In Houston, CenterPoint Energy is your regulated wires company (the TDU), not your electricity seller. CenterPoint delivers power, reads your meter, and approves your solar interconnection, but because this is the deregulated ERCOT market your Retail Electric Provider (REP) sets your solar buyback, and Texas has no statewide net metering (CenterPoint Energy, verify current). A typical 6 kW Houston roof makes about 8,479 kWh a year (NREL PVWatts).
Going solar in Houston runs through two different companies, and mixing them up is the most common mistake we see. CenterPoint Energy owns the poles and wires and approves your connection to the grid, but it does not set the price you get paid for extra solar. That number lives in a plan with the retail electric provider you chose. This page explains what CenterPoint does and does not control, how solar buyback really works in the deregulated Houston market, CenterPoint’s interconnection steps, what a Houston roof produces, and the dated federal tax-credit facts, then you can check your address in about a minute.
CenterPoint is your wires company, not your power seller
CenterPoint Energy Houston Electric is the transmission and distribution utility (TDU) for the greater Houston area. It owns and maintains the poles, wires, and substations, installs and reads your meter, and serves roughly 2.8 million metered customers across the metro (CenterPoint Energy Integrated Resource Plan, verify current). Since Texas deregulated its retail electricity market, CenterPoint has not sold you the actual kilowatt-hours. You buy those from a retail electric provider (REP) you pick, and that REP, not CenterPoint, appears on your bill as the company charging for energy.
This split is the whole story for solar in Houston. CenterPoint handles the physical connection and the meter, and it is the company that reviews and approves your solar interconnection. But the credit you earn for the excess power you export is a feature of your REP’s plan, called a solar buyback plan. So two Houston neighbors on the same CenterPoint wires can get very different export credits, simply because they signed up with different providers. For the statewide picture of how Texas handles solar, incentives, and the lack of a net-metering mandate, see our Texas solar guide, and for the local cost math, our Houston solar guide.
| Task | CenterPoint (the TDU / wires) | Your Retail Electric Provider (REP) |
|---|---|---|
| Delivers your power | Yes, owns the wires and grid | No |
| Approves interconnection | Yes, and reprograms the meter | No |
| Sets your solar buyback rate | No | Yes, in your plan |
| Bills you for energy | No (delivery charges pass through) | Yes |
What a Houston roof produces, and what it offsets
The Gulf Coast gets strong sun, and a Houston roof turns it into real output. According to MySolarFY’s analysis (August 2026), a typical 6 kW system in Houston (ZIP 77002) produces about 8,479 kWh a year, modeled with the NREL PVWatts calculator at roughly 5.19 kWh per square meter per day of sun. That is a modeled estimate for a well-placed roof; your own output depends on pitch, shading, and orientation, so estimate your specific roof with PVWatts before you size a system.
The value of that output depends on the rate it offsets. Texas residential electricity averages about 16.44 cents per kWh (EIA, as of May 2026). At that rate, 8,479 kWh a year is worth roughly $1,394 of avoided grid electricity. Your exact rate is whatever your REP contract charges, which is why the plan you pick matters as much as the panels. To compare the full price picture, see our Texas solar cost guide.
See what solar programs are available at your Houston address
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How solar buyback works on the CenterPoint grid
Your solar buyback comes from your REP, not CenterPoint, and Texas has no statewide net metering. On CenterPoint’s own solar page, the retail electric provider is the party that provides all electricity billing, including buying and selling your power (CenterPoint Energy, connecting your system to the grid, as of August 2026). Buyback plans vary widely: some credit your exports at a fixed cents-per-kWh rate, others at a real-time wholesale price tied to the ERCOT market, and the credit may or may not cover your base fee and delivery charges. There is no single Houston number, so read the export terms before you sign a plan.
Because export credits are rarely one-for-one, the smart design in Houston leans toward using your own solar. Sizing your array close to your annual usage, shifting big daytime loads, and in some homes adding a battery all raise the share of solar you use at your full retail rate instead of exporting at a lower buyback rate. This is different from a one-for-one net-metering state, and it is why the buyback plan you choose can change your payback as much as the hardware. For the general mechanics of export credits, see how net metering and export credits work.
CenterPoint’s solar interconnection process, step by step
CenterPoint must approve your system before you can switch it on. You work with your installer to submit a distributed generation (DG) interconnection application to CenterPoint; CenterPoint reviews it and emails back a revised Interconnection Agreement (ICA); after the ICA is signed by all parties, CenterPoint issues Permission to Operate (PTO) and reprograms your meter so it records both the power you pull and the excess you export (CenterPoint Energy distributed generation application FAQs, as of August 2026). CenterPoint runs a residential distributed-generation desk for this at Residential.DG@CenterPointEnergy.com or 713-945-4155.
The practical takeaway is to hire an installer who does CenterPoint interconnections regularly. A company that files these applications often already knows CenterPoint’s DG paperwork, the ICA signature step, and how to avoid a stalled Permission to Operate, so your system does not sit finished-but-dark waiting on approval. Timelines and forms change, so confirm the current process with CenterPoint before you sign. For questions to ask before you hire, see the right questions to ask a solar installer.
The federal tax credit ended, and what still applies in Texas
The 30% federal homeowner credit is gone for 2026 systems. The Residential Clean Energy Credit (Section 25D) ended for systems placed in service after December 31, 2025, so a Houston homeowner who buys solar with cash or a loan in 2026 cannot claim it, under the One Big Beautiful Bill Act (IRS Residential Clean Energy Credit; SEIA, as of 2026). You will still see installer ads implying the 30% credit is available; the accurate answer for 2026 is that the homeowner version already ended. Texas has no statewide personal income tax, so there is no state income-tax credit to replace it. For the full timeline, see what the federal solar tax credit change means in 2026.
One federal exception exists, and it is not the homeowner’s to claim. A separate commercial credit, Section 48E, is claimed by the business that owns a leased or power purchase agreement (PPA) system, not by the homeowner (IRS Clean Electricity Investment Credit, as of 2026). On a lease or PPA the third-party owner files for that credit; the 25D homeowner credit, by contrast, ended after December 31, 2025. Texas does exempt the added home value from a solar system from property tax, which helps the case for owning (Texas solar incentives in 2026).
How to pay for solar in Houston
There is no single right way to pay for solar; the best fit depends on whether you want to own the system or avoid an up-front cost. A lease or PPA can mean no up-front cost for eligible homeowners, but it is a long-term agreement with monthly payments, not free solar, and on a lease or PPA the system owner, not you, holds the tax benefits. To weigh the long-run numbers, see whether solar panels are worth it.
| Path | Up-front cost | Who owns it | Who keeps tax benefits |
|---|---|---|---|
| Cash purchase | Highest | You | You |
| Solar loan | Low to none | You | You |
| Lease / PPA | Often none | The provider | The provider |
Check which solar programs are available at your Houston address →
CenterPoint solar FAQ
Reviewed by the MySolarFY team. Figures were verified against the linked CenterPoint Energy, EIA, NREL PVWatts, IRS, and SEIA sources as of August 2026; CenterPoint’s interconnection process, delivery charges, and retail-provider solar buyback plans can change, so confirm current terms with CenterPoint Energy and your retail electric provider before you decide. MySolarFY does not provide tax or financial advice; consult a licensed professional about your own situation. Learn more about the MySolarFY team and how we work.
MySolarFY is a free service that matches homeowners with licensed solar installers. We are not an installer, financing company, utility, or government program. “No up-front cost” refers to qualifying lease or PPA financing, where eligible homeowners may have no out-of-pocket cost at installation. Lease and PPA terms typically run 20 to 25 years, may include an annual price escalator, and total payments may exceed the cost of a cash purchase; on a lease or PPA the tax benefits go to the company that owns the system, not the homeowner. Homeowners do not get the federal residential credit that ended after December 31, 2025. Solar panels are not free and monthly payments apply. Eligibility, savings, incentives, and rates vary and are not guaranteed. See our full disclaimer.
