Solar panels in Texas: cost, payback and the rules that matter
Texas homes pay 16.1¢ per kWh for electricity, the 25th highest of 51, up 5.7% in a year. A typical home needs 22 panels. With no federal tax credit they pay for themselves in about 12.5 yrs.
Four facts that decide solar in Texas
1. The sun. One kilowatt of panels makes about 1,471 kWh a year in the median Texas city, from 1,391 in Conroe to 1,838 in El Paso.
2. The price of electricity. Every kWh your panels make is worth what you would otherwise pay: 16.1¢ in Texas today.
3. What your utility pays for exports. Most Texas utilities still credit exported solar close to the retail rate, but rules differ by utility and change often.
4. Incentives. The 30% federal Residential Clean Energy Credit (IRC §25D) ended for systems whose installation is completed after December 31, 2025 (One Big Beautiful Bill Act, P.L. We don't know of a statewide income-tax credit for home solar in Texas.
Texas's homes
10,992,816 households; 62.6% own their home. 6,263,597 owner-occupied single-family houses: the main market for rooftop solar. The median home was built in 1992; 61.2% heat with electricity.
ACS 2020–2024 5-year estimates, U.S. Census Bureau.
Plan a specific Texas home
Solar in every Texas city with 50,000+ people
| City | Sun hrs/day | kWh per kW | Best tilt | Typical kW | Payback (NM) | Payback (NB) | Solar ¢/kWh |
|---|---|---|---|---|---|---|---|
| Houston | 5.1 | 1,402 | 27° | 9.7 | 13.1 yrs | 21.3 yrs | 11.0 |
| San Antonio | 5.3 | 1,456 | 27° | 9.2 | 12.6 yrs | 20.4 yrs | 10.6 |
| Dallas | 5.3 | 1,473 | 31° | 9.2 | 12.5 yrs | 20.4 yrs | 10.5 |
| Fort Worth | 5.4 | 1,503 | 31° | 8.8 | 12.3 yrs | 19.8 yrs | 10.3 |
| Austin | 5.3 | 1,468 | 28° | 9.2 | 12.5 yrs | 20.3 yrs | 10.5 |
| El Paso | 6.6 | 1,838 | 33° | 7.6 | 10.1 yrs | 16.8 yrs | 8.4 |
| Arlington | 5.3 | 1,491 | 31° | 9.2 | 12.4 yrs | 20.2 yrs | 10.4 |
| Corpus Christi | 5.2 | 1,455 | 24° | 9.2 | 12.6 yrs | 20.5 yrs | 10.6 |
| Plano | 5.3 | 1,472 | 31° | 9.2 | 12.5 yrs | 20.4 yrs | 10.5 |
| Lubbock | 6.2 | 1,731 | 33° | 8.0 | 10.7 yrs | 17.6 yrs | 9.0 |
| Laredo | 5.5 | 1,504 | 25° | 8.8 | 12.2 yrs | 19.7 yrs | 10.2 |
| Irving | 5.3 | 1,484 | 31° | 9.2 | 12.4 yrs | 20.3 yrs | 10.4 |
| Garland | 5.2 | 1,466 | 31° | 9.2 | 12.6 yrs | 20.4 yrs | 10.5 |
| Frisco | 5.3 | 1,476 | 32° | 9.2 | 12.5 yrs | 20.4 yrs | 10.5 |
| McKinney | 5.2 | 1,468 | 31° | 9.2 | 12.6 yrs | 20.4 yrs | 10.5 |
| Grand Prairie | 5.3 | 1,486 | 31° | 9.2 | 12.4 yrs | 20.3 yrs | 10.4 |
| Amarillo | 6.1 | 1,725 | 35° | 8.0 | 10.8 yrs | 17.7 yrs | 9.0 |
| Brownsville | 5.2 | 1,449 | 22° | 9.2 | 12.7 yrs | 20.5 yrs | 10.6 |
| Denton | 5.3 | 1,494 | 32° | 9.2 | 12.4 yrs | 20.2 yrs | 10.4 |
| Killeen | 5.3 | 1,486 | 29° | 9.2 | 12.4 yrs | 20.2 yrs | 10.4 |
| Mesquite | 5.2 | 1,464 | 31° | 9.2 | 12.6 yrs | 20.5 yrs | 10.6 |
| McAllen | 5.4 | 1,478 | 23° | 9.2 | 12.4 yrs | 20.3 yrs | 10.4 |
| Pasadena | 5.1 | 1,410 | 27° | 9.7 | 13.0 yrs | 21.2 yrs | 10.9 |
| Waco | 5.3 | 1,473 | 30° | 9.2 | 12.5 yrs | 20.3 yrs | 10.5 |
| Midland | 6.2 | 1,736 | 32° | 8.0 | 10.7 yrs | 17.5 yrs | 8.9 |
| Round Rock | 5.3 | 1,471 | 29° | 9.2 | 12.5 yrs | 20.3 yrs | 10.5 |
| Lewisville | 5.3 | 1,484 | 31° | 9.2 | 12.4 yrs | 20.3 yrs | 10.4 |
| Carrollton | 5.3 | 1,480 | 31° | 9.2 | 12.5 yrs | 20.3 yrs | 10.4 |
| Abilene | 5.8 | 1,616 | 31° | 8.4 | 11.5 yrs | 18.6 yrs | 9.6 |
| Pearland | 5.1 | 1,408 | 27° | 9.7 | 13.0 yrs | 21.2 yrs | 10.9 |
| College Station | 5.2 | 1,427 | 28° | 9.2 | 12.9 yrs | 20.7 yrs | 10.8 |
| Odessa | 6.3 | 1,746 | 32° | 8.0 | 10.6 yrs | 17.5 yrs | 8.9 |
| New Braunfels | 5.3 | 1,457 | 28° | 9.2 | 12.6 yrs | 20.4 yrs | 10.6 |
| League City | 5.1 | 1,416 | 27° | 9.7 | 13.0 yrs | 21.2 yrs | 10.9 |
| Conroe | 5.1 | 1,391 | 28° | 9.7 | 13.2 yrs | 21.3 yrs | 11.1 |
| Richardson | 5.3 | 1,470 | 31° | 9.2 | 12.5 yrs | 20.4 yrs | 10.5 |
| Tyler | 5.1 | 1,422 | 30° | 9.7 | 12.9 yrs | 21.1 yrs | 10.9 |
| Allen | 5.2 | 1,468 | 31° | 9.2 | 12.6 yrs | 20.4 yrs | 10.5 |
| Beaumont | 5.0 | 1,403 | 27° | 9.7 | 13.1 yrs | 21.3 yrs | 11.0 |
| Edinburg | 5.3 | 1,470 | 23° | 9.2 | 12.5 yrs | 20.3 yrs | 10.5 |
| Sugar Land | 5.1 | 1,404 | 27° | 9.7 | 13.1 yrs | 21.2 yrs | 11.0 |
| Georgetown | 5.3 | 1,475 | 29° | 9.2 | 12.5 yrs | 20.3 yrs | 10.4 |
| Wichita Falls | 5.6 | 1,576 | 33° | 8.8 | 11.8 yrs | 19.3 yrs | 9.8 |
| San Angelo | 5.8 | 1,626 | 30° | 8.4 | 11.4 yrs | 18.5 yrs | 9.5 |
| Temple | 5.3 | 1,470 | 29° | 9.2 | 12.5 yrs | 20.3 yrs | 10.5 |
| Bryan | 5.2 | 1,432 | 28° | 9.2 | 12.8 yrs | 20.7 yrs | 10.8 |
| Leander | 5.3 | 1,481 | 29° | 9.2 | 12.4 yrs | 20.2 yrs | 10.4 |
| Mission | 5.4 | 1,483 | 23° | 9.2 | 12.4 yrs | 20.2 yrs | 10.4 |
| Baytown | 5.1 | 1,410 | 27° | 9.7 | 13.0 yrs | 21.2 yrs | 10.9 |
| Mansfield | 5.3 | 1,490 | 31° | 9.2 | 12.4 yrs | 20.2 yrs | 10.4 |
| Longview | 5.1 | 1,404 | 30° | 9.7 | 13.1 yrs | 21.3 yrs | 11.0 |
| Pharr | 5.4 | 1,477 | 23° | 9.2 | 12.4 yrs | 20.3 yrs | 10.4 |
| Flower Mound | 5.3 | 1,492 | 32° | 9.2 | 12.4 yrs | 20.2 yrs | 10.4 |
| Cedar Park | 5.3 | 1,478 | 29° | 9.2 | 12.4 yrs | 20.3 yrs | 10.4 |
| San Marcos | 5.3 | 1,460 | 28° | 9.2 | 12.6 yrs | 20.4 yrs | 10.6 |
| Missouri City | 5.0 | 1,403 | 27° | 9.7 | 13.1 yrs | 21.3 yrs | 11.0 |
| Harlingen | 5.2 | 1,450 | 23° | 9.2 | 12.7 yrs | 20.5 yrs | 10.6 |
| North Richland Hills | 5.4 | 1,496 | 31° | 9.2 | 12.3 yrs | 20.2 yrs | 10.3 |
| Kyle | 5.3 | 1,462 | 28° | 9.2 | 12.6 yrs | 20.4 yrs | 10.5 |
| Pflugerville | 5.3 | 1,466 | 29° | 9.2 | 12.5 yrs | 20.4 yrs | 10.5 |
| Rowlett | 5.2 | 1,462 | 31° | 9.2 | 12.6 yrs | 20.5 yrs | 10.6 |
| Victoria | 5.2 | 1,440 | 26° | 9.2 | 12.7 yrs | 20.6 yrs | 10.7 |
| Fulshear | 5.1 | 1,407 | 27° | 9.7 | 13.0 yrs | 21.2 yrs | 10.9 |
| Celina | 5.3 | 1,475 | 32° | 9.2 | 12.5 yrs | 20.4 yrs | 10.5 |
| Wylie | 5.2 | 1,461 | 31° | 9.2 | 12.6 yrs | 20.5 yrs | 10.6 |
| Little Elm | 5.3 | 1,482 | 32° | 9.2 | 12.5 yrs | 20.3 yrs | 10.4 |
| Euless | 5.3 | 1,489 | 31° | 9.2 | 12.4 yrs | 20.2 yrs | 10.4 |
| Texas City | 5.1 | 1,425 | 26° | 9.2 | 12.9 yrs | 20.7 yrs | 10.8 |
| Burleson | 5.4 | 1,500 | 31° | 8.8 | 12.3 yrs | 19.8 yrs | 10.3 |
| DeSoto | 5.3 | 1,478 | 31° | 9.2 | 12.5 yrs | 20.3 yrs | 10.5 |
| Port Arthur | 5.1 | 1,422 | 27° | 9.7 | 12.9 yrs | 21.1 yrs | 10.8 |
| Rockwall | 5.2 | 1,458 | 31° | 9.2 | 12.6 yrs | 20.5 yrs | 10.6 |
| Galveston | 5.1 | 1,434 | 26° | 9.2 | 12.8 yrs | 20.7 yrs | 10.7 |
| Sherman | 5.2 | 1,467 | 32° | 9.2 | 12.6 yrs | 20.4 yrs | 10.6 |
| Grapevine | 5.3 | 1,489 | 31° | 9.2 | 12.4 yrs | 20.2 yrs | 10.4 |
| Waxahachie | 5.3 | 1,475 | 31° | 9.2 | 12.5 yrs | 20.3 yrs | 10.5 |
NM = exports credited at retail (net metering); NB = exports at ~30% of retail (net billing). Systems sized to the Texas average home. $3.00/W, cash, 25 years.
Rule changes that affect Texas
All changes and deadlines →- Federal: In-service deadline for the lease/PPA solar credit · Tax credits
- Federal: National data: solar prices fell to a median $3.60 per watt · Prices
- Federal: Construction-start deadline passed for the lease/PPA credit · Tax credits
- Federal: The 30% homeowner solar tax credit is gone · Tax credits
- Texas: Texas solar sellers must register and give you a disclosure statement · Consumer protection
Questions about solar in Texas
How much do solar panels cost in Texas?
A 9.2 kW system, the size the average Texas home needs, costs about $23,000 to $34,500 before incentives in 2026.
Is solar worth it in Texas?
In the median Texas city, solar pays for itself in about 12.5 yrs if exported power earns the retail rate, or 20.4 yrs if it earns about 30% of retail. Most utilities here still offer some form of net metering; check yours.
Is there a solar tax credit in Texas?
We know of no statewide income-tax credit for home solar in Texas; utilities and cities sometimes offer rebates. The 30% federal credit ended for homeowner systems installed after December 31, 2025.
How many solar panels does a Texas home need?
About 22 panels of 420 watts for the state-average 1,096 kWh a month. Sunnier cities need fewer: El Paso gets 1,838 kWh per kW a year, Conroe 1,391.