On January 31, 2025, Texas State Legislature introduced Senate Bill 1036, aimed at regulating the residential solar energy market in Texas. The bill seeks to enhance consumer protections for individuals purchasing or leasing solar energy systems, addressing concerns about deceptive practices in the industry.

Key provisions of SB 1036 include a mandatory five-business-day cancellation period for buyers or lessees of residential solar energy systems. This allows consumers to cancel their agreements without penalty if they provide written notice within the specified timeframe. Additionally, solar retailers are required to include clear cancellation details in their contracts, including the last date for cancellation and the appropriate contact information for notice submission.

The bill also outlines prohibited acts for solar retailers, such as making false statements, misrepresenting affiliations with public utilities, and failing to provide necessary disclosures. Violations of these provisions could lead to administrative penalties, with particular consideration given to any harm caused to individuals over the age of 65.

Debate surrounding SB 1036 has highlighted concerns about the balance between consumer protection and the potential impact on the solar industry’s growth. Proponents argue that the bill is essential for safeguarding consumers against predatory practices, while opponents caution that excessive regulation could stifle innovation and increase costs for consumers.

The implications of this legislation are significant, as Texas continues to expand its renewable energy sector. Experts suggest that while the bill may enhance consumer confidence in solar investments, it could also lead to increased operational costs for solar retailers, potentially affecting pricing structures in the market.

As SB 1036 moves through the legislative process, stakeholders from both sides are closely monitoring its progress, anticipating further discussions and potential amendments that could shape the future of solar energy in Texas.