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Solar panel cost and payback in Texas
Measured production, your actual utility's filed rates, and honest payback maths with no federal tax credit applied - because for a home bought today there is not one.
The Residential Clean Energy Credit was terminated for home purchases after 2025-12-31, so the $24,000 above is what a Texas household actually pays - not a headline price with a rebate quietly subtracted. A quote that still shows the credit is overstating your return by about that amount, which on these numbers is roughly 6 years of savings.
What solar costs in Texas at different bills
Worked at 1488 kWh per kW per year and $0.1071 per kWh, the midpoints across the 4 metros below, at $2.40 per watt installed.
| Monthly bill | System | Cost | Year-1 saving | Payback | 25-year net |
|---|---|---|---|---|---|
| $120 | 9.0 kW | $21,686 | $1,169 | 15.7 yrs | +$17,024 |
| $200 | 10.0 kWroof limit; covers 66% | $24,000 | $1,294 | 15.7 yrs | +$18,840 |
| $300 | 10.0 kWroof limit; covers 44% | $24,000 | $1,294 | 15.7 yrs | +$18,840 |
Exported surplus is valued at zero throughout, so these are floors rather than best cases. Where fully covering the bill would need more panels than a roof holds, the row shows the largest system that actually fits and the share of your usage it covers - not the lifetime return on an array nobody can build. Your own bill and roof will move them - run your address.
Sunlight and rates by Texas metro
Straight from NREL PVWatts and the utility rate database, by named utility. This is why one statewide figure does not work.
| Metro | Utility | Production | Rate |
|---|---|---|---|
| Houston | Reliant Energy Retail Services | 1,420 kWh/kW | $0.1098 |
| Dallas | TXU Energy Retail Co LP | 1,503 kWh/kW | $0.1098 |
| San Antonio | CPS Energy | 1,495 kWh/kW | $0.0924 |
| Austin | Austin Energy|TXU Energy Retail Co LP | 1,481 kWh/kW | $0.1044 |
What Texas pays you for surplus power
No statewide rule at all
Texas does not require anyone to buy your surplus power. What you get depends entirely on your retail electric provider, and the offers vary enormously.
In the deregulated Texas market there is no statewide net metering mandate. The Public Utility Commission's own consumer guidance tells homeowners to check with their provider about whether a buyback plan is offered and at what rate. That makes Texas the one state where shopping your electricity plan is as important as shopping your installer: two houses on the same street with identical panels can get very different returns purely from the plan they signed.
Checked 2026-08-21 against Public Utility Commission of Texas, consumer solar guidance. Export rules are being rewritten across the country, so verify before you sign. Current incentive detail for Texas is maintained at DSIRE, which we link to rather than copy precisely because it changes.
Is solar worth it in Texas?
Worth doing, with realistic expectations. A roof can carry enough for 66% of what a $200-a-month household in Texas uses, not the lot. Power at $0.1071 per kWh is cheap, so a $200 bill in Texas represents a great many kilowatt-hours -- more than 15.1 kW of panels would be needed to cover them all. The 10.0 kW that does fit costs $24,000 and returns about $18,840 over 25 years, paying for itself in roughly 15.7 years. Before enlarging the system, reducing what you use costs nothing and shrinks the array you need.
Your own bill and roof move this more than the state average does, and Texas households vary widely on both. Run your ZIP code through the calculator for numbers worked from your own utility rather than a Texas midpoint. It asks for no email address and nobody will call you.
Texas solar questions
Which Texas providers actually pay for solar exports?
It varies, and that is the point. Texas has no statewide requirement for anyone to buy your surplus, so buyback is a feature of the retail plan you choose rather than something you are entitled to. The Public Utility Commission's own guidance is to ask your provider directly. Compare solar buyback plans before you sign, and check whether the buyback rate is guaranteed or can be changed at renewal.
Does Texas have a state solar tax credit?
There is no state income tax in Texas, so there is no state income tax credit. Texas does offer a property tax exemption for the added home value from a solar installation, which means the system should not increase your property tax bill. Local utility and municipal rebates exist in some areas and change often; DSIRE tracks the current list.
Is solar worth it in Texas with power this cheap?
It is a closer call than the sunshine suggests. Texas gets good sun but comparatively cheap electricity, and cheap power is what lengthens payback. The result swings heavily on the plan you are on and the buyback you negotiate, which is why a Texas estimate deserves more scepticism than most and a real quote matters more.