Is Solar Worth It in Texas in 2026?
Complete analysis of solar costs, incentives, net metering, and payback for Texas homeowners — without the federal ITC.
Cost Per Watt
$2.90
installed
Electricity Rate
$0.137
per kWh
Payback (No ITC)
13.9 yr
current reality
Payback (With 30% ITC)
9.8 yr
hypothetical
25-Year ROI
79%
return on investment
Incentive Breakdown — Texas
Available incentives for a typical 7kW residential solar system in Texas
Federal ITC (25D)
ExpiredThe federal solar Investment Tax Credit expired on January 1, 2026. No federal credit available for new installations.
State Tax Credit
NoneTexas does not offer a state tax credit for solar installations.
SREC Market
Not AvailableTexas does not have a traditional SREC market.
Property Tax Exemption
Solar system value excluded from property tax assessment
Sales Tax Exemption
No statewide sales tax exemption for solar
Key Incentives: Property tax exemption for solar; Utility rebate of $2,100.
Solar Math — With vs Without Federal ITC
Cost breakdown for a typical 7kW residential system in Texas
2026 Reality (No Federal ITC)
- System Size
- 7 kW
- Cost per Watt
- $2.90/W
- Gross Cost
- $20,300
- Federal ITC
- $0
- Net Cost
- $20,300
- Annual Savings
- $1,455/yr
- Payback Period
- 13.9 years
Hypothetical (With 30% ITC)
- System Size
- 7 kW
- Cost per Watt
- $2.90/W
- Gross Cost
- $20,300
- Federal ITC (30%)
- -$6,090
- Net Cost
- $14,210
- Annual Savings
- $1,455/yr
- Payback Period
- 9.8 years
Impact: Without the federal ITC, Texas homeowners face a 4.1-year longer payback period — paying $6,090 more out of pocket.
Net Metering Policy — Texas
How Texas compensates your excess solar production
No statewide net metering mandate. Export compensation varies by utility and is typically minimal.
Texas has no statewide net metering mandate. Some municipal utilities and co-ops offer buyback programs at varied rates.
Cost Per Watt Benchmark — Texas
Texas Average
$2.90/W
National Average
$3.05/W
Typical 7kW System
$20,300
Texas's average installed cost is below the national average of $3.05/W
Breakeven Timeline
Without the federal ITC, a typical 7kW system in Texas breaks even in 13.9 years. With the former 30% ITC, payback would drop to 9.8 years.
Without Federal ITC
13.9
years to break even
With Former 30% ITC
9.8
years to break even
Production Details
Ready to Go Solar in Texas?
Get free, no-obligation quotes from certified solar installers in Texas and see real pricing for your home.
Get Free Solar Quotes