Your Texas Solar Contract Is Costing You More Than You Were Told. Here's How to Fix It.
The short version: Most Texas solar leases have an escalator clause. It raises your payment 2.9% every year. Over 25 years, a $150 payment grows to more than $300. Texas AG Ken Paxton is investigating Sunrun and other solar companies. Big solar companies that worked in Texas have gone bankrupt. Titan Solar Power is one of them. If your solar panels aren't saving what you were told, you have real rights. Start with a free Solar Relief Assessment to see what's actually in your contract.
Texas has a deregulated energy market. That means you can choose your electricity provider and your rate plan. It also means the "savings" your solar salesperson showed you were based on a rate comparison they picked - and there's a good chance they picked the most expensive plan they could find.
That's the trick. In a regulated state, the utility rate is the utility rate. In Texas, your salesperson could cherry-pick a high-rate plan, compare your solar payment to that, and make the savings look huge. But if you would have paid less just by switching to a competitive electric plan, the "savings" from solar were never real.
This is happening in Dallas, Houston, San Antonio, Austin, and every suburb in between. And the salesperson who showed you those numbers? Their company might not exist anymore. Titan Solar Power, which operated heavily in Texas, filed Chapter 7 in June 2024. SunPower filed Chapter 11 in August 2024. Sunnova - one of the largest residential solar companies in the country - filed Chapter 11 in June 2025. More than 100 solar companies filed for bankruptcy in 2024 alone, according to SolarInsure.
If you're a Texas homeowner and the solar math isn't adding up, here's why - and what you can do about it.
The Texas Attorney General Is Watching Solar
Texas AG Ken Paxton is investigating Sunrun and other solar companies. The AG's office has received more than 100 formal complaints. Thousands more came in online. Solar panel complaints to the Texas AG jumped from 154 in 2020 to 696 in 2024 — a 352% increase. Complaints to the Texas Department of Licensing and Regulation grew 576% from 2018 to 2023. The AG is looking at fake savings claims, system performance, and contract terms. The AG has also won a judgment that shut down a Dallas-area solar company. Texas SB 1036 took effect on September 1, 2025. That's the state's big new solar consumer protection law.
This matters to you. State enforcement agencies have put it on the record. The same sales tactics used on Texas homeowners are now named in court filings. If what your salesperson told you doesn't match your contract, you're not alone. You're not crazy. And you have options.
What's actually in your Texas solar contract
Here's what most Texas homeowners don't find out until they've been paying for a year or two: the deal you signed isn't the deal you were sold.
Your salesperson told you solar would lower your electric bill. But did they mention the escalator clause buried in your lease agreement? That's the line that raises your payment every year - by as much as 2.9%. On a 25-year lease, that turns a $150 monthly payment into more than $300!
Did they mention that the rate comparison they used was based on one of the most expensive plans available in your area - and that a competitive plan would have saved you money without panels on your roof? In a deregulated market like Texas, the savings pitch only works if the comparison is honest. Was yours?
Did your salesperson mention Freedom Forever? Freedom Forever was one of the biggest solar installers in the country. They put in about 2 gigawatts of solar across 35 states. On April 15, 2026, they filed Chapter 11 bankruptcy in Delaware. They owe $500 million to $1 billion. Between 50,000 and 100,000 people are owed money. Freedom Forever was still installing in Texas when they filed. If Freedom Forever installed your system, your contract is still active. But the company behind your warranty is now in bankruptcy limbo.
Freedom Forever isn't alone. SolarInsure counted more than 100 solar company bankruptcies in 2024. SunPower filed Chapter 11 in August 2024. A company called Complete Solaria bought them. Sunnova Energy filed Chapter 11 in June 2025. Titan Solar Power filed Chapter 7 in June 2024. Pink Energy, Lumio Holdings, and Vision Solar are on the same list. When your installer goes bankrupt, your payments don't stop. Your contract doesn't cancel. But your warranty usually disappears.
Your rights under Texas law
Texas gives you some of the strongest consumer protections in the country. Here's what your salesperson almost certainly didn't explain.
Your 3-day cancellation window. Texas Business & Commerce Code Chapter 601 gives you the right to cancel a contract signed at your home within 3 business days. This is in addition to the federal FTC Cooling-Off Rule. If you weren't told about this right - and most homeowners aren't - that's significant.
The Texas Deceptive Trade Practices Act (DTPA). Texas B&C Code §17.41 et seq. is one of the strongest consumer protection statutes in the country. If your solar company made misleading claims about savings, system performance, or contract terms, the DTPA gives you real legal leverage - including potential treble damages. That means up to three times the actual damages you suffered. Few states offer this kind of tool to consumers. Texas does.
The deregulated market problem. Texas's deregulated electricity market means rates change based on the plan you choose. That makes savings projections easy to manipulate. If your salesperson cherry-picked a high-rate plan for comparison, the "savings" they showed you don't reflect what you'd actually pay with a competitive electric plan. This is one of the most common problems Texas solar homeowners are finding in their contracts.
Property tax exemption. Texas Tax Code §11.27 exempts the added value of solar from your property tax assessment. This is a real benefit - but if your salesperson overstated its financial impact as part of the savings pitch, the overall math is still off. A property tax exemption doesn't fix a bad contract.
Hidden dealer fees in your loan. Did you finance your solar system with a loan? If so, the lender probably added a dealer fee. These fees are usually 15 to 30 percent of your loan. They get hidden in your balance. You pay interest on money that went to the solar company. Not to your panels. Federal law (the Truth in Lending Act) says every fee must be clearly shown. If yours wasn't, that can be a legal violation.
What you can do right now
You don't have to figure this out alone. Here are the first steps for Texas homeowners.
File a complaint with the Texas Attorney General. Go to https://www.texasattorneygeneral.gov/consumer-protection/file-consumer-complaint. Or call 1-800-621-0508. Filing is free. The AG's office reads every complaint.
Compare what the salesperson told you to what's in your contract. In most cases, the two don't match. That gap is what makes a case.
Pull your utility bills from the last 12 months. Add up what you're paying the utility plus what you're paying for solar. Compare that to what you'd pay the utility alone. If the numbers don't work, that's a real gap — not just a feeling.
Find the escalator clause and the dealer fee in your contract. These two lines cause the biggest gap between what you were sold and what you're paying. You can spot both by reading your own paperwork.
Every contract is different. But the first step is the same for everyone. Understand what you signed. Solar Home Advocate built the free Solar Relief Assessment for this exact moment. Someone walks through your contract with you in plain English. They tell you your options.
You Signed a Solar Contract in Texas. Find Out What It's Actually Costing You.
Texas homeowners have some of the strongest consumer protection rights in the country - including potential treble damages under the DTPA. And in a deregulated market, your savings math deserves a hard second look. A free Solar Relief Assessment helps you understand what's in your contract, what went wrong, and what you can do about it for you and your family.
[Get free Solar Relief Assessment →](https://solarhomeadvocate.com/free-assessment?utm_source=substack&utm_medium=article&utm_campaign=state-guide&utm_content=texas)Get free Solar Relief Assessment →**
No charge. No obligation. No high-pressure pitch.
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"Sal says: A 2.9% escalator clause nearly doubles your payment over 25 years. Freedom Forever filed Chapter 11 in April 2026. If you signed a solar contract in Texas, these facts hit your math and your warranty."
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Frequently Asked Questions
What are my rights if I signed a solar contract in Texas?
Did a salesperson come to your home? If yes, you have a 3-day right to cancel. That's under Tex. Bus. & Com. Code §601.001 et seq. (Consumer Purchase Contracts Act) and the federal FTC Cooling-Off Rule. Texas also has Texas Deceptive Trade Practices-Consumer Protection Act (Tex. Bus. & Com. Code §17.41 et seq.). That law covers unfair or deceptive sales tactics. You can file a complaint with the Texas Attorney General. Go to https://www.texasattorneygeneral.gov/consumer-protection/file-consumer-complaint or call 1-800-621-0508. If your salesperson didn't tell you about the 3-day cancel rule, that can affect your contract.
Has Texas sued any solar companies?
Yes. Texas AG Ken Paxton is investigating Sunrun and other solar companies. The AG's office has received more than 100 formal complaints. Thousands more came in online. Solar panel complaints to the Texas AG jumped from 154 in 2020 to 696 in 2024 — a 352% increase. Complaints to the Texas Department of Licensing and Regulation grew 576% from 2018 to 2023. The AG is looking at fake savings claims, system performance, and contract terms. The AG has also won a judgment that shut down a Dallas-area solar company. Texas SB 1036 took effect on September 1, 2025. That's the state's big new solar consumer protection law.
How does the escalator clause affect my Texas solar contract?
Most Texas solar leases have an escalator clause. It raises your payment about 2.9% every year. On a 25-year lease, a $150 payment grows to more than $300. Texas's average electricity rate is about 15.69 cents per kilowatt-hour in early 2026. That's close to the national average of 17.45 cents. Utility rates haven't always gone up 2.9% a year. So your solar payment can climb faster than your would-be utility bill. Your savings shrink instead of grow.
What happens if my Texas solar company went bankrupt?
SolarInsure counted more than 100 solar company bankruptcies in 2024. Big names include SunPower (Aug 2024), Sunnova Energy (June 2025), Titan Solar Power (June 2024), Freedom Forever (April 15, 2026), Pink Energy (Oct 2022), and Vision Solar (Dec 2023). If your installer went bankrupt, your contract still stands. Your payments still go out. But the workmanship warranty usually dies with the company. The panel maker's warranty (often 25 years) still exists. But filing a claim without an active installer is hard.
Can I cancel my Texas solar contract?
Did the salesperson come to your home? Then Texas law gives you 3 business days to cancel. That's under Tex. Bus. & Com. Code §601.001 et seq. (Consumer Purchase Contracts Act) and the federal FTC Cooling-Off Rule. If those 3 days have passed, you may still have options. Did they skip the cancel notice? Did they use deceptive sales tactics? Did your loan hide fees? Any of those can open a path to cancel. It depends on your specific contract and how it was sold.
What are hidden dealer fees on a Texas solar loan?
Solar finance companies add dealer fees of 15 to 30 percent to your loan. They roll the fee into the principal. They don't list it separately. That means you pay interest on fee money that went to the solar company. Not to your panels. The federal Truth in Lending Act says every fee must be listed clearly. A hidden fee can be a federal violation. That's one of the strongest paths to renegotiate or exit a solar loan.
How do I file a solar complaint in Texas?
Go to the Texas Attorney General's website at https://www.texasattorneygeneral.gov/consumer-protection/file-consumer-complaint. Or call 1-800-621-0508. Filing is free. Write down what the salesperson told you at the sale. Save your contract. Save any texts, emails, and voicemails with the installer. If you have a solar loan, keep your loan paperwork. A formal complaint creates a record. That record strengthens any legal review later.