What Types of Solar Contracts Does TDLR Regulate
The Texas Residential Solar Retailer Regulatory Act, which goes into effect September 1, 2025, gives TDLR regulatory authority over certain types of solar agreements signed after that date.
- The covered agreements include sales or leases of residential solar energy systems.
- TDLR does not regulate power purchase agreements. In a power purchase agreement, the consumer does not buy or lease the solar panels but permits panels to be installed on consumer’s property and agrees to purchase the electricity generated.
The following are exempt from the Act and are not regulated by the RSRRA (although installation of the systems themselves may be regulated by TDLR) :
- Systems installed on multifamily buildings with four or more dwelling units or stories
- Systems installed on nonresidential property
- Systems intended only for temporary or emergency use, to power a single appliance, or certain small systems that generate less than one-kilowatt of peak output power in the aggregate.
Under the Act, a phased roll-out of TDLR’s regulation of solar transactions will be implemented. Certain contract provisions and disclosures must be included in solar agreements signed on or after September 1, 2025. The Commission may adopt rules related to the program after that date. Retailers and salespersons will be required to obtain a TDLR registration as of September 1, 2026.
