Installed home solar in Texas commonly runs about $2.50 to $3.00 per watt before incentives, so a 7 kW system costs roughly $17,500 to $21,000 (confirm with local quotes). At Texas’s 16.44 cents per kWh power rate, simple payback usually lands near 11 to 14 years, and it hinges on your retail provider’s solar buyback plan, not a 1:1 credit. The federal 25D homeowner credit ended December 31, 2025.
Texas homeowners pay about 16.44 cents per kWh for electricity (EIA retail sales, residential Texas, as of May 2026). That rate is near the national middle, but Texas sunshine is strong, so a roof here makes a lot of power. Because a rising rate shortens payback, it helps to know where prices are headed; see our Texas electricity rates in 2026 guide. The money question is simple: what does a system cost, and how fast does it pay back. This page walks the cost per watt, the payback math, and the one thing that decides your Texas payback: your provider’s solar buyback plan. For the full state picture, see our Texas solar costs and incentives guide.
A 7 kW rooftop system in Houston produces about 9,892 kWh a year (NREL PVWatts v8), and at Texas’s 16.44 cents per kWh residential rate that is roughly $1,626 of grid power you stop buying each year when you use that power at home (EIA, May 2026). Dallas runs higher at about 10,735 kWh and Austin about 10,382 kWh for the same size. That annual offset is the engine behind the payback below, and how much of it you keep depends on your buyback plan.
How much does solar cost in Texas?
Price is quoted in dollars per watt of system size. A typical residential install commonly runs about $2.50 to $3.00 per watt before any incentives. That is a national benchmark, not a Texas filing, so treat the table as a starting point and get itemized local quotes to confirm your own $/W. Your price moves with system size, roof complexity, panel and inverter choice, whether you add a battery, and the installer.
| System size | Fits a home that uses | Estimated installed cost ($2.50 to $3.00/W) |
|---|---|---|
| 5 kW | Smaller bill, roughly $100 to $150/mo | About $12,500 to $15,000 |
| 7 kW | Average bill, roughly $150 to $250/mo | About $17,500 to $21,000 |
| 10 kW | Larger home, AC-heavy summers, or an EV, $250+/mo | About $25,000 to $30,000 |
Cost ranges are a national $/W benchmark for planning, not a guaranteed price. Texas exempts the added home value from a solar system from property tax under Tax Code Section 11.27, so going solar should not raise your property tax bill (DSIRE). Confirm your quote before you budget.
What is the solar payback in Texas?
Payback is cost divided by what you stop paying the utility. In Texas there is a catch that does not exist in net-metering states: the value of the power your roof makes depends on how much you use at home versus how much you export. Texas has no statewide net metering, so exported power is credited by your retail provider’s solar buyback plan, which can pay anything from near the wholesale rate to close to retail, depending on the contract (DSIRE Texas). The table below assumes you self-consume most of your production at the 16.44 cents per kWh retail rate; heavy exporters on a low buyback plan will see a longer payback.
| System size | Estimated annual production (Houston) | Estimated yearly bill offset | Simple payback |
|---|---|---|---|
| 5 kW | About 7,066 kWh | About $1,160 | About 10 to 13 years |
| 7 kW | About 9,892 kWh | About $1,630 | About 11 to 14 years |
| 10 kW | About 14,132 kWh | About $2,320 | About 12 to 15 years |
Estimates, not a guarantee. Production is NREL PVWatts v8 for Houston scaled by system size and priced at the current EIA Texas rate; Dallas and Austin run a little higher. Because Texas has no 1:1 net metering, exported power is credited at your provider’s buyback rate, which is often below retail, so a larger system that exports more of its output tends to pay back slower. Rates, production, and prices vary, so verify your own numbers.
What moves your payback in 2026
Four things decide where you land in that window:
- Your solar buyback plan. This is the biggest Texas variable. In the deregulated ERCOT market you pick a retail electric provider, and only some offer a strong solar buyback that credits exports near retail. Compare buyback plans the way you compare quotes, because a weak one can add years to your payback (DSIRE Texas). For how export credits work in general, see how net metering credits your solar exports.
- How much power you use at home. Because exports are often paid below retail, the power you consume the moment your panels make it is worth the most. High daytime and summer-AC use, or a battery that shifts solar into the evening, raises the share you keep at full retail value and shortens payback. For how storage changes the cost and payback math here, see our Texas solar batteries guide.
- Your production. Roof pitch, orientation, and shading swing output. Texas sun is strong, but estimate yours with NREL’s free PVWatts calculator before you size a system.
- No federal credit in 2026. The 30% federal Residential Clean Energy Credit (Section 25D) ended for expenditures made after December 31, 2025, under the One Big Beautiful Bill Act, so a Texas homeowner buying with cash or a loan in 2026 cannot claim it (IRS). See what the federal solar tax credit change means in 2026.
The state side is lean, and that is the honest part. Texas has no state income tax, so there is no state solar income-tax credit to lower your cost, and there is no statewide solar rebate. What the state does give you is a property-tax exemption on the value solar adds to your home under Tax Code Section 11.27, so the system should not raise your property tax bill (DSIRE). Beyond that, some cities and utilities run their own local rebates, and those change often, so verify what is open in your area before you count on it. For the full breakdown, see our Texas solar incentives guide for 2026.
See your solar cost and payback for your ZIP code
Prices, buyback plans, installer availability, and electric rates change by provider and location across Texas. Enter your ZIP and we will match you with licensed installers who serve your area so you can compare real quotes.
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How you pay changes the cost you carry
The sticker price is one thing; how you finance it decides your out-of-pocket and your payback.
| How you pay | Up-front cost | Best when |
|---|---|---|
| Cash | Full system price | You want the shortest payback and the most lifetime savings |
| Solar loan | Little or none, financed over time | You want to own the system with low money down |
| Lease or PPA | $0-up-front where you qualify | You want no out-of-pocket cost and a lower or fixed power price without owning |
A lease or PPA has no up-front cost, but the company owns the panels, terms typically run 20 to 25 years and may include an annual escalator, and total payments can exceed a cash purchase. No 2026 Texas homeowner gets the federal residential credit, since that credit ended after December 31, 2025. For a full payback breakdown, see how the solar payback period works, and for a wider view of a Texas roof, see our Texas home solar overview.
Frequently asked questions
How much does solar cost in Texas?
Installed home solar commonly runs about $2.50 to $3.00 per watt before incentives, so a 5 kW system is roughly $12,500 to $15,000, a 7 kW system is about $17,500 to $21,000, and a 10 kW system is about $25,000 to $30,000. Those are national planning benchmarks, not a Texas price filing, so get itemized local quotes to confirm your own dollars per watt. Texas exempts the added home value from property tax under Tax Code Section 11.27.
What is the payback on solar in Texas?
Assuming you use most of your power at home, simple payback usually lands near 11 to 14 years at the state’s 16.44 cents per kWh rate. A 7 kW system in Houston produces about 9,892 kWh a year (NREL PVWatts v8), roughly $1,630 of grid power at today’s rate (EIA, May 2026). Because Texas has no 1:1 net metering, your real payback depends on your provider’s solar buyback plan and how much power you self-consume.
Does Texas have net metering?
No, Texas has no statewide net metering mandate. In the deregulated ERCOT market, exported power is credited by your retail electric provider’s solar buyback plan, and those plans vary widely, from near the wholesale rate to close to retail. Verify the buyback terms of any plan before you switch, because a weak one can add years to your payback (DSIRE Texas). Austin Energy, CPS Energy, and other municipal utilities set their own rules.
Is there a Texas solar rebate or state tax credit in 2026?
Texas has no state income tax, so there is no state solar income-tax credit, and there is no statewide solar rebate. The state does exempt the added home value from a solar system from property tax under Tax Code Section 11.27, so solar should not raise your property tax bill (DSIRE). Some cities and utilities run their own local rebates that change often, so verify what is open in your area.
Does a Texas homeowner qualify for the federal solar tax credit in 2026?
Not as a homeowner buying in 2026. The 30% federal Residential Clean Energy Credit (Section 25D) ended for expenditures made after December 31, 2025, under the One Big Beautiful Bill Act, so a cash or loan buyer cannot claim it. A separate commercial credit (Section 48E) can apply to leased and PPA systems, but the business that owns the system claims it, not the homeowner.
Reviewed by the MySolarFY team. Cost and payback figures are estimates built from NREL PVWatts v8 production and the EIA Texas residential rate, with incentive and net-metering facts verified against DSIRE and IRS sources as of August 2026; prices, production, buyback plans, and programs change, so confirm current numbers with local installer quotes and each source 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, 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. Homeowners do not get the federal residential credit that ended after December 31, 2025. Solar panels are not free and monthly payments apply. Cost, savings, payback, eligibility, incentives, and rates vary and are not guaranteed. See our full disclaimer.
