Solar panels in Texas
What a residential solar system actually costs in Texas in 2026 — plus incentives, payback, and how to pick a vetted installer.
The real cost of solar in Texas
A typical 11 kW rooftop system in Texas runs about $29,700 installed. The federal Residential Clean Energy Credit knocks 30% off — around $8,910 — bringing the net price to roughly $20,790.
Texas adds its own incentive: Utility-specific rebates (Austin, CPS, Oncor). Stack that on top of the federal credit. Texas also exempts the added home value from property tax.
What you'll produce — and save
- ~17,024 kWh/year from a 11 kW system at 5.3 peak sun hours.
- At 14.7¢/kWh that's $2,503/yr off your electric bill in year one.
- Estimated payback: 8.3 years.
- 25-year net savings (2.5% annual rate escalation): $64,707.
Estimates only. Actual production depends on roof orientation, shade, equipment and your utility's specific tariff.
Net metering in Texas
Texas operates under a net billing policy for residential solar exports. Exports are credited at a wholesale/avoided-cost rate rather than the retail rate. Batteries usually improve payback under this policy.
Top Texas metros we cover
FAQ
How much do solar panels cost in Texas?
A typical 11 kW residential system in Texas costs about $29,700 before incentives, or roughly $2.70 per watt installed. After the 30% federal tax credit that drops to about $20,790.
Is solar worth it in Texas?
With an average residential electricity rate of 14.7¢/kWh and 5.3 peak sun hours per day, a properly sized system typically pays for itself in about 8.3 years and saves roughly $64,707 over 25 years.
Does Texas have net metering?
Texas operates under a net billing policy for residential solar exports. Exact credit values vary by utility — always confirm with the specific utility serving your address.
What state incentives are available in Texas?
State incentive: Utility-specific rebates (Austin, CPS, Oncor). Property tax exemption: Yes. Sales tax exemption: No. The 30% federal Residential Clean Energy Credit also applies.
Get vetted Texas installer quotes.
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Sources: EIA average residential electricity rates, NREL PVWatts sun hour data, DSIRE state incentive database, LBNL "Tracking the Sun" installed-cost benchmarks. Figures are estimates for guidance only, not a binding quote.