Why this page exists for McAllen Homeowners
Texas Appleseed specifically identified non-native English speakers as a population disproportionately targeted by deceptive solar sales practices in Texas. The Rio Grande Valley, where McAllen is the largest city, is a heavily bilingual market. The Texas Attorney General’s office cited language-barrier exploitation as a recurring pattern in the April 2026 investigation announcement.
Texas Solar Cancellation collects and organizes McAllen homeowners’ contract documents and connects qualifying homeowners to a lawyer at a law firm that handles Texas solar contract cancellation matters. We are a marketing and intake service — we are not a law firm. This page explains, in plain language, what Texas law may say about a McAllen homeowner’s situation, what types of solar contracts homeowners typically have, and how the intake review process works.
What's new in Texas: SB 1036
- McAllen homeowners have five business days to cancel a residential solar contract without penalty — longer than the federal three-business-day cooling-off 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 may not have started 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 the Texas Department of Licensing and Regulation (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 McAllen homeowner signed. The four most common are summarized below. The contract type determines which Texas and federal laws may apply, and a qualified attorney reviews that combination as part of the legal review.
Contract type
Solar Lease
Solar Loan
Solar PPA
Cash Purchase
What it is, and why TX homeowners ask for a review
Solar company owns the panels. Homeowner pays a monthly lease, often with a 2.9–3.5% annual escalator, for 20–25 years. Common cancellation grounds: misrepresentation of savings, blocks home sale, ineligible for Tex. Tax Code §11.27 exemption.
Homeowner financed the panels (GoodLeap, Mosaic, Sunlight Financial). Homeowner owns the panels but owes the loan 10–25 years. Common grounds: misrepresented federal tax credit, inflated loan to cover never-realized savings, forged financing signatures.
Power Purchase Agreement. Solar company owns the panels; homeowner buys the kWh the panels produce. Common grounds in deregulated TX: PPA rate now exceeds the REP rate, eliminating savings.
Homeowner owns the system outright. Less common reason for cancellation review, but DTPA claims may apply if the system was misrepresented at sale or installed defectively.
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.
McAllen-specific context
Utility / TDU: AEP Texas (Central Division)
Market structure: Deregulated (ERCOT) — homeowner chooses a Retail Electric Provider for the buyback plan
Weather and environment: Gulf-adjacent hurricane and tropical-storm exposure. The Rio Grande Valley sees regular hurricane and tropical impact, and rooftop temperatures routinely exceed 100°F in summer, derating panel output. A system sized to rated capacity rather than real-world Valley capacity may underperform what the homeowner was promised.
Neighborhoods and adjacent areas served: North McAllen, South McAllen, Sharyland, Mission (adjacent), Edinburg (adjacent), Pharr (adjacent), Las Milpas corridor
McAllen sits in AEP Texas Central Division, not Oncor or CenterPoint
AEP Texas Central is the Transmission and Distribution Utility (TDU) for McAllen and most of the Rio Grande Valley. AEP delivers the power; the homeowner chooses a Retail Electric Provider (REP) for billing. The REP also sets the solar buyback rate. A McAllen homeowner who was told they would be paid full retail for every kWh exported, then later discovered their REP’s plan credits at a lower rate or expires monthly credits, may have a documentation issue worth reviewing.
Low installation prices and the savings-claim problem
McAllen sees some of the lowest per-watt residential solar prices in Texas. Lower upfront price can be paired with aggressive sales claims about how quickly the system will pay for itself or how much it will reduce a homeowner’s bill. When the actual production and the REP’s buyback rate do not match the verbal promises made at sale, that may be a documentation issue worth reviewing under the Texas DTPA.
Bilingual sales, signed contracts in English
A recurring pattern in Rio Grande Valley intakes is a sales conversation conducted in Spanish, followed by a contract presented and signed only in English. Texas Appleseed and the Texas Attorney General’s office have both flagged language-barrier exploitation as a pattern of concern. A qualified attorney may review whether contract-formation issues may apply in a homeowner’s specific case. Spanish-language intake is available — call 888-918-2083 and request Spanish, or use the Spanish intake page.
Texas SB 1036 applies to McAllen
Texas SB 1036 (Tex. Occ. Code Ch. 1806) took effect September 1, 2025. McAllen homeowners have five business days to cancel a residential solar contract without penalty. The contract must include a cancellation address. If those disclosures are missing or were not adequately translated, the cancellation window may not have started. A qualified attorney may review.
Hurricane and tropical storm exposure
The Rio Grande Valley sees regular hurricane and tropical-storm activity from the Gulf. Panels damaged by storms, slow warranty response, or disputes over insurance versus solar-company responsibility appear regularly in Valley intakes. A homeowner paying on a system that no longer functions may want a qualified attorney to review whether non-performance grounds may apply.
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 the 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 the homeowner’s specific documentation.
Law
SB 1036 / Tex. Occ. Code Ch. 1806
Texas DTPA — Tex. Bus. & Com. Code §17.46(b), §17.50
Home Solicitation Transactions Act — Tex. Bus. & Com. Code Ch. 601
Truth in Lending Act (TILA) — 15 U.S.C. §1601
Texas Tax Code §11.27
What it covers, in plain language
Residential Solar Retailer Regulatory Act. Effective September 1, 2025. Five business days to cancel without penalty. Mandatory contract disclosures including a cancellation address. TDLR registration required for residential solar retailers and salespeople beginning September 1, 2026.
Prohibits false, misleading, or deceptive acts and practices. §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.
Three-business-day cancellation right for door-to-door sales. Seller must provide a written cancellation notice; failure to do so can extend the cancellation period.
Federal. Disclosure of APR, finance charges, payment terms. May provide a three-day right of rescission for certain home-secured loans depending on how the financing was structured.
100% property tax exemption on the added value of an owned solar system. Leased systems do not qualify — a recurring disclosure issue when leases were sold with promises of property tax benefits.
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 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. If a McAllen homeowner has a 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.
See If You May Be Eligible for a Legal Review
Submit your information for a free intake. • BBB A+ Rated • Fixed-Fee Service • No Obligation
Call 888-918-2083 • Or use the intake form on this page
How the Intake Review
Process Works
The intake review process is designed to be straightforward for McAllen 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.
Timeline and cost
Timeline
- Within the SB 1036 five-business-day window: a homeowner generally can cancel directly by sending written notice to the cancellation address listed in the contract.
- After the five-day window: an intake review is typically organized within 1 to 2 weeks. If a qualified attorney accepts the matter, the legal process itself depends on the specific facts.
- Texas DTPA matters specifically require a 60-day pre-suit notice (Tex. Bus. & Com. Code §17.505) before any lawsuit may be filed.
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. The fixed-fee model lets a homeowner know the full legal cost in advance, rather than facing hourly billing or contingency-percentage uncertainty.
IMPORTANT: Do Not Stop Making Payments Without Legal Advice
McAllen 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. The decision to stop making payments must only be considered under advice and representation of a qualified attorney. 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.
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.
Texas Solar Cancellation
Texas-focused intake process built around SB 1036, the DTPA, and the Home Solicitation Transactions Act.
Documents may be reviewed by lawyer, a law firm with experience in Texas solar matters.
Fixed-fee engagement disclosed up front, if the law firm accepts the matter.
BBB A+ rated. Spanish-language intake available.
Going it alone or hiring an hourly attorney
Homeowner has to research applicable Texas laws and identify the right combination on their own.
Homeowner has to find, vet, and engage a qualified Texas consumer protection attorney directly.
Hourly billing — costs can be unpredictable.
Variable. Homeowner must independently verify ratings and language support.
McAllen solar cancellation FAQs
The questions below come up most often during McAllen homeowner intakes. They are general information only — they are not legal advice.
El vendedor habló conmigo en español pero el contrato está en inglés. ¿Puedo solicitar una revisión?
Sí. La consulta inicial está disponible en español. Llame al 888-918-2083 y pida atención en español, o use la página de admisión en español. Un abogado calificado puede revisar si las cuestiones de formación del contrato pueden aplicarse en su caso específico. La revisión es gratuita.
How long do I have to cancel a McAllen solar contract?
Under Texas SB 1036, McAllen homeowners generally have five business days from signing to cancel a residential solar contract without penalty. The contract must include a cancellation address. If those disclosures are missing, the window may not have started.
My McAllen solar panels aren't producing what the salesperson promised. What can I do?
Continued non-performance of a paid-for system may be a documentation issue worth reviewing. South Texas summer rooftop temperatures regularly exceed 100°F, which derates panel output. A system sold based on rated capacity rather than real-world Valley capacity may underperform what the homeowner was told. A qualified attorney may review whether non-performance grounds may apply.
Who is my TDU in McAllen?
McAllen sits in AEP Texas Central Division territory. AEP delivers the electricity to your home, but the homeowner chooses a Retail Electric Provider (REP) for billing, and the REP sets the solar buyback rate.
I was told I'd get a federal tax credit on my McAllen system. I didn't qualify. Is that an issue?
Misrepresenting a federal tax credit is one of the categories specifically listed under Texas DTPA §17.46(b)(12). The federal Section 25D residential tax credit expired December 31, 2025. Whether a particular case meets the DTPA’s standard is fact-specific. A qualified attorney may review whether this may be a potential issue.
Is there a UCC-1 lien on my McAllen home because of the solar panels?
UCC-1 financing statements filed in connection with a solar transaction are filed against the solar equipment, not against the home. A UCC-1 can sometimes raise questions during a home sale or refinance. A qualified attorney may review whether a UCC-1 has been filed and how it may affect a particular transaction.
Does the Texas DTPA apply to my McAllen contract?
The Texas Deceptive Trade Practices Act applies statewide. Whether it applies to a particular McAllen contract and whether the facts meet the standards in §17.46(b) is a fact-specific question that a qualified attorney evaluates as part of an intake review.
Can I stop making payments on my McAllen solar contract?
Continuing to make payments is generally the safest course of action until a qualified Texas-licensed attorney has reviewed the documents and provided specific advice. The decision to stop making payments must only be considered under advice and representation of a qualified attorney.
How long does intake review take in a McAllen case?
Initial intake review is generally organized within 1 to 2 weeks. If a qualified attorney accepts the matter, the legal process itself depends on the specific facts. The Texas DTPA requires a 60-day pre-suit notice before any lawsuit may be filed.
Is there a cost to submit my McAllen information?
No. Submitting your information for an intake review is free. If a law firm accepts the matter, the homeowner enters a fixed-fee engagement directly. The fee is disclosed up front before the homeowner agrees to anything.
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See If You May Be Eligible for a Legal Review
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