Summary:

The State Senate in Texas approved a bill that would stop cities in the Lone Star state from barring solar panels, which industry experts say would give a boost to a state lagging in solar power production.

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Texas is the nation's No. 1 state in producing wind-generated power but lags behind the U.S. average when it comes to power generation from solar energy. Solar energy provides less than 1 percent of total electricity generation in the Lone Star state.

But that could be changing after the Texas Senate approved a bill this week that would prevent cities from placing restrictions on solar panels. A companion bill in the Texas House has not moved forward since it was introduced.

SB 2066 provides that, "Except for a charge to recover a cost described by Subsection (e), an electric utility or a retail electric provider may not impose a rate or charge on a residential or small commercial customer or require a residential or small commercial customer to take service under a tariff or service plan that applies only to customers who have installed on-site distributed generation or energy storage resources."

The "cost described by Subsection (e)" above is any cost of an improvement to the distribution grid that must be made to allow the customer to install or expand existing on-site distributed generation or energy storage resources.

Like its companion bill, the newly filed SB 2066 provides that, "An electric utility or a retail electric provider may not charge a residential or small commercial customer a fee solely because the customer elects to discontinue service from the utility or provider."

The measure would also require solar sellers to provide some consumer protections including contact information of the salesperson and installer, representations of expected operational and financial performance and warranties. Solar lease agreements must include the terms and rates of the lease including any payment escalators or other terms that would affect payments and whether the lease is transferable to a new owner, according to the bill.

The Solar Energy Industries Association (SEIA) commended Texas for their approval of the measure.

“SEIA congratulates the Texas Senate for passing legislation that will prevent cities from getting in the way of homeowners who want to install solar and become more energy independent. More and more Texans are choosing to go solar at their own expense and are reducing the stress they put on the electric grid, which benefits everyone. S.B. 2066 protects consumers by detailing the information all solar installers will provide to customers so they can choose the solar investment that best meets their needs. This is a big step forward for solar customers in Texas, and we urge swift passage in the House," said Katherine Gensler, vice president of regulatory affairs for the SEIA.