Solar proposals are financial documents dressed up as sales pitches, and most of what looks like a red flag is really just a specific claim that either holds up to checking or does not. Texas changed two real things about this in the past year worth knowing before anything else: the federal tax credit many proposals still lean on ended for homeowners, and state law now gives you a real, enforceable pause before a signed contract becomes final.
What a savings number is really assuming
Start with the tax credit. A proposal that leans on a 30 percent federal credit for a home you will own outright needs a second look, since the Residential Clean Energy Credit, the one that applied directly to a homeowner's own purchase, ended for any system not fully installed by December 31, 2025, confirmed directly by the IRS. It does not matter when you sign or pay, only when installation actually finished. A percentage still mentioned for a 2026 lease or power purchase agreement may refer to a different credit that flows through the company that owns the system, not to you, and is worth asking the salesperson to explain plainly.
The savings side of the estimate deserves the same scrutiny. Texas has no statewide net metering law, so a projection built around full retail rate credit for every kilowatt hour you export is unrealistic almost everywhere in the state, as our own guides on net metering and buyback plans cover in real depth. Ask exactly which buyback rate the estimate assumes, then check it against your own plan's actual published terms.
And a 20 to 25 year lease or power purchase agreement is a long term purchase commitment, not a free upgrade, whatever the marketing calls it. Many such agreements include an annual rate escalator, sometimes in the high single digits, that can make what you pay in year twenty substantially higher than what you pay in year one.
What a pitch might imply
A federal tax credit still knocks 30 percent off a home solar purchase in 2026.
What is actually true
That credit ended for homeowners after 2025. Any percentage still mentioned for a 2026 home purchase deserves a direct explanation, not an assumption.
What your contract actually allows
Only what is written in a signed contract is enforceable, whatever was said out loud during the pitch. And you have more time to reconsider than a fast moving sales visit might suggest. A 2025 Texas law gives homeowners a real 5 business day right to cancel a signed residential solar contract without penalty, longer than the federal Cooling Off Rule's general 3 business day window for sales made at your home. A salesperson implying there is no cancellation option, or a shorter one, is not describing your actual rights.
The pause you are entitled to after signing is not a courtesy. It is Texas law.
Who is actually licensed to do the work
That same 2025 law requires solar salespeople to register with the Texas Department of Licensing and Regulation, and requires the actual installation to be performed by a licensed electrical contractor, not simply whoever showed up to sell the system. Asking to see this before signing anything is a normal request. So is expecting the number you were quoted to hold once someone has actually inspected your roof, shading, and panel layout. A meaningful jump after that visit, without a clear explanation of what changed, is a pattern regulators have flagged directly, not an isolated complaint.
This has real enforcement behind it now
None of this is hypothetical. The Texas Attorney General's office has a public, active initiative investigating deceptive solar sales practices across the state, and has already filed suit against at least one Texas solar company over allegations that include misrepresented energy savings and undisclosed fees. A state regulator pursuing these patterns directly is a real signal of how seriously they are being taken, not just a theme in advice columns.
The incentive most proposals skip entirely
Not every red flag is a false promise. Texas does have a real solar incentive that is often left out of a proposal completely, and it is not a tax credit. Texas Tax Code Section 11.27 exempts the added home value from a solar installation from property tax appraisal, so the improvement is not taxed the way ordinary new construction would be. A proposal that gets this right is a small, genuine sign of a company that knows the actual rules, not just the pitch.