Solar Panels in Texas
#2 in Solar Capacity -- and Growing Fast
$1,300/yr
Avg. Annual Savings
5.7 peak hrs/day
Peak Sun Hours
10–14 years
Payback Period
$13,000–$21,000
Avg. System Cost
Overview
Is Solar Worth It in Texas?
Texas is the second-largest solar state in the country and growing fast. With abundant sunshine, no state income tax, and local utility rebate programs, Texas homeowners have strong financial reasons to go solar. Note: the 30% federal ITC expired December 31, 2025.
After the 2021 winter storm exposed the vulnerabilities of the Texas grid, many homeowners are also adding battery storage to their solar systems for energy independence and backup power.
Benefits
Why Go Solar in Texas
Reduce Your Electric Bill
Texas homeowners save an average of $1,300/yr after going solar.
State & Local Incentives
Texas offers property tax exemptions, net metering credits, and other state-level incentives that reduce your net cost. The federal 30% ITC expired Dec 31, 2025.
Increase Home Value
Solar panels increase your home's resale value — and are excluded from property tax in most states.
Energy Independence
Lock in your electricity rate and protect against rising utility costs for 25+ years.
Available Incentives
Texas Solar Incentives & Tax Credits
Local Utility Rebates
RebateAustin Energy, CPS Energy (San Antonio), and other Texas utilities offer rebates for residential solar installations. Programs vary by utility.
Property Tax Exemption
Tax ExemptionTexas exempts the added value of solar installations from property tax assessments -- a significant benefit given Texas's high property tax rates.
Net Metering (varies by utility)
Net MeteringNet metering policies vary by utility in Texas. Deregulated areas may have different buyback rates. Check with your specific utility.
Federal Solar Tax Credit (Expired)
Tax CreditThe federal 30% residential solar tax credit (Section 25D) expired December 31, 2025 and is no longer available for new purchases in 2026. Texas homeowners should focus on state-specific programs including property tax exemptions, net metering, and any available utility rebates. Texas's lack of state income tax doesn't affect the federal credit.
Common Questions
Texas Solar FAQ
Ready to go solar in Texas?
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