Austin Homeowners: Stuck in a Solar Contract That Isn't Delivering
What You Were Promised?

Under Texas SB 1036 (the Residential Solar Retailer Regulatory Act, Texas Occupations Code Chapter 1806), 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. SB 1036 also requires solar retailers to include the last day of the cancellation period and a cancellation address (mailing or email) in the contract — if those disclosures are missing, the five-day window may not have started running. A qualified attorney may review whether the cancellation period in your specific case is still open.

Possibly. After the five-day window, cancellation generally requires a legal ground such as misrepresentation under the Texas Deceptive Trade Practices Act (DTPA), undisclosed material terms, system non-performance, or violations of the federal Truth in Lending Act. A qualified attorney may review the homeowner’s documentation and the specific facts of how the contract was sold to determine whether any of these may be a potential basis for review.

On April 3, 2026, Texas Attorney General Ken Paxton announced an 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 — citing more than 100 formal complaints and thousands of online complaints. The OAG referenced misrepresentations about energy-bill savings, system performance, equipment installation, and contract terms. If you have a contract with one of these companies — or with any other Texas solar retailer where you believe there were misrepresentations at the point of sale — organizing your documentation may be a worthwhile next step.

The Texas Deceptive Trade Practices Act (Business & Commerce Code §17.46) applies broadly to consumer transactions in Texas. Section 17.46(b) lists specific examples of false, misleading, or deceptive acts — including misrepresenting characteristics of goods or services, failing to disclose material information, and unconscionable conduct. Section 17.50 allows actual damages plus up to three times actual damages for knowing violations, plus attorney’s fees. Section 17.505 requires a 60-day pre-suit notice before any lawsuit can be filed. Whether the DTPA applies to a specific contract — and whether the conduct in a specific case meets the §17.46(b) standards — is a fact-specific question a qualified attorney may evaluate.

A bill that went up instead of down is one of the most common reasons Austin homeowners contact us. By itself, a higher bill does not automatically establish anything legally. But it is often a sign that what was represented during the sale — production estimates, savings claims, buyback math, escalator clauses — may not match what the contract actually says or what the system actually delivers. A qualified attorney may review the gap between the sales claim and the contract and the actual performance to determine whether that gap may be a potential issue.

The solar contract itself is typically held by a finance company or lessor that is separate from the installer who put the panels on the roof. That is one reason installer bankruptcy is so frustrating for Austin homeowners — the payments do not stop just because the installer disappeared, even though warranty service and repairs often do. A qualified attorney may review whether installer non-performance and warranty issues may be a potential basis for relief depending on how the specific contract and finance agreement are structured.

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. In practice, however, they can complicate a home sale because title companies and mortgage lenders sometimes raise concerns. Many Austin homeowners reach out specifically because a UCC-1 surfaced during a sale or refinance and they want documentation reviewed by qualified legal counsel before the closing date.

No — and you should not stop payments on your own. 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, collection activity, and other consequences that can complicate any case the homeowner is trying to bring. Decisions about payments are made later, with attorney guidance, only if the case moves forward.

The initial intake is free. If the case meets initial criteria, the homeowner enters a fixed-fee engagement directly with the law firm. The fee is disclosed in full before the homeowner agrees to anything. The fixed-fee model is meaningful in solar cancellation work because the alternatives — hourly billing or contingency — can produce either unpredictable costs or significant percentage takes from any recovery.

Typically: the solar contract itself, any finance or lease agreement, recent Austin Energy bills (ideally 12 months), text messages, emails, brochures, or any recordings from the sales process, and any prior communications with the installer or finance company. The homeowner provides the documentation; Texas Solar Cancellation collects and organizes it so it may be reviewed by qualified law firm.