Misled by a Texas Solar Company?
Your Rights Under the Texas DTPA
If a salesperson promised your bills would drop and they did not, told you about a federal tax credit you did not actually qualify for, or said the system would generate savings that never materialized — that fact pattern may be a potential issue under the Texas Deceptive Trade Practices-Consumer Protection Act. This page explains, in plain language, what the DTPA covers, how Texas-specific consumer protection laws may apply to a solar contract, and how a qualified attorney may review whether a homeowner’s situation may merit further action.
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The Texas DTPA: How It Applies to
Solar Contracts
The Texas Deceptive Trade Practices-Consumer Protection Act, codified at Texas Business & Commerce Code §17.41 et seq., is the central Texas consumer protection law. It applies broadly to consumer transactions in Texas — including residential solar lease, loan, PPA, and purchase transactions.
Two provisions of the DTPA come up most often in solar matters:
- 17.46(b) — a list of specific acts that are deemed false, misleading, or deceptive. The list includes misrepresenting the characteristics of goods or services, failing to disclose material information when there was an obligation to do so, and unconscionable acts.
- 17.50 — the damages provision. Allows recovery of actual damages plus, for knowing violations, up to three times actual damages. Attorney’s fees are recoverable for the prevailing party.
Two procedural mechanics matter:
- 17.505 requires a 60-day pre-suit notice before any DTPA lawsuit can be filed. The notice tells the defendant what is alleged and what damages are claimed; it gives the defendant a window to make an offer of settlement.
- The statute of limitations is generally two years from the date the deceptive act occurred — though some claims may accrue later under the discovery rule.
Common Solar Misrepresentations in
Texas
Across Texas homeowner intakes, certain themes appear repeatedly. None of these alone guarantees a viable DTPA claim — they are simply the fact patterns most often described by Texas homeowners. A qualified attorney may review whether the specific facts of a homeowner’s situation may meet the §17.46(b) standard.
1. Energy Bill Savings That Did Not Materialize
The salesperson promised the system would zero out the electric bill, or cut it by 80–90 percent, or generate a net credit. Months later the homeowner is paying both a solar payment AND a meaningful electric bill. In Texas’s deregulated electricity market, the homeowner’s REP (Retail Electric Provider) rate, the system’s actual production, and any buyback rate all interact in ways the original sales pitch may not have accurately explained. If the savings projection was the basis for the homeowner’s decision to sign, a discrepancy between projected and actual may be a potential disclosure issue.
2. The Federal Tax Credit That Did Not Apply
A common Texas pattern: the salesperson said the homeowner would receive a 26-percent or 30-percent federal tax credit on the system cost. At tax time, the homeowner learns they did not qualify — insufficient tax liability, a leased system rather than owned, or a structural issue with the financing. Misrepresenting tax credits is specifically called out in DTPA §17.46(b)(12). A qualified attorney may review whether the specific facts may be a potential §17.46(b)(12) issue.
3. System Performance Misrepresented
Solar panels are sold based on a production estimate. In Texas, rooftop temperatures routinely exceed 100°F during summer months. Panel efficiency drops at high temperatures — a phenomenon called derating — which can reduce real-world output 10–20 percent from rated capacity. A homeowner whose system was sold using rated capacity (rather than realistic Texas-summer output) may have a documentation issue worth reviewing.
4. Property Tax Benefit That Did Not Apply
Texas Tax Code §11.27 provides a 100-percent property tax exemption on the added value of an owned solar system. Leased systems do NOT qualify. Some Texas homeowners signed a lease while being told they would receive a property tax benefit — a benefit they were never eligible for under §11.27. That category of representation may be a potential §17.46(b) disclosure issue.
5. The Contract Was Different From What Was Verbally Promised
Door-to-door solar sales pitches in Texas can run two hours or longer, often at the kitchen table. The homeowner signs a 20- to 40-page contract on a tablet. Months later, reading the actual document reveals terms that were never verbally explained — escalator clauses, early termination fees, the cancellation address requirement under SB 1036, financing structures with embedded dealer fees. A qualified attorney may review whether the gap between what was said and what was signed may be a §17.46(b) issue.
6. Net Metering or Buyback Rate Misrepresented
Net metering and buyback rules differ across Texas markets. Austin Energy (a municipal utility) has different rules than Oncor (transmission and distribution in DFW), which has different rules than CenterPoint (Houston metro), CPS Energy (San Antonio municipal), and Austin Energy. ERCOT-deregulated markets have REP-specific buyback programs. A blanket promise of net metering or favorable buyback may not match the homeowner’s specific utility territory.
7. Forged or Unauthorized Signatures
Texas Appleseed has documented a category of solar complaints involving forged signatures on financing paperwork — particularly on documents the homeowner signed digitally on a tablet without seeing every page. If a signature was placed on a document the homeowner did not knowingly sign, that may warrant immediate attorney review AND a police report.
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.
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How to Document a Texas Solar Misrepresentation
DTPA claims are won and lost on documentation. The completeness of the homeowner’s records directly affects how an attorney can evaluate the situation. Categories of documentation worth organizing:
Sales Materials and Promises
- The original savings projection — the printed or PDF version the salesperson showed at the kitchen table
- Marketing materials, brochures, and any company-provided estimates
- Text messages with the salesperson — search the salesperson’s phone number
- Sales emails — search the salesperson’s name and the company name
- The salesperson’s business card or contact info
- Any handwritten notes the homeowner took during the sales presentation
Contract Documents
- The original signed solar contract and any addendums
- Financing paperwork (if a separate loan was used — Mosaic, GoodLeap, Sunlight Financial, etc.)
- PACE financing documents, if applicable
- UCC-1 filings, if any (filed against solar equipment, not the home)
- Truth in Lending Act disclosures, if a loan was used
Performance Documentation
- Utility bills before installation — at least 12 months to establish baseline
- Utility bills after installation — all of them
- Production reports from the system monitoring portal
- Any warranty or service tickets filed with the company
- Photos of the installed system
Communications
- All correspondence with the solar company — installation, service, billing, warranty
- Any complaint already filed with the OAG, TDLR, the Better Business Bureau, or the homeowner’s REP
Texas-Specific Legal Framework
Texas / Federal Law
Texas DTPA §17.46(b)
Texas DTPA §17.50
Texas DTPA §17.505
SB 1036 / Tex. Occ. Code Ch. 1806
Home Solicitation Act — Ch. 601
TILA — 15 U.S.C. §1601
Texas Tax Code §11.27
Relevance to a Misrepresentation Matter
Lists specific deceptive acts including misrepresenting characteristics, failing to disclose material information, and unconscionable conduct.
Allows actual damages plus up to three times actual damages for knowing violations, plus attorney's fees.
Requires 60-day pre-suit notice before filing. The notice frames the dispute and gives the defendant an opportunity to settle.
If the contract was signed on or after 9/1/2025 and lacks the required cancellation address disclosure, the 5-business-day cancellation window may not have started running.
Applies to door-to-door sales. 3-business-day cancellation right. Failure to provide the required written cancellation notice may extend the period.
For financed transactions, requires APR and fee disclosures. Missing or wrong disclosures may extend rescission rights on certain home-secured loans up to 3 years.
Solar property tax exemption applies only to owned systems. Selling a lease while representing a §11.27 benefit may be a disclosure issue.
What an Intake Review Looks At
Texas Solar Cancellation collects and organizes the homeowner’s documentation. Attorneys may review documents as part of the intake review process. The review generally considers:
- Which Texas and federal laws may apply, based on the contract type and the date signed
- Whether the documentation supports a specific §17.46(b) category (or another legal ground)
- Whether the homeowner is inside or outside applicable cancellation windows (SB 1036, federal cooling-off, Home Solicitation Act, TILA rescission)
- Whether the matter may be a candidate for a fixed-fee engagement with the law firm
The intake review is not a guarantee of cancellation or any other outcome. It is a structured way to find out whether a particular homeowner’s situation may warrant further legal review.
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.
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Frequently Asked Questions
These questions come up most often during Texas homeowner intakes. They are general information only and not legal advice.
What counts as misrepresentation under the Texas DTPA?
Texas DTPA §17.46(b) lists specific deceptive acts. Common categories in solar matters include misrepresenting savings, misrepresenting the federal tax credit, misrepresenting system performance, and failing to disclose material contract terms. Whether a specific representation rises to the §17.46(b) standard is a fact-specific question that a qualified attorney would evaluate as part of an intake review.
How long do I have to bring a DTPA claim?
The general statute of limitations for a Texas DTPA claim is 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.
What is the 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. It gives the solar company a window to make a settlement offer. The 60 days is built into the standard DTPA timeline.
Can I recover money under the Texas DTPA?
DTPA §17.50 allows recovery of actual damages plus, for knowing violations, up to three times actual damages. Attorney’s fees are recoverable for the prevailing party. What recovery may be available depends entirely on the specific facts and on what an attorney can prove.
What if I signed at my kitchen table?
Door-to-door solar sales in Texas are governed by both the Home Solicitation Transactions Act (Chapter 601, with a 3-business-day cancellation right) and SB 1036 (with a 5-business-day cancellation right for contracts signed on or after 9/1/2025). If the cancellation disclosures were missing or incomplete, the cancellation window may not have started running.
What if the salesperson said I would get a tax credit and I did not?
Misrepresenting tax credits is specifically called out in DTPA §17.46(b)(12). A qualified attorney may review whether the specific facts — what was said, what was signed, what tax liability the homeowner actually had — may be a potential §17.46(b)(12) issue.
Do I need to keep making payments while my situation is being reviewed?
Yes. Continuing to make payments on the solar lease, loan, or PPA is generally the safest course of action until a qualified Texas-licensed attorney has reviewed the 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.
Should I file a complaint with the Texas OAG?
The Texas Office of the Attorney General Consumer Protection Division accepts complaints at oag.my.texas.gov. Filing is free and adds to the OAG’s record — particularly relevant given the AG Paxton solar investigation announced in April 2026. Filing a complaint does not, by itself, cancel a contract or recover damages. The OAG investigates patterns on behalf of the State of Texas; it does not represent individual homeowners.
Ready to Find Out If Your Situation May Be Reviewable?
Organizing the documentation is the first practical step. The intake itself takes a few minutes. The documentation review takes longer — but the homeowner does not have to figure out which Texas and federal laws may apply alone. A free intake gets the documentation in front of a qualified attorney to find out.
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