Texas Solar Calculator — 2026 Costs & Payback
Texas is the second-largest US solar market and the deregulated retail electricity structure (ERCOT) creates a different incentive landscape than the rest of the country. There's no statewide net metering — your terms depend entirely on which retail electric provider (REP) you choose. Some REPs offer 1:1 buyback programs; others offer nothing. Combined with strong solar irradiance (1,530 kWh/kW) and competitive installer pricing ($2.65/W average), payback ranges 7–11 years across the state.
US Solar Payback Calculator — 2026
Get an accurate solar payback estimate for your state using NREL solar irradiance, EIA electricity rates, and the 30% federal Investment Tax Credit.
The numbers above are based on state averages. Real quotes vary by roof orientation, shading, panel type, and installer. Compare quotes from 3+ pre-vetted installers in your area — free, no obligation.
Highest electricity rates in the lower 48. NEM 3.0 (since April 2023) cuts export rates ~75%. Battery storage now near-mandatory for payback.
Methodology & sources
Solar irradiance per state: National Renewable Energy Laboratory (NREL) PVWatts PSM3 typical-year data, weighted state average for residential rooftops.
Electricity rates: EIA Form 826 monthly residential rates (most recent September 2025 data).
Federal ITC: 30% through 2032 under the Inflation Reduction Act (Section 25D).
State incentives: DSIRE (Database of State Incentives for Renewables & Efficiency) as of April 2026.
Inflation assumptions: 2.5% annual electricity price increase (EIA AEO 2024 reference case), 0.5% annual panel degradation (NREL standard).
Self-consumption assumption: 45% direct self-consumption without battery — typical for residential without storage.
Deep dive — solar in Texas
- Reliant Energy — Simple Solar Plan, 1:1 export credit
- Green Mountain — Renewable Rewards, 1:1 net metering
- Octopus Energy — Strong export rates, transparent pricing
- Most others — avoided-cost or no buyback
This means picking the right REP can change payback by 3+ years. Switch to a solar-friendly REP before getting quotes — installers often help with this.
Houston, Dallas, Austin, San Antonio: Each city has its own utility (CenterPoint, Oncor, Austin Energy, CPS Energy) but only Austin and San Antonio are municipal utilities with their own rules. Austin Energy offers a $2,500 rebate plus their Value of Solar tariff (similar to net metering). CPS Energy has a one-time rebate up to $2,500. Houston and Dallas customers shop on the deregulated ERCOT market.
Texas property tax exemption: Yes — solar is 100% exempt from property tax assessment (Texas Tax Code §11.27).
Best system size for TX in 2026: 8–10 kW typical for a Texas single-family home (electric bills tend to be higher due to AC load). No state-level battery rebate currently.
Texas solar FAQ
Does Texas have net metering?
Not at the state level. ERCOT REPs offer their own buyback programs. Some offer 1:1 net metering; others offer avoided-cost rates or nothing. Pick a solar-friendly REP before installing.
How much does solar cost in Texas 2026?
Average $2.65/W installed. A typical 8 kW system costs $21,200 gross, $14,840 after 30% federal ITC.
Are solar panels exempt from property tax in Texas?
Yes, 100% exempt under Texas Tax Code §11.27. The added home value from solar does not increase your property tax bill.
Which Texas city has the best solar incentives?
Austin (Austin Energy rebate + value of solar tariff) and San Antonio (CPS Energy rebate). Houston and Dallas rely on REP selection.