Texas’ Solar Industry in Desperate Need of Regulation, Consumer Protection

Texas Attorney General Ken Paxton has faced significant criticism for his perceived lack of action against residential solar scams and faulty installations, leaving many vulnerable Texans without adequate protection.

A detailed investigation exposed extensive incompetence and predatory practices in Texas’ residential solar industry. We analyzed over 1,000 consumer complaints filed with the attorney general’s office between January 2023 and April 2024, highlighting issues ranging from unfinished or malfunctioning solar installations to deceptive sales tactics.

A striking number of complainants reported being saddled with loans for solar systems that either were not operational or never worked properly. The investigation also highlighted troubling cases involving elderly, low-income, or non-English-speaking homeowners, who found themselves heavily indebted with little recourse.

Despite the severity and volume of complaints, the attorney general’s office often responded inadequately, providing generic replies or no response at all, leaving consumers frustrated and without resolution. Legal experts and consumer advocates argue this pattern reveals a troubling disregard for consumer welfare.

Contrasting Texas’ approach, other states have proactively addressed similar issues. Nevada established a dedicated investigative unit targeting unethical solar installers, and Minnesota initiated lawsuits against lenders over misleading financing practices.

Texas lawmakers, historically resistant to renewable energy regulations, missed opportunities to enact meaningful protections. Legislation proposed by State Senator Judith Zaffirini in 2023 sought to establish financial remedies for homeowners harmed by faulty solar installations but ultimately stalled after passing the Senate.

Interestingly, several reputable solar companies within Texas support stronger regulations, recognizing the necessity for clear standards to preserve industry integrity and consumer trust. Industry professionals like Andrew Cates, an Austin homeowner and experienced legislative lobbyist, advocate for legislative oversight, although he remains skeptical about the Texas Legislature’s willingness to take decisive action.

Given the apparent indifference from both Attorney General Paxton and state legislators, significant consumer protection measures in the Texas solar industry remain uncertain, continuing to leave many Texans vulnerable.

 

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