Solar in Texas: The State Where Your Export Rate Is a Shopping Decision
Texas has no statewide net metering and no state income tax credit, and it still became the fastest growing solar market in America. The deal here is decided by which retail plan or utility program you pick, and starting September 2026 the person selling you the system must be registered with the state.
Solar incentives in Texas
State, utility, and local programs that can lower the cost of going solar here. Availability and amounts change, so verify each before counting on it.
| Program | Type | What to know |
|---|---|---|
| Property tax exemption (Tax Code 11.27) | Property tax | The appraised value a solar device adds to your home is exempt from property taxation. Apply once with Form 50-123 through your county appraisal district. |
| No state income tax | Structural | Texas has no personal income tax, so there is no state solar income tax credit to claim or to miss. State level value comes from the property tax exemption and utility programs. |
| Utility rebates (vary widely) | Utility rebate | No statewide rebate exists. Examples as of mid 2026: Austin Energy pays a residential rebate after a required education course, Oncor runs an installer based program that requires battery storage, and CPS Energy ended its rebate in 2022 but still credits exports. Programs change with budgets, so verify with your own utility. |
Net metering in Texas
No statewide mandate; the plan decides. In the deregulated majority of the state, exported solar is worth whatever your chosen retail plan's buyback terms say, from near zero to one for one, and the deal resets every contract renewal. Municipal utilities and co-ops set their own policies: Austin Energy credits all production at its Value of Solar rate (9.91 cents), while San Antonio's CPS nets against your usage at retail and pays about 2 cents for surplus. In Texas, the export rate is a shopping decision, not a legal guarantee.
Going solar in Texas: what shapes the numbers
The local factors that move payback and savings most.
Cheap power, huge sun
Texas retail rates are moderate, which stretches payback compared with California, but production per panel is among the best in the country and cooling loads mean plenty of daytime self consumption.
The buyback plan is half the purchase
In ERCOT territory the panels and the retail plan are two separate decisions. A strong buyback plan can rival old fashioned net metering; a weak one pays wholesale scraps. Re-shop it at every renewal.
The seller is now regulated
Under the Residential Solar Retailer Regulatory Act, contract and disclosure rules apply to agreements signed since September 2025, and from September 1, 2026 residential solar retailers and salespersons must be registered with the Texas Department of Licensing and Regulation.
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Local considerations for Texas homeowners
Conditions and rules that tend to come up when going solar in this state.
- HOAs generally cannot prohibit solar under Property Code 202.010, with listed exceptions for placement and appearance
- Electrical work must be performed by a TDLR licensed electrical contractor
- From September 1, 2026 you can verify a solar seller's registration with TDLR before signing
- Buyback terms end with your retail contract, so model payback on conservative renewal assumptions
- No federal residential credit applies to homeowner purchases placed in service after December 31, 2025
Before you sign a Texas solar contract
Questions worth asking any installer before you commit:
- Which retail plan or utility program will credit my exports, at what rate, and until when?
- Is the seller registered with TDLR (required from September 1, 2026)?
- Has the property tax exemption filing (Form 50-123) been discussed?
- What happens to my buyback rate at contract renewal?
- Does the quote avoid subtracting a federal credit for a 2026 homeowner purchase?
- If my utility requires storage for its incentive, is the battery priced honestly?
Related solar guides
Solar in Texas: frequently asked questions
Does Texas have net metering?
Not statewide. In deregulated areas your chosen retail electric plan sets the buyback terms, which range from near zero to roughly one for one and reset at each renewal. Municipal utilities and co-ops set their own policies, from Austin's Value of Solar rate to CPS Energy's net billing.
Do solar panels raise property taxes in Texas?
No. Tax Code section 11.27 exempts the appraised value a solar device adds from property taxation. You apply once with Form 50-123 through your county appraisal district.
Are solar salespeople regulated in Texas?
Yes, newly. The Residential Solar Retailer Regulatory Act applies contract and disclosure rules to agreements signed on or after September 1, 2025, and beginning September 1, 2026 residential solar retailers and their salespersons must be registered with TDLR. You can verify a seller the same way you verify an electrician.
Can my HOA stop me from installing solar in Texas?
Generally no. Property Code 202.010 voids HOA provisions that prohibit or restrict solar devices, with exceptions for things like common areas, installs above the roofline, non parallel mounting, and colors beyond silver, bronze, or black frames.
Is solar worth it in Texas without net metering?
It can be: production per panel is excellent, daytime air conditioning gives strong self consumption, and the property tax exemption protects the home value math. The variable to get right is the buyback plan, which is worth shopping as carefully as the system itself.
Solar in other states
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