- Texas has strong sun and fairly low install prices, plus a property tax exemption for solar.
- But electricity is cheaper than the U.S. average (about 15.9¢ vs 18.2¢ per kWh in August 2026, EIA), and there is no statewide net metering.
- Your buyback plan decides most of your savings. A good one can cut years off the payback.
- Without the federal credit, many Texas systems take roughly 10–16 years to pay back.
Are solar panels worth it in Texas? The state has plenty of sun, a busy solar market and a useful property tax break. It also has cheaper electricity than many states, and no statewide rule that forces anyone to pay you a fair price for the power you export. So the answer depends on your electricity plan, how much you use, and when you use it. This guide covers the Texas-specific facts and gives you a calculator with real Texas numbers.
Are Solar Panels Worth It in Texas? What Helps
- Sun. Much of Texas gets around 5 peak sun hours a day or more, especially in the west. More sun means each panel makes more power.
- Prices. 2026 cost guides put Texas installs at roughly $2.20–$3.00 per watt, often below the national range. Prices vary by installer, so compare quotes.
- Property tax break. Under Texas Tax Code Section 11.27, the added value a solar system brings to your home is exempt from property tax. Solar can raise your home’s value without raising your tax bill. File the exemption form with your county appraisal district.
What Works Against It
- Cheaper electricity. At under 16¢ a kWh, each solar kWh saves less than in high-price states, so payback takes longer.
- No federal credit. The 30% credit (Section 25D) ended for systems placed in service after December 31, 2025. Many older Texas calculators still assume it, so check the date on any claim.
- No statewide net metering. What you earn for exported power depends on your retail plan or local utility.
Buyback Plans Decide Your Savings
Most Texans live in the deregulated market, where you choose a retail electric provider. Some providers offer solar buyback plans, and the credit for exported power varies a lot: a few credit near the retail rate, many pay much less, and some plans pay nothing. Municipal utilities and co-ops, such as Austin Energy and CPS Energy in San Antonio, run their own programs.
This matters more than almost anything else. Solar United Neighbors, a nonprofit, has reported that plans crediting exports at the full retail rate largely disappeared in Texas’s retail market after 2021. So:
- If you export a lot, find the best buyback rate you can, and read the fine print (monthly caps, fees, contract length).
- If you use most power at home, a simple low-rate plan may beat a buyback plan.
- Shift use to daytime: pre-cool the house and run the laundry and dishwasher when the sun is up.
Texas Solar Payback Calculator
The defaults use Texas numbers. This is an estimate, not a quote: your production, plan rules and fees change the result.
Uses 14% system losses. It ignores loan interest, price rises and panel decline. Property tax savings are not counted, because solar doesn’t lower your current tax, it avoids an increase.
Other Texas-Specific Factors
- Hail and storms. Parts of Texas get severe hail. Check the panels’ hail rating and that your home insurance covers the system.
- Roof age. If your roof needs replacing soon, do it first.
- Outages. After major grid failures, many Texans want backup power. Standard grid-tied solar shuts off in an outage for safety, so backup needs a battery, which adds a lot of cost.
- Heat. Very hot roofs lower panel output a little.
- Interconnection. Getting approval from the utility and switching plans can take weeks or months.
- Leases and PPAs. They lower the upfront cost but can limit savings and complicate a home sale. Read every line.
What Real Texans Say
These are individual experiences, summarized in our own words.
A Texas couple installed a 15 kW ground-mounted system in 2022. Getting it connected and set up on the right plan took about three months of paperwork. Their first bill showing credit for excess production finally arrived in April. Their advice: be patient, it pays off.
Source: SolarPanelTalk forumA Houston homeowner bought solar in 2020, expecting a quick payoff because his plan credited exports at the same rate he paid. Then retail plans with that kind of credit vanished, and he could no longer switch to one, which stretched his payback. His story was shared by the nonprofit Solar United Neighbors.
Source: pv magazine USA (Solar United Neighbors)- Electricity prices from the EIA’s monthly state data (August 2026)
- The property tax exemption from Texas Tax Code Section 11.27
- The end of the federal credit from Section 25D and IRS guidance
- Buyback plan trends from Solar United Neighbors and owner reports
We don’t sell solar or electricity plans, and no installer or provider paid to be included.
When Solar Isn’t Worth It in Texas
- You’re locked into a very cheap fixed-rate plan and can’t get a decent buyback credit.
- You’re away all day and would export most of your power for little or nothing.
- You may move in a few years.
- The quote relies on the old 30% credit or on a buyback rate you can’t actually get.
Frequently Asked Questions
Does Texas have net metering?
Not statewide. Some retail providers offer buyback plans, and municipal utilities and co-ops set their own rules.
Do solar panels raise property taxes in Texas?
No. Texas Tax Code Section 11.27 exempts the added value from a solar energy device. You may need to file an exemption form with your appraisal district.
How long does solar take to pay back in Texas?
It varies widely. Without the federal credit, roughly 10–16 years is common, shorter with a strong buyback plan and high daytime use.
Will solar keep my power on during a Texas blackout?
Not by itself. Grid-tied systems shut off in an outage for safety. You need a battery or a system designed for backup.
Is there a Texas state tax credit for solar?
Texas has no state income tax, so there is no state solar tax credit. Check your utility or city for rebates.
Our Verdict
Are solar panels worth it in Texas? They can be, thanks to strong sun, lower install prices and the property tax exemption. But cheap power, the loss of the federal credit and weak buyback plans stretch the payback. Solar makes the most sense for Texans who use a lot of power during the day, plan to stay put, and can get a decent buyback credit. Run your own plan’s numbers before you sign.
Keep reading
- Solar Payback Period in 2026: How Much You Save and How Long It Takes: how long solar takes to pay for itself.
- Best Home Battery Systems in 2026: Powerwall 3 vs Enphase vs FranklinWH: whole-home battery backup compared.
- Best Portable Power Stations for Home Backup (2026): EcoFlow vs Jackery vs Anker: portable backup for outages.
Sources We Checked
- EIA Electric Power Monthly, Table 5.6.A (average electricity prices by state)
- Texas Tax Code Section 11.27 (property tax exemption for solar)
- Texas Comptroller, property tax exemptions (how to apply)
- IRS FAQs on the One Big Beautiful Bill energy credit changes (end of the 25D credit)