Texas Solar Homeowner Rights:
A Plain-Language Guide
Texas homeowners who signed a residential solar contract are covered by several state and federal consumer protection laws. The protections differ depending on whether the contract is a lease, a loan, a power purchase agreement, or a cash purchase; whether the contract was signed door-to-door or in another setting; whether the contract is recent or older; and what was promised at the sale. This page is a plain-language summary of the major laws — what each one covers, what it does not cover, and how each may apply to a homeowner’s specific situation.
✓ BBB A+ Rated ✓ Fixed-Fee Service ✓ Texas-Focused
See If You May Be Eligible for a Legal Review
Free intake • BBB A+ Rated • Fixed-Fee • No Obligation
Or call now: 888-918-2083
Texas SB 1036 — The 5-Business-Day Cancellation Right
Bankruptcy Wave
- A 5-business-day right to cancel without penalty
- A requirement that the contract include the cancellation address and the last day of the cancellation period
- Mandatory TDLR registration for residential solar retailers and salespeople, with registration enforcement beginning September 1, 2026
How the cancellation is delivered: written notice to the cancellation address in the contract. If the contract does not include the required cancellation address, the cancellation window may not have started running — a fact-specific question a qualified attorney could review.
What cancellation triggers: the contract terminates without penalty. No early termination fees. No removal costs. The solar company must remove any equipment installed during the window and restore the property to its prior condition (subject to the specific terms of the contract and SB 1036).
Texas Deceptive Trade Practices Act (DTPA)
Practices Act (DTPA)
The Texas DTPA, codified at Business & Commerce Code §17.41 et seq., is the central Texas consumer protection law. It applies broadly to consumer transactions — including residential solar contracts of every type.
What the DTPA Prohibits
- 17.46(b) lists specific deceptive acts. The list relevant to solar contracts includes:
- Misrepresenting that goods or services have characteristics they do not have
- Misrepresenting the standard, quality, or grade of goods or services
- Misrepresenting that goods or services are of a particular standard when they are of another
- Misrepresenting tax credits, rebates, or other government benefits (specifically called out in §17.46(b)(12))
- Failing to disclose material information that was known at the time of the transaction and that was intended to induce the consumer into the transaction
- Engaging in unconscionable acts — acts that take advantage of the consumer’s lack of knowledge or ability to a grossly unfair degree
DTPA Damages
17.50 allows actual damages plus, for knowing violations, up to three times actual damages. Attorney’s fees are recoverable for the prevailing party.
DTPA Procedure
17.505 requires a 60-day pre-suit notice before filing a DTPA lawsuit. The notice describes the alleged conduct and the damages claimed. The general statute of limitations is two years from the date the deceptive act occurred (some claims may accrue later under the discovery rule).
Texas Home Act Solicitation Transactions
- A 3-business-day right to cancel home solicitation sales
- A requirement that the seller provide a written cancellation notice at the time of sale
- If the required written cancellation notice was not provided, the cancellation period may not have started running
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 may review that combination as part of the legal review.
See If You May Be Eligible for a Legal Review
Free intake • BBB A+ Rated • Fixed-Fee • No Obligation
Or call now: 888-918-2083
Federal Truth in Lending Act (TILA)
- Annual percentage rate (APR)
- Finance charge — total interest and fees over the life of the loan
- Amount financed
- Total of payments
- Payment schedule
- Right to rescind, for transactions secured by the consumer’s principal dwelling
Texas Tax Code §11.27 — Solar Property Tax Exemption
Texas Tax Code §11.27 provides a 100-percent property tax exemption on the added value of an owned solar energy device installed on residential property. The exemption is among the most generous in the country and is one reason Texas residential solar deployment grew rapidly through the late 2010s and early 2020s.
Who Qualifies
- Texas homeowners with owned solar systems — purchased outright or financed with a loan where the homeowner is the owner
Who Does NOT Qualify
- Texas homeowners with leased solar systems — the system is owned by the lessor, not the homeowner
- Texas homeowners with PPA contracts — same reason; the system is owned by the PPA provider
Why this matters: some Texas homeowners were sold a lease while being told they would receive the §11.27 property tax benefit. That representation may be a potential §17.46(b) disclosure issue under the Texas DTPA, since the homeowner under a lease was never eligible for the exemption.
Texas Department of Licensing and Regulation (TDLR)
TDLR has regulatory oversight over electrical contractors under Occupations Code Chapter 1305 — and, beginning September 1, 2026, oversight of residential solar retailers and salespeople under SB 1036 (Chapter 1806). TDLR maintains licensing records and accepts complaints at tdlr.texas.gov.
TDLR enforcement is separate from private legal remedies. A homeowner may file a TDLR complaint about an unlicensed installer or a registered solar retailer and may also pursue private legal remedies under the DTPA or other laws.
Texas Office of the Attorney General (OAG)
The Texas OAG Consumer Protection Division enforces the DTPA on behalf of the State of Texas. The OAG investigates patterns of consumer harm, brings civil enforcement actions, and may obtain injunctions, civil penalties, and restitution orders. The OAG does not represent individual consumers; private legal remedies are pursued separately.
In April 2026, Attorney General Paxton announced a major initiative targeting alleged solar industry fraud. Civil Investigative Demands were issued to Sunrun, Freedom Forever (dba Freedom Solar), Lone Star Solar Services, and CAM Solar. Texas homeowners can file complaints at oag.my.texas.gov. Complaint filings are independent of any private legal review.
UCC-1 Financing Statements — How They Work in Texas Solar Transactions
Solar finance companies sometimes file UCC-1 financing statements as part of a financed solar transaction. UCC-1 liens, where filed, are filed against the solar equipment — not against the homeowner’s home. The lien serves to perfect the finance company’s security interest in the equipment.
Even though the lien is on the equipment, UCC-1 filings sometimes show up during a home sale title search. The buyer’s title company or lender may require subordination or release of the UCC-1 before closing. Release of a UCC-1 generally requires resolution of the underlying obligation. UCC-1 filings are governed by Texas Business & Commerce Code Chapter 9.
Quick Reference — What Each Right Provides
Right / Law
SB 1036 (Tex. Occ. Code Ch. 1806)
Home Solicitation Transactions Act (Tex. Bus. & Com. Code Ch. 601)
TILA Right of Rescission (15 U.S.C. §1635)
Texas DTPA §17.46(b) / §17.50
Texas Tax Code §11.27
UCC Article 9 (Tex. Bus. & Com. Code Ch. 9)
Tex. Occ. Code Ch. 1305 (TDLR)
What It Provides
5-business-day cancellation without penalty
3-business-day cancellation; written notice requirement
3 business days to rescind, extended up to 3 years if disclosures defective
Actual damages + up to 3x for knowing violations + attorney's fees
100% property tax exemption on added value
Governs UCC-1 financing statements on equipment
Electrical contractor licensing oversight
When It Applies
Residential solar contracts signed on or after 9/1/2025
Door-to-door sales
Financed transactions secured by the home
Deceptive acts in consumer transactions
OWNED solar systems on residential property
Financed solar transactions with security interest
All solar installation involving electrical work
How These Rights Work Together
- SB 1036 cancellation requires written notice to the cancellation address in the contract
- Home Solicitation Act cancellation requires written notice; the form is specified in Chapter 601
- TILA rescission requires written notice to the lender; the form is specified in Regulation Z
- DTPA litigation requires a 60-day pre-suit notice under §17.505
IMPORTANT: Do Not Stop Making Payments Without Legal Advice
Continuing to make payments on a solar lease, loan, or PPA is generally the safest course of action until a qualified Texas-licensed attorney has reviewed the homeowner’s documents and provided specific advice. Stopping payments without legal advice may result in default, damage to credit, collections, or other consequences. The decision to stop making payments must only be considered under advice and representation of a qualified attorney.
See If You May Be Eligible for a Legal Review
Free intake • BBB A+ Rated • Fixed-Fee • No Obligation
Or call now: 888-918-2083
Frequently Asked Questions
These questions come up most often during Texas homeowner intakes. They are general information only and not legal advice.
Which Texas law gives me the strongest right to cancel?
It depends on when the contract was signed, how it was sold, and what was promised. For contracts signed on or after September 1, 2025, SB 1036 provides a 5-business-day cancellation right with no penalty. For door-to-door sales, the Home Solicitation Transactions Act provides a 3-business-day cancellation right. For financed transactions, TILA may provide a rescission window. Outside these windows, cancellation generally requires legal grounds — typically a DTPA misrepresentation or another fact-specific claim.
When did Texas SB 1036 take effect?
SB 1036 took effect September 1, 2025. The 5-business-day cancellation right applies to residential solar contracts signed on or after that date. TDLR registration enforcement begins September 1, 2026.
Can I still cancel if I am past all the cancellation windows?
Cancellation outside the cancellation windows generally requires legal grounds — typically a DTPA misrepresentation claim or another fact-specific issue. The specific facts of the homeowner’s situation, the documentation, and applicable Texas and federal law all matter. A qualified attorney may review whether the matter may merit further legal review.
What is the DTPA 60-day pre-suit notice?
Texas DTPA §17.505 requires the homeowner to send a written notice to the solar company at least 60 days before filing a DTPA lawsuit. The notice describes the alleged conduct and the damages claimed. The 60 days gives the solar company a window to make a settlement offer.
What is the statute of limitations for a DTPA claim?
Generally two years from the date the deceptive act occurred. Some claims may accrue later under the discovery rule. Time-sensitive matters should be reviewed promptly — a qualified attorney would evaluate the specific timing during the intake review.
If my system is leased, can I get the Texas property tax exemption?
No. Texas Tax Code §11.27 provides a 100-percent property tax exemption on the added value of OWNED solar energy devices. Leased systems do not qualify because the lessor — not the homeowner — owns the system. If a homeowner was sold a lease while being told they would receive the §11.27 benefit, that representation may be a potential disclosure issue under the DTPA.
What if my contract does not include the SB 1036 cancellation address?
SB 1036 requires the contract to include the cancellation address and the last day of the cancellation period. If those disclosures are missing, the cancellation window may not have started running. A qualified attorney may review whether the specific contract complies with SB 1036’s disclosure requirements.
How does the OAG investigation affect my individual case?
The April 2026 OAG investigation is an enforcement action by the State of Texas against named solar companies. It does not, by itself, cancel any individual contract or recover damages for any individual homeowner. Filing a complaint at oag.my.texas.gov adds to the OAG’s record. Individual legal review proceeds on a separate track.
Should I report the solar company to TDLR?
TDLR has regulatory oversight over electrical contractors and, beginning September 1, 2026, residential solar retailers and salespeople. Complaints can be filed at tdlr.texas.gov. TDLR enforcement is separate from private legal remedies — both can be pursued.
Where can I read the actual text of these laws?
Texas Occupations Code Chapter 1806 (SB 1036), Business & Commerce Code Chapter 17 (DTPA), Business & Commerce Code Chapter 601 (Home Solicitation Transactions Act), Tax Code §11.27 (solar property tax exemption), and Business & Commerce Code Chapter 9 (UCC Article 9) are all available at statutes.capitol.texas.gov. Federal TILA is at 15 U.S.C. §1601 et seq. and Regulation Z at 12 CFR Part 1026.
Ready to See How These Rights May Apply to Your Situation?
Each Texas solar matter is fact-specific. The summary on this page is general information, not legal advice. A free intake gets the homeowner’s documentation in front of a qualified attorney to find out which frameworks may apply and what next steps may make sense.
Latest Articles

Can I Sue My Solar Company in Texas?
Homeowners who ask whether they can sue my solar company in Texas usually can, because state law gives real claims

Is Fluent Solar Still in Business? What Texas Homeowners Need to Know
No, Fluent Solar is not still in business. The Better Business Bureau profile for Fluent Solar, LLC of Lehi, Utah

Is Daybreak Solar Power Still in Business? What Texas Homeowners Need to Know
No, Daybreak Solar Power is not still in business. The Better Business Bureau profile for the Fort Worth company carries
See If You May Be Eligible for a Legal Review
Free intake • BBB A+ Rated • Fixed-Fee • No Obligation