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Solar Panels in Texas:
Is It Worth It in 2026?

Texas averages 1525.4 kWh per kWp per year with 5.5 peak sun hours per day. At 15.69¢/kWh, an 8 kW system saves roughly $1,915/year and pays back in about 7.9 years.

💡 No state income tax means the full 30% federal ITC benefit — plus a 100% property tax exemption on added home value.

Texas Solar at a Glance

Peak sun hours / day5.5 hrs
Avg solar yield1525.4 kWh/kWp/yr
Electricity rate15.69¢ / kWh
Avg payback (8 kW)7.9 years
Annual savings (8 kW)$1,915/yr
Net meteringVaries by utility — check your provider

EIA data updated: April 11, 2026 · EIA, PVGIS v5.3

Solar Incentives in Texas

Federal ITC
30%

The 30% federal solar tax credit (Section 25D) expired December 31, 2025. Cash and loan purchases no longer qualify. State incentives below still apply.

State Programs
Rebates & Exemptions

100% property tax exemption on added value, choose solar buyback retail plan, no state income tax

Total Savings
Varies

Utility rebates, exemptions, and net metering still apply. Federal ITC expired Dec 2025. Property value increase is tax-exempt.

All Available Incentives in Texas

Federal ITC (Section 25D) — Expired December 31, 2025 — no longer available for residential cash/loan
Property Tax Exemption — Solar-added home value not taxed
Net Metering — Varies by utility — check your provider

How Much Solar Power Do Texas Cities Get?

Real PVGIS yield data and EIA electricity rates for all 15 cities. Click any city for detailed payback calculations.

Houston
1394 kWh/kWp · 8.6 yr payback
San Antonio
1460.8 kWh/kWp · 8.2 yr payback
Dallas
1470.6 kWh/kWp · 8.2 yr payback
Austin
1445.2 kWh/kWp · 8.3 yr payback
Fort Worth
1512.3 kWh/kWp · 8 yr payback
El Paso
1800 kWh/kWp · 6.7 yr payback
+18.2%
Arlington
1454.6 kWh/kWp · 13.6 yr payback
Arlington
1512.3 kWh/kWp · 8 yr payback
Corpus Christi
1478.7 kWh/kWp · 8.1 yr payback
Plano
1496.5 kWh/kWp · 8 yr payback
Laredo
1479 kWh/kWp · 13.4 yr payback
+5.6%
Lubbock
1706.8 kWh/kWp · 7.1 yr payback
+12.1%
Garland
1475.6 kWh/kWp · 8.2 yr payback
Irving
1481.8 kWh/kWp · 8.1 yr payback
Frisco
1451.2 kWh/kWp · 13.7 yr payback
Amarillo
1684.5 kWh/kWp · 7.2 yr payback
+10.6%
Grand Prairie
1480 kWh/kWp · 8.1 yr payback
McKinney
1482.6 kWh/kWp · 8.1 yr payback
Brownsville
1450.9 kWh/kWp · 13.7 yr payback
Waco
1423.5 kWh/kWp · 13.9 yr payback
Personalized estimate

Enter your monthly bill — get exact payback numbers for Texas.

Calculator
All Texas incentives

Full breakdown of credits, rebates, net metering, and SREC programs.

Incentives

Solar in Texas: Frequently Asked Questions

Does Texas have net metering for solar panels?
Texas does not have a statewide net metering law. Instead, homeowners choose a retail electricity provider that offers a 'solar buyback' plan. Providers like Rhythm, Reliant Solar, Green Mountain Energy, and Tri Eagle Energy offer buyback rates ranging from 3¢ to 12¢ per kWh exported.
Will solar panels work during a Texas winter storm?
Grid-tied solar shuts off during a grid outage for safety. However, solar panels paired with a battery backup (e.g. Tesla Powerwall) can power your home during a blackout — including winter storms. Panels still produce electricity on cold sunny days.
What is the Texas solar property tax exemption?
Texas exempts 100% of the added home value from solar panels from your property tax assessment. This means a $20,000 solar system that adds $20,000 to your home's value won't increase your annual property taxes.
How much does solar cost in Texas?
Texas has some of the lowest solar installation costs in the US, averaging $2.50–$2.85 per watt. A 8 kW system typically costs $20,000–$22,800 before incentives, or $14,000–$16,000 after the state solar incentives (federal ITC expired Dec 2025).

Going Solar in Texas: Step by Step

From first quote to first kilowatt — here is the typical timeline for a residential solar installation in Texas. Most homeowners complete this process in 6–12 weeks.

  1. 1
    Get 3 quotes

    Prices in Texas average $22,400 for an 8 kW system before incentives. Getting three quotes typically saves 10–15%. Use the same system size so you can compare apples to apples.

  2. 2
    Review your electricity bill

    Your last 12 months of usage determines the right system size. At 15.69¢/kWh in Texas, a system that offsets 90% of your bill hits the best cost-per-kWh sweet spot.

  3. 3
    Check state incentives

    Texas does not have a statewide solar tax credit, but utility rebates and net metering may still apply. 100% property tax exemption on added value.

  4. 4
    Sign contract & apply for permits

    Your installer pulls the building permit and files interconnection paperwork with your utility. Permit approval in Texas typically takes 1–4 weeks depending on your county.

  5. 5
    Installation day

    A standard 8 kW residential installation takes 1–2 days. Racking goes on first, then panels, then the inverter is wired to your main panel. The crew usually keeps the power on throughout.

  6. 6
    Utility inspection & interconnection

    After installation your utility inspects the system and approves grid connection. This final step can take 1–3 weeks. Once approved, your meter tracks both import and export.

Data summary for Texas: Texas averages 1525.4 kWh/kWp/year with 5.5 peak sun hours/day. Electricity costs 15.69¢/kWh. An 8 kW solar system saves ~$1,915/year and pays back in 7.9 years. 100% property tax exemption on added value, choose solar buyback retail plan, no state income tax.