Texas Solar Panels
Solar in Texas
Solar installation in Texas starts with understanding how your home uses electricity and what your roof can support. Your utility plan and local rules can also shape the solar panel installation process.
Explore what to expect, which questions to ask, and how to compare options. For a clear overview of the basics, read our guide to home solar panels.
Texas Solar Panel Cost
Explore solar cost estimates based on Palmetto installation data from Austin, Dallas, Houston, San Antonio, and communities across Texas. The calculator defaults to a no-upfront-cost monthly LightReach lease: Palmetto owns and maintains the system, with a 90% Production Guarantee and comprehensive protection. Compare a cash purchase estimate, too.
System
- No upfront investment
- Palmetto handles all maintenance
- 90% Production Guarantee
- Comprehensive protection program included
Key Takeaways
- Texas sunshine supports solar production, but output changes with weather, season, roof conditions, and system design.
- Your utility plan shapes solar’s value: Texas has no statewide net-metering rate, so export credits and incentives vary by provider.
- A LightReach lease has no upfront cost and a fixed monthly payment; Palmetto owns and maintains the system, with a 90% Production Guarantee and comprehensive protection.
Looking for More Detailed Texas City Guides?
Explore our comprehensive solar guides for major cities across Texas to find location-specific information on incentives, installers, and solar potential.
Abilene Solar Panels
Arlington Solar Installation
Austin Solar Installation
Cypress Solar Panels
Dallas Solar Panels
Fort Worth Solar Panels
Frisco Solar Panels
Houston, TX
Katy Solar Panels
Killeen, TX
McKinney
Pearland Solar Panels
Plano, TX
Richmond Solar Panels
Round Rock
San Antonio Solar Panels
Solar in Spring
Sugar Land, TX
Tyler Solar Installation
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Explore Texas Heat PumpsTexas Electricity Prices
Texas electricity rates have climbed in recent years, making it useful to understand how utility costs compare—and where rooftop solar may fit.
Texas’s average residential electricity rate rose from 12.1¢ per kilowatt-hour in 2021 to 14.9¢ in 2024. The 2024 U.S. average was higher, at 16.5¢ per kWh.
Solar panels may help Texas homeowners limit exposure to rising utility rates by generating some of their own electricity, though savings depend on system output, utility rates, and electricity-plan terms.
With LightReach, homeowners can lease with no upfront investment and a fixed monthly payment; Palmetto owns and maintains the system, with a 90% Production Guarantee and comprehensive protection program. A lease doesn’t eliminate utility bills or guarantee savings.
Price of Energy: Texas vs National Average
Texas Area Utility Providers
For Texas residents, 2023 electricity rates among the utilities listed ranged from 10.3¢ to 14.7¢ per kWh. The state average was 14.5¢, compared with 16.0¢ nationally. 2024 utility data was not yet available.
Magic Valley Electric Cooperative had the lowest listed rate, 10.3¢ per kWh, while Southwestern Public Service (Xcel Energy) had the highest, at 14.7¢. These figures compare rates but do not explain why they differ.
Solar may reduce utility electricity purchases, though value depends on use and utility plan. A LightReach lease has no upfront cost and fixed monthly payments; Palmetto owns and maintains the system, with a 90% Production Guarantee and comprehensive protection.
Texas Utilities Electricity Rates
Texas Solar Incentives
Texas homeowners may find utility and local incentives that help offset solar installation costs. Compare available solar incentives in Texas below.
Options may include solar and battery rebates, battery rewards for peak-demand events, credits for solar production, a property-tax exemption, and provider-specific compensation for electricity sent to the grid. Eligibility and availability vary by service area and program rules.
The federal 30% residential tax credit ended under the Big Beautiful Bill; state and local incentives remain. LightReach lets Palmetto handle commercial ITC benefits, passing savings through lower monthly payments.
| Incentive | Type | Description | Source |
|---|---|---|---|
| Oncor 2026 Residential Solar Photovoltaic Incentive | Utility Solar Rebate / Performance Incentive | Oncor-served homeowners may qualify for a project-specific incentive of up to $9,000 for a new solar installation, with or without battery storage, through an approved participating provider. | Learn More |
| Austin Energy Residential Solar Rebate | Utility Solar Rebate | Eligible Austin Energy residential customers may receive a $4,000 rebate for a qualifying solar PV system larger than 3 kW, subject to program rules and available funding. | Learn More |
| Austin Energy Value of Solar Rate | Solar Production Credit / Net Billing | Austin Energy credits eligible customers for all metered solar production at the applicable Value of Solar rate—12.89¢/kWh for systems under 1 MW-AC and 10.22¢/kWh for systems 1 MW-AC and larger, effective October 1, 2026. | Learn More |
| Austin Energy Power Partner Battery | Battery Rebate and Performance Payment | Eligible Austin Energy residential customers may receive $500 per qualifying battery plus an annual performance payment of $75 per average kW delivered during program events. | Learn More |
| GVEC Peak-Time Payback Battery Program | Battery Rebate and Demand-Response Payment | Eligible GVEC members may receive a battery-specific upfront incentive and $75 per installed kW annually, subject to a 23 kW cap and program terms. | Learn More |
| CPS Energy My Battery Rewards | Battery Demand-Response Bill Credit | Residential CPS Energy customers may receive a $10 bill credit for each qualifying program event in which their enrolled battery provides verified demand reduction. | Learn More |
| TXU Energy Battery Rewards | Battery Demand-Response Reward | Eligible TXU Energy customers with rooftop solar and an Enphase battery may receive a $150 digital reward card every six months while enrolled and meeting program requirements. | Learn More |
| Gexa Battery Benefits | Battery Demand-Response Payment | Published program information lists a $50 payment for each participating month for eligible Gexa customers with Enphase batteries who make their batteries available for peak-demand dispatch. | |
| Texas Solar Property-Tax Exemption | Property Tax Exemption | Texas Tax Code §11.27 exempts the portion of appraised value attributable to a qualifying solar energy device used primarily to produce and distribute energy for on-site use. | Learn More |
| Texas Solar Export Compensation and Net Metering Policy | Net Billing / Utility-Specific Export Compensation | Texas has no statewide net-metering mandate or uniform solar buyback rate; export compensation depends on the homeowner’s retail electricity provider and plan. | Learn More |
Oncor’s 2026 Solar Photovoltaic Program offers a variable, project-specific incentive of up to $9,000 for an eligible residential solar project. The incentive is paid to the participating service provider, so homeowners should obtain written confirmation of the amount that will be credited toward their project price.
The home must be in Oncor’s electric-delivery territory, and the project must use an approved participating provider and receive Oncor interconnection approval. The 2026 manual allows solar with or without storage; it limits residential system size to 20 kW DC or 75% of the site’s maximum demand over the prior 12 months, as applicable. Existing solar can make a site ineligible. Funds are limited, and the stated 2026 production-period deadline is November 30, 2026, so confirm availability and requirements before signing or beginning construction.
Austin Energy offers a $4,000 rebate for a qualifying residential solar photovoltaic system larger than 3 kW. This is a direct utility incentive and is separate from Austin Energy’s Value of Solar production credit.
Applicants must be Austin Energy residential electric customers and meet the program’s requirements, including completing the solar education or quiz requirement and using a participating contractor. Approval and funding are subject to current program rules; verify eligibility and the rebate reservation process with Austin Energy before committing to an installation.
Austin Energy’s Value of Solar (VoS) rate credits eligible customers for all metered solar production. Effective October 1, 2026, the stated rates are 12.89¢ per kWh for systems under 1 MW-AC and 10.22¢ per kWh for systems 1 MW-AC and larger. The credit is based on production, not just electricity exported to the grid.
Austin Energy bills household consumption separately. VoS credits reduce electric charges, roll forward, are nontransferable, and have no cash value. This is not one-for-one net metering, and the applicable rate and enrollment requirements should be confirmed with Austin Energy for the specific system.
Austin Energy’s Power Partner Battery pilot provides a $500 payment for each qualifying customer-owned battery and an annual performance payment of $75 per average kW delivered. Austin Energy gives an example of about $324 per year for one Powerwall under specified assumptions; actual performance payments depend on dispatch and measured delivery.
The home must be in Austin Energy territory, the battery must meet utility requirements and pass inspection, and installation must be completed by a participating contractor. Third-party-owned batteries are not eligible, and solar panels are not required. Enrollment is limited by the pilot’s approved-system cap, so check the current eligible-model list, enrollment availability, and dispatch terms before purchasing.
GVEC’s Peak-Time Payback program offers participating members an ongoing payment of $75 per installed kW per year, capped at 23 kW. The published upfront incentive depends on battery brand and installation date: for installations on or after July 1, 2024, Enphase is listed at $220/kW; for installations on or after April 1, 2026, Tesla is listed at $515/kW for the first eligible Powerwall and $220/kW for each additional one.
Applicants must be GVEC members with an active account in good standing, own the property where the battery is installed, and have an eligible Enphase IQ or Tesla Powerwall system, an interconnection agreement, and an internet connection. Participation allows GVEC to control or dispatch the battery during program events, with conditions varying by brand. Published incentive amounts can change, so confirm the current schedule and enrollment terms with GVEC.
CPS Energy’s My Battery Rewards program provides a $10 bill credit for each qualifying event. CPS Energy may call events during periods of high demand or grid emergencies; this is an event-based payment, not an upfront rebate for buying a battery.
Participants must be residential CPS Energy customers with an active account and a customer-controlled behind-the-meter battery that has completed the required distributed-generation and interconnection process. Participation in each event is voluntary, and the credit depends on CPS Energy verifying the battery’s contribution under the program terms.
TXU Energy Battery Rewards offers a $150 digital reward card every six months to eligible enrolled customers, for up to $300 per year while they remain eligible. The program requires an eligible Enphase battery and rooftop solar; participants must keep at least 20% of battery capacity available under the stated program terms.
Participants make their battery available for dispatch during program events. TXU’s terms state that customers who do not participate in at least 90% of dispatch events may be unenrolled, and the customer must remain an active TXU Energy customer when a reward is fulfilled. Review current terms and confirm equipment eligibility before enrollment.
Published program information describes a $50 payment for each participating month for customers enrolled in Gexa Battery Benefits. The payment is tied to making an eligible Enphase battery available for Gexa’s peak-demand dispatch; it is not an upfront battery-purchase rebate.
Eligibility, enrollment availability, dispatch obligations, and payment conditions depend on the current Gexa program terms and the customer’s electricity plan. Confirm the details directly with Gexa before relying on the monthly amount. An official Gexa program link was not available in the supplied search results.
Texas Tax Code §11.27 provides a property-tax exemption for the increase in appraised value attributable to a qualifying solar energy device used primarily to produce and distribute energy for on-site use. This is not a cash rebate; it can reduce the taxable appraised value attributable to the qualifying equipment.
Homeowners generally apply through their county appraisal district using the Comptroller’s Form 50-123 and should check local filing procedures and documentation requirements. A battery’s eligibility may depend on whether it qualifies as part of a solar energy device and on the appraisal district’s application of the law, so do not assume every battery installation qualifies automatically.
Texas does not provide a statewide net-metering program or a uniform required buyback rate for residential solar exports. The financial value of electricity sent to the grid depends on the retail electricity provider and the specific plan available at the home, rather than being set by a single statewide solar credit.
Before choosing a plan, homeowners should review the written export-credit rate, how credits are calculated and carried forward, whether credits expire, and whether delivery charges or other fees apply. In Oncor territory, Oncor handles electric delivery and interconnection, while the retail provider determines the plan’s export-compensation terms.
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Get a Free QuoteTexas Solar Irradiance
Solar panel production varies throughout the year based on daylight hours, weather patterns, and sun intensity. Texas’ abundant sunshine supports solar production, while heat, clouds, storms, and changing day length affect monthly output; even weather-variable cities can work well with a locally designed system.
What Can the Average Texas Solar System Power?
Summer Production (July)
In July, your 10 kW system could power:
- 3.6 average Texas homes (15 kWh/day per home)
- or Run central AC for 18 hours AND power all other appliances
- or Fully charge 5.4 Tesla Model 3 electric vehicles
Winter Production (December)
In December, your 10 kW system could power:
- 2 average Texas homes (15 kWh/day per home)
- or Keep your home heating system running for 15 hours
- or Fully charge 3 Tesla Model 3 electric vehicles
Annual Production
Over a year, your 10 kW system could:
- Offset 10 tons of carbon dioxide emissions
- or Equal the environmental benefit of planting 175 trees
- or Save approximately $4,234 in electricity costs
See how affordable solar leasing can be for your home
Get a personalized LightReach quote based on your home, energy usage, and roof — no upfront cost required.
Get My Custom EstimateSolar Installations in Texas
We’ve organized solar installation data from across the United States and are excited to share what we found in Texas. Explore the map to see how many homes in each area have gone solar—and discover the neighborhoods and communities where your neighbors are making the switch.
How to Choose a Solar Installer in Texas
Verify the license
Texas does not issue a separate general solar-installer license. Non-exempt electrical work must be performed through a licensed electrical contractor, and covered residential solar installation contracts must provide for installation by one. Look up the electrical contractor through the Texas Department of Licensing and Regulation (TDLR) license search, and ask which licensed contractor will be responsible for the electrical work. TDLR says residential solar retailers and salespeople generally must also register beginning September 1, 2026, subject to exemptions.
Look for certified installers
Ask which NABCEP credential or manufacturer certification applies, who on the project holds it, and what work or products it covers. These credentials can add useful detail when comparing teams, but do not replace the required electrical-contractor license. You can review NABCEP certification information and compare the specific credentials each installer names.
Compare quotes the same way
Request written proposals with the same categories so you can compare scope as well as price. Check that each estimate is based on your home and clearly describes:
- System size in kilowatts (kW), price per watt, and panel and inverter brands.
- Estimated annual production in kilowatt-hours (kWh/year), and the assumptions behind the estimate.
- Warranty terms for panel product and performance, inverter, workmanship, and roof penetrations.
- Who obtains permits and handles utility interconnection, plus what is excluded from the quoted work.
- Total cost or monthly payment, the payment term, and any escalator.
As a point of comparison, Palmetto reports a median installed system size of 8.9 kW and about 52 days from signing to installation. Your proposal and timing may differ; compare installers using the same scope and ask what could change the schedule.
Permits, interconnection and your HOA
Local authorities handle building and electrical permits and inspections, so the office and requirements depend on your property location. Interconnection is handled through the electric utility serving your home; cooperatives and municipally owned utilities may have their own requirements. Ask the installer to identify the utility and who will submit the application. Service information may include names such as Reliant Energy Retail Services, TXU Energy Retail Co, LLC, City of San Antonio – (TX), or Austin Energy—confirm which entity handles interconnection for your address. Texas generally bars an HOA from prohibiting or restricting a solar energy device, though statutory exceptions apply; see Texas Property Code §202.010(b)–(d).
Red flags
- Pressure to sign the same day, or unclear answers about which licensed electrical contractor will do the work.
- Unlicensed or out-of-state crews, vague production estimates, or a large upfront deposit without a clear written payment schedule.
- Promises of federal tax credits for homeowner purchases in 2026: homeowner credits ended December 31, 2025.
- Unclear complaint options. TDLR accepts complaints about electrical contractors’ solar installation or repair work and covered solar retailers or salespeople. For deceptive sales or other general consumer-protection concerns, homeowners can file with the Texas Attorney General’s Consumer Protection Division; filing does not guarantee individual dispute resolution.
Go Solar with LightReach — No Upfront Cost
Texas LightReach options vary by utility. PPAs are available through Lubbock Power & Light; CenterPoint (Houston); Oncor (Dallas); TNMP; AEP Texas North and Central; El Paso Electric; and Xcel Energy (TX).
Leases are available through Pedernales, Bluebonnet, and Guadalupe Valley Electric Co-ops; CoServ; United Electric Cooperative Services; Tri-County EC; Bartlett EC; Entergy Texas; Sam Houston EC; Garland Power & Light; Farmer’s EC; Trinity Valley EC (TVEC); Denton Municipal Electric; Grayson Collin EC; South Plains EC; and College Station Utilities. No LightReach is listed for Austin Energy or Brownsville PUB; CPS Energy prohibits third-party ownership.
A lease has a fixed monthly payment; a PPA charges per kWh. Unlike cash ownership, LightReach has no upfront cost or homeowner maintenance: Palmetto owns, installs, and services the system. Leases include a 90% Production Guarantee and comprehensive protection program. Read our buy-or-lease guide and LightReach overview.
Go solar without the investment
With LightReach, there are no investment costs to recoup, loan payments to manage, or maintenance needs to take on. As soon as your panels are active, your solar savings are too!
Explore LightReach LeasingFrequently Asked Questions
Texas does not have a statewide net-metering program or a required uniform rate for excess solar electricity. Export credits depend on your retail electricity provider and the terms of your plan, so Texans should check how the plan calculates and carries credits.
Austin Energy offers a different program called Value of Solar: eligible customers receive credits for all metered solar production, while household electricity use is billed separately. These credits are not one-for-one net metering; confirm current rates and enrollment requirements with your provider.
Yes, owned solar panels may increase a Texas home’s resale value. A Zillow study found homes with solar panels sold for about 4.1% more on average. That figure is not a guarantee; the effect can vary with the system and local market.
The potential increase applies to purchased or otherwise homeowner-owned systems, not leased or third-party-owned (TPO) systems. With a LightReach lease, Palmetto owns and maintains the system and provides a 90% Production Guarantee and comprehensive protection. At resale, a buyer may need to assume the lease, which can affect the transaction differently.
In Texas, a LightReach lease offers solar with no upfront cost and a fixed monthly payment. The calculator above estimates $114/month for an 8.91-kW system. Palmetto owns and maintains the system; leases include a 90% Production Guarantee and comprehensive protection program.
A cash purchase is another option; the calculator estimates $25,222 for the same system. The 30% federal residential solar tax credit is no longer available for cash purchases following the 2025 federal law change.
A solar lease lets you use panels on your home for a fixed monthly payment while Palmetto owns and maintains the system. LightReach has no upfront cost; the payment covers panels, installation, monitoring, maintenance, comprehensive protection, and a 90% Production Guarantee.
In Texas, an 8.91 kW system is estimated at about $114 per month, based on 1,339 kWh/kW/year production and $0.115/kWh. Savings may start once the system is operating if the payment is below your current bill; utility charges may remain, and results depend on energy use and your electricity plan.
Texas incentives vary by utility: Oncor offers up to $9,000 for eligible solar; Austin Energy offers a $4,000 rebate and production credits. Local utilities also offer battery rebates or rewards. Qualifying solar equipment may receive a property-tax exemption.
Export credits vary by provider; Texas has no statewide net-metering rate. The federal 30% residential credit is no longer available for cash purchases. With LightReach, Palmetto claims the commercial ITC and passes savings through; it owns and maintains the system, with a 90% Production Guarantee and comprehensive protection.
There isn’t one solar company that’s best for every Texas home. At Palmetto Solar, we’ve completed 8,405 Texas installations since 2020, with a local installation network backed by a national team. When comparing installers, consider experience, equipment, warranties, financing terms, and how the system fits your roof and electricity plan.
Our LightReach lease has no upfront cost and a fixed monthly payment. We own and maintain the system, and the lease includes a 90% Production Guarantee and comprehensive protection program. Texas export credits vary by utility and plan, so review those terms when assessing solar options.
Yes, solar can make sense in Texas: the state averages about 5.4 peak sun hours a day, and panels can reduce the electricity you buy from your utility. Your results depend on your roof, energy use, system design, and utility plan. Texas has no statewide net-metering rate, so export credits vary by provider.
LightReach, Palmetto’s solar lease program, removes the upfront cost barrier entirely: homeowners can go solar with no money down and start saving from day one once the system is active. Palmetto owns and maintains the system, with a 90% Production Guarantee and comprehensive protection; savings are not guaranteed.