I've spent months untangling Texas's messy solar market — ERCOT deregulation, utility buyback programs, and which REPs actually pay you fairly. Here's what I found.
| Incentive | Type | Amount | Status | Notes |
|---|---|---|---|---|
| Federal ITC (Solar Tax Credit) | Federal tax credit | 30% of system cost | Active | Available to all TX homeowners. Expires Dec 2032. |
| Property Tax Exemption | State tax exemption | 100% of added solar value | Active | Solar cannot increase your property tax assessment. Permanent in state law. |
| Austin Energy Value of Solar Tariff | Utility export credit | ~$0.097/kWh | Active | Austin Energy customers only. One of the best solar programs in Texas. |
| CPS Energy Rebate (San Antonio) | Utility rebate | $2,500 (for 6 kW system) | Active | Budget-limited — apply early. San Antonio CPS customers only. |
| Oncor Solar Buyback (DFW) | Utility program | Varies by REP | REP-dependent | Oncor does not offer net metering. Solar buyback rate depends on your retail provider. |
| ERCOT Market Solar Buyback | Market mechanism | Varies by REP plan | Market-set | Retail electric providers set their own buyback rates. Best REPs: Rhythm, Green Mountain. |
REP = Retail Electric Provider. Most of Texas operates in the deregulated ERCOT market where REPs compete for customers and set their own solar export rates.
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I'll be honest: Texas solar is more complicated than most states. In the ERCOT deregulated market — covering Dallas, Houston, and most of the state — your retail electric provider decides what they'll pay for your excess generation. Some providers, like Rhythm Energy, pay full retail rate. Others pay pennies or nothing at all. I've seen homeowners with identical systems get vastly different returns depending on which REP they happened to sign with.
This isn't a minor detail — it can swing your payback period by 3+ years.
If you're in ERCOT territory, your REP choice matters as much as your installer choice:
If you live in Austin or San Antonio, congratulations — you have it much easier. Austin Energy's Value of Solar Tariff pays ~$0.097/kWh for exports with no guesswork. San Antonio's CPS Energy offers rebates plus decent buyback. These municipal utilities operate outside ERCOT's deregulated chaos, and honestly, their solar economics are 20-30% better than the state average.
Here's something most solar salespeople won't emphasize: battery storage is a stronger financial case in Texas than in states with good net metering. Why? Because without guaranteed buyback rates, storing your excess solar to use during expensive evening hours captures value you'd otherwise lose. Plus, after Winter Storm Uri knocked out power for millions in 2021, backup capability has real value here that it doesn't in milder climates.
I'm not saying everyone needs a battery — but if your REP pays poorly for exports, the math often works out.
| System size | Gross cost | After 30% ITC | Annual savings est. | Payback (est.) |
|---|---|---|---|---|
| 6 kW (small-avg home) | $16,680 | $11,676 | ~$1,050/yr | ~11.1 years |
| 8 kW (average Texas home) | $22,240 | $15,568 | ~$1,400/yr | ~11.1 years |
| 10 kW (larger home) | $27,800 | $19,460 | ~$1,750/yr | ~11.1 years |
| 12 kW (large home) | $33,360 | $23,352 | ~$2,100/yr | ~11.1 years |
Savings assume 85% self-consumption with minimal export credit. Austin/San Antonio customers with favourable export programs typically see payback of 8–10 years instead. Your installer should model your specific utility situation.
Prices vary by 15-20% between installers for the same equipment. Get 3+ quotes to find the best deal in your area.
Compare Texas installer quotes →| Installer | Coverage | Avg rating | TECL licensed | Notes |
|---|---|---|---|---|
| Sunrun | DFW · Houston · Austin · SA | 4.0/5 (12k reviews) | Verified | Lease and PPA options. Large statewide service network. |
| ION Solar | DFW · Houston · Austin | 4.5/5 (6k reviews) | Verified | Fast installation turnaround. Strong post-install support scores. |
| Longhorn Solar | Central Texas | 4.8/5 (2k reviews) | Verified | Top-rated regional installer. Austin Energy approved contractor. My pick for Central TX. |
| Freedom Solar Power | Statewide | 4.7/5 (4k reviews) | Verified | Texas-founded. Authorised SunPower/Maxeon dealer. Excellent warranty terms. |
| Momentum Solar | Houston · DFW | 4.2/5 (3k reviews) | Verified | Competitive pricing. Multiple financing options. Good for budget-conscious buyers. |
Rating data from Google, BBB, and EnergySage. Updated Q1 2026. Always get at least 3 quotes — pricing varies significantly even for identical systems.
Compare up to 3 bids from vetted Texas installers. See real pricing for your specific roof and utility situation.
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Install cost data from EnergySage Q1 2026 market data report. Electricity rates from US EIA monthly data (January 2026). Peak sun hours from NREL PVWatts state averages. Net metering and utility program data from DSIRE and individual utility tariff filings with PUCT. Installer ratings aggregated from Google, BBB, and EnergySage public reviews — no installer has paid for inclusion or ranking position. Last updated March 15, 2026 by Dana Mercer.