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TDLR adopts residential solar retailer rules after debate over contract language

Texas Department of Licensing and Regulation (TDLR) · May 20, 2026
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Summary

TDLR approved rules to register residential solar retailers and salespersons under Senate Bill 1036 but declined to add a proposed multilingual contract‑language requirement after an extended commissioner debate about consumer protection, court burdens and policy trade‑offs.

The Texas Department of Licensing and Regulation voted to adopt new rules implementing Senate Bill 1036 that will require registration, certain insurance and disclosure practices for residential solar retailers and salespersons.

The package includes contract‑form requirements, a mandatory disclosure form and a five‑day right to cancel; it also directs the department to draft a consumer brochure and a short disclosure form to be completed at the point of sale. Staff said the rule aims to protect homeowners—particularly older residents and consumers with limited English proficiency—against predatory door‑to‑door solar sales.

Commission debate centered on a proposed addition requiring that sales contracts be written in the same language as the oral sales presentation. Commissioners, staff and witnesses discussed tradeoffs: consumer advocates and some stakeholders supported translated contracts as a consumer‑protection measure, while other commissioners raised concerns about court burdens, enforcement complexity and statutory baselines. TDLR staff noted sections of the Business and Commerce Code (chapter 601) already require the right‑to‑cancel notice to be provided in the language principally used in an oral sales pitch but said the full‑contract‑language requirement went beyond the statute and might create unintended legal complexity.

During the meeting staff proposed compromise language (for example, maintaining an English contract baseline and providing a translated copy to the consumer upon request or when the sales pitch is in another language). After extended discussion, the commission voted to adopt the published rule package without the proposed multilingual contract‑language provision; staff will maintain the required disclosure forms (to be published in English and Spanish) and may continue developing consumer protections and implementation materials.

The commission’s action moves the solar‑retailer registration regime forward while leaving a narrower set of language requirements and a department‑prepared disclosure form to help consumers understand contract terms and cancellation rights.

Provenance: Staff presentation and extended debate on language and consumer protections (transcript: solar rules presentation SEG 2022–2110; multilingual‑language debate SEG 2121–2466; final vote SEG 2788–2794).