Texas solar customers get new protections as homeowners warn of costly contracts

Texas homeowners considering solar panels have new protections as some customers report unexpected costs, long-term contracts and electric bills higher than promised. 

When a solar sales team showed up at Craig McKinney's Waxahachie home last year, he was intrigued.

"They said, 'I think that we could get rid of your electric bill and all you would have to pay is for this — would you be interested?'" McKinney said.

He says as a husband and father of four, every dollar counts. So, he asked for more information about their leasing program.

"They sent over a contract to me to kind of start with that... and I'm not the smartest with all those, so what I did is I ran it through ChatGPT, seeing if I could get some help with that," said McKinney. "And it looked at it and said 'Hey, what they're saying makes a lot of sense.' So, I went with it."

He said that's when the problems began.

"They said, 'Oh, we looked at the house, and we realized you're not going to get enough panels on here to get the electricity out, but don't worry, we got a backup plan,'" McKinney said.

McKinney says that backup plan included installing batteries and switching to a new electric company that offered free nights, which is when he was told to charge them.

But he says instead of getting rid of his bill, he's now paying even more.

"So what's happening is we're paying our normal electric bill at $300 a month, plus paying our bill to them at $320 a month, and so now we're paying $620 a month," said McKinney. "So frustrated! So mad!"

All this comes as Texas is putting new protections in place.

New solar panel protections in Texas

As of Sept. 1, residential solar retailers and salespeople generally must be registered with the Texas Department of Licensing and Regulation, or TDLR. The state can also act against companies or salespeople who violate the rules.

Other protections, including a five-business-day right to cancel most residential solar contracts, have been in effect since last year.

"I think there probably needs to be even more protections," said McKinney.

McKinney is trying to get out of his lease, but says so far, he has been unsuccessful.

"They said you can pay for it in full and it's like $75,000," he said. "We could sell the house, which we actually tried to do, and give it to someone else to keep paying it."

"When people have solar panels on their home, and they have a $300-$400 a month lease for 20 years, it's very hard to convince a buyer to purchase that home," said Bobby Franklin, North Texas Market Insider realtor.

Franklin says he's running into this situation at least once a month.

"I wouldn't say you can't sell it, but I will say it will take you 3-4 times as long," Franklin said.

Before you sign up for solar panels, he suggests you ask the salesperson for their TDLR registration and look up the company they're representing online.

"If it seems like it's too good to be true, it probably is," said Franklin.

For McKinney, the new oversight comes too late, but he hopes it gives other homeowners more protection.