TITLE 16. ECONOMIC REGULATION
PART 4. TEXAS DEPARTMENT OF LICENSING AND REGULATION
CHAPTER 71. RESIDENTIAL SOLAR RETAILERS AND SALESPERSONS
The Texas Department of Licensing and Regulation (Department) proposes new rules at 16 Texas Administrative Code (TAC), Chapter 71, Subchapter A, §§71.1, 71.2, 71.3, and 71.4; Subchapter C, §§71.20, 71.21, 71.22, 71.23, 71.24, and 71.25; Subchapter D, §§71.30, 71.31, and 71.32; Subchapter E, §§71.40, 71.41, 71.42 and 71.43; Subchapter F, §§71.50, 71.51, and 71.52, Subchapter G, §71.60; and Subchapter H, §§71.71, 71.72, and 71.73, regarding the Residential Solar Retailers and Salespersons program. These proposed changes are referred to as the "proposed rules."
EXPLANATION OF AND JUSTIFICATION FOR THE RULES
The proposed rules implement Senate Bill (SB) 1036, 89th Legislature, Regular Session (2025), which enacted Texas Occupations Code, Chapter 1806, the Residential Solar Retailer Regulatory Act (the Act). SB 1036 provides the Department with regulatory authority over residential solar transactions and requires salespersons and the companies that oversee them, known as solar retailers, to obtain registrations. SB 1036 went into effect on September 1, 2025. Under the transition language of SB 1036, certain provisions went into effect on the bill's effective date, while registration requirements and certain enforcement provisions begin on September 1, 2026. SB 1036 also directed the Department to form and consult a stakeholder workgroup for the development of rules implementing that legislation. The proposed rules were developed with the assistance of that workgroup.
The proposed rules define key concepts, clarify the Department's regulatory scope, provide details regarding registration and insurance requirements, state requirements for the form and format of solar contracts, and create a code of conduct for solar retailers and salespersons. Further, the proposed rules set out requirements for solar salespersons and solar retailers to provide consumers with disclosures and educational materials, specify the manner in which solar contracts can be cancelled, and include provisions relating to fees and enforcement provisions.
SECTION-BY-SECTION SUMMARY
Subchapter A. General Provisions
The proposed new §71.1, Authority, provides citations to the statutory authority for the rule chapter. Subsection (a) clarifies that although Chapters 51 and 1806 of the Texas Occupations serve as the primary authority, specific provisions of the chapter also implement other statutes. Subsection (b) clarifies that in addition to this chapter, the provisions of 16 TAC Chapter 60, Procedural Rules of the Commission and Department, also apply to this program.
The proposed new §71.2, Applicability, specifies the applicability of the rule chapter. Subsection (a) clarifies how the date of a solar contract impacts applicability. Subsection (b) clarifies that the registration provisions of the chapter do not apply until September 1, 2026. Subsection (c) clarifies that the chapter also applies to licensed electrical contractors except where they are specifically exempted by statute or rule.
The proposed new §71.3, Definitions, provides definitions for the chapter. The definitions incorporate by reference certain statutory definitions, supplement these definitions, and provide additional definitions. The proposed rules define the term "lease" broadly to include power purchase agreements, which are separately defined.
The proposed new §71.4, Exemption of Solar Retailers from Continuing Education Requirements, implements Texas Occupations Code §1806.106 and clarifies that any continuing education requirements will be applicable only to solar salespersons and not to solar retailers.
Subchapter C. Registration of Solar Retailers and Salespersons
The proposed new §71.20, Registration Requirements--Retailers, consists of three subsections. Subsection (a) outlines the general requirement for a solar retailer to be registered unless exempt. Subsection (b) establishes eligibility criteria for registration. Subsection (c) establishes the required documents to be submitted, along with the required fee, to obtain a registration.
The proposed new §71.21, Insurance Requirements--Retailers, establishes insurance requirements for solar retailers. Pursuant to this section, solar retailers are required to maintain general liability insurance that covers liability to consumers arising from the acts of the solar retailer and salespersons. The section establishes the minimum coverage amounts and types of eligible insurers. The section also provides that the Department must be named as a certificate holder on the policy and that the solar retailer must notify the Department within ten days of any change in coverage.
The proposed new §71.22, Registration Renewal Requirements--Retailers, establishes that solar retailers must renew their registration annually, provide required documentation, including information about salespersons and proof of insurance, and pay the required fee.
The proposed new §71.23, Registration Requirements--Solar Salespersons, consists of three subsections. Subsection (a) establishes a general requirement for solar salespersons to be registered and to work under a registered solar retailer. Subsection (b) establishes general registration requirements. Subsection (c) establishes required documents to be submitted, along with the required fee, to obtain a registration.
The proposed new §71.24, Registration Renewal Requirements--Solar Salespersons, establishes that solar salespersons must renew their registration annually, provide required documentation, and pay the required fee.
The proposed new §71.25, Duty to Update Registration Information--Solar Retailers and Solar Salespersons, establishes a duty to notify the Department of changes to certain information. Both solar retailers and solar salespersons are required to notify the Department within 30 days of any change to certain contact information. Solar retailers are additionally required to notify the Department of changes related ownership or controlling persons.
Subchapter D. Exemptions
The proposed new §71.30, Exemptions, tracks statutory exemptions under Texas Occupations Code §1806.005 and details systems to which the chapter does not apply.
The proposed new §71.31, Exempt Agreements, clarifies that the chapter does not apply to solar contracts entered into before September 1, 2025, the effective date of SB 1036.
The proposed new §71.32, Exemption of Electrical Contractors and Employees, implements Texas Occupations Code §1806.004, and clarifies when and to what extent the chapter applies to licensed electrical contractors or to employees of the contractors, when those persons engage in conduct that would otherwise require registration as a solar retailer or solar salesperson.
Subchapter E. Requirements of Solar Contracts
The proposed new §71.40, Requirements of Solar Contract--General, consists of two subsections. Subsection (a) establishes standards for the form and format of solar contracts and requires the inclusion of certain substantive provisions to protect consumers. Subsection (b) sets forth when and how the executed contract must be delivered to the consumer.
The proposed new §71.41, Requirements of Contract--Disclosures, establishes requirements regarding the use of a disclosure form designed by the Department. The rule consists of five subsections. Subsection (a) requires the solar salesperson to complete all information on the form, to provide it to the consumer prior to the solar contract being signed, and to provide the form in the consumer's preferred language if the Department makes the form available in that language. Subsection (b) requires the form to be signed by both the consumer and the solar salesperson. Subsection (c) requires the information on the form to be accurate. Subsection (d) provides that the terms stated on the form are considered part of the contract. Subsection (e) specifies when the form must be provided in printed, rather than electronic, form.
The proposed new §71.42, Requirements of Contract--Right to Cancel, implements Texas Occupations Code §1806.156, which gives consumers a right to cancel solar contracts within five business days. The proposed rule establishes certain contract requirements pertaining to the right to cancel, clarifies how cancellation is communicated, and states how timeliness of cancellation is computed.
The proposed new §71.43, Educational Materials, implements Texas Occupations Code §1806.053. The rule clarifies that the Department will publish the required educational brochure on its website and that solar salespersons must provide the brochure to consumer at least 24 hours prior to the execution of a solar contract.
Subchapter F. Code of Conduct; Prohibited Acts
The proposed new §71.50, Code of Conduct for Solar Retailers; Duty to Supervise Solar Salespersons, consists of eight subsections. Subsection (a) makes the code of conduct for solar salespersons also applicable to solar retailers, and requires solar retailers to comply with the Act, applicable rules, and orders of the Department. Subsection (b) establishes the duties of a solar retailer in supervising salespersons, including remedial measures the solar retailer must take in response to prohibited acts. Subsection (c) specifies a solar retailer's duties regarding the processing of a solar contract cancellation. Subsections (d) and (e) establish record retention and production responsibilities. Subsection (f) establishes responsibilities related to ceasing operations. Subsection (g) establishes duties regarding responses to consumer requests. Subsection (h) requires cooperation with Department investigations.
The proposed new §71.51, Code of Conduct for Solar Salespersons, consists of three subsections. Subsection (a) requires general compliance with the Act, applicable rules, and orders of the Department. Subsection (b) imposes requirements of honesty, integrity, and fair dealing. Subsection (c) requires solar salespersons to provide certain contact and registration information to consumers upon request.
The proposed new §71.52, Prohibited Acts, applies to both solar retailers and solar salespersons. Subsection (a) relates to false and misleading statements. Subsections (b) and (c) relate to specific restricted or prohibited marketing and business practices. Subsection (d) prohibits solar salespersons from operating unless they are associated with a supervising solar retailer. Subsection (e) prohibits solar retailers from failing to comply with the terms of solar contracts.
Subchapter G. Fees
The proposed new §71.60, Fees, establishes fees for the program.
Subchapter H. Enforcement
The proposed §71.71, Enforcement Authority, cites to the statutory enforcement authority.
The proposed §71.72, Administrative Penalties and Sanctions, consists of three subsections. Subsection (a) sets forth in general that a person who violates the Act, this chapter, or related orders, is subject to administrative penalties and sanctions. Subsection (b) clarifies that a person who violates statutes or rules applicable to electricians and electrical contractors may be prosecuted under those provisions in addition to the Act and this chapter. Subsection (c) implements Texas Occupations Code §1806.203 and provides that the Department may consider whether a person harmed by a violation was elderly in determining the amount of an administrative penalty.
The proposed §71.73, Contract Recission and Refunds, implements Texas Occupations Code §1806.207 and contains provisions related to contract recission and refunds being ordered by the Department's executive director or governing commission in response to violations of the Act or rules.
FISCAL IMPACT ON STATE AND LOCAL GOVERNMENT
Tony Couvillon, Senior Policy Research and Budget Analyst, has determined that for each year of the first five years the proposed rules are in effect, there is no estimated loss in revenue to the state or local government as a result of enforcing or administering the proposed rules.
Mr. Couvillon has determined that for each year of the first five years the proposed rules are in effect, there will be an increase in revenue to the state of approximately $217,000 as a result of registration-related fees for solar retailers and solar salespersons. It is anticipated that the increase in revenue will offset the costs of program administration.
Mr. Couvillon has also determined that for each year of the first five years the proposed rules are in effect, enforcing or administering the proposed rules does not have foreseeable implications relating to costs or revenues of local governments.
LOCAL EMPLOYMENT IMPACT STATEMENT
Because Mr. Couvillon has determined that the proposed rules will not affect a local economy, the agency is not required to prepare a local employment impact statement under Texas Government Code §2001.022.
PUBLIC BENEFITS
Mr. Couvillon has determined that for each year of the first five-year period the proposed rules are in effect, the public will benefit from increased consumer protection and the reduction of predatory business practices.
PROBABLE ECONOMIC COSTS TO PERSONS REQUIRED TO COMPLY WITH PROPOSAL
Mr. Couvillon has determined that for each year of the first five-year period the proposed rules are in effect, there will be additional costs to persons who are required to comply with the proposed rules. Each solar retailer will be required to pay an initial registration fee of $350 and an annual renewal fee of the same amount. Solar retailers will also be required to obtain liability insurance, if they do not already carry such insurance, and make necessary expenditures to revise the form and format of contracts and otherwise conform to the rules. The cost to each solar retailer will vary based on individual circumstances and cannot be estimated. Each solar salesperson will be required to pay a $56 initial registration fee and an annual renewal fee of the same amount.
FISCAL IMPACT ON SMALL BUSINESSES, MICRO-BUSINESSES, AND RURAL COMMUNITIES
There will be no adverse economic effect on small businesses, micro-businesses, or rural communities as a result of the proposed rules. Because the agency has determined that the proposed rule will have no adverse economic effect on small businesses, micro-businesses, or rural communities, preparation of an Economic Impact Statement and a Regulatory Flexibility Analysis, as detailed under Texas Government Code §2006.002, is not required.
ONE-FOR-ONE REQUIREMENT FOR RULES WITH A FISCAL IMPACT
The proposed rules have a fiscal note that imposes a cost on regulated persons, including another state agency, a special district, or a local government; however, the proposed rules fall under the exception for rules that are necessary to protect the health, safety, and welfare of the residents of this state under §2001.0045(c)(6) and the exception for rules that are necessary to implement legislation under §2001.0045(c)(9). Therefore, the agency is not required to take any further action under Texas Government Code §2001.0045.
GOVERNMENT GROWTH IMPACT STATEMENT
Pursuant to Texas Government Code §2001.0221, the agency provides the following Government Growth Impact Statement for the proposed rules. For each year of the first five years the proposed rules will be in effect, the agency has determined the following:
1. The proposed rules do not create or eliminate a government program.
2. Implementation of the proposed rules does not require the creation of new employee positions or the elimination of existing employee positions.
3. Implementation of the proposed rules does not require an increase or decrease in future legislative appropriations to the agency.
4. The proposed rules require an increase or decrease in fees paid to the agency. The proposed rules require an increase in fees paid to the agency in the form of newly required registration fees for solar retailers and solar salespersons.
5. The proposed rules create a new regulation. The proposed rules provide for the regulation of solar contracts, solar retailers, and solar salespersons that were previously not regulated by the Department.
6. The proposed rules do not expand, limit, or repeal an existing regulation.
7. The proposed rules increase or decrease the number of individuals subject to the rules' applicability. The proposed rules increase the number of individuals subject to the rules' applicability by making solar retailers and solar salespersons subject to the rules.
8. The proposed rules do not positively or adversely affect this state's economy.
TAKINGS IMPACT ASSESSMENT
The Department has determined that no private real property interests are affected by the proposed rules and the proposed rules do not restrict, limit, or impose a burden on an owner's rights to his or her private real property that would otherwise exist in the absence of government action. As a result, the proposed rules do not constitute a taking or require a takings impact assessment under Texas Government Code §2007.043.
PUBLIC COMMENTS AND INFORMATION RELATED TO THE COST, BENEFIT, OR EFFECT OF THE PROPOSED RULES
The Department is requesting public comments on the proposed rules and information related to the cost, benefit, or effect of the proposed rules, including any applicable data, research, or analysis. Any information that is submitted in response to this request must include an explanation of how and why the submitted information is specific to the proposed rules. Please do not submit copyrighted, confidential, or proprietary information.
Comments on the proposed rules and responses to the request for information may be submitted electronically on the Department's website at https://ga.tdlr.texas.gov:1443/form/gcerules; by facsimile to (512) 475-3032; or by mail to Monica Nuñez, Legal Assistant, Texas Department of Licensing and Regulation, P.O. Box 12157, Austin, Texas 78711. The deadline for comments is 30 days after publication in the Texas Register.
SUBCHAPTER
A.
STATUTORY AUTHORITY
The proposed rules are proposed under Texas Occupations Code, Chapters 51 and 1806 which authorize the Texas Commission of Licensing and Regulation, the Department's governing body, to adopt rules as necessary to implement these chapters and any other law establishing a program regulated by the Department.
The statutory provisions affected by the proposed rules are those set forth in Texas Occupations Code, Chapters 51 and 1806, Business & Commerce Code, Chapters 17 and 115. No other statutes, articles, or codes are affected by the proposed rules.
The legislation that enacted the statutory authority under which the proposed rules are proposed to be adopted is Senate Bill 1036, 89th Legislature, Regular Session (2025).
§71.1.
(a) These rules are promulgated under the authority of Texas Occupations Code, Chapter 1806, Residential Solar Retailers, and Texas Occupations Code, Chapter 51, Texas Department of Licensing and Regulation. Specific provisions within this chapter also implement statutory requirements under Chapter 115, Texas Business and Commerce Code, and other applicable statutes.
(b) In addition to this chapter, the rules under 16 Texas Administrative Code (TAC) Chapter 60, Procedural Rules of the Commission and the Department, are applicable to the Residential Solar Retailers program.
§71.2.
(a) Unless otherwise stated, this chapter governs non-exempt residential solar retail transactions occurring in this state on or after September 1, 2025.
(b) The provisions of subchapter C apply beginning September 1, 2026, the effective date of §1806.101 and §1806.102 of the Act.
(c) This chapter applies to an electrical contractor licensed under Texas Occupations Code, Chapter 1305, except as exempted by subchapter D of this chapter or §1806.004 of the Act.
§71.3.
The following words and terms, when used in this chapter, have the following meanings, unless the context clearly indicates otherwise.
(1) Act--Texas Occupations Code, Chapter 1806, the Residential Solar Retail Regulatory Act.
(2) Business days--means calendar days excluding weekends and legal holidays as defined by Texas Government Code §662.021.
(3) Commission--means the Texas Commission of Licensing and Regulation.
(4) Consumer--means:
(A) an individual who, for primarily personal, family, or household purposes:
(i) Purchases or leases a solar energy system;
(ii) Agrees to the installation of a solar energy system on the consumer's premises; or
(iii) Purchases electricity generated by a solar energy system installed on the individual's premises under a power purchase agreement; or
(B) a person who would constitute a consumer under subparagraph (A) if a solicited or proposed solar contract were executed.
(5) Controlling Person--has the meaning assigned by §1806.003 of the Act.
(6) Department--means the Texas Department of Licensing and Regulation.
(7) DTPA--means the Texas Deceptive Trade Practices-Consumer Protection Act, Subchapter E, Chapter 17, Texas Business and Commerce Code.
(8) Electric cooperative--has the meaning assigned by Texas Utilities Code §11.003.
(9) Electrical contractor--means a person licensed as an electrical contractor under Texas Occupations Code, Chapter 1305.
(10) Installer--means a person responsible for the installation of a residential solar energy system.
(11) Lease--with respect to residential solar energy systems, includes any arrangement in which a consumer agrees, for financial consideration, to the installation of a system on the consumer's premises without acquiring ownership of the system. The term includes a power purchase agreement.
(12) Municipally owned utility--has the meaning assigned by Texas Utilities Code §11.003.
(13) Person--includes an individual, corporation, organization, estate, trust, partnership, association, and any other legal entity.
(14) Power purchase agreement--means an agreement between a consumer and a solar retailer for the consumer's purchase of electricity generated by a solar energy system not owned by the consumer, but located on the consumer's premises.
(15) Residential solar energy system--has the meaning assigned by §1806.002 of the Act
(16) Residential solar retail--means:
(A) the sale or lease of, or an offer to sell or lease, a residential solar energy system; or
(B) a transaction involving any combination of the acts described by subparagraph (A).
(17) Solar contract--means an agreement, subject to the Act, for the sale or lease of a residential solar energy system.
(18) Solar energy system--means a system or configuration of solar energy devices that collects and uses solar energy to generate electricity.
(19) Solar retailer--means a person who employs or otherwise contracts for the services of an individual to engage in residential solar retail on the person's behalf.
(20) Solar salesperson--means an individual who engages in residential solar retail for compensation.
§71.4.
In accordance with §1806.106 of the Act, any continuing education requirements of this chapter apply only to the renewal of a solar salesperson registration and are not required for renewal of a solar retailer registration.
The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.
Filed with the Office of the Secretary of State on February 27, 2026.
TRD-202601024
Doug Jennings
General Counsel
Texas Department of Licensing and Regulation
Earliest possible date of adoption: April 12, 2026
For further information, please call: (512) 475-4879
SUBCHAPTER
C.
STATUTORY AUTHORITY
The proposed rules are proposed under Texas Occupations Code, Chapters 51 and 1806 which authorize the Texas Commission of Licensing and Regulation, the Department's governing body, to adopt rules as necessary to implement these chapters and any other law establishing a program regulated by the Department.
The statutory provisions affected by the proposed rules are those set forth in Texas Occupations Code, Chapters 51 and 1806, Business & Commerce Code, Chapters 17 and 115. No other statutes, articles, or codes are affected by the proposed rules.
The legislation that enacted the statutory authority under which the proposed rules are proposed to be adopted is Senate Bill 1036, 89th Legislature, Regular Session (2025).
§71.20.
(a) Unless registered as a solar retailer or exempt, a person must not employ or otherwise contract for the services of an individual to engage in residential solar retail on the person's behalf.
(b) To be eligible for registration as a solar retailer:
(1) the applicant must meet all applicable registration requirements of the department; and
(2) each controlling person must satisfy the department's criminal history criteria, in accordance with Texas Occupations Code §51.356 and the department's rules in 16 TAC, Chapter 60, subchapter D.
(c) An applicant for a solar retailer registration must submit the following in the manner prescribed by the department:
(1) a completed application form;
(2) a completed criminal history questionnaire for each controlling person;
(3) the fee required under §71.60;
(4) proof of insurance required under §71.21, which may be in the form of an industry standard certificate of insurance;
(5) a phone number, mailing address, and e-mail address or website address at which consumers may reach the applicant with inquiries; and
(6) the name and department-issued registration number of each solar salesperson who will provide solar retail on the applicant's behalf, if known.
§71.21.
(a) A solar retailer must maintain a general liability insurance policy in an amount not less than $1 million per occurrence and $2 million in the aggregate. The policy must:
(1) be issued by:
(A) an insurance company authorized to do business in Texas;
(B) an eligible Texas surplus lines insurer as defined in the Texas Insurance Code, Chapter 981 (relating to Surplus Lines Insurance);
(C) a Texas registered risk retention group; or
(D) a Texas registered purchasing group;
(2) name the department as a certificate holder; and
(3) cover liability to consumers arising from acts of the solar retailer and all solar salespersons authorized to act on the solar retailer's behalf.
(b) A solar retailer or applicant must notify the department in writing within ten days of any lapse or change in insurance coverage.
§71.22.
(a) A solar retailer registration is valid for one year and must be renewed annually.
(b) To renew a registration, a solar retailer must submit the following in the manner prescribed by the department:
(1) a completed application form;
(2) an updated list of the name and department-issued registration number of each solar salesperson who will provide solar retail on the applicant's behalf;
(3) a completed personal information form and criminal history questionnaire for each controlling person;
(4) the fee required under §71.60; and
(5) proof of new or continuing insurance coverage required under §71.21.
§71.23.
(a) A person must not engage in residential solar retail unless the person:
(1) is registered as a solar salesperson; and
(2) engages in solar retail on behalf of a registered solar retailer.
(b) To be eligible to register as a solar salesperson, a person must:
(1) be an individual;
(2) satisfy the department's criminal history criteria, in accordance with Texas Occupations Code §51.356 and the department's rules in Chapter 60, subchapter D; and
(3) meet all applicable registration requirements of the department.
(c) An applicant for a solar salesperson registration must submit the following in the manner prescribed by the department:
(1) a completed application form;
(2) a completed criminal history questionnaire;
(3) the business name and registration number of the solar retailer on whose behalf the solar salesperson will engage in residential solar retail, if known; and
(4) the fee required under §71.60.
§71.24.
(a) A solar salesperson registration is valid for one year and must be renewed annually.
(b) To renew a registration, a solar salesperson must submit the following in the manner prescribed by the department:
(1) a completed application form;
(2) a completed criminal history questionnaire;
(3) the business name and registration number of the solar retailer on whose behalf the solar salesperson will engage in residential solar retail, if known; and
(4) the fee required under §71.60.
§71.25.
(a) After filing an initial application for registration as a solar retailer, a person must report any change in name, address, telephone number, e-mail address, website address, ownership, or controlling persons, to the department within 30 days after the change, in a manner prescribed by the department.
(b) After filing an initial application for registration as a solar salesperson, an individual must report any change in name, address, telephone number, or e-mail address to the department within 30 days after the change, in a manner prescribed by the department.
The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.
Filed with the Office of the Secretary of State on February 27, 2026.
TRD-202601025
Doug Jennings
General Counsel
Texas Department of Licensing and Regulation
Earliest possible date of adoption: April 12, 2026
For further information, please call: (512) 475-4879
SUBCHAPTER
D.
STATUTORY AUTHORITY
The proposed rules are proposed under Texas Occupations Code, Chapters 51 and 1806 which authorize the Texas Commission of Licensing and Regulation, the Department's governing body, to adopt rules as necessary to implement these chapters and any other law establishing a program regulated by the Department.
The statutory provisions affected by the proposed rules are those set forth in Texas Occupations Code, Chapters 51 and 1806, Business & Commerce Code, Chapters 17 and 115. No other statutes, articles, or codes are affected by the proposed rules.
The legislation that enacted the statutory authority under which the proposed rules are proposed to be adopted is Senate Bill 1036, 89th Legislature, Regular Session (2025).
§71.30.
(a) This chapter does not apply to solar energy systems that:
(1) are for temporary or emergency use;
(2) provide power to a single appliance;
(3) if combined with other systems that produce electricity, produce in combination with the other systems a total peak output power of less than one kilowatt; or
(4) if not combined with other systems that produce electricity, are designed to produce a peak output power of less than one kilowatt.
(b) This chapter does not apply to solar energy systems that are sold or leased:
(1) for commercial purposes, including a solar energy system installed on the premises of a nonresidential property;
(2) to provide power to a multifamily dwelling that exceeds four dwelling units or stories;
(3) before September 1, 2025; or
(4) in connection with new residential construction.
§71.31.
This chapter does not apply to solar contracts entered into before September 1, 2025.
§71.32.
(a) An electrical contractor licensed in this state may act as a solar retailer and is exempt from the registration and insurance requirements of this chapter applicable to solar retailers.
(b) An individual employed by a licensed electrical contractor exempt under subsection (a) to engage in solar retail on behalf of the electrical contractor is exempt from the registration requirements applicable to solar salespersons.
(c) A person exempt from the insurance or registration requirements under this rule remains subject to all other provisions of the Act and this chapter.
(d) Unless the context indicates otherwise, the term "solar retailer" used in this chapter includes a licensed electrical contractor, and the term "solar salesperson" includes an individual who acts in the capacity of a solar salesperson while employed by a licensed electrical contractor.
The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.
Filed with the Office of the Secretary of State on February 27, 2026.
TRD-202601026
Doug Jennings
General Counsel
Texas Department of Licensing and Regulation
Earliest possible date of adoption: April 12, 2026
For further information, please call: (512) 475-4879
SUBCHAPTER
E.
STATUTORY AUTHORITY
The proposed rules are proposed under Texas Occupations Code, Chapters 51 and 1806 which authorize the Texas Commission of Licensing and Regulation, the Department's governing body, to adopt rules as necessary to implement these chapters and any other law establishing a program regulated by the Department.
The statutory provisions affected by the proposed rules are those set forth in Texas Occupations Code, Chapters 51 and 1806, Business & Commerce Code, Chapters 17 and 115. No other statutes, articles, or codes are affected by the proposed rules.
The legislation that enacted the statutory authority under which the proposed rules are proposed to be adopted is Senate Bill 1036, 89th Legislature, Regular Session (2025).
§71.40.
(a) A solar contract must:
(1) be written in English, unless another language is requested by the consumer;
(2) be written in clear, understandable language that is easy to read; and understand;
(3) state the name, business address, registration number, business email address, and business phone number, of both the solar retailer and solar salesperson;
(4) prominently and in plain language set forth any energy production guarantees, the terms conditions of any warranty, and any provisions related to the rights and remedies of any party in the event of a default;
(5) provide that the installer will be a Texas-licensed electrical contractor;
(6) state the name and license number of the installer, or a list of names and license numbers of electrical contractors from which the installer will be selected;
(7) provide that the solar retailer or installer will obtain:
(A) any permit required by a government entity for the installation; and
(B) approval by the electric utility, electric cooperative, or municipally owned utility serving the person's residence of the interconnection of the residential solar energy system, if applicable;
(8) contain and prominently display all contract provisions and disclosures required by the Act and this chapter, including a statement of the consumer's right to cancel the transaction in accordance with §1806.156 of the Act and §71.42 of this chapter; and
(9) If the sale or lease of a residential solar energy system involves a third-party lender that is affiliated with or referred by the solar retailer or solar salesperson, the solar contract must include provisions:
(A) requiring the third-party lender to cancel any accompanying loan made by the third-party lender to the buyer or lessee upon the consumer's cancellation of the solar contract under §1806.156 of the Act; and
(B) requiring the solar retailer to pay the outstanding balance of the loan in the event a cancellation is ordered by the Department or Executive Director after notice and a hearing, in accordance with §1806.207 of the Act.
(b) A solar salesperson must provide a copy of the executed solar contract to the consumer as follows.
(1) Except as provided in paragraph (2), the solar salesperson must provide a printed copy of the solar contract to the consumer at the time the contract is executed.
(2) If the contract is executed electronically, the solar salesperson may provide only an electronic copy of the contract to the consumer at the time of execution, if:
(A) the consumer provides an e-mail address for this purpose;
(B) the solar salesperson verifies that the consumer is able to access the e-mail account and view electronic documents, and;
(C) the consumer, in electronic form, consents to electronic delivery of the contract and waives the right to receive a printed copy of the contract at the time of execution.
(3) An electronic copy of a contract provided pursuant to paragraph (2) must be in portable document (.PDF) format.
(4) If a solar salesperson provides a consumer with a printed copy of the contract at the time of execution, the solar salesperson or solar retailer may also provide the consumer with an electronic courtesy copy and is not required to comply with the provisions of paragraph (2).
(5) A consumer who receives an electronic copy of the contract pursuant to paragraph (2) may later request a printed copy of the contract from the solar retailer. Upon such request, the solar retailer must deliver a printed copy of the contract to the consumer within:
(A) one business day, if the request is made within five business days of the date the contract is executed, or
(B) five business days, if the request is made at any other time.
§71.41.
(a) Before a consumer may sign a solar contract, a solar salesperson must provide the consumer with the department's approved disclosure form, which must contain all required information. The solar salesperson must provide the form in the consumer's preferred language if the department has an approved form written in that language.
(b) The disclosure form must be signed by both the consumer and the solar salesperson before the solar contract may be executed.
(c) The solar salesperson and solar retailer must ensure that the information provided on the disclosure form is true and accurately reflects the terms of the solar contract.
(d) The terms stated on the disclosure form shall be considered part of the solar contract.
(e) A solar salesperson must provide a printed copy of the completed disclosure form to any consumer who is 65 years of age or older at the time of the transaction or who indicates that they are not fluent in the English language. In all other instances, a solar salesperson may provide a consumer with an electronic copy of the disclosure form to the extent permitted for electronic delivery of a solar contract under §71.40.
§71.42.
(a) A consumer may cancel a solar contract, without penalty or further obligation, by providing written notice of cancellation to the solar retailer on or before the fifth business day after the date the consumer signs the contract.
(b) A solar contract must contain, in bold, capitalized letters in 14-point font or larger, a plain statement of:
(1) the consumer's right to cancel the contract;
(2) the process for canceling the contract; and
(3) the mailing address or e-mail address to which a notice of cancellation may be sent.
(c) If a solar contract does not contain the address or e-mail address for cancellation required by subsection (b), a consumer may cancel the contract during the period described by subsection (b) by providing written notice of cancellation to the solar retailer by any reasonable method.
(d) If a solar contract provides for cancellation only by mail, a mailed notice of cancellation is effective on the date the notice is placed in the mail. A cancellation notice is rebuttably presumed to have been mailed on the date noted on the form by the consumer.
§71.43.
(a) The department will develop and maintain on its website an educational brochure with information for consumers concerning solar contracts.
(b) A solar salesperson must provide a consumer with a copy of the department's approved educational brochure at least 24 hours before the consumer may sign a solar contract.
The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.
Filed with the Office of the Secretary of State on February 27, 2026.
TRD-202601027
Doug Jennings
General Counsel
Texas Department of Licensing and Regulation
Earliest possible date of adoption: April 12, 2026
For further information, please call: (512) 475-4879
SUBCHAPTER
F.
STATUTORY AUTHORITY
The proposed rules are proposed under Texas Occupations Code, Chapters 51 and 1806 which authorize the Texas Commission of Licensing and Regulation, the Department's governing body, to adopt rules as necessary to implement these chapters and any other law establishing a program regulated by the Department.
The statutory provisions affected by the proposed rules are those set forth in Texas Occupations Code, Chapters 51 and 1806, Business & Commerce Code, Chapters 17 and 115. No other statutes, articles, or codes are affected by the proposed rules.
The legislation that enacted the statutory authority under which the proposed rules are proposed to be adopted is Senate Bill 1036, 89th Legislature, Regular Session (2025).
§71.50.
(a) A solar retailer must comply with all provisions of §71.51, Code of Conduct for Solar Salespersons, all applicable requirements of the Act and this chapter, and all orders of the department or executive director issued in accordance with the Act or this chapter.
(b) A solar retailer must exercise reasonable supervision over all solar salespersons who perform services on the solar retailer's behalf, and must:
(1) Ensure that the form and format of solar contracts prepared by the solar retailer:
(A) comply with the requirements of the Act and this chapter; and
(B) include all required disclosures required by the Act, this chapter, or other law;
(2) Provide adequate training to solar salespersons to inform them of the requirements of the Act and this chapter;
(3) Verify at the time of hire that all solar salespersons requiring a registration under the Act and this chapter are registered with the department; and
(4) Take the following steps, where applicable in response to a violation by a solar salesperson of the Act or rules which becomes known to the solar retailer:
(A) promptly provide a consumer with accurate information to remedy false or misleading information provided by a solar salesperson; and
(B) promptly take corrective action, including at a minimum a written warning, to a solar salesperson in response to any violation, and provide remedial training reasonably necessary to prevent recurrence.
(c) When a consumer timely requests cancellation of a contract in accordance with the Act, a solar retailer must timely process the cancellation, arrange the removal of any installed equipment, and refund any monies advanced by the consumer.
(d) A solar retailer must maintain the following documents for the term of the solar contract, including the term of any warranty provided for in the solar contract, plus a period of five years:
(1) the signed disclosure form;
(2) the executed solar contract; and
(3) any documentation related to the installation of the solar energy system.
(e) A solar retailer must maintain records for each solar salesperson of the date of hire, the date of separation, and any written admonishment for a violation of the Act or this chapter during the salesperson's tenure and for five years after the salesperson's separation from the solar retailer. The solar retailer must produce the records to the department upon request.
(f) Prior to ceasing operations in this state, a solar retailer must designate a record keeper to maintain the records required by this chapter for the required time periods, designate a responsible party to honor any ongoing warranty or other obligations of the solar retailer under the original contract, if applicable, and provide the Department with name and contact information for the record keeper and designated responsible party.
(1) The solar retailer must notify the Department within 30 days of any change in contact information for the designated record keeper or responsible party.
(2) The Department will upon request furnish a member of the public with the record keeper and responsible party contact information provided under this subsection.
(g) Upon a request from a consumer, a solar retailer must:
(1) promptly respond to reasonable inquiries concerning a solar contract, including inquiries regarding the required cancellation procedures, installation, and the performance of other obligations under the contract;
(2) furnish the solar retailer's name and department-issued registration number and that of any solar salesperson who acts under the solar retailer's supervision; and
(3) furnish to the consumer or the consumer's designated representative, a copy of the solar contract.
(h) A solar retailer must cooperate with an investigation by the department by furnishing information or documents for inspection when directed to do so.
§71.51.
A solar salesperson must:
(1) comply with all applicable provisions of the Act, this chapter, and any order issued by the department under the Act or this chapter;
(2) conduct business with honesty, integrity, and fair dealing; and
(3) upon request, furnish a consumer with the solar salesperson's name, department-issued registration number, and the name, current contact information, and department-issued registration number of the supervising solar retailer.
§71.52.
(a) A solar retailer or solar salesperson must not orally, electronically, or in writing, make any false or misleading statements to a consumer, and must take reasonable steps to correct a consumer's misunderstanding of matter related to a solar contract if the solar retailer or solar salesperson is aware of the misunderstanding. A statement is misleading if:
(1) the statement, regardless of whether it is false, would lead a reasonable person to a materially incorrect conclusion;
(2) the statement is intended to mislead consumers; or
(3) the statement in isolation would otherwise be misleading as defined in this rule, but for statements of disclaimer, and the disclaimer statements are not prominently displayed.
(b) A solar retailer or solar salesperson must not, while marketing solar contracts:
(1) state or imply that the person is a representative of a utility, electric cooperative, or municipally owned utility;
(2) state that the consumer will be eligible for tax incentives without simultaneously advising the consumer to seek tax advice from a qualified independent professional; or
(3) solicit door-to-door in violation of posted signage indicating that soliciting is prohibited, unless otherwise directed by an occupant of the residence;
(c) A solar retailer or solar salesperson must not:
(1) cause the installation of a residential solar energy system to be performed by a person who is not a licensed electrical contractor;
(2) make a material misrepresentation in an application submitted to the department under this chapter or in any other document submitted to the department under this chapter; or
(3) violate, attempt to violate, or conspire to violate:
(A) the Act or this chapter;
(B) the Deceptive Trade Practices Act;
(C) Texas Business & Commerce Code, Chapter 115; or
(D) the disclosure provisions of the federal Truth in Lending Act (15 U.S.C. Section 1601 et seq.) or Texas Finance Code, Title IV, Subtitle B.
(d) A solar salesperson must not, on or after September 1, 2026, engage in residential solar retail unless the solar salesperson operates under the supervision of a registered solar retailer.
(e) A solar retailer must not fail to comply with the terms of a solar contract.
The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.
Filed with the Office of the Secretary of State on February 27, 2026.
TRD-202601028
Doug Jennings
General Counsel
Texas Department of Licensing and Regulation
Earliest possible date of adoption: April 12, 2026
For further information, please call: (512) 475-4879
SUBCHAPTER
G.
STATUTORY AUTHORITY
The proposed rules are proposed under Texas Occupations Code, Chapters 51 and 1806 which authorize the Texas Commission of Licensing and Regulation, the Department's governing body, to adopt rules as necessary to implement these chapters and any other law establishing a program regulated by the Department.
The statutory provisions affected by the proposed rules are those set forth in Texas Occupations Code, Chapters 51 and 1806, Business & Commerce Code, Chapters 17 and 115. No other statutes, articles, or codes are affected by the proposed rules.
The legislation that enacted the statutory authority under which the proposed rules are proposed to be adopted is Senate Bill 1036, 89th Legislature, Regular Session (2025).
§71.60.
(a) Application fees:
(1) Solar Retailer registration--$350;
(2) Solar Salesperson registration--$56;
(b) Renewal fees:
(1) Solar Retailer registration--$350;
(2) Solar Salesperson registration--$56;
(c) Revised or Duplicate Registration--$25; and
(d) Verification of registration to other states--$15.
(e) Late renewals fees for registrations under this chapter are provided under 16 TAC §60.83 (relating to Late Renewal Fees).
(f) All fees are non-refundable, except as otherwise provided by law or commission rule.
The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.
Filed with the Office of the Secretary of State on February 27, 2026.
TRD-202601029
Doug Jennings
General Counsel
Texas Department of Licensing and Regulation
Earliest possible date of adoption: April 12, 2026
For further information, please call: (512) 475-4879
SUBCHAPTER
H.
STATUTORY AUTHORITY
The proposed rules are proposed under Texas Occupations Code, Chapters 51 and 1806 which authorize the Texas Commission of Licensing and Regulation, the Department's governing body, to adopt rules as necessary to implement these chapters and any other law establishing a program regulated by the Department.
The statutory provisions affected by the proposed rules are those set forth in Texas Occupations Code, Chapters 51 and 1806, Business & Commerce Code, Chapters 17 and 115. No other statutes, articles, or codes are affected by the proposed rules.
The legislation that enacted the statutory authority under which the proposed rules are proposed to be adopted is Senate Bill 1036, 89th Legislature, Regular Session (2025).
§71.71.
The enforcement authority granted under the Act and Texas Occupations Code, Chapter 51, and any associated rules may be used to enforce the Act and this chapter.
§71.72.
(a) If a person or entity violates any provision of the Act, any provision of this chapter, or any provision of an order of the executive director or department, proceedings may be instituted to impose administrative penalties, administrative sanctions, or both administrative penalties and sanctions in accordance with the provisions of the Act and Texas Occupations Code, Chapter 51.
(b) If a person or entity, including a licensed electrical contractor, engages in conduct that would subject the actor to disciplinary action both as provided under subsection (a), and under the provisions of Texas Occupations Code, Chapter 1305, or the rules at 16 TAC, Chapter 73 (Electricians), the person or entity is subject to disciplinary action under all applicable provisions.
(c) In accordance with §1806.203 of the Act, in determining the appropriate amount of an administrative penalty, the Department may, in addition to any other factor permitted by law, consider whether any individual over the age of 65 at the time of the prohibited conduct was harmed by the conduct.
§71.73.
(a) Applicability. This rule takes effect beginning September 1, 2026.
(b) In accordance with §1806.207 of the Act, the commission or executive director may, after notice and a hearing and after finding that a violation of this chapter or a rule adopted under this chapter has occurred, order the cancellation of solar contract and the refund of any amount paid by the consumer under the solar contract.
(c) The amount of a refund ordered under this section may not exceed the amounts paid by the consumer under the solar contract.
(d) A proceeding under this section is a contested case under Texas Government Code, Chapter 2001.
The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.
Filed with the Office of the Secretary of State on February 27, 2026.
TRD-202601030
Doug Jennings
General Counsel
Texas Department of Licensing and Regulation
Earliest possible date of adoption: April 12, 2026
For further information, please call: (512) 475-4879