UnbiasedSolar
Typical home: Close call

Is solar worth it in Texas?

For a typical Texas home in 2026, solar is a close call: about a 14-year payback and $13,180 saved over 25 years after paying for the system. Check your own home, because roofs, usage and utilities vary a lot.

Payback, typical home
14 yrs4.3 kW, paying cash
Electricity price
16.0¢per kWh, U.S. 18.0¢
Solar production
1,521kWh per kW per year
Exports credited at
~38%No statewide net metering

The numbers for a typical Texas home

Electricity use1,095 kWh a month (Texas average)
Best-value system4.3 kW, producing 6,538 kWh a year (50% of use)
Price$12,530 at about $2.60/W
First-year savings$879
Payback14.0 years
25-year net$13,180 (5.8% a year return)
Rate increase assumed2.9% a year, from Texas's 2015–2025 history

Paying cash, no federal credit, 5% discount rate, microinverters, $25 per kW a year for maintenance and repairs. Methodology.

Why it comes out this way

  • Electricity costs 16.0¢ per kWh, close to the U.S. average of 18.0¢.
  • Exported solar is typically credited at about 38% of retail, so systems pay best when sized for what you use yourself.
  • A typical system here produces about 1,521 kWh per kW per year (ranked #8 of 51).
  • There is no federal tax credit for homeowners who buy in 2026, which adds several years to payback compared with 2025.
Watch out for leases right now. Lease and PPA providers can still claim a federal credit that homeowners can't, so they're being pushed hard. Compare any lease against buying with our lease vs. buy calculator.

Net metering and export rules in Texas

No statewide net metering. Texas has no statewide net metering. In the deregulated ERCOT market you pick a retail electricity provider, and a few offer 'solar buyback' plans (typically 3-9 c/kWh, some match retail). Municipal utilities and co-ops set their own rules, e.g., Austin Energy's Value of Solar credit.

Deregulated areas: voluntary REP buyback plans (fixed ~3-8.5 c/kWh, wholesale-indexed, or some retail-match with conditions). Austin Energy: Value of Solar 9.91 c/kWh. Others: avoided cost.

  • Netting: varies
  • Unused credits: Varies by provider/utility (Austin Energy credits roll over indefinitely with no cash value).
  • Fixed charges: El Paso Electric moved solar customers from a $30.25 minimum to a demand-based charge in its 2026 rate case. Some co-ops charge DG fees.
  • Last major change: No statewide change; Austin Energy VoS rate update (12.89 c listed for 2027-2029 in FAQ); EPE rate case 2026.
  • Pending: Austin Energy VoS increase to ~12.88-12.89 c pending council budget/timing; verify.

Read net metering explained to see why export rules can swing payback by years.

Rules by utility
UtilityExport creditNotes
Retail electricity providers (ERCOT competitive areas: Oncor/CenterPoint/AEP Texas/TNMP)6¢/kWhChoose a REP buyback plan; e.g., Green Mountain Solar Buyback ~8.5 c fixed (CenterPoint), Octopus wholesale-indexed; compare EFLs. Oncor EIA 44372; CenterPoint 8901.
Austin Energy9.91¢/kWhValue of Solar: all solar production credited at 9.91 c/kWh (FY2023-2026); listed 12.89 c for 2027-2029. Credits roll over, no cash value.
CPS Energy (San Antonio)Avoided-cost export creditMonthly net metering; net excess credited at avoided cost (per DSIRE).
El Paso Electric (TX)Avoided-cost export creditNet excess at avoided cost; refund check if credits > $50. Demand-based charge for new solar customers after 2026 rate case.
Entergy TexasAvoided-cost export creditExcess purchased at avoided cost.

Solar incentives in Texas

The federal 30% Residential Clean Energy Credit ended for systems installed after December 31, 2025. What that means.

ProgramTypeWhat you getStatus
Texas solar property tax exemptionproperty tax exemption100% of appraised value added by a solar system is exempt from property tax (Tax Code 11.27). Eligibility: Solar energy devices for on-site use.active
Austin Energy residential solar rebaterebateRaised from $2,500 to $4,000 per home (mid-2026) for customer-owned systems (about >3 kW); requires solar education course and participating contractor. Eligibility: Austin Energy residential customers, owner-owned systems.active
CPS Energy solar rebaterebateResidential rebate status uncertain (sources conflict: $0.60/W or $0.20/W up to $2,500, or ending). Eligibility: CPS Energy customers.unknown
Utility energy-efficiency Solar PV standard offer programsrebateOncor, CenterPoint, AEP Texas and others periodically fund small $/W incentives via installers; funding limited annually. Eligibility: Customers of participating TDUs.unknown

What solar costs in Texas

A fair cash price is around $2.60 per watt before incentives. For the 4.3 kW system that fits a typical home, expect roughly $9,500 to $13,400; smaller systems cost more per watt.

Public installation records (LBNL Tracking the Sun and state data, 6,613 owned systems since 2024) show a median of $4.09/W, with the middle half between $3.27 and $4.84. These prices include loan dealer fees, which is why cash quotes are often lower.

Solar costs in every state · What's a good price per watt?

Average residential electricity price in Texas (¢/kWh)

EIA annual averages. Prices rose 2.9% a year from 2015 to 2025; Texas ranks #25 of 51 for price. Last 12 months through July 2026: 16.0¢.

Show as a table
PeriodValue
'1211.0
'1311.3
'1411.9
'1511.6
'1611.0
'1711.0
'1811.2
'1911.8
'2011.7
'2112.1
'2213.8
'2314.5
'2414.9
'2515.4
Monthly production per kW of solar in Texas

kWh per kW for a south-facing roof at a 20° tilt, population-weighted across 131 cities (PVWatts, NLR). Total 1,521 kWh a year.

Show as a table
PeriodValue
Jan103
Feb100
Mar128
Apr137
May144
Jun146
Jul150
Aug148
Sep133
Oct126
Nov108
Dec98

How many homes have solar

Homes with net-metered solar (2025)
138,081
Share of homes
1.1%
Residential solar capacity
3,006 MW
Growth over the past year
+6.2%
New systems with a battery
9%
New systems leased or PPA
0%

Sources: EIA-861 (2025), EIA small-scale solar estimates, LBNL Tracking the Sun and state interconnection data.

Electric utilities in Texas

UtilityHomes servedPrice (2026 est.)Typical useTypical-home verdict
Oncor3,545,81417.9¢1,106 kWh/moWorth it
CenterPoint Energy Houston2,529,03917.6¢1,124 kWh/moWorth it
CPS Energy888,94612.8¢1,075 kWh/moWorth it
AEP Texas Central793,89618.2¢1,154 kWh/moWorth it
Austin Energy522,44613.6¢835 kWh/moWorth it
Entergy Texas469,09414.4¢1,237 kWh/moWorth it
Pedernales Electric Cooperative420,75313.2¢1,202 kWh/moClose call
El Paso Electric320,32013.5¢693 kWh/moWorth it
Denton County Electric Cooperative310,80513.7¢1,192 kWh/moClose call
TNMP237,93019.4¢1,151 kWh/moWorth it
Xcel Energy (Southwestern Public Service)223,68514.1¢948 kWh/moClose call
AEP Texas North158,48818.1¢981 kWh/moWorth it
SWEPCO157,11913.5¢1,104 kWh/moNot worth it
Magic Valley Electric Cooperative129,59610.9¢1,336 kWh/moNot worth it
Bluebonnet Electric Cooperative119,03012.0¢1,244 kWh/moNot worth it
Tri-County Electric Cooperative, Inc (TX)117,85715.6¢1,512 kWh/moWorth it
Grayson-Collin Electric Cooperative97,95017.7¢1,128 kWh/moWorth it
Guadalupe Valley Electric Cooperative95,35812.3¢1,225 kWh/moNot worth it
Lubbock Power & Light94,73818.6¢874 kWh/moWorth it
United Electric Cooperative Service91,26814.4¢1,297 kWh/moClose call
Sam Houston Electric Cooperative88,42414.7¢1,184 kWh/moClose call
Farmers Electric Cooperative88,22112.4¢1,236 kWh/moNot worth it
Trinity Valley Electric Cooperative82,22412.7¢1,290 kWh/moNot worth it
City of Garland70,62714.2¢1,066 kWh/moClose call
City of Denton63,75714.1¢940 kWh/moClose call

Solar by city in Texas

Protect yourself when buying

  • Check the license. TDLR electrical contractor license; electrical work by TDLR-licensed electricians. Look up an installer
  • Cancellation rights. 3 business days to cancel many home-solicitation sales. SB 1036 (2023), Bus. & Com. Code ch. 115 'Residential Solar Energy Systems': required written disclosure statement (price, financing, ownership, savings assumptions, warranties), effective Sept 1, 2023. How to cancel
  • HOA and solar access. Yes - Property Code 202.010 limits HOA prohibitions on solar (with exceptions, e.g., developer-period, specific placement).
  • Community solar. No statewide program; utility programs (Austin Energy SolarShare, CPS Energy Roofless Solar, EPE community solar).

Installers active in Texas

Ranked by installations in public records, not by payment. Volume isn't quality: always check licenses and reviews.

  1. Freedom Solar Power Tx 6,010 installs
  2. Greenstar Power 3,514 installs
  3. ION Solar 3,297 installs
  4. Trismart Solar 3,175 installs
  5. Advanced Solar Electric 2,756 installs
  6. Lighthouse Solar 2,723 installs
  7. Freedom Forever 2,578 installs · bankrupt
  8. Pe Solar Power Experts 2,244 installs
  9. Cam Solar 1,781 installs
  10. ADT Solar (SunPro) 1,734 installs · exited residential
  11. Momentum Solar 1,557 installs
  12. South Texas Solar Systems 1,347 installs
  13. Solar Edge Pros 1,325 installs
  14. Sunrun 1,314 installs
  15. Erus Energy 1,312 installs

Search all Texas installers

More about solar in TexasSavings in deregulated Texas depend heavily on the REP plan chosen; buyback plans can change at contract renewal. No state income tax. Federal 25D residential clean energy credit is NOT available for homeowner-owned systems placed in service after 2025-12-31 (OBBBA, July 2025); third-party-owned (lease/PPA) systems may still benefit indirectly via 48E through 2027. EPA tried to end Solar for All grants in August 2025, but federal courts set that aside in September 2026; check whether your state's program has resumed.

Questions about solar in Texas

Is solar worth it in Texas in 2026?

For a typical Texas home, solar is a close call. A 4.3 kW system costing about $12,530 after state incentives saves about $879 in the first year and pays back in about 14 years. Your result depends on your roof, usage, utility and price, so run the calculator for your address.

How much do solar panels cost in Texas?

A reasonable cash price is around $2.60 per watt before incentives, or roughly $9,500 to $13,400 for a 4.3 kW system. Public installation records for Texas show a recent median of $4.09/W, which often includes loan dealer fees.

Does Texas have net metering?

Texas has no statewide net metering. In the deregulated ERCOT market you pick a retail electricity provider, and a few offer 'solar buyback' plans (typically 3-9 c/kWh, some match retail). Municipal utilities and co-ops set their own rules, e.g., Austin Energy's Value of Solar credit.

Is there a solar tax credit in Texas?

The 30% federal credit for homeowners ended for systems installed after 2025. Texas does not offer a state income tax credit for solar that we're aware of. Solar may be exempt from property tax.

How do I check a solar installer's license in Texas?

TDLR electrical contractor license; electrical work by TDLR-licensed electricians.. Look up any installer with the state's license search at https://www.tdlr.texas.gov/LicenseSearch/.

Policy research current as of October 2026; sources include austinenergy.com, energysage.com, hoodline.com. Electricity data: EIA, through July 2026. Found something out of date? Tell us.