Solar Panels in
Texas

Texas has no statewide net metering. In the deregulated ERCOT market (about 90% of the state), you choose a Retail Electric Provider and select a “solar buyback” plan from that REP’s offerings. Each REP sets its own structure: some offer 1:1 retail match (TXU Solar Buyback in Oncor territory), some offer fixed cents per kWh (Green Mountain at 8.5¢, Chariot at 7¢), and some use real-time wholesale pricing (Champion Energy).

In non-deregulated areas, your utility sets the rules: Austin Energy uses a Value of Solar tariff (9.91¢/kWh for 2026), CPS Energy nets at retail up to your consumption with surplus paid at avoided cost (around 2¢/kWh), and El Paso Electric uses traditional net energy metering with a standby charge above 10 kW.

The right plan depends on your consumption pattern. Households that use most of their solar production during the day (heavy AC, EV charging) should prioritize self-consumption value. Households that export heavily should prioritize the buyback rate.

This is the biggest single risk in Texas solar economics. REP solar buyback contracts run 12 to 36 months. When yours ends, you re-shop or auto-renew at whatever the market rate is then. Buyback rates have compressed materially since 2023.

Build your savings projection assuming the buyback rate could drop by 30 to 50 percent at renewal. Ask your installer to model a downside scenario at flat 4¢/kWh buyback. If the math still works under that scenario, you have a defensible deal. If it only works at today’s rate, you are betting on rate stability that no REP guarantees.

Yes. Texas Tax Code §11.27 grants a 100% exemption on the appraised-value increase attributable to your solar system, statewide, on every county appraisal district. Battery storage is included under §11.27(c)(1). The exemption is permanent.

To claim it, file Texas Comptroller Form 50-123 with your county appraisal district by April 30 of the tax year following installation. The filing is one-time; no annual renewal unless the chief appraiser specifically requests it. Your installer should either file the form for you or specify in writing that filing is your responsibility.

Texas leads the U.S. in solar hail damage claims, and homeowners insurance treatment varies materially by carrier. Some carriers cover rooftop solar as part of the dwelling without an endorsement. Others require a named-peril endorsement. Some add surcharges or exclude solar after the first claim.

Before you sign a solar contract, call your homeowners insurer and ask three questions: Is rooftop solar covered under my dwelling policy without an endorsement? Is there a hail exclusion? Will adding solar change my premium? Get the answers in writing. If your insurer requires an endorsement or excludes hail, factor that into your decision before installation.

A standard grid-tied solar system without a battery will not work during a grid outage. Texas requires solar inverters to disconnect when the grid goes down (anti-islanding under IEEE 1547 and PUCT Substantive Rule §25.211) to protect line workers. Without a battery, your panels stop producing during the outage.

To have power during outages, you need either a battery system with islanding capability (Tesla Powerwall 3, Enphase IQ Battery 5P, or similar) or a generator transfer switch. Battery storage adds $10,000 to $18,000 to a typical system but provides backup independent of the grid. Oncor’s Take A Load Off Texas program offers up to $9,000 in rebates that require battery installation.

Possibly, yes. The federal Section 25D residential credit expired December 31, 2025. Cash and loan buyers in 2026 receive $0 federal credit. However, Section 48E remains available to third-party owners (lease and PPA providers) through July 4, 2026 construction-start, and these companies can pass the 30 percent credit value through to you in lower lease payments.

Two important caveats. First, there is no legal requirement that lessors actually pass through the full 30 percent. The CFPB documented in 2024 that solar lenders frequently mark up system prices by approximately 30 percent, which can neutralize the credit value. Compare lease payments against the cost of an equivalent cash system carefully. Second, in Austin Energy and New Braunfels Utilities territory, third-party PPAs are prohibited entirely. If you are in those territories, you must own the system.