Texas Bill Aims to Regulate Residential Solar Panel Sales Amid Rising Consumer Complaints

Austin, TX – A new bill is under consideration by Texas Governor Greg Abbott to regulate the residential solar panel sales industry, following a surge in complaints from homeowners who allege deceptive sales practices and unfulfilled promises [1]. The proposed legislation seeks to address issues such as misleading claims about tax credits and energy savings, which have left many consumers, especially the elderly and low-income individuals, struggling with unexpected financial burdens.

Rising Concerns Over Solar Panel Sales tactics

Door-to-door solar panel salesmen frequently enough paint a rosy picture of the benefits of going solar, but the reality can be quite different for homeowners. Many find that the promised tax refunds and reduced electric bills don’t materialize, and they may not even have electricity during blackouts unless they purchase additional, costly battery storage.These issues are compounded by complex contracts and a lack of clear accountability among the multiple entities involved in the sales and installation process.

Did You Know? the average cost of a residential solar panel system in the U.S. ranges from $15,000 to $25,000 before incentives, according to the Solar Energy Industries Association [2].

The Role of Legal Action

Neal Prevost, a lawyer based in McKinney, Texas, has built a practice around representing homeowners who believe they have been wronged by solar panel companies. According to Dave Lieber of the Dallas Morning News, Prevost has handled over 2,100 cases in just one year, spanning across ten states. These cases often revolve around long-term contracts that are unsuitable for elderly customers or misrepresentations of the actual costs and benefits of solar panel systems [3].

Proposed Regulations for Solar Sales

The Texas bill under consideration aims to bring greater openness and accountability to the solar sales industry. It would require door-to-door salesmen to register with the state, undergo continuing education, and face fines for abusive practices.This is intended to address the current lack of regulation, where many cities do not have systems in place to monitor and control the activities of solar panel salesmen.

“It’s a really strong bill. It requires a lot of things, because there’s hope that that would regulate these guys who are knocking on your door,” lieber said.

Consumer protection and due Diligence

Experts reccommend that homeowners considering solar panels conduct thorough research and carefully review all contract terms before signing any agreements. It’s crucial to understand the actual costs, potential savings, and any limitations of the system. Additionally, consumers should be aware of the federal law that allows them to rescind a contract within three days of signing.

Pro Tip: Always get multiple quotes from different solar panel companies and compare their offers carefully.

The Three-Day Rescission Rule

A key protection for consumers is the federal “three-day rule,” which allows them to cancel a contract within three days of signing. Though, many solar panel companies fail to inform customers of this right, leading to legal challenges. Prevost has successfully argued cases where companies did not properly disclose the rescission option.

“There’s the three-day rule where you can rescind after three days and that’s a federal rule,” Lieber said. “A lot of times, Prevost wins his cases because he proves that they never offered the customer the idea that they could drop out before three days was over.”

Solar Panel Lawsuits and Consumer Harm

Across the United states, numerous solar panel lawsuits highlight the potential for financial harm due to misleading sales practices [3]. Companies may overstate the efficiency of their panels or make false promises about energy bill reductions, leading to significant financial losses for consumers. Some companies have even gone bankrupt, leaving homeowners without warranty coverage for their non-functioning systems [2].

What steps can homeowners take to protect themselves from deceptive solar sales practices? How can states better regulate the solar industry to prevent consumer harm?

Disclaimer: This article provides general information and should not be considered legal or financial advice. Consult with a qualified professional before making any decisions related to solar panel purchases.

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