STATE SOLAR LAWS
Texas has unique solar regulations shaped by its deregulated energy market. This guide covers your cooling-off rights, PUCT rules, consumer protection laws, and step-by-step exit options for Texas homeowners stuck in solar contracts they want out of.
Updated March 2026 · Not legal advice · Our methodology
Texas homeowners who sign solar contracts generally have at least 3 federal business days to cancel under the FTC Cooling-Off Rule if the sale occurred at their home or away from the seller's permanent location. Beyond that window, Texas's Deceptive Trade Practices Act (DTPA) may provide additional grounds for cancellation if misrepresentations were made during the sales process. Texas's deregulated energy market creates unique considerations for solar agreements. We always recommend consulting a qualified Texas attorney before taking action.
If you recently signed a solar contract in Texas, your most immediate protection is the cooling-off period — a window during which you may cancel the contract without penalty. Understanding the specific rules and deadlines that apply in Texas is critical, as the timeline is generally strict.
The Federal Trade Commission's Cooling-Off Rule (16 CFR Part 429) generally provides Texas homeowners with 3 business days to cancel a sale that occurred at your home, workplace, or anywhere other than the seller's permanent place of business. Since many solar sales in Texas begin with door-to-door solicitation — a common practice throughout the Dallas-Fort Worth, Houston, San Antonio, and Austin metro areas — this rule typically applies to a significant number of residential solar transactions.
Under this rule, the solar company is generally required to:
Texas Business & Commerce Code, Chapter 601 (formerly Article 5069-13.01) provides additional protections for home solicitation transactions. Under this statute, if a solar sale was conducted at your residence through door-to-door solicitation, you generally have the right to cancel the transaction. The seller is typically required to provide a written notice of your cancellation rights in the same language as the sales presentation.
Important for Texas homeowners: If the solar company failed to provide you with the required cancellation notice at the time of sale, your right to cancel may extend beyond the standard 3-day window. This is a common issue — if you didn't receive a clearly visible cancellation form, consult an attorney about your extended cancellation rights. Find a solar panel lawyer →
For solar transactions that involve liens on property (such as solar loans with UCC filings), Texas Property Code Section 5.014 may provide additional rescission rights. If the solar financing arrangement places a lien on your home, you may have a separate cancellation window under this provision. The specifics depend on the type of financing and how the transaction was structured.
Time-sensitive: If you believe you're within the cooling-off period, consider sending your written cancellation notice immediately — via certified mail with return receipt requested. Do not wait. The deadline is measured in business days. Send the written notice first, then follow up by phone. Pre-installation cancellation guide →
The Texas Deceptive Trade Practices-Consumer Protection Act (Texas Business & Commerce Code, Chapter 17, Subchapter E) is one of the most powerful consumer protection statutes in the United States, and it may apply to solar contract disputes. Under the DTPA, homeowners may have grounds for legal action if the solar company engaged in:
The DTPA may allow consumers to recover economic damages and, in some cases, up to three times the amount of damages (treble damages) if the conduct was committed knowingly or intentionally. Attorney's fees may also be recoverable under the DTPA.
DTPA notice requirement: Before filing a DTPA lawsuit, Texas law generally requires the consumer to send a written demand letter to the solar company at least 60 days before filing suit (Texas Bus. & Com. Code Section 17.505). This demand letter often prompts a settlement negotiation. An attorney experienced in DTPA claims can help draft an effective demand. Find a solar panel lawyer →
Solar installation may be considered a "home improvement" under Texas law, which means additional contractor licensing and conduct requirements may apply. While Texas does not have a statewide contractor licensing requirement, certain municipalities (including Houston, Dallas, and San Antonio) require electrical contractor licenses. If the installer lacked proper local licensing, this could potentially provide grounds for contract rescission.
If your solar agreement involves financing (a solar loan), the federal Truth in Lending Act may provide additional protections. TILA requires clear disclosure of all loan terms, including interest rates, total cost, and monthly payments. If the solar company or its financing partner failed to provide accurate TILA disclosures, you may have the right to rescind the entire transaction within 3 years of closing.
Need help understanding your rights under Texas law? Get a free preliminary contract review.
Texas does not have a statewide mandatory net metering policy. Instead, the state's deregulated electricity market means that net metering availability and rates depend on your Retail Electric Provider (REP). Some REPs offer buyback programs for excess solar energy, but the rates and terms vary significantly. This is an important consideration because many solar sales pitches in Texas may include savings projections that assume favorable net metering rates — if those rates aren't available from your REP, the projected savings may not materialize.
Key points about Texas solar buyback programs:
The Public Utility Commission of Texas (PUCT) oversees the state's deregulated electricity market and has established rules relevant to solar installations:
Under Texas Tax Code Section 11.27, solar energy devices are generally exempt from property tax. However, this exemption applies to the solar equipment's added value — it does not reduce your existing property tax. Some solar salespeople may misrepresent this benefit. If you were told solar panels would reduce your property taxes (rather than simply not increase them), this could potentially constitute a misrepresentation under the DTPA.
Texas Property Code Section 202.010 generally prohibits homeowners' associations (HOAs) from banning solar panels outright. However, HOAs may impose reasonable restrictions on the placement of solar devices. If your HOA is preventing installation or if the solar company failed to account for HOA requirements, this may affect your contract obligations.
Based on publicly reported complaints to the Texas Attorney General's office and the Better Business Bureau, these are the most frequently reported solar contract issues in Texas:
Many Texas homeowners report that the solar system produces significantly less energy than was promised during the sales presentation. In Texas's deregulated market, savings projections are particularly sensitive to the buyback rate offered by your REP. If the salesperson used an unrealistically high buyback rate in their calculations, the actual savings may be far less than projected. This type of misrepresentation may be actionable under the DTPA.
Texas's large suburban communities — particularly in the Dallas-Fort Worth metroplex, Houston, San Antonio, and Austin — are frequently targeted by aggressive door-to-door solar sales operations. Common complaints include salespeople who refuse to leave, make verbal promises not included in the written contract, or pressure homeowners to sign immediately "before the incentive expires." Under Texas law and the FTC Cooling-Off Rule, contracts signed through home solicitation generally carry enhanced cancellation rights.
Some solar leases and PPAs in Texas involve UCC-1 filings that create a lien interest on the solar equipment — and in some cases, are filed broadly enough to encumber the homeowner's property. Many homeowners report not being informed about these liens until they attempt to sell or refinance their home. Learn about UCC lien removal →
Many Texas solar leases and PPAs contain annual escalator clauses of 2-5% per year. Over a 25-year contract, a 2.9% annual escalator can cause your payments to nearly double. If the salesperson did not clearly explain the escalator clause, or if they represented that payments would remain flat, this may constitute a misrepresentation. Review your contract carefully for any annual increase provisions.
If you're a Texas homeowner looking to exit your solar contract, the appropriate approach depends on your specific situation. Below is a general framework — we always recommend consulting a qualified Texas attorney before taking action.
Important: We do not advise homeowners to stop making payments or breach contractual obligations. Missed payments can damage your credit and may result in additional legal liability. Continue making payments while exploring your exit options.
Before taking any action, collect the following:
Carefully review your contract (or have an attorney review it) for:
If you believe the solar company made misrepresentations during the sales process, consult a Texas attorney about a potential DTPA claim. Common bases for DTPA claims in solar cases include:
If you have a DTPA claim, your attorney will typically send a formal demand letter to the solar company. Under Texas law, this demand must generally be sent at least 60 days before filing suit. The demand letter often initiates a settlement negotiation that may result in contract cancellation, buyout reduction, or other relief.
If you need assistance navigating the exit process, professional solar contract exit services may be an option. These companies typically review your contract and help identify potential exit strategies. Compare solar cancellation companies →
Texas-specific tip: Texas's strong DTPA protections mean that many solar companies prefer to negotiate a resolution rather than face a DTPA lawsuit. The potential for treble damages and attorney's fees creates a strong incentive for the solar company to work with you. An experienced Texas consumer protection attorney can help you leverage these protections effectively.
Stuck in a solar contract in Texas? Get a free preliminary contract review to understand your options.
If you're experiencing issues with a solar company in Texas, these agencies may be able to help:
Phone: (800) 621-0508
Online complaint: File a complaint at texasattorneygeneral.gov
Mail: Office of the Attorney General, Consumer Protection Division, P.O. Box 12548, Austin, TX 78711-2548
The Texas AG's office investigates consumer complaints and may take enforcement action against companies engaged in deceptive practices. Filing a complaint also creates a public record that may help other consumers.
Phone: (888) 782-8477
Online: File a complaint at puc.texas.gov
Jurisdiction: Oversees the deregulated electricity market, interconnection standards, and REP practices
Online: bbb.org
Note: BBB complaints are not government enforcement actions, but they create a public record and may prompt the solar company to respond. Check the solar company's BBB profile before filing.
Phone: (800) 252-9690
Online: Texas Bar Lawyer Referral Service
Note: Can connect you with a consumer protection attorney experienced in DTPA claims
Under the federal FTC Cooling-Off Rule, you generally have 3 business days to cancel a solar contract if the sale occurred at your home or away from the seller's permanent place of business. Texas's Home Solicitation Transactions Act (Business & Commerce Code Chapter 601) provides similar protections. If the solar company failed to provide required cancellation notices, the window may extend beyond 3 days. After the cooling-off period, you may still have exit options through your contract's termination clause or through legal remedies under the Texas DTPA. Full cancellation guide →
Texas does not have a statewide mandatory net metering law. Because Texas has a deregulated electricity market, net metering availability and buyback rates depend on your Retail Electric Provider (REP). Some REPs offer solar buyback programs with varying rates, while others may not offer buyback at all. This is important because solar savings projections are highly dependent on the buyback rate — if your REP changes or eliminates their program, your actual savings may differ significantly from what was projected during the sales process.
If a solar company engaged in false, misleading, or deceptive acts — such as overstating energy savings, misrepresenting contract terms, or failing to disclose important information — you may have grounds for a claim under the Texas Deceptive Trade Practices Act (DTPA). The DTPA allows consumers to recover economic damages and potentially treble damages plus attorney's fees. You must generally send a demand letter at least 60 days before filing suit. Consult a Texas consumer protection attorney to evaluate your specific situation. Find a solar panel lawyer →
If your solar system consistently produces significantly less energy than was represented during the sales process, you may have grounds for relief under your contract's performance guarantee (if one exists) or under the Texas DTPA as a misrepresentation. Document the actual production data from your inverter's monitoring system and compare it to the written projections you received. Some variation is normal due to weather, but sustained underperformance of 20% or more below projections may warrant legal review.
Under Texas Property Code Section 202.010, HOAs generally cannot prohibit solar panels outright. However, HOAs may impose reasonable restrictions on placement — such as requiring panels be placed in a less visible location — as long as the restrictions don't effectively prevent installation or significantly increase the cost. If your HOA is blocking your installation in violation of this statute, or if the solar company failed to verify HOA compliance before signing you up, this may affect your contractual obligations.
Some solar leases and PPAs involve UCC-1 filings that create a lien interest on the solar equipment and may encumber your property. You can check for UCC filings through the Texas Secretary of State's office (SOSDirect) or your county clerk's records. If you discover a UCC-1 filing you weren't informed about, this failure to disclose could potentially be actionable under the DTPA. UCC lien removal guide →
Get a free preliminary contract review to understand your options under Texas law.
Disclaimer: This guide is for informational purposes only and is not legal advice. Laws and regulations may change, and this information may not reflect the most current legal developments. Results vary by individual situation, contract terms, and applicable laws. We do not advise homeowners to stop making payments or breach contractual obligations. SolarPanelExit.com and TRU Solar Cancellation share common ownership. Always consult a qualified Texas attorney before taking legal action. See our Ownership Disclosure, Advertiser Disclosure, and Methodology.