S.B. No. 1036 introduces the Residential Solar Retailer Regulatory Act, which establishes a regulatory framework for residential solar retail transactions in Texas. The bill requires individuals and entities involved in these transactions to register as solar retailers or solar salespersons with the Texas Department of Licensing and Regulation. It defines key terms such as "residential solar energy system" and "solar retailer," and outlines registration requirements, including application submissions, fee payments, and compliance with insurance and educational standards. The bill also provides for the administration and enforcement of these regulations, emphasizing consumer protection through the development of educational materials regarding consumer rights in solar energy transactions.

Furthermore, the bill introduces new regulations under Chapter 1806 of the Occupations Code, which include requirements for solar retailers to provide registration information upon request and ensure that sales agreements contain specific details about installations and contractors. It allows buyers to cancel agreements within five business days without penalty and outlines prohibited deceptive practices, along with penalties for violations. The Texas Commission of Licensing and Regulation is tasked with adopting necessary rules by June 1, 2026, and a stakeholder work group will be established to recommend further regulatory measures. Most provisions of the bill are set to take effect on September 1, 2025, with certain sections effective a year later, aiming to enhance consumer protection and transparency in the solar energy market.

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