Written by Dean Mahmoud, CEO, and checked by Trevor Guilday, founder.Prices from the September 2026 Cost Index. Utility rules read September 29 to October 6, 2026. Updated October 14, 2026.
A typical Texas home system is 9.29 kW and costs about $23,875 in cash at $2.57 per watt. Texas has no net metering law, so what your exported power earns decides the payback: about 13 years on a buyback plan that credits every kWh at the full 15.96¢ average price, and about 32 years in our Pedernales co-op case.
Free for you. Solar providers pay us when you ask for quotes. How we make money
No Texas law makes anyone pay full price for the solar power you send to the grid. Our two cases use the same system and the same home. Only the value of exported power changes. Both assume 40% of the power is used at home as it is made.
| Case and export rule | Year-one savings | After upkeep | Simple payback |
|---|---|---|---|
| Full-credit case: retail plan crediting every kWh 1:1 at the 15.96¢ Texas average | $2,117 | $1,838 | 13.0 years |
| Pedernales Electric Cooperative, 7.1921¢ credit capped at the base power charge | $1,024 | $745 | 32.0 years |
| Same PEC home, exports earn nothing (stress case) | $579 | $300 | 79.5 years |
Swipe the table sideways to see every column.
Only the full-credit case earns back the cash price within 25 years, and we show all three as they are. Most buyback plans pay less than 1:1, so check your own plan’s export rate. A Texas system pays back faster when more of its power is used at home, when a delivery-company rebate lowers the price, or when your plan pays more for exports.
In most of Texas one company owns the wires and another sells you power. The seller sets what your exports earn. In Austin, San Antonio and co-op areas, one company does both.
State law has you sell extra power to your retail electric provider, at a value agreed between you. The rate is on the plan’s Electricity Facts Label.
Next: get the buyback rate and its end date in writing before you sign.
Value of Solar credit on all the power your panels make, since October 1, 2026 (9.91¢ before). About 4% of Texas homes.
Next: ask for savings priced at 12.89¢, and the $4,000 rebate.
CPS Energy nets kWh for kWh within the month and pays 1.65¢ to 2.02¢ for the excess. Pedernales pays 7.1921¢ against base power.
Next: ask your utility for its export credit and any solar charge in writing.
| Utility | What is credited | Credit | Limit to know |
|---|---|---|---|
| Austin Energy | Every kWh the panels make | 12.89¢ | Reset during the city budget process |
| CPS Energy | Monthly excess after netting | 1.65¢ to 2.02¢ | 2.02¢ June to September; systems you own, up to 25 kW AC |
| Pedernales Electric Cooperative | Every kWh sent out | 7.1921¢ | Pays only the 6.59¢ base power charge; expires December 31 |
| El Paso Electric | Net production | Its schedule | Buys up to 10% of your prior year’s use; $13.71 a month on the solar rate |
| Retail plan in a choice area | Set by the plan | On the label | TXU credits can pay energy charges only, not delivery charges or taxes |
Swipe the table sideways to see every column.
Section 39.916 of the Texas Utilities Code covers choice areas: you sell surplus power to the retail electric provider that serves your home, at a value you agree on. TXU Energy credits can offset up to 100% of energy charges each month, but not base charges, delivery charges, taxes or fees. Reliant’s Solar Payback Plus pays the live wholesale price; its Solar Payback Match pays a set credit. Green Mountain Energy’s Essentials plan stops at your monthly use.
At TXU Energy, Reliant and Green Mountain Energy, buyback credits can take up to three billing cycles to start. A buyback rate belongs to a plan, so it can change when the plan ends. We do not print plan rates: they differ by plan and delivery area. Read the Electricity Facts Label on the day you sign.
Texas has no state rebate. Some delivery companies and city utilities have one, and most pay it to your installer, not to you. Oncor, AEP Texas and TNMP end their 2026 programs on November 30, 2026, or sooner if the money runs out.
One check per home, mailed to you after final inspection. Up from $2,500 on July 1, 2026.
For a 7.5 to 30 kW system, paid to the installer. Projects done by November 30, 2026.
$135 per kW on the typical 9.29 kW system, up to 15 kW. Paid to the installer.
Never more than 50% of project cost. Submittals until November 30, 2026.
| Delivery company | Rebate | Price after it | Who gets paid |
|---|---|---|---|
| Austin Energy | $4,000 | $19,875 | You, by check |
| AEP Texas | $2,750 | $21,125 | Your installer |
| TNMP | $2,750 | $21,125 | Your installer; only $100,000 for 2026 |
| CenterPoint | $1,254 | $22,621 | Your installer, as a credit on your invoice |
| CPS Energy | $0 | $23,875 | No home solar rebate now |
Swipe the table sideways to see every column.
The September 2026 benchmark is $2.57 per watt, 4th lowest of the 51 markets in our index. These are modeled cash prices, not quotes we collected.
| Size | Power made a year | Cash price |
|---|---|---|
| 5 kW | 7,140 kWh | $12,850 |
| 8 kW | 11,424 kWh | $20,560 |
| 9.29 kW (typical) | 13,266 kWh | $23,875 |
| 12 kW | 17,136 kWh | $30,840 |
One benefit covers the whole state: solar does not raise your property tax, if you file the form. There is no state tax credit, because Texas has no state income tax.
Of the value solar adds. File Form 50-123 with your county appraisal district between January 1 and April 30.
Plus up to 2% local. Home solar equipment has no sales tax exemption.
No state credit, and no federal credit for a system you own placed in service after December 31, 2025.
Paused since the federal grant was ended on August 7, 2025. Nothing to apply for now.
| Way to pay | Who owns the panels | Texas rule to check |
|---|---|---|
| Cash | You | You file Form 50-123; ask who keeps the delivery-company rebate |
| Loan | You | Compare the financed total with cash; a dealer fee stretches the payback |
| Lease | The company | The company files the tax form; CPS credits and New Braunfels rebates are only for systems you own |
| PPA | The company | Not allowed by Austin Energy; compare the price per kWh with the price you avoid |
Swipe the table sideways to see every column.
Three companies, A to Z, not ranked. Each holds an electrical contractor license that was active in the Texas Department of Licensing and Regulation registry on October 13, 2026. Other facts are from their own sites, read October 13 to 14, 2026.
None of these three companies buys homeowner leads from EcoGen America. How we make money. Look up any Texas electrical license yourself in the TDLR license search.
Ask each installer which export credit its savings use, and to show the rebate as its own line.
Price solar for your Texas homeEcoGen America does not sell or install solar. When you request quotes, we pass your request to solar providers serving your area, and they pay us for the introduction. Providers can include installers, solar marketplaces and lead exchanges, and more than one may contact you. You never pay us. Privacy policy
CEO of EcoGen America. Since 2021 he has connected homeowners with residential solar installers in all 50 states.
About Dean
Founder of EcoGen America. He has worked in residential solar since 2016 and maintains the EcoGen Solar Cost Index.
About Trevor