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Texas is the largest residential solar market in America — and scammers have noticed. The federal ITC is dead. Texas has no state solar incentive, no SREC, and no statewide net metering. Some companies have not updated their pitch. Here is how to protect yourself under SB 1036 and Texas consumer law.
2,100+
TX Solar Complaints (2025)
$9,200
Average Scam Loss
800+
Door-to-Door Reports
72%
Fake ITC Claims
Section 25D of the Internal Revenue Code was eliminated by the OBBBA, signed July 4, 2025. It expired December 31, 2025. Homeowners who purchase solar with cash or a loan receive zero federal tax credits. Section 48/48E remains for third-party owners (PPA/lease companies) on projects beginning construction before July 4, 2026.
These are the most common scam patterns reported by Texas homeowners to the Attorney General and PUCT. Each includes what to ask and how to verify.
The federal residential solar ITC (Section 25D) expired December 31, 2025. It is $0. Any company in Texas still advertising a 30% homeowner tax credit is committing fraud or is dangerously incompetent.
DFW suburbs (Frisco, McKinney, Allen, Plano), Houston suburbs (Katy, Sugar Land, Pearland), and Austin/SA metro areas are prime targets for high-pressure solar sales teams.
"Get free solar panels!" With the federal tax credit dead, this claim is pure fiction. This always means a lease or PPA where you pay monthly for 20-25 years and never own the system.
A 2.9% annual escalator turns a $150/month Year 1 lease into $256/month by Year 20. With TX rates averaging $0.13-0.16/kWh, your lease can cost MORE than the grid within 8-10 years.
"You will sell excess power back at full retail!" Texas has NO statewide net metering. In the deregulated ERCOT market (85% of TX), buyback rates vary by REP from 1:1 down to $0.
Some solar loan products include dealer fees of 20-35% that are rolled into the loan amount. A $30,000 system becomes a $39,000 loan. The company pockets the fee; you pay interest on it for 25 years.
Texas gets excellent sun, but some companies inflate production to 1,800+ kWh/kW/year to pad ROI projections. Realistic TX range: Houston 1,350-1,450, DFW 1,450-1,550, Austin 1,450-1,550, El Paso 1,600-1,700.
Texas has NO utility rebates for residential solar panels. Oncor, CenterPoint, Austin Energy, and CPS Energy rebates are for HEAT PUMPS only. If a company promises a utility rebate for solar, they are confused or lying.
Senate Bill 1036 (2019) established specific consumer protections for residential solar transactions in Texas. Here is what the law requires.
Companies must provide written disclosure of total system cost, financing terms (including dealer fees and escalators), and estimated energy production before you sign.
For door-to-door sales, you have 3 business days to cancel any contract. This right cannot be waived, even if the salesperson asks you to.
Companies cannot misrepresent system cost, production, or available incentives. Claiming the 25D ITC in 2026 violates this provision.
Violations can trigger enforcement under the Texas Deceptive Trade Practices Act, which provides for treble (3x) damages and attorney fees.
Solar scams in Texas may violate the DTPA (TX Bus. & Com. Code Section 17.46). Misrepresenting the federal tax credit, inflating production estimates, or hiding financing terms can trigger treble (3x) damages plus attorney fees. The DTPA is one of the strongest consumer protection statutes in the country. File complaints with the TX Attorney General at 1-800-252-8011.
Every solar installer in Texas must hold a valid electrical contractor license from the Texas Department of Licensing and Regulation (TDLR). Here is how to verify.
Before signing any contract, verify these 12 markers of a trustworthy solar installer.
Use these official resources to verify companies, file complaints, and check production claims.
Verify TX electrical contractor licenses online
File consumer protection complaints about solar companies
Report utility-related complaints and solar disputes
Check company ratings, reviews, and complaint history
Verify solar production estimates for your ZIP code
Texas has unique market conditions that create scam opportunities not found in other states.
Companies exploit the complexity of TX deregulated market. They promise savings based on rates you may never get. In ERCOT territory, your rate depends on your REP, not the delivery utility. Companies quoting Austin Energy rates for an Oncor customer are using the wrong data.
Salespeople claim to be "approved by Oncor" or "working with CenterPoint." These are TDUs — they deliver electricity but DO NOT sell it or endorse solar companies. Interconnection is a regulatory process, not an endorsement.
Sales teams target new subdivisions in Frisco, Allen, Katy, Sugar Land, Cedar Park, and Round Rock where homes have new roofs and higher-income buyers. They offer "builder partnership" pricing that is often higher than market rate.
Companies downplay hail risk: "These panels handle anything." "Insurance covers it." Reality: TX hail regularly exceeds standard panel testing thresholds. Homeowner deductibles in TX can be $5,000-$10,000+ for wind/hail.
Know the real numbers so you can spot inflated or deflated quotes immediately.
| Metric | Legitimate Range | Scam Red Flag |
|---|---|---|
| Cost per watt (cash) | $2.50-$3.10/W | Below $2.00/W or above $4.00/W |
| Federal tax credit | $0 (25D expired) | Any amount shown |
| Production (kWh/kW/yr) | 1,350-1,700 (varies by region) | Above 1,800 kWh/kW/yr |
| 10 kW system total | $25,000-$31,000 | Below $18,000 or above $40,000 |
| Payback period | 10-14 years (no ITC) | Under 5 years |
| Utility solar rebate | $0 (TX has none) | Any amount shown |
| Net metering rate | Depends on your REP | "1:1 net metering" generic claim |
No. The federal residential solar ITC (Section 25D) was eliminated by the One Big Beautiful Bill Act (OBBBA), signed July 4, 2025. It expired December 31, 2025. Homeowners who purchase solar with cash or a loan receive $0 in federal tax credits in 2026. Any company advertising a 30% residential tax credit is either uninformed or deliberately misleading you. Section 48/48E remains for third-party system owners (PPA/lease companies) only.
Visit the Texas Department of Licensing and Regulation (TDLR) website at tdlr.texas.gov to verify any electrical contractor license. Every solar installer in Texas must hold a valid TDLR electrical contractor license. Ask for the license number upfront. If a company cannot provide it, do not proceed.
Senate Bill 1036 (enacted 2019) regulates residential solar sales in Texas. It requires written disclosure of total system cost, financing terms, and expected energy production. Companies must provide a 3-day cancellation right for door-to-door sales. Violations can trigger enforcement by the Texas Attorney General under the Deceptive Trade Practices Act (DTPA).
Yes. File a complaint with the Texas Attorney General Consumer Protection Division at 1-800-252-8011 or online at texasattorneygeneral.gov. You can also report to the Public Utility Commission of Texas (PUCT) at 1-888-782-8477. Misrepresenting the federal tax credit may constitute a violation of the Texas Deceptive Trade Practices Act (DTPA), which provides for treble (3x) damages.
Yes, door-to-door solar sales are legal in Texas, but companies must comply with the Texas Home Solicitation Transactions Act. You have a 3-business-day right to cancel any contract signed during a door-to-door sale (TX Bus. & Com. Code Section 601.052). If a salesperson pressures you to waive this right or sign immediately, that is both a red flag and likely a DTPA violation.
A legitimate TX solar quote should include: (1) Cash price with NO federal tax credit deduction. (2) System size in kW and estimated annual production in kWh. (3) Panel brand, model, and hail rating. (4) Inverter type and warranty. (5) Your specific REP solar buyback rate. (6) Property tax exemption savings. (7) Payback period with zero federal credits. (8) Financing terms with APR and total cost. (9) TDLR license number.
Texas leads the nation in solar fraud complaints. The TX Attorney General received over 2,100 solar-related complaints in 2025. The most common scams include fake ITC claims (72% of complaints), inflated production estimates, hidden dealer fees in financing, and door-to-door pressure sales in DFW and Houston suburbs.
A legitimate lease or PPA company will clearly state that THEY own the system, the Section 48/48E ITC goes to them (not you), and show your year-by-year payment schedule including any escalator. A scam tells you that YOU get the 30% tax credit, hides the escalator clause, claims "free solar," or misrepresents ERCOT buyback rates as 1:1 net metering.
NuWatt shows real 2026 pricing with zero federal tax credit. Transparent costs. Your specific REP buyback rate. TDLR-licensed installers only.