Texas Solar Cancellation:
Frequently Asked Questions

Answers to the questions Texas homeowners ask most often during the intake process — about SB 1036, the Texas DTPA, the AG Paxton investigation, the intake process, fees, timelines, and what happens after cancellation.

This page collects the questions that come up most often during Texas homeowner intakes. Answers are general information and should not be relied on as legal advice. Whether any specific answer applies to a particular Texas homeowner’s situation is a fact-specific question that a qualified Texas-licensed attorney is the appropriate person to evaluate during an intake review.

Questions are grouped by category so you can jump to the section that matches what you are wondering about. If your question is not answered here, submit your information for a free intake review or call 888-918-2083.

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Texas SB 1036 and Cancellation Rights

Questions about the 2025 Residential Solar Retailer Regulatory Act (Texas Occupations Code Chapter 1806), the five-business-day cancellation right, and how SB 1036 may apply to a Texas homeowner’s contract.

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

If your contract was signed on or after September 1, 2025, Texas SB 1036 gives you five business days to cancel a residential solar sale or lease agreement without penalty (Texas Occupations Code §1806.156). This is longer than the federal three-day Cooling-Off Rule and the Texas Home Solicitation Transactions Act’s three-business-day cancellation window. If your contract was signed before September 1, 2025, SB 1036 does not apply, but other Texas and federal laws may still provide cancellation grounds. A qualified attorney is the appropriate person to evaluate which laws apply to a specific contract.

What if my contract didn't include the required cancellation address?

Under §1806.156, if the residential solar agreement does not contain the required mailing address or e-mail address for cancellation, the buyer or lessee may cancel by providing written notice to the solar retailer by any reasonable method. In effect, a missing cancellation address may extend the homeowner’s cancellation window beyond the five-business-day default. A qualified attorney may review whether a specific contract complied with the disclosure requirement and what cancellation options may still exist.

Can I still cancel if the five-business-day window has passed?

It depends on the facts. After the SB 1036 five-day window expires, cancellation generally requires a legal basis under one or more other laws, such as the Texas Deceptive Trade Practices Act (DTPA), the federal Truth in Lending Act (TILA), the Home Solicitation Transactions Act, or non-performance of the solar system. Whether any of these grounds apply to a specific Texas homeowner’s situation is a fact-specific question a qualified attorney evaluates during an intake review.

Does SB 1036 apply to my solar contract if I signed it before September 1, 2025?

No. SB 1036 is not retroactive. Its provisions apply only to residential solar agreements signed on or after September 1, 2025. However, homeowners with contracts signed before that date may still have protections under the Texas DTPA, the federal TILA, the Home Solicitation Transactions Act, and Texas Business and Commerce Code Chapter 115 (sales and leasing of distributed renewable generation). A qualified attorney may review which laws apply to a specific contract.

Texas DTPA and Other Consumer Protection Laws

Questions about the Texas Deceptive Trade Practices Act, the federal Truth in Lending Act, and how these laws may apply to a Texas residential solar contract.

What is the Texas DTPA and how does it apply to my solar contract?

The Texas Deceptive Trade Practices Act (Business and Commerce Code §17.41 et seq.) prohibits false, misleading, or deceptive acts and practices in consumer transactions. Section 17.46(b) lists specific examples of prohibited conduct, including misrepresenting characteristics or benefits of goods or services and failing to disclose material information. Section 17.50 allows actual damages plus up to three times damages for knowing violations, plus attorney’s fees. Whether the DTPA applies to a specific Texas homeowner’s solar contract — and whether the conduct in their case meets the standard — is a fact-specific question that a qualified attorney evaluates during an intake review.

What is the 60-day pre-suit notice and why does it matter?

Texas DTPA §17.505 requires a consumer to provide written notice to the defendant at least 60 days before filing a DTPA lawsuit. The notice must describe the consumer’s specific complaint and the damages sought. This is built into the timeline of any DTPA matter and explains why even straightforward DTPA cases generally take at least a few months before a lawsuit can be filed. A qualified attorney handles the pre-suit notice if the matter proceeds.

Does the federal Truth in Lending Act apply to my solar loan?

The federal Truth in Lending Act (TILA, 15 U.S.C. §1601 et seq.) requires lenders to disclose APR, finance charges, and payment terms in consumer credit transactions. For certain home-secured loans, TILA also provides a three-business-day right of rescission. Whether TILA applies to a specific Texas homeowner’s solar financing — and whether any TILA disclosure was inaccurate or missing — depends on how the loan was structured. A qualified attorney evaluates this during an intake review.

What is the Texas Home Solicitation Transactions Act?

Texas Business and Commerce Code Chapter 601 — the Home Solicitation Transactions Act — applies to door-to-door consumer sales in Texas. It provides a three-business-day right to cancel home solicitation sales (§601.052) and requires the seller to provide a written cancellation notice (§601.053). Failure to provide the cancellation notice can extend the cancellation period. Many Texas solar transactions are door-to-door sales and may fall within this Act in addition to SB 1036.

The AG Paxton Solar Investigation

Questions about the Texas Attorney General investigation announced in April 2026 against named Texas solar retailers.

What is the AG Paxton solar investigation?

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. The OAG cited more than 100 formal complaints and thousands of additional online complaints. Reported issues include misrepresentations about energy-bill savings, system performance, equipment installation, and contract terms. The investigation is ongoing as of the date this page was last updated.

I have a contract with one of the named companies. What should I do?

Texas homeowners who have a contract with Sunrun, Freedom Forever, Lone Star Solar Services, CAM Solar, or any other Texas solar retailer where the homeowner believes there were misrepresentations at the point of sale may want to gather and organize their contract documents and consider an intake review. The intake review is the structured way to get the documentation in front of a qualified attorney who can evaluate whether SB 1036, the DTPA, or other laws may apply to the homeowner’s specific situation.

Does the AG investigation automatically cancel my contract?

No. A Civil Investigative Demand is a formal request for information; it is not a court order cancelling any individual homeowner’s contract. The AG investigation is a state enforcement action that may, over time, result in penalties or remedies that affect the named companies broadly. Individual homeowners who believe their contract may be cancellable generally pursue that on a case-by-case basis through their own legal review.

What if my contract is with a company NOT named in the investigation?

The AG investigation lists specific companies but the underlying Texas laws — SB 1036, the DTPA, the Home Solicitation Transactions Act, and the federal TILA — apply to every residential solar contract in Texas regardless of which company sold or financed it. A qualified attorney may review whether any of these laws may apply to a contract from any Texas solar company, not just the named four.

The Intake Review Process

Questions about how the Texas Solar Cancellation Resource Center intake process works and what to expect.

How does the intake review process work?

The intake process has four steps. First, the homeowner submits their information using the form on this site or by calling 888-918-2083. Second, the homeowner provides their documentation — contract, financing paperwork, sales emails and texts, correspondence with the solar company. Third, if the case meets initial criteria, the documentation may be reviewed by attorneys at Consumer Advocacy Law Group. Fourth, if the law firm accepts the matter, the homeowner enters a fixed-fee engagement directly with the law firm. Detailed information on each step is on the How It Works page.

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 Consumer Advocacy Law Group. The fee is disclosed up front before the homeowner agrees to anything. There is no cost simply to find out whether your situation may qualify for legal review.

What documents do I need to provide?

The most important document is the solar contract itself, including any addenda or amendments. Other useful documents include: any financing paperwork from the lender (often a separate company such as GoodLeap, Mosaic, Sunlight Financial, or Service Finance Company); the original sales proposal or ‘design document’ showing promised savings and production; emails, text messages, or written correspondence with the salesperson; utility bills from before and after installation; and any monitoring data showing actual system production. Homeowners who cannot locate these documents may request them in writing from the installer and lender.

What if I cannot find my solar contract?

Texas homeowners may request a copy of their solar contract and financing documents in writing from the solar retailer and from the lender. Under federal law, consumers generally have a right to receive copies of documents they have signed. If the company is unresponsive, the homeowner may want to make the document request in writing (email or certified mail) so there is a record. A qualified attorney may also be able to request the documents during a legal review.

Will Texas Solar Cancellation Resource Center contact my solar company on my behalf?

Texas Solar Cancellation Resource Center is a marketing and intake service. We collect and organize the homeowner’s documentation. Communications with the solar company on a legal matter are handled by the law firm that the homeowner engages, if any. We do not negotiate, communicate with the solar company on legal issues, or take legal positions on behalf of homeowners — that is the role of the qualified attorney.

Fees, Timelines, and the Fixed-Fee Model

Questions about the cost of the intake and legal review process, and how long Texas solar cancellation matters typically take.

How much does it cost to engage Consumer Advocacy Law Group?

If a case meets initial criteria and the law firm accepts the matter, the homeowner enters a fixed-fee engagement directly with Consumer Advocacy Law Group. The specific fee is disclosed in writing before the homeowner agrees to anything. The fixed-fee model is meaningful because it lets the homeowner know the full legal cost in advance — no hourly billing surprises and no contingency on outcome.

Why a fixed fee instead of hourly billing or a contingency?

Texas solar cancellation matters have historically been handled either by hourly attorneys (where total cost can be unpredictable and may balloon) or by contingency-fee firms (which take a percentage of any recovery). The fixed-fee model gives homeowners cost certainty up front. It is a deliberate alternative to both traditional billing models and the homeowner agrees to it knowing the full amount in advance.

How long does a Texas solar cancellation matter take?

Every case is different and timelines depend on the specific facts, the conduct of the solar company and lender, and applicable law. As general orientation: the intake review itself is typically organized within one to two weeks of submission. If the law firm accepts the matter, the legal process may take several months. Texas DTPA matters specifically require a 60-day pre-suit notice under §17.505 before any lawsuit may be filed. Complex cases or cases involving an out-of-state lender may take longer.

Not every Texas solar contract qualifies for legal review, and not every case that qualifies will be accepted by the law firm. If a case is not accepted, Texas Solar Cancellation Resource Center charges nothing and the homeowner is under no obligation. The homeowner is free to pursue other options, including approaching a different Texas-licensed attorney directly, filing a complaint with TDLR or the Texas OAG, or working with their lender on a payment modification.

What Happens to the Panels, the Loan, and My Credit

Questions about practical outcomes — what happens to the solar equipment, the financing, and the homeowner’s credit during and after a cancellation matter.

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 generally owned by the solar company. With a financed or owned system, the equipment is generally owned by the homeowner. Possible resolutions may include removal, transfer of ownership, or other arrangements. Those specifics 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 or refinance. 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.

What happens to my solar loan if my solar contract is cancelled?

Under SB 1036 §1806.155, residential solar agreements signed on or after September 1, 2025 must include a provision requiring an affiliated or referred third-party lender to cancel any accompanying loan upon cancellation of the solar agreement. For contracts signed before that date, what happens to the loan depends on the specific contracts and the resolution negotiated by the homeowner’s attorney with the solar company and lender. This is one of the issues a qualified attorney addresses during a legal review.

Will pursuing a cancellation affect my credit?

Texas Solar Cancellation Resource Center does not provide guidance on credit. Decisions about credit, payment, and financing are not within the scope of what we provide. 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. Generally speaking, continuing to make payments on the solar lease, loan, or PPA while a matter is being reviewed is the safest course of action — but only the homeowner’s attorney can advise on payment decisions specific to their case.

Specific Texas Situations

Questions about specific Texas-specific situations that come up during homeowner intakes — selling a home, hurricane and hail damage, ERCOT and municipal utilities, property tax issues, and more.

I'm trying to sell my Texas home and the solar contract is blocking the sale. What can I do?

This is one of the most common reasons Texas homeowners reach out. Options generally include: transferring the lease or PPA to the buyer (if the buyer qualifies and is willing); buying out the contract (which is often expensive); or pursuing cancellation through a legal review if there are grounds. Title companies sometimes flag UCC-1 financing statements filed against the solar equipment during a home sale. A qualified attorney may review the contract and the situation to determine what options are available before the listing date.

My panels were damaged by hail or a hurricane and the solar company won't fix them. Can I cancel?

Texas is one of the most hail-prone states in the country and the Gulf Coast sees regular hurricane impact. If panels are damaged and the solar company is unresponsive or refuses to repair, this may be reviewable as a non-performance issue under the contract or as a breach. A homeowner who is making payments on a system that does not function may have a stronger case for a legal review. A qualified attorney evaluates non-performance claims as part of the intake review.

I'm an Austin Energy customer. Does the same process apply to me?

Austin Energy is a municipal utility — different from the deregulated ERCOT retail electricity market that covers most of Texas. The Texas state laws that may apply to your solar contract (SB 1036, DTPA, Home Solicitation Transactions Act) apply statewide regardless of which utility serves you. The utility-specific buyback rules and net metering rules may differ from those that apply to ERCOT customers, and a qualified attorney evaluates how those interact with the contract during a legal review.

I'm a CPS Energy customer in San Antonio. Same question.

Same answer. CPS Energy is the largest municipal utility in the United States and operates outside the ERCOT deregulated retail market. The Texas state consumer protection laws (SB 1036, DTPA, Home Solicitation Transactions Act, Texas Tax Code §11.27) apply to your solar contract regardless of which utility serves you. The utility’s specific interconnection and buyback rules become relevant during the legal review of the contract.

I was told I'd get a federal solar tax credit and I didn't. Is that misrepresentation?

Texas DTPA §17.46(b)(12) specifically addresses misrepresentation of tax benefits. Whether a specific homeowner’s situation qualifies as a DTPA violation depends on what was said at the point of sale, what was in the contract, and what the homeowner’s actual tax circumstances were. Common scenarios involve a salesperson promising a 30% federal tax credit when the homeowner had insufficient tax liability to claim it, or claiming a leased system would qualify when leased systems generally do not. A qualified attorney evaluates this during an intake review.

I was told my leased system would qualify for the Texas property tax exemption. It doesn't.

Texas Tax Code §11.27 provides a 100% property tax exemption on the added value of an owned solar system — but leased systems generally do NOT qualify. Misrepresenting that a leased system would qualify for the exemption is a category of misrepresentation a qualified attorney may evaluate under the Texas DTPA. Homeowners who were told they would receive a property tax benefit they were not eligible for are encouraged to gather any sales materials, emails, or text messages where the exemption was discussed.

My solar company went out of business. What now?

Several Texas-active solar companies have shut down or filed for bankruptcy in 2024 and 2025. When the installer is no longer in business, warranty and service questions become harder to resolve, but the underlying contract — and the financing on it — generally remains in place. A qualified attorney may review what options are available when the installer is out of business, including potential claims against the finance company or against the manufacturer of the equipment.

Does it matter what part of Texas I live in?

No. Texas SB 1036, the DTPA, the Home Solicitation Transactions Act, the Texas Tax Code, and the federal TILA all apply statewide. Texas Solar Cancellation Resource Center serves homeowners in all 254 Texas counties. Different metros do have different utility structures (ERCOT deregulated retail vs. Austin Energy vs. CPS Energy vs. cooperatives) and different climate factors (hail in North Texas, hurricanes on the Gulf Coast, extreme heat statewide), but the underlying legal framework is the same.

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