Going Solar in Texas: A Complete Guide for 2026
Texas, the Lone Star State, is a national solar powerhouse with 5.5 peak sun hours daily and electricity rates of $0.13/kWh. No state income tax simplifies federal incentive claims, and the deregulated market offers competitive options. From Houston to Dallas to Austin to San Antonio, Texas leads the nation in solar growth and installed capacity.
Texas Solar Market
Texas ranks among the top 5 states for installed solar capacity. The deregulated electricity market allows competitive retail providers. Oncor, CenterPoint, and AEP Texas serve most of the population with varying net metering policies. Austin Energy offers some of the state's best buyback programs. Battery storage is increasingly popular for grid resilience.
Financial Benefits of Solar in Texas
The 30% Federal ITC provides significant savings with no state income tax complications. Property tax exemption prevents increased taxes on solar improvements. Various utility rebates may be available. Texas's competitive installer market keeps prices among the nation's lowest.
β Texas Solar Savings
- β’ Monthly Savings: $120
- β’ Annual Savings: $1,440
- β’ 25-Year Savings: $30,600
Major Cities for Solar in Texas
Houston, Texas's largest city, leads with CenterPoint service. Dallas/Fort Worth with Oncor has massive adoption. Austin offers excellent Austin Energy programs. San Antonio with CPS Energy and El Paso with abundant West Texas sun are thriving markets.