As of August 2026, the key Texas solar statistics: the average residential electricity rate is about 16.4 cents per kWh (EIA), a typical 7 kW rooftop system produces about 9,892 kWh a year (NREL PVWatts v8), and installed cost runs $2.60 to $3.20 per watt. Texas has no statewide net metering in the deregulated ERCOT market, so your export credit comes from a retail electric provider’s solar buyback plan, while a state property-tax exemption shields the added home value. Texas holds about 53,600 MW of installed solar capacity, second only to California (SEIA, 2026).
Updated for 2026.
Key statistics: Texas solar at a glance (2026)
Key numbers (Texas, 2026)
- Average residential rate: 16.4 cents per kWh
- Typical system size: 7 kW
- Typical annual production: 9,892 kWh per year
- Typical installed cost: $2.60 to $3.20 per watt
- Estimated system cost: $18,200 to $22,400
- Installed solar capacity: about 53,600 MW, 2nd in the nation
- Simple payback: about 12.5 years
According to MySolarFY’s analysis (August 2026), a typical 7 kW system in Texas produces about 9,892 kWh a year, offsetting power that costs about 16.4 cents per kWh. These are our own compiled figures for Texas; see Methodology below for exactly how each was produced. For the statewide rules behind these numbers, see our Texas solar guide.
| Metric | Value | Source (dated) |
|---|---|---|
| Average residential rate | 16.4 cents per kWh | EIA, as of May 2026 |
| Typical system size | 7 kW | MySolarFY, typical residential array |
| Typical annual production | 9,892 kWh per year | NREL PVWatts v8, as of August 2026 |
| Typical installed cost | $2.60 to $3.20 per watt | MySolarFY cost range, as of August 2026 |
| Estimated system cost | $18,200 to $22,400 | MySolarFY, 7 kW, as of August 2026 |
| Installed solar capacity (statewide) | about 53,600 MW, 2nd nationally | SEIA, as of 2026 |
| Simple payback | about 12.5 years | MySolarFY analysis, as of August 2026 |
Every figure is dated and attributed. Rate is the EIA residential average for Texas; production is a modeled NREL PVWatts v8 run for a 7 kW array; installed capacity is SEIA’s statewide total; cost and payback are MySolarFY estimates for planning, not a quote. Confirm current terms before you decide.
Texas is the country’s second-largest solar market and its fastest-growing one. The state holds about 53,600 MW of installed solar capacity, trailing only California, and it leads the nation in new capacity added each year (SEIA, as of 2026). Most of that growth is utility-scale, but rooftop economics for a Texas homeowner still come down to your rate, your production, and the buyback plan you choose.
Solar cost and payback by city in Texas
Production and payback vary within a state because the solar resource and the local rate shift by location. The table below models a 7 kW system for representative Texas cities using NREL PVWatts v8.
| City | System size | Annual production | Est. system cost | Simple payback |
|---|---|---|---|---|
| Houston | 7 kW | 9,892 kWh per year | $20,300 | about 12.5 years |
| Austin | 7 kW | 10,382 kWh per year | $20,300 | about 11.9 years |
| San Antonio | 7 kW | 10,478 kWh per year | $20,300 | about 11.8 years |
| Dallas | 7 kW | 10,735 kWh per year | $20,300 | about 11.5 years |
Production is a modeled NREL PVWatts v8 run per city ZIP; cost and payback are MySolarFY estimates that hold today’s rate flat and ignore financing. A written quote for your roof beats any table.
A note on those payback figures. They divide the net system cost, about $20,300 after the federal 25D residential credit ended December 31, 2025, by a first-year value of roughly 9,892 kWh times the 16.4 cents per kWh retail rate, about $1,624 a year, which lands near 12.5 years for Houston. Texas has no guaranteed one-for-one net metering, so your real credit depends on the solar buyback plan you choose. A retail-match plan lands close to this estimate, while a wholesale-only plan pays less and stretches the payback out. The buyback plan you pick is the single biggest lever on your Texas payback.
Utility rate and net metering comparison
Your utility sets the delivery rate and, outside the deregulated market, administers net metering, which is the credit you earn for the power your roof sends back to the grid. See how net metering credits your solar exports for the mechanics.
| Utility | Residential rate | Net metering treatment |
|---|---|---|
| Oncor (Dallas-Fort Worth, deregulated) | Delivery only; your rate is set by the retail electric provider you choose | No mandated net metering; export credit depends on your REP’s solar buyback plan |
| CenterPoint Energy (Houston, deregulated) | Delivery only; your rate is set by the retail electric provider you choose | No mandated net metering; export credit depends on your REP’s solar buyback plan |
| Austin Energy (municipal) | Bundled municipal rate; no retail choice in this territory | Value of Solar tariff credits exports at about 9.7 cents per kWh, not one-for-one net metering |
| CPS Energy (San Antonio, municipal) | Bundled municipal rate; no retail choice in this territory | Net metering near full retail for residential systems up to 25 kW |
| El Paso Electric (regulated, non-ERCOT) | Regulated bundled rate | Utility-specific net metering and net billing rules; confirm the current tariff |
Net metering rules are set by state law, the utility commission, or your retail electric provider, not the installer. Confirm your utility’s or REP’s current tariff before you size a system.
Texas solar incentive stack (2026)
State programs, utility buyback plans, and any local rebates make up the Texas incentive stack. These go to the system owner, so on a lease or PPA the company that owns the panels keeps the incentive while the bill credit follows your account.
Solar property tax exemption
100% exemption from property tax on the added home value from a solar energy device, so a system that raises your appraised value does not raise your property tax bill (active) (Texas Comptroller, Texas Tax Code Section 11.27, as of August 2026)
No state income-tax credit
Texas has no state personal income tax, so there is no state income-tax credit for solar. The savings come from the exemptions, buyback or net-metering credits, and lower bills instead (IRS Texas state tax page, as of August 2026)
Retail electric provider solar buyback plans
In the deregulated ERCOT market that covers most of the state, retail electric providers offer solar buyback plans that credit the power your roof exports. Credit rates range from wholesale to a full retail match, so the plan you pick matters (active) (Public Utility Commission of Texas, as of August 2026)
Municipal and regulated utility programs
Austin Energy (Value of Solar), CPS Energy in San Antonio (net metering up to 25 kW), and El Paso Electric run their own solar programs outside the deregulated market (active) (Austin Energy, CPS Energy, El Paso Electric, as of August 2026)
The federal homeowner credit has ended, but Texas’s programs have not. The 30% federal Residential Clean Energy Credit (Section 25D) ended December 31, 2025, so a Texas homeowner who buys solar with cash or a loan in 2026 cannot claim it (IRS Residential Clean Energy Credit, as of 2026). The property-tax exemption and the utility buyback plans listed above were not affected by that change. For the full timeline, see what the federal solar tax credit change means and our state solar incentives overview.
Methodology and sources
- Electricity rate: the latest EIA residential retail price for Texas (EIA retail sales, as of May 2026).
- Production: modeled with NREL PVWatts v8 for a 7 kW south-facing array at each city ZIP (NREL PVWatts v8 documentation, as of August 2026).
- Installed capacity and ranking: the Solar Energy Industries Association state market data for Texas (SEIA Texas, as of 2026).
- Cost and payback: MySolarFY estimates. Installed cost uses a cost-per-watt range informed by the DataForSEO cost SERP for Texas. Simple payback divides the net system cost by the first-year value, where first-year value is production times the EIA residential rate as a retail-match proxy. Texas has no guaranteed net metering, so the real credit depends on your buyback plan; we hold today’s rate flat and ignore financing. The federal 25D residential credit ended December 31, 2025, so it is not included.
- Incentives and net metering: the Public Utility Commission of Texas, the Texas Comptroller, and the DSIRE incentive database (DSIRE, as of August 2026).
- Assumptions: a 7 kW system, standard losses, and a south-facing array. Your roof, usage, and buyback plan change the result, so treat these as planning figures, not a quote.
Citing this data
Citing this data?
Cite as: “MySolarFY, Texas Solar Data & Statistics 2026, accessed August 21, 2026.” Data compiled by MySolarFY from EIA (residential electricity rate), NREL PVWatts v8 (modeled production), SEIA (installed capacity and ranking), DSIRE, the Texas Comptroller, and the Public Utility Commission of Texas (incentives and net metering), and DataForSEO (cost SERP). Figures are dated in each table above.
Journalists and researchers may quote these statistics with attribution to MySolarFY and a link to https://mysolarfy.com/texas-solar-data-statistics-2026/.
See what solar programs are available in your Texas ZIP code
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How to choose a solar installer in Texas
Rather than chasing a “best installer” list, screen any company against objective criteria: NABCEP certification, a valid state license, a written workmanship and equipment warranty, real experience with your utility’s or REP’s interconnection, and a transparent quote that uses today’s buyback values. For a checklist, see the right questions to ask a solar installer. MySolarFY matches you with licensed installers that serve your area so you can compare real local quotes side by side, with no obligation.
Related Texas solar guides
Use these companion pages to go deeper on the numbers above:
- Texas solar guide: the statewide overview of costs, incentives, and how to get started.
- Texas solar incentives (2026): the property-tax exemption, buyback plans, and why the federal 25D credit no longer applies.
- Texas solar cost: a closer look at what a system runs and how buyback plans change the math.
- Houston solar: a local, city-level view for CenterPoint-area homeowners.
- Austin solar: how Austin Energy’s Value of Solar tariff works for the capital region.
- Oncor solar: what to expect from interconnection in the Dallas-Fort Worth delivery territory.
- New Jersey solar data and statistics: the same dated, sourced treatment for another state, for comparison.
- Our data and methodology: how MySolarFY sources and models every figure on pages like this one.
Frequently asked questions
What are the key Texas solar statistics for 2026? As of August 2026, the average residential electricity rate is about 16.4 cents per kWh (EIA), a typical 7 kW system produces about 9,892 kWh a year (NREL PVWatts v8), and installed cost runs $2.60 to $3.20 per watt. Texas has no statewide net metering, so export credit comes from a retail electric provider’s solar buyback plan, and the state holds about 53,600 MW of installed solar capacity, second only to California (SEIA, as of 2026).
Does Texas have net metering? Not statewide. Most of Texas is a deregulated ERCOT market where retail electric providers, not the state, set the export credit through solar buyback plans that range from wholesale to a full retail match. Municipal and regulated utilities are the exception: Austin Energy uses a Value of Solar tariff, CPS Energy in San Antonio offers net metering up to 25 kW, and El Paso Electric has its own rules (as of August 2026).
What is the average solar cost in Texas in 2026? A typical residential system in Texas runs about $2.60 to $3.20 per watt installed before any incentives (MySolarFY cost range, as of August 2026). A 7 kW system is a common size for a single-family home. Cost varies with roof, equipment, and installer, so use a written quote for your own numbers.
Did the federal solar tax credit end? Yes for homeowners. The 30% federal Residential Clean Energy Credit (Section 25D) ended December 31, 2025, so a Texas homeowner who buys solar in 2026 cannot claim it (IRS, as of 2026). The Texas property-tax exemption and utility buyback plans were not affected by that change.
Reviewed by the MySolarFY team. Figures were verified against the linked EIA, NREL, SEIA, DSIRE, Texas Comptroller, and Public Utility Commission of Texas sources as of August 2026; rates, incentive values, and buyback terms can change, so confirm current terms before you decide. MySolarFY does not provide tax or financial advice; consult a licensed professional. 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. Solar panels are not free and any monthly payments apply. “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 may include an annual escalator and total payments may exceed a cash purchase, and on a lease or PPA the incentives go to the company that owns the system. Homeowners do not get the federal residential credit that ended after December 31, 2025. Eligibility, savings, incentives, and rates vary and are not guaranteed. See our full disclaimer.
