Data page · South region
Solar Panel Cost in Texas (2026)
A typical Texas rooftop system costs around $2.55/W cash, installed, before incentives — with most quotes landing between $2.36/W and $2.95/W. The federal residential tax credit is $0 for 2026 installations (it ended 12/31/2025).
Market estimate · compiled 2026-08 · sources: marketplace reports, NREL, EIA, state programs — see methodology.
The federal residential solar tax credit (30% §25D) ended December 31, 2025.
Under the One Big Beautiful Bill Act, systems placed in service on or after January 1, 2026 do not qualify for the residential credit. Systems installed and operational by December 31, 2025 can still be claimed at 30% on the 2025 return. Commercial and third-party-owned (lease/PPA) projects may qualify under §48E — see the federal incentives page.
Status verified 2026-08-21. Confirm your circumstances with a qualified tax professional.
Typical cash price / watt
$2.55
range $2.36–$2.95 $/W
10 kW system (gross)
$25,500
$23,600–$29,500 · before incentives
Avg electricity rate
16.44¢/kWh
EIA May 2026 · avg use 1096 kWh/mo
Export / net-metering
varies
Deregulated market: most utilities/REPs offer retail 1:1 net metering up to system-size ca…
Cost by system size
Gross installed cash price, before incentives. Net cost in 2026 = gross − $0 federal − any verified state/local incentive (see below).
Solar resource & economics
- Production factor (est.)
- 1601 kWh/kW/yr
- 10 kW annual production (est.)
- 13,769 kWh
- Year-1 savings for 10 kW at avg rate, 35% self-use
- $1,896
- Simple payback (net cost ÷ Yr-1 savings, rough)
- ≈ 23 yrs
These are rough planning numbers. Model your exact scenario in the price calculator — assumptions are visible and adjustable.
Export policy detail
Deregulated market: most utilities/REPs offer retail 1:1 net metering up to system-size caps; terms depend on your REP and delivery utility — verify.
Why it matters: if exports are credited at the retail rate (1:1 net metering), every kWh counts the same. Under net billing or avoided-cost export, storing daytime power (battery) or shifting use matters far more. Your utility’s tariff — not the state average — decides this. Utility records
Incentives in Texas (status-aware)
Property tax exemption for solar
CurrentExempt from appraised value (local option)
Confirm your taxing district participates.
Source: Texas Tax Code §11.27 · Last checked 2026-08-21
Sales tax exemption for solar equipment
CurrentExempt from Texas state sales tax
Confirmed current.
Source: Texas Comptroller · Last checked 2026-08-21
Tax exemptions: Property tax — current: Exempt from appraised value (local option; school portion statewide). Sales tax — current: Solar equipment exempt from state sales tax.
Federal residential credit (§25D): expired 12/31/2025 — $0 for 2026 installations. Commercial/third-party-owned projects: see federal incentives.
Local considerations
- Fierce competition and big sun → some of the lowest $/W in the US.
- High cooling load (1,096 kWh/mo avg) drives self-consumption.
- Export value depends on which REP/plan you pick — compare plans, not just installers.
- Grid reliability events (ERCOT) make batteries attractive for backup.
Battery note: batteries add roughly $1,000–$2,000/kWh installed and rarely pay for themselves on energy savings alone. In Texas, storage value depends on your export policy (varies), TOU rates and outage risk — model it in the battery calculator.
Nearby states
Next steps
Every estimate on this page is a planning range — only a site inspection and real quote give an exact price.
Data sources: EIA Electric Power Monthly (rates, May 2026) · NREL (solar resource) · marketplace cost reports & state programs (cost estimates, 2026) · incentive records last checked 2026-08-21. Full detail in methodology.