Regular Session
Government Affairs & Regulatory Compliance Analysis
SB1036 fundamentally alters the residential solar landscape in Texas by establishing a mandatory licensing regime under the Texas Department of Licensing and Regulation (TDLR) for both Solar Retailers and Salespersons. The law imposes vicarious liability on Retailers for their sales force, mandates a 5-day contract cancellation right, and grants the state authority to void contracts and order full refunds for non-compliance.
Sen. Judith Zaffirini·Senate Bill·Regular Session
This legislation has regulatory implications for the following Texas businesses and organizations:
Significant regulatory changes (effective 2025-09-01). Review with your legal and compliance teams to understand implications.
Affected business types:
mediumModerate costs expected for implementation.
JD Key Consulting provides government affairs and regulatory strategy services. We help businesses navigate Texas agencies, understand legislative impacts, and advocate for their interests.
JD Key Consulting provides strategic guidance on Texas regulatory compliance and legislative impact for your business.
Key implementation requirements and action items for compliance with this legislation
You must redraft three specific agreement types immediately:
The statute leaves critical operational details to TCLR rulemaking. We must actively monitor the following:
JD Key Consulting specializes in Texas regulatory compliance strategy. Work directly with James Dickey—former Chairman of the Republican Party of Texas—to understand this bill's impact on your operations and develop an actionable compliance plan.
Schedule a ConsultationInformation presented is for general knowledge only and is provided without warranty, express or implied. Consult qualified government affairs professionals and legal counsel before making compliance decisions.
This bill's path through the Texas Legislature
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Common questions about SB1036
SB1036 fundamentally alters the residential solar landscape in Texas by establishing a mandatory licensing regime under the Texas Department of Licensing and Regulation (TDLR) for both Solar Retailers and Salespersons. The law imposes vicarious liability on Retailers for their sales force, mandates a 5-day contract cancellation right, and grants the state authority to void contracts and order full refunds for non-compliance.
SB1036 was authored by Texas Senator Judith Zaffirini during the Regular Session.
SB1036 was signed into law by Governor Greg Abbott on June 20, 2025.
SB1036 is enforced by Texas Commission of Licensing and Regulation (TCLR) and Texas Department of Licensing and Regulation (TDLR).
The regulatory priority for SB1036 is rated as "critical". Businesses and organizations should review the legislation to understand potential impacts.
The cost impact of SB1036 is estimated as "medium". This may vary based on industry and implementation requirements.
SB1036 addresses topics including civil remedies & liabilities, energy, energy--solar, occupational regulation and occupational regulation--other trades & professions.
Key dates for SB1036: Effective date is 2025-09-01. Rulemaking: Adopt all rules necessary to implement Chapter 1806, including insurance requirements, code of conduct, and disclosure forms. (2026-06-01); Establish and lead a stakeholder work group to advise on regulation. (As soon as practicable after 2025-09-01). Consult with legal counsel regarding applicability.
SB1036 establishes the following penalties: civil penalty of Up to $2,500 per violation (capped at $50,000 aggregate) for Violation of Chapter 1806 or adopted rules.; civil penalty of Up to $10,000 per violation (capped at $100,000 aggregate) for Violation of Chapter 1806 where the harmed individual is over age 65.; administrative penalty of Full Refund + Contract Cancellation for Commission finding of a violation (may be combined with other administrative penalties).. Consult with legal counsel for specific applicability to your situation.
SB1036 primarily affects energy companies and power generators, utility companies and energy providers, Texas businesses and commercial enterprises. These businesses should review the legislation with their legal and compliance teams to understand potential impacts.
JD Key Consulting is an Austin, Texas-based government affairs firm led by James Dickey, former Chairman of the Republican Party of Texas. We specialize in Texas regulatory compliance and legislative strategy for data centers, energy, banking, and manufacturing.
