find out what the next steps may be.
Throughout the process, Texas Solar Cancellation is the marketing and intake service. Attorneys will perform the legal review. The homeowner’s attorney-client relationship, if any, is with the law firm — not with us.
Texas Solar Cancellation:
Timeline and Cost
Timeline
Every case is different and timelines depend on the specific facts, the solar company’s response, and applicable law. As a general orientation:
- Within the SB 1036 five-business-day window: a homeowner can cancel directly by sending written notice to the cancellation address listed in the contract, generally without legal involvement.
- After the five-day window: an intake review is typically organized within 1–2 weeks. If a qualified attorney accepts the matter, the legal process itself may take several months and depends entirely on the complexity of the case and how the solar company responds.
- Texas DTPA matters specifically require a 60-day pre-suit notice (§17.505) before any lawsuit can be filed. This is built into the timeline.
Cost
Texas Solar Cancellation does not charge homeowners for the intake review itself. If a law firm accepts the matter, the homeowner enters a fixed-fee engagement directly with the firm. The fee is disclosed up front before the homeowner agrees to anything.
The fixed-fee model is meaningful because solar cancellation work has historically been done either by hourly attorneys (where costs can balloon unpredictably) or by contingency-fee firms (which take a percentage of any recovery). The fixed-fee model lets a homeowner know the full legal cost in advance.
IMPORTANT: Do not stop making payments without legal advice
Texas homeowners sometimes assume that submitting an intake review or signing a fee agreement with a law firm gives them permission to stop making payments on their solar lease, loan, or PPA. That is not the case.
Continuing to make payments is generally the safest course of action until a qualified Texas-licensed attorney has reviewed the contract and provided specific advice. Stopping payments without legal advice may result in default, damage to credit, collections, or other consequences that could complicate the case the homeowner is trying to bring.
The law firm engaged by the homeowner — not Texas Solar Cancellation — is the only party who can advise on payment decisions specific to the homeowner’s situation.
Texas Metro Coverage
Texas Solar Cancellation serves all 254 Texas counties. The four metros below have the highest concentration of homeowners who reach out for an intake review.
Metro
Texas-specific solar context
Houston Metro
Dallas-Fort Worth
Tarrant and Dallas Counties together drive the second-largest cluster of Texas solar complaints. Hail damage is a recurring theme in North Texas. Oncor net-metering rules are the relevant grid context. Includes Plano, Frisco, McKinney, Arlington, Irving, and Fort Worth.
Austin Metro
Austin Energy is a municipal utility, not a deregulated REP — different rules than most of Texas. Travis CAD’s solar exemption application (Form 50-123, due by April 30) is a Texas-specific compliance step. Includes Round Rock, Cedar Park, Pflugerville, Georgetown, Buda, and Kyle.
San Antonio Metro
CPS Energy is a municipal utility — the largest municipal in the country. Its buyback program rules differ from ERCOT-deregulated REPs. Bexar County is in the top five for Texas solar complaint volume. Includes New Braunfels, Schertz, Boerne, and Helotes.
Homeowners in smaller Texas markets — including El Paso, Lubbock, Amarillo, Corpus Christi, Beaumont, Tyler, Waco, Killeen, Brownsville, McAllen, Laredo, and Midland-Odessa — are also welcome to submit information for an intake review. The same Texas laws apply statewide.
Texas homeowner with questions about your solar contract?
Submit your information for a free intake.
Submit your information for a free intake | Call 888-918-2083
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Why Texas Solar Cancellation
There is no single right path for every Texas homeowner. Some homeowners may be best served by approaching a Texas-licensed consumer protection attorney directly. Others find a structured intake review more useful. The comparison below shows what Texas Solar Cancellation provides versus going it alone.
Texas Solar Cancellation
Going it alone or hiring an hourly attorney
Texas-focused intake process built around SB 1036, the DTPA, and the Home Solicitation Transactions Act.
Homeowner has to research applicable Texas laws and identify the right combination on their own.
Our supported law group, a law firm with experience in Texas solar matters, may review documents.
Homeowner has to find, vet, and engage a qualified Texas consumer protection attorney directly.
Fixed-fee engagement disclosed up front, if the law firm accepts the matter.
Hourly billing — costs can be unpredictable and may exceed the homeowner’s expectation.
BBB A+ rated. Texas-focused intake support. Spanish-language intake available.
Variable. Homeowner must independently verify ratings, references, and language support.
Texas Solar Cancellation FAQs
The questions below come up most often during Texas homeowner intakes. They are general information only — they are not legal advice.
How long do I have to cancel a solar contract in Texas?
Under Texas SB 1036 (effective September 1, 2025), Texas homeowners have five business days to cancel a residential solar contract without penalty. This is longer than the federal three-business-day cooling-off rule that applies to door-to-door sales. If your contract did not include the required cancellation address (mailing or email) and the cancellation deadline date, that five-day window may not have started running — and a qualified attorney may want to review the contract.
Can I cancel a Texas solar contract after the five-day window?
It depends on the facts. After the five-day SB 1036 window, cancellation generally requires a legal ground such as misrepresentation under the Texas DTPA, undisclosed terms, non-performance of the system, or violations of the Truth in Lending Act. A qualified attorney may review whether any of these grounds apply to your specific situation.
Does the Texas DTPA apply to my solar contract?
The Texas Deceptive Trade Practices Act (Business & Commerce Code §17.46) applies broadly to consumer transactions in Texas. Whether it applies to your specific solar contract — and whether the conduct in your case meets the standards in §17.46(b) — is a fact-specific question that a qualified attorney would evaluate as part of an intake review.
What is the AG Paxton solar investigation about?
On April 3, 2026, Texas Attorney General Ken Paxton announced an initiative against companies engaged in alleged fraudulent and deceptive solar sales practices. The OAG issued Civil Investigative Demands to several solar companies, including Sunrun, Freedom Forever, Lone Star Solar Services, and CAM Solar, citing more than 100 formal complaints and thousands of online complaints. The investigation is ongoing as of the date this page was last updated. A homeowner with a contract from one of these companies — or any other Texas solar company where there were apparent misrepresentations at sale — may want to organize their documents and consider an intake review.
Will cancelling my contract affect my credit?
We do not provide guidance on credit. Decisions about credit, payment, and finance are not within the scope of what Texas Solar Cancellation Resource Center provides. A qualified Texas-licensed attorney is the appropriate person to advise on whether and how a particular legal action may interact with the homeowner’s specific financial situation.
What happens to the solar panels on my roof if my contract is cancelled?
What happens to the equipment depends on the type of contract and on the resolution that a qualified attorney negotiates with the solar company. With a leased system or a PPA, the equipment is owned by the solar company. With a financed or owned system, the equipment is owned by the homeowner. Resolution may include removal, transfer, or other arrangements — these are matters the homeowner‘s attorney addresses on a case-by-case basis.
Is there a UCC-1 lien on my Texas home?
UCC-1 financing statements are sometimes filed by solar companies or finance companies in connection with a solar transaction. UCC-1 liens are filed against the solar equipment, not against the home itself. Even though the lien is on the equipment, it can sometimes raise questions during a home sale. A qualified attorney may review whether a UCC-1 has been filed in your specific case and how it may affect a sale or refinance.
Do I need to live in Houston, Dallas, Austin, or San Antonio to use this service?
No. Texas Solar Cancellation serves homeowners across all 254 Texas counties. Texas SB 1036, the DTPA, and the Home Solicitation Transactions Act apply statewide regardless of metro.
How long does the intake review process take?
Initial intake review timing varies by case but is generally organized within 1–2 weeks. If a qualified attorney accepts the matter, the legal process itself depends on the specific facts, the conduct of the solar company, and applicable law. The Texas DTPA specifically requires a 60-day pre-suit notice period before any lawsuit may be filed.
Is there a cost to submit an intake?
No — submitting your information for an intake review is free. If the case meets initial criteria and a law firm accepts the matter, the homeowner enters a fixed-fee engagement directly with our law firm. The fee is disclosed up front before the homeowner agrees to anything.
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