Solar Panels in Texas2026 Cost Guide & Incentives
Average cost, state incentives, payback estimates, and how to find certified installers in Texas.
$16,000–$27,000
Avg system cost
$11,200–$18,900
After 30% ITC
5.3 hrs/day
Peak sun hours
$0.124/kWh
Avg rate
Is Solar Worth It in Texas?
Based on a home with a $150/month electric bill in Texas
Est. system size
6.9 kW
Gross cost
$20,020
Federal tax credit
−$6,006
Net cost
$14,014
Year-1 savings
$1,800
20-year savings
$45,911
Estimated payback: 7.8 years — then 12 years of free electricity.
* Estimates assume $2.90/W installed, 92% solar offset, and 3% annual electricity rate inflation. Get an installer quote to confirm your actual savings.
Texas Solar Incentives & Policies
Federal
Investment Tax Credit (ITC)
30%
of total system cost — off your federal tax bill
Available through 2032
Texas State
State Incentive
Property & sales tax exemptions + Austin Energy & CPS rebates up to $2,500
Additional Texas Solar Policies
Net Metering: Available — excess energy credited to your bill
Property Tax Exemption: Solar system value exempt from property taxes
Sales Tax Exemption: Solar equipment exempt from state sales tax
Solar Installation Cost in Texas by System Size
| System size | Gross cost | After 30% ITC | Year-1 savings |
|---|---|---|---|
| 5 kW | $12,272,800 | $8,590,960 | $1,103,439/yr |
| 7 kW | $17,181,920 | $12,027,344 | $1,544,814/yr |
| 9 kW | $22,091,040 | $15,463,728 | $1,986,190/yr |
| 12 kW | $29,454,720 | $20,618,304 | $2,648,253/yr |
* Costs based on $2.90/W national average. Texas installer pricing may vary ±15%.
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Frequently Asked Questions — Solar in Texas
How much do solar panels cost in Texas?
Solar installation in Texas typically costs $16,000–$27,000 before incentives. After the 30% federal tax credit, most homeowners pay $11,200–$18,900 net.
Is solar worth it in Texas?
Yes — Texas homeowners benefit from 5.3 average peak sun hours per day. The 30% federal ITC combined with property & sales tax exemptions + austin energy & cps rebates up to $2,500 make the financial case strong for most homeowners.
What state incentives are available for solar in Texas?
Property & sales tax exemptions + Austin Energy & CPS rebates up to $2,500. On top of state incentives, all Texas homeowners qualify for the federal 30% Investment Tax Credit (ITC). Your solar system is also exempt from property tax assessment. Solar equipment is exempt from sales tax in ${s.name}.
How long is the payback period for solar in Texas?
Based on Texas's average electricity rate of $0.124/kWh and 5.3 peak sun hours, most homeowners see payback in 7.8–11 years. Systems then produce free electricity for 15–20+ more years.
Does Texas have net metering?
Yes — Texas has a net metering policy that credits your utility bill for excess electricity your system sends back to the grid. This significantly improves your ROI.