Solar scams? Texas to consider cracking down on deceptive solar panel sales tactics, fraud
AUSTIN (KXAN) -- Texas lawmakers are considering cracking down on a growing problem of scams and fraud related to solar panels.
In recent years, Texas has led the country in installing more new solar capacity than nearly every other state. However, Sen. Judith Zaffirini, D-Laredo, told her colleagues she believes that "positive development is being overshadowed by a rise in fraudulent and predatory residential solar panel sales practices."
A recent report from Texas Appleseed reviewed consumer complaints from recent years and confirmed skyrocketing rates of frauds, scams and consumer harms related to the solar industry. It found the number of complaints related to solar panels submitted to the Texas Office of the Attorney General (OAG) increased by 818% from 2018 to 2023. The number submitted to the Texas Department of Licensing and Regulation (TDLR) increased 576% during the same time frame.
The report also found that many of the harmful practices targeted older Texans and people who are not native English speakers. They including misleading statements, false promises, forgeries of signatures or other deceptive practices used to execute financing contracts, according to Texas Appleseed.
It's why Zaffirini authored Senate Bill 1036, which aims to better regulate the solar industry and expands and provides more consumer protections.
Her proposal would require salespersons and companies to register with the state and provide proof of liability insurance to the Texas Department of Licensing and Regulation. The bill would also create standardized contracts for solar panels, ban deceptive trade practices, provide a cancellation period for customers and allow the state to penalize violators. Those penalties increase if a victim is over the age of 65.
The Senate passed the bill in April. In a hearing prior to its passage, State Sen. José Menéndez, D-San Antonio, told his colleagues he had heard several stories about older people, in particular, in his district falling victim to this kind of fraud. He relayed a story about a woman in her seventies, convinced to sign a 30-year loan for the product.
Andrea Earl, Associate State Advocacy and Outreach Director with AARP Texas, said the organization has heard countless similar stories. For example, one older person thought they were getting more information on solar panel installation, only to later realize they had signed a contract.
"So, they used this tablet kiosk, signed it, and then they were locked into a 30-year contract that would essentially outlive them, with a ton of hidden fees and something they really could not afford to do," Earl said.
Earl said AARP Texas has been working to raise awareness about this and other types of fraud aimed at older Texans, often using technology such as artificial intelligence or cryptocurrency. However, regarding door-to-door sales scams, Earl said, “There's just a certain comfortability of somebody coming to your door and doing this, as well as just some of the language that they use. And so it's really key for vulnerable adults and just vulnerable populations in general, to understand what's happening.”
The bill also received support from the Texas Solar and Storage Association. Its executive director, Mark Stover, told lawmakers they want the industry to flourish in the state.
“Unfortunately some bad actors have given the industry a black eye, leaving consumers harmed along the way. It’s time to tighten up regulations, expand consumer trust and ensure responsible home solar installations," Stover said.
Representatives from associations of electric and roofing contractors also testified in favor of the increased regulation.
On Friday, the House State Affairs committee will hear testimony SB 1036. KXAN will update this article after that hearing.