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Solar contract cancellation in Texas
Texas now regulates residential solar sellers, gives five business days to cancel, and requires the lender to cancel the loan too.
Last verified October 9, 2026
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The short answer: Under Senate Bill 1036, Texas homeowners can cancel a residential solar contract signed on or after September 1, 2025 within five business days, and when the contract is cancelled, the lender must cancel the related loan; see TDLR’s Residential Solar Retailers guidance. Residential solar retailers must register with the Texas Department of Licensing and Regulation, which became mandatory September 1, 2026. Texas’s Deceptive Trade Practices Act also covers misleading sales.
Key takeaways
- Five business days to cancel solar contracts signed since Sept. 1, 2025.
- Cancelling the contract requires the lender to cancel the loan.
- Residential solar retailers must register with TDLR.
- Most Texans buy power from retail providers, which set their own buyback terms.
On this page
Cancelling a solar contract in Texas
Texas gives residential solar buyers five business days, longer than the federal three, for contracts signed since September 1, 2025, and the cancellation reaches the financing as well. For older contracts, Texas’s home solicitation law and the federal Cooling-Off Rule still provide three business days.
Texas solar rules
Senate Bill 1036 created a registration program for residential solar retailers run by TDLR and set disclosure requirements for solar sales. The Texas Deceptive Trade Practices Act lets consumers recover damages for false or misleading practices, with additional damages for knowing violations.
How Texas utilities credit solar
Texas has no statewide net metering rule. In most of the state’s competitive market, what you’re paid for exported power depends on your retail electricity provider’s buyback plan, which can change when your plan renews. Proposals that assumed a permanent retail-rate credit deserve a hard look.
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Where to file a solar complaint in Texas
- The Texas Department of Licensing and Regulation, for solar retailers.
- The Office of the Texas Attorney General, which enforces the DTPA.
- The FTC, at ReportFraud.ftc.gov.
- The CFPB, for loan problems.
Cities we cover in Texas
Texas covers multiple utility markets, from competitive retail areas to city-owned utilities. Each city guide covers the local picture.
Common questions
Texas solar FAQs
How many days do I have to cancel a solar contract in Texas?
Five business days for residential solar contracts signed on or after September 1, 2025.
Does cancelling cancel my solar loan in Texas?
Under SB 1036, the lender must cancel the loan when the contract is cancelled.
Do Texas solar sellers need a license?
Residential solar retailers must register with TDLR.
Does Texas have net metering?
Not statewide. Buyback terms depend on your provider.
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Solar Cancellation HQ is not a law firm and does not provide legal advice. This page is general information, and reading it or submitting a form does not create an attorney-client relationship. Not every contract qualifies, and no outcome is guaranteed. We never advise anyone to stop making payments on a solar loan, lease or PPA. Laws and utility rules change, so verify before acting. Last verified October 9, 2026.