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Is solar worth it in Texas?
Texas has plenty of sun and high summer electricity use, which are good ingredients for solar. But the numbers depend on your home, your utility and especially how you are paid for the power you don't use. The best candidates are typically homeowners who:
- have a roof in good shape with a decent amount of unshaded space, ideally facing south, west or east;
- use enough electricity that a bill reduction is meaningful, and plan to stay in the home for roughly a decade or more;
- can use much of the solar power as it is produced, or pair solar with a battery to avoid selling it back cheaply.
Solar is a long-term purchase. A good quote should show your expected production, your estimated bill savings and the assumptions behind both.
The federal tax credit has ended for homeowner purchases
Important change. The 30% Residential Clean Energy Credit (IRS Section 25D) no longer applies to solar systems and batteries for expenditures made after December 31, 2025. If a salesperson tells you it is still available for a purchase you make now, ask them to put it in writing and check the IRS page.
That does not make solar a bad idea, but it changes the math. Pricing and payback periods that quoted a 30% credit are out of date. Lease and power purchase agreement (PPA) offers may be priced using business tax incentives the installer or financier claims, and those rules have also been tightening, so ask exactly how each offer is built and what happens if incentive rules change. Everything below is general information, not tax advice.
What solar costs
Residential solar in the United States has recently averaged somewhere around $2.50 to $3.50 per watt installed before incentives, with considerable variation by installer, equipment, roof complexity and market. At those rates, a typical 8 kW system lands roughly in the $20,000 to $28,000 range, and adding a home battery can add a further $10,000 to $20,000 or more. Treat these as ballpark figures: your own quotes matter more than any average.
| Ways to pay | Upfront cost | Ownership | Watch out for |
|---|---|---|---|
| Cash | Highest | You own it | Long payback; no federal homeowner credit for new purchases. |
| Loan | Low or none | You own it | Dealer or loan fees that raise the real system price, interest cost. |
| Lease / PPA | Low or none | Installer or financier owns it | Annual price escalators, transfer when you sell, long contract terms. |
Texas specifics: buyback, property tax, HOAs and hail
Selling extra power back
Texas has no statewide net-metering rule, so what you earn for exported power depends on your retail provider or utility. Some pay close to the retail rate, some pay a lower wholesale-linked rate and some pay nothing. Municipal utilities and co-ops, such as Austin Energy and CPS Energy, run their own solar programs and rebates that change from time to time. Ask your installer which plans pair well with your system, and compare the buyback terms on the plan's Electricity Facts Label. For more on reading plans, see our electricity plan guide.
Property taxes
Texas lets homeowners exempt the added property value from solar panels from property taxes (Texas Tax Code §11.27). Ask your county appraisal district how to claim it.
HOAs
Texas law restricts an HOA's ability to prohibit solar panels, but associations can set certain rules on placement and appearance. Read your HOA's documents and the statute (Texas Property Code §202.010) before you design the system.
Hail and storms
Hail is a real risk across much of Texas. Ask for the hail or impact rating of the panels and the installer's warranty on roof penetrations, and let your insurer know before installation so your coverage is clear.
Winter outages
Standard grid-tied solar shuts down during a grid outage for safety. To keep the lights on during an outage you need a battery system designed for backup. See our backup power guide.
How to compare quotes
Get at least three quotes and put them in a table that uses the same measures:
| What to compare | Why it matters |
|---|---|
| Price per watt (total price ÷ system watts) | Lets you compare different system sizes fairly. |
| Panel and inverter brands and models | Efficiency, warranty and replacement cost differ. |
| Estimated first-year production (kWh) | Ask which shade, tilt and weather assumptions they used. |
| Warranties: workmanship, panels, inverter, roof | Workmanship warranties of 10 years or more are common among established installers. |
| Financing terms and any dealer fee | A "low" loan rate can hide a large fee in the system price. |
| Who handles permits and utility interconnection | Delays here can add weeks or months. |
| Installer licensing and track record | Texas electrical work requires licensed electricians; check licenses and recent reviews. |
Red flags
- "Free solar" or "government program" pitches, or claims that you must sign today.
- Large upfront deposits, or pressure to sign at the door.
- Savings estimates that don't show their assumptions or ignore your actual buyback plan.
- A quote that quietly includes a tax credit that no longer applies.
- Vague answers about who services the system and what the warranty covers.
What to expect, step by step
- Collect quotes. You typically give your address and a recent electric bill so installers can model your system.
- Site survey and design. An installer checks your roof and electrical panel.
- Contract and financing. Review everything, including cancellation rights.
- Permits and utility application.
- Installation (often one to three days on site).
- Inspection and utility permission to operate. Don't switch on until you have it.
- Monitor and compare. Check production against the estimate during the first year.
Get free solar quotes for your home
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Partner link coming soon Partner link coming soonFrequently asked questions
Is there still a federal tax credit for home solar?
For homeowners who buy a system with cash or a loan, the 30% Residential Clean Energy Credit (Section 25D) ended for expenditures made after December 31, 2025, under the One Big Beautiful Bill Act. A system generally had to be installed and operating by that date. Leases and power purchase agreements are structured differently and the rules for commercial credits changed too, so ask each installer exactly what incentives are built into the price and check with a tax professional and the IRS.
Does Texas have net metering?
Texas has no statewide net-metering requirement. What you are paid for excess solar depends on your retail electricity provider or utility, and the offers vary widely. Some plans credit exported power at a retail-like rate, many pay a lower wholesale-based rate and some pay nothing. Choose your solar buyback plan with your installer's production estimate in hand.
Will solar raise my property taxes in Texas?
Texas lets homeowners exempt the added property value from solar panels from property taxes under Texas Tax Code Section 11.27. You may need to apply with your county appraisal district, so confirm the process locally.
Can my HOA stop me from installing solar?
Texas law limits an HOA's ability to ban solar panels, although associations may still enforce certain placement and appearance rules. Review your HOA documents and Texas Property Code Section 202.010 before you sign anything.
How long does a solar installation take in Texas?
From signed contract to switching on, expect roughly two to four months. Site survey, permits, equipment delivery, installation, inspection and utility interconnection approval each add time, and interconnection can be the slowest step.
Is hail a concern for solar panels in Texas?
Yes, especially across North and Central Texas. Ask for the panel's hail or impact test rating, how the installer handles claims, and whether your homeowner's insurance covers panels. Tell your insurer before installation.
What should I ask installers?
Ask for the price per watt, the exact panel and inverter models, expected annual production, who pulls permits and handles utility interconnection, workmanship and equipment warranties, and whether the installer is a licensed electrical contractor. Get at least three quotes.
This page is general information, not tax, legal or financial advice. Incentives and laws change; verify with the IRS, the Texas Comptroller, your utility and your installer.