How much do solar panels cost in Texas in 2026?
A typical residential solar system in Texas runs $2.80–$3.20 per watt installed. Most homes need a 9–12.5 kW (larger than the U.S. average to cover big summer A/C loads) system, which lands at roughly $19,000–$28,000 before incentives, with a payback period of about 8–11 years (closer to 6–8 years in Austin Energy territory). With local electricity at about ~16¢/kWh, every kilowatt-hour you self-generate is worth that much off your bill.
Texas homes run large systems because summer cooling loads are huge. Payback has lengthened in 2026 now that the federal residential credit is gone, so the buyback plan you choose matters more than ever.
Sources: SolarReviews — Texas solar prices U.S. EIA — average electricity rates
What solar incentives are available in Texas in 2026?
The federal residential tax credit ended on December 31, 2025, so Texas's state, utility, and financing-based incentives now do the heavy lifting. Here is the current stack.
Federal residential credit (Section 25D) — EXPIRED
The 30% federal credit for purchased home systems ended December 31, 2025. Per the IRS, the expense counts when installation is completed — so a system finished in 2026 does not qualify even if you signed in 2025. Leases and PPAs can still pass through the commercial 48E credit. IRS — One Big Beautiful Bill FAQ
Property-tax exemption (Tax Code §11.27)
Texas exempts 100% of the added home value from a solar device from your property taxes. You must own the system; file Comptroller Form 50-123 with your county appraisal district. Texas Tax Code §11.27
Austin Energy rebate + Value of Solar
Austin Energy offers a $2,500 residential solar rebate and credits all solar production at its Value of Solar tariff (about 9.9¢/kWh) — the strongest utility package in any major Texas metro. NuWatt — Austin Energy guide
Retail-provider solar buyback
In deregulated Texas (Oncor/CenterPoint areas), "net metering" is really a per-plan buyback. TXU's Solar Buyback offers roughly 1:1 retail-match credit; other REPs pay ~8–10¢/kWh for exports. Compare buyback plans before you size a system. electricityplans.com — buyback plans
Does Texas have net metering?
No — Texas has no statewide net-metering law. About 85% of the state is the deregulated ERCOT market, where each retail electric provider (REP) sets its own "solar buyback" rate for the power you export. Some plans (like TXU Solar Buyback) credit exports near the full retail rate; municipal utilities vary widely — Austin Energy uses a ~9.9¢ Value of Solar tariff, while CPS Energy in San Antonio credits exports near wholesale (~3–4¢/kWh). Before buying, confirm the exact buyback rate on the specific plan you will enroll in, because it changes payback dramatically. SolarReviews — Texas net metering guide
How do you vet a solar installer in Texas?
1. Verify the license
Texas does not issue a statewide "solar contractor" license, so the electrical work must be performed or supervised by a Texas-licensed electrician (regulated by the Texas Department of Licensing and Regulation), and most cities require their own permits. Ask which licensed electrician of record will pull the permit. Check it at the Texas — licensing is by trade (TDLR) and by city.
2. Check certifications and insurance
Prioritize NABCEP-certified installers, confirm $1M+ general liability plus workers' compensation, and get the production estimate and buyback assumptions in writing — Texas buyback rates vary so much that a vague estimate is a red flag.
3. Read verified reviews and get it in writing
Every company on this page has already cleared our human-led verification, but always read recent reviews, ask for two or three local references, and get the production estimate, warranty terms, and incentive assumptions in writing before you sign.
Solar by city in Texas
Local utility rules and rebates vary across Texas. Browse vetted installers in the state's largest metros: