Solar Panels in Texas (2026 Guide)

Q: How much do solar panels cost in Texas in 2026?

About $1.90–$2.50 per watt — roughly $12,000–$15,000 for a 6 kW system and $19,000–$25,000 for a 10 kW system, before incentives. Texas has the lowest solar costs in the U.S.

Q: Does Texas have net metering?

No. Texas doesn't require net metering. In the deregulated ERCOT market you choose a retail provider, and some offer solar buyback plans (rates range from full retail to ~7–8.5 cents/kWh). Picking the right plan is key.

Q: Does Texas have a solar tax credit?

No state credit, and the 30% federal credit expired December 31, 2025. Texas does offer a 100% property tax exemption on the added home value, plus some local utility rebates.

Q: Is solar worth it in Texas?

Often yes — low costs and high summer bills help, but your savings depend heavily on choosing a strong solar buyback plan.

Texas is the fastest-growing solar market in the country. It has the lowest installation costs in the U.S., abundant sun, high summer electricity use, and a 100% property tax exemption. The catch: Texas doesn't require net metering, so which retail electricity provider you choose matters a lot.

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How Much Do Solar Panels Cost in Texas?

Texas has the lowest solar prices in the country — about $1.90–$2.50 per watt before incentives:

6 kW system: ~$12,000–$15,000
8 kW system: ~$16,000–$20,000
10 kW system: ~$19,000–$25,000

Low costs are Texas's biggest solar advantage. See our 2026 cost breakdown.

How You Get Paid for Extra Power (Buyback Plans)

This is the most important thing to understand in Texas. The state does not require net metering. Most of Texas (about 85%) is a deregulated market (ERCOT) where you choose your retail electricity provider (REP) — and some REPs offer solar buyback plans. Rates vary widely: some credit at or near full retail rate (e.g., TXU), others pay a fixed ~7–8.5¢/kWh (e.g., Green Mountain, Chariot). Choosing the right plan can make or break your savings. Municipal utilities and co-ops (Austin Energy, CPS Energy) run their own programs.

Texas Solar Incentives in 2026

100% property tax exemption

Under Texas Tax Code 11.27, the added home value from solar is fully exempt from property tax — saving roughly $360–$440 per year on a typical system.

Local utility rebates

Some utilities offer extra incentives — Austin Energy has a solar rebate, and Oncor runs a battery incentive program. Availability depends on your utility.

No state credit — and no federal credit in 2026

Texas has no state solar tax credit, and the 30% federal residential credit expired December 31, 2025. The remaining federal benefit flows through leases and PPAs (48E through 2027). See our 2026 incentives guide.

Is Solar Worth It in Texas?

For many homeowners, yes — but it hinges on your buyback plan and electricity usage. It tends to be worth it if you have high summer bills, choose a strong buyback plan, have a good sun-facing roof, and plan to stay long-term. Rock-bottom install costs help offset the lost federal credit. Many Texans also add a battery for resilience after the 2021 grid failures. Get a custom quote for your real payback.

Frequently Asked Questions

How much do solar panels cost in Texas in 2026?
About $1.90–$2.50 per watt — ~$12,000–$15,000 for 6 kW, $19,000–$25,000 for 10 kW. The lowest in the U.S.

Does Texas have net metering?
No. You choose a retail provider in ERCOT; some offer buyback plans (full retail to ~7–8.5¢/kWh).

Does Texas have a solar tax credit?
No state or federal credit in 2026, but a 100% property tax exemption and some local rebates.

Is solar worth it in Texas?
Often yes — low costs and high summer bills, but pick a strong buyback plan.

Should I add a battery in Texas?
Many do, for backup during grid emergencies and where buyback rates are low.

Solar Energy Nerds provides general information, not tax or financial advice. Incentives and costs vary by state, utility, and household — verify current figures for your address before making a decision.