Guide
Is solar worth it in Texas? The 2026 math, run honestly
Updated
Texas has cheap installs and strong sun, but no statewide net metering and, after the 2025 law change, an open question over the federal credit. Here is the arithmetic, with the caveats attached.
The worked example
Take the 8 kW system a $150 monthly bill points at. At typical 2026 Texas pricing it costs $20,000-$25,600 installed before incentives (calculator). At typical Texas production of roughly 1,500 kWh per kW per year (NREL PVWatts) it generates about 12,000 kWh a year. If every one of those kilowatt-hours offset power you would otherwise buy at about 15 cents/kWh (EIA), that is up to $1,800 a year.
| Scenario | Net cost | Simple payback |
|---|---|---|
| Before incentives, low quote | $20,000 | 11.1 years |
| Before incentives, high quote | $25,600 | 14.2 years |
| With 30% credit (if eligible), low | $14,000 | 7.8 years |
| With 30% credit (if eligible), high | $17,920 | 10.0 years |
Why your real number differs
- Exports usually earn less than retail. Texas has no statewide net metering; buyback plans credit exported power at anywhere from near-retail to wholesale rates, so the $1,800 ceiling only holds if you use most of your generation or hold a strong plan. See our buyback plan guide.
- The federal credit is no longer a given. 2025 legislation ended the residential credit for property placed in service after 2025; the rows above show both cases. Read the credit guide before assuming 30%.
- Price per watt is negotiable. The spread between $2.50 and $3.20 per watt on 8 kW is $5,600, often the difference between a 8-year and an 11-year payback. Get at least three quotes.
- Financing costs erase savings. A solar loan's interest and dealer fees can add 20-40% to the effective system cost; run payback on the financed total, not the cash price.
- Panels outlast the payback. Most panels carry 25-year performance warranties, so even a 12-year payback leaves a decade of largely free generation, if you stay in the house.
The Texas-specific positives
- The added home value is 100% exempt from property tax under Tax Code Section 11.27 (Texas Comptroller), so the appraisal district cannot tax the system, apply for the exemption.
- Installed prices in Texas run below the US average thanks to a large, competitive installer market.
- High summer usage means self-consumption is easier to achieve than in mild climates, which protects savings from weak buyback rates.
Typical 2026 figures throughout; your quotes, rate and plan decide the real answer. Run the calculator with your own bill, then check payback against your actual electricity plan.