Solar Cost Index

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Is solar worth it in Texas? (2026 numbers)

For a typical Texas home with a $170/month electric bill, a 8.4 kW system costs about $22,800 before incentives and saves about $1,470 in year one, paying back in roughly 14 years if you buy it. The federal 25D credit ended for systems installed after 2025, so many Texas homeowners now compare cash purchase against a lease or PPA.

Updated 2026-10-20. Figures are estimates being refreshed against EIA and NREL data. See methodology.

Avg. electricity rate15¢/kWh
Typical system8.4 kW
Est. cost before incentives$22,800
Year-1 savings$1,470
25-yr net savings$27,300

Net metering: No statewide net metering

Export credits depend on your retail electric provider or municipal utility. Buyback plans range from close to retail to almost nothing, so compare plans before you sign.

Incentives still available

Major utilities

Oncor area retail providers, CenterPoint area retail providers, Austin Energy, CPS Energy

Solar by city in Texas

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Frequently asked questions

Is solar worth it in Texas in 2026?

For a typical Texas home with a $170/month electric bill, a 8.4 kW system costs about $22,800 before incentives and saves about $1,470 in year one, paying back in roughly 14 years if you buy it. The federal 25D credit ended for systems installed after 2025, so many Texas homeowners now compare cash purchase against a lease or PPA.

How does net metering work in Texas?

No statewide net metering: Export credits depend on your retail electric provider or municipal utility. Buyback plans range from close to retail to almost nothing, so compare plans before you sign.

What solar incentives are left in Texas?

The 30% federal homeowner credit (25D) ended for systems installed after December 31, 2025. State and local programs still include: Property tax exemption for solar; Local utility rebates (Austin Energy, CPS Energy and others). Leases and PPAs can still pass through a federal business credit claimed by the system owner.

Should I add a battery in Texas?

Because exported solar earns less than retail in Texas, a battery that stores daytime solar for evening use usually improves savings, and it also gives you outage backup.