Solar in Texas: is it worth it in 2026?
Texas is one of the hardest states to make solar pay for itself. Three things decide that: electricity prices rank 25th of 51, its sun ranks 18th, and there's no statewide rule for paying you for exported power. Of the 51 states and DC, Texas has the 45th-fastest payback for a typical home.
The average home here pays about $171 a month for 1,110 kWh. An 8.5 kW system sized for that home would knock about $1,023 off the first year's bills, 50% of the total.
Checked November 12, 2026
What makes solar pay off in Texas
- Size the system to what you use during the day, not to your whole year: extra power sent to the grid earns little. A battery, or running the dishwasher, laundry and EV charging while the sun is up, raises the value of every panel.
- The price per watt decides it. At 15.4¢ per kWh, the price per watt matters as much as the sun. At $3.34 per watt, the high end of what companies quote, payback for a typical system here stretches to 24 years.
Payback by system size
An average Texas home uses about 13,320 kWh a year. Here's how systems sized to cover part or all of that work out, bought with cash at $2.57 per watt:
| Covers | Size | Price | Makes a year | Payback | 25-year savings |
|---|---|---|---|---|---|
| 48% | 4.5 kW | $11,565 | 6,395 kWh | 22 years | $3,131 |
| 75% | 7 kW | $17,990 | 9,947 kWh | 21 years | $6,329 |
| 101% | 9.5 kW | $24,415 | 13,500 kWh | 20 years | $9,510 |
| 123% | 11.5 kW | $29,555 | 16,342 kWh | 21 years | $8,961 |
The 9.5 kW system has both the fastest payback and the most savings. Assumes exported power earns about 25% of the retail rate, prices rise 2.5% a year and one inverter replacement.
How Texas credits power you send to the grid
No statewide rule
No statewide net metering. Some retail plans and city utilities buy back power (Austin Energy and CPS Energy have their own programs); others pay little.
We haven't found a single published export rate for Texas, so the calculators assume about 25% of the retail rate. Ask your utility for its rate and enter it.
By utility
- Oncor: Oncor delivers power and reads the meter in Dallas–Fort Worth, but your retail electric provider decides what exported power earns: nothing on most plans, a fixed buyback rate on some, the full retail rate on a few.
- CenterPoint Energy (Houston): CenterPoint owns the wires in the Houston area; your retail electric provider sets the buyback rate, if any. Without a buyback plan, exported power earns nothing.
- Austin Energy: Value of Solar: 9.91 cents per kWh for everything the panels make, not just what you export, while you pay normal rates for all the power you use.
- CPS Energy (San Antonio): Exports offset your usage within each month at the full price; power left over at the end of the month earns about 1.65 cents per kWh (October to May) or 2.02 cents (June to September), as a credit on the next bill.
Before you sign in Texas
Check the license. Look the company up with the Texas Department of Licensing and Regulation (electricians and solar sellers), by its legal name or license number, and ask for the electrician's license number too.
Residential solar retailer law (TDLR), in effect since September 1, 2026:
- Solar sellers and salespeople must be registered with the Texas Department of Licensing and Regulation.
- You have five business days after signing to cancel without penalty.
- Salespeople can't solicit at a home with a "No Soliciting" sign unless someone there invites them.
- Installation must be done by a licensed electrical contractor, named in the contract.
- Required disclosure forms are enforced from November 1, 2026.
In every state, the FTC Cooling-Off Rule lets you cancel a contract signed at your home until midnight of the third business day.
How to choose a solar company · Contract checklist · Before you sign
Texas compared with its neighbors
| State | Electricity | kWh per kW | Typical payback | Exported power |
|---|---|---|---|---|
| Texas | 15.4¢ | 1,421 | 20 years | No statewide rule |
| New Mexico | 14.8¢ | 1,779 | 10 years | Monthly netting |
| Oklahoma | 13.2¢ | 1,542 | 14 years | Monthly netting |
| Arkansas | 12.9¢ | 1,373 | 22 years | Reduced credit (net billing) |
| Louisiana | 12.5¢ | 1,479 | 22 years | Reduced credit (net billing) |
Questions about solar in Texas
How long does solar take to pay for itself in Texas?
About 20 years for a typical 8.5 kW system bought with cash at the 2026 median price of $2.57 per watt, with no federal tax credit and one inverter replacement. A bigger or smaller system, a different price, or your own usage will change that; the table above shows other sizes.
Does Texas have net metering?
No statewide rule. No statewide net metering. Some retail plans and city utilities buy back power (Austin Energy and CPS Energy have their own programs); others pay little.
Is there a solar tax credit in Texas in 2026?
Not from the federal government for buyers: the 30% homeowner credit ended for systems installed after December 31, 2025. For a typical 8.5 kW system in Texas, that credit was worth about $6,554 and brought payback down to 16 years, instead of 20 years now. Leasing companies can still claim a business credit, so ask for a lease or PPA price too. Your state energy office lists any state rebates.
Is a solar battery worth it in Texas?
On bill savings alone, not quite: a 13.5 kWh battery at about $15,650 would move about 3,548 kWh of solar power a year from the grid to your evenings in a typical Texas home, adding about $6,109 of savings over 15 years. That doesn't cover its price, so the system's payback goes from 20 years to over 25 years; the rest is paying for backup during outages. Time-of-use rates, battery rebates and utility payments for sharing your battery can tip it; try your numbers in the payback calculator.
Is plug-in solar legal in Texas?
There's no plug-in solar law yet in Texas, so your utility may treat a kit like any rooftop system.
How do I check a solar company's license in Texas?
Look the company up with the Texas Department of Licensing and Regulation (electricians and solar sellers) (tdlr.texas.gov) by its legal name or license number, and ask for the electrician's license too.
More guides: What changed for solar in 2026 · Lease or buy? · Plug-in solar · Is my solar system working?
Sources: U.S. Energy Information Administration (EIA), final 2025 data: Annual State Historical Spreadsheets (Form EIA-861, released October 7, 2026) and Electric Power Annual (October 21, 2026); NREL PVWatts (National Solar Radiation Database), statewide averages; SolarReviews: Net metering in 2026; EnergySage: Texas solar incentives and buyback plans, 2026; Public Utility Commission of Texas: Power to Choose; Austin Energy: Value of Solar rate; Austin Energy: Value of Solar questions; Austin Energy: solar for your home; CPS Energy: solar billing facts (2024); TDLR: Solar panel consumer protection; EnergySage: median quoted price, first half of 2026.