Texas lawmakers attempt to crack down on abuse in solar panel industry
A growing number of Texans are reporting feeling taken advantage of after purchasing residential solar panel systems. The CBS News Texas I-Team has uncovered a pattern of complaints within the industry, and now the problem has caught the attention of Texas state lawmakers.
"They're promising the moon and delivering a flashlight," said Texas Rep. Gary VanDeaver of New Boston, the author of one of the solar panel-related bills that's been filed this session.
It's not just solar panel customers who are fed up with the predatory behavior. Even some solar businesses and industry experts are hoping for more regulation.
"People's lives were getting torn apart"
When Taylor Alexander started working as a solar panel installer five years ago, he immediately fell in love. He was drawn to the idea that this technology could help customers save money and establish independence from the Texas power grid. He and his wife eventually founded their own solar company together, Texas Solar Panimals.
But it didn't take long for Alexander to notice what he calls a disturbing trend.
In many cases, there are three separate companies involved in a residential solar panel transaction: a sales company, an installer and a finance company. As an installer, Texas Solar Panimals is often contracted by other companies to install panels that those companies have sold. Alexander says there were repeat instances of deals that never should have been made in the first place, often involving elderly clients.
"We were coming across more and more times where there were horror stories of people who weren't aware of what exactly they were getting," Alexander said.
Those stories involved customers sold expensive solar systems, enticed with false promises that they'd never have to pay another electric bill or that they'd receive government rebates that don't exist.
"People's lives were getting torn apart from it," Alexander said.
More than "buyer's remorse"
The I-Team has reported on the solar sales industry, which often relies on young men going door to door, focused solely on making the sale, taking a cut and passing the work onto third parties. Dozens of customers who feel taken advantage of have reached out to tell their stories.
"She was very exploited," one woman said of her stepmother, who took out an $87,000 loan a few years before her death.
"I wanted to cry," said another woman about receiving a bill for a loan to finance solar panels that she didn't knowingly take out.
"We have been through a year and a half of pure hell," said another, who has joined forces with other Texas families to pursue legal action against a solar company they accuse of predatory practices.
VanDeaver said he first became aware of the problem because of his constituents.
"Many times it's the children of the family members of these elderly homeowners who come to us and say, 'My parent, my aunt, my uncle, whoever, has been taken advantage of and we need to stop this," he said.
He initially assumed it was probably just a few dissatisfied customers. But as he and his staff began to look into the complaints, and as they got more calls, he said they realized this was a widespread problem.
Data obtained by the I-Team shows solar panel-related complaints submitted to the Office of the Attorney General of Texas have skyrocketed in recent years, jumping from 154 in 2020 to 696 in 2024.
Data from the Better Business Bureau shows a similar trend, with 1,069 complaints filed against solar companies in 2024, compared to 434 in 2020 and 166 in 2019.
Texas Sen. Judith Zaffirini of Laredo, the other state lawmaker who has filed solar panel-related legislation this session, said she became interested in this issue after hearing from regulatory experts and consumer protection advocates.
"It became clear these instances weren't merely occasional cases of buyer's remorse. They revealed a disturbing trend of misleading and predatory tactics that disproportionately harmed elderly and non-English-speaking Texans," Zaffirini wrote in an emailed statement to the I-Team.
The bills
VanDeaver said he'd like to believe that a lot of the issues this industry has seen can be attributed to a lack of awareness and some over-aggressive salespeople, not due to widespread efforts to intentionally mislead people.
His bill is focused on consumer education. If signed into law, HB 1640 would require the Public Utility Commission to develop a consumer guide for home solar systems. The guide would include suggested questions for customers to ask, and a contact number for customers to be able to call with any questions.
Zaffiini has filed an identical bill in the Senate, SB 1697, where it has already passed.
"We'll see if this fixes it," VanDeaver said. "My hope is, it will. But if it doesn't, I'm certainly prepared to come back for something more punitive."
The other bill Zaffirini has filed does take a punitive approach.
If approved, SB 1036 would require solar panel salespeople to register with the Texas Department of Licensing and Regulation, and would prohibit any solar salesperson or retailer from knowingly making misleading claims. Punishment for violators could include fines of up to $50,000, or fines of up to $100,000 if the customer is over 65 years old.
"SB 1036 targets the most serious problems in the residential solar market: deceptive sales tactics and the lack of regulatory oversight," Zaffirini said in an emailed statement.
She also wrote that her goal is to "protect consumers while supporting the growth of clean energy in Texas."
At a recent Senate committee hearing, several industry representatives showed up to advocate for cracking down on bad actors who they believe put the industry in danger. They echoed what Alexander told the I-Team about his support of increased regulation.
"We don't wince at it, we welcome it," Alexander said. "We're looking forward to it because we won't have to be looking over both shoulders, wondering if people are going to be bringing us bad jobs."
SB 1036 has passed in the Senate, but so far has not been taken up in the House.
