Solar Calculator Texas 2026
Texas has no statewide net metering — in the deregulated ERCOT market, your choice of solar buyback plan can matter as much as the panels themselves.
1 Your location & bill
Sets a representative residential rate and sun-hours for your state — edit the rate below to match your actual bill.
US average is ~17.5¢/kWh (2026), from ~12¢ (ND) to ~43¢ (HI). The higher your rate, the faster solar pays back.
2 Federal credit
For owned systems installed in 2026, the calculator applies no federal credit (the 25D residential credit expired end-2025). For a lease/PPA, it applies the credit the provider passes on — set the effective amount below.
Defaults to 0% for owned (2026 reality) and 30% for lease/PPA. Edit if your situation differs (e.g. a state credit, or future federal changes).
3 Net metering
Net metering varies hugely by state and utility. California's NEM 3.0 pays roughly a quarter of retail for exports, which is why self-consumption and batteries matter so much there. Pick what matches your utility.
Share of your solar used on-site (saves full retail). The rest is exported. A battery raises this toward ~70–80%, which matters most under reduced-export rules.
4 System & cost
US residential averages ~$2.50–3.50/W before any credit. Enter your quoted price.
Indicative estimates only. Federal, state and utility rules change and vary widely — net-metering terms and rates differ by utility even within a state. The federal credit situation is in flux; confirm current rules (and your ownership type's eligibility) before deciding. Not tax advice.
How this is calculated
Federal credit (2026): the residential 30% ITC (Section 25D) expired for owned systems placed in service after 31 December 2025. So this defaults to 0% for cash/loan purchases. A lease or PPA can still pass through ~30% because the provider claims the commercial 48E credit (through ~2027) — selecting "Lease/PPA" applies that. Net cost = gross cost − federal credit applied.
Payback = net cost ÷ annual savings; 25-year savings applies modest rate escalation and panel degradation. State rates and sun-hours are representative defaults (EIA-based) — edit them to your actual figures. Verify current federal/state/utility rules before purchasing.
Solar in Texas 2026: Big Sun, No Net Metering Mandate
Texas pairs strong production — roughly 4.5 to 5.5 peak sun hours daily depending on whether you are in Houston or El Paso, with about 5.0 kWh per kW per day a fair statewide planning figure — with residential retail rates that have climbed to roughly 15 to 17 cents per kWh in the deregulated market. That combination makes the raw economics attractive, but Texas is unusual: there is no statewide net-metering law. What you earn for exported energy depends entirely on which retail electricity provider and plan you sign, so run your numbers in the USA solar calculator using an export rate that matches an actual plan, not a hopeful one.
Buyback Plans: The Second Purchase Decision
In ERCOT territory, dozens of retail providers offer solar buyback plans. A few credit exports near the full retail rate (often with caveats like monthly caps, higher base energy charges, or credits that cannot exceed your consumption), while many pay a reduced or wholesale-indexed rate — commonly in the 5 to 12 cent range, with about 9 cents per kWh a reasonable representative figure for 2026. Plans change frequently, so verify current terms with your retail provider before contracting.
- Compare the buyback credit AND the import rate — a generous export rate paired with an 18-cent import rate can lose to a plain plan.
- Municipal and co-op territories (Austin Energy, CPS Energy, many co-ops) set their own programs, including Austin's Value of Solar rate.
- Because export value is uncertain, self-consumption is king: size storage with the battery bank calculator and see whether storage beats a standby unit for outage protection with the generator vs battery comparison.
The 2026 Federal Credit Reality
Be careful with sales pitches: the 30% federal residential credit (Section 25D) ended for owned systems placed in service after December 31, 2025 under the One Big Beautiful Bill Act. Buyers in 2026 get no federal tax credit. Leases and PPAs are the exception — the provider can still claim the commercial 48E credit (expected through roughly 2027) and may pass savings through in your rate. Texas does offer a property tax exemption for the value solar adds to your home.
A Worked Texas Example
An 8 kW system at $2.70 per watt costs about $21,600. At 5.0 sun hours it produces near 14,600 kWh per year. If you self-consume 60% (offsetting 15.5-cent power, about $1,360) and export 40% at 9 cents (about $525), annual savings run near $1,885 — a payback around 11 to 12 years, shorter with a strong buyback plan or higher self-use. Model your own load with the solar savings calculator, and if you drive electric, check the EV solar charging calculator — daytime charging soaks up exports that would otherwise earn only the buyback rate.
Solar calculators for other US states
Localized rates, net-metering and incentive context for more states — or use the national USA solar calculator (all 50 states + DC selectable).
Frequently asked questions
No statewide mandate exists. In the deregulated ERCOT market, export compensation comes from voluntary solar buyback plans offered by retail electricity providers, ranging from near-retail credits to wholesale-indexed rates around 5-12 cents per kWh. Municipal utilities and co-ops like Austin Energy and CPS Energy run their own programs. Always verify current plan terms before signing.
No. The Section 25D residential credit ended for owned systems placed in service after December 31, 2025 under the One Big Beautiful Bill Act. If you buy a system in 2026, there is no federal credit. Leased or PPA systems can still benefit indirectly because the provider may claim the commercial 48E credit and pass some savings through.
Texas is one of the cheaper states to install, with typical turnkey pricing around $2.20 to $2.90 per watt before any incentives — roughly $18,000 to $23,000 for an 8 kW system. Texas also exempts the added home value from property taxes, and some utilities like Oncor territory providers or CPS Energy offer local rebates worth checking.
Compare four things: the export credit rate, the import (consumption) rate, monthly base charges, and any caps on credits. Some plans advertise 1:1 buyback but charge a premium import rate that erases the benefit. Because plans change often and vary by TDU zone, re-shop your plan at each contract renewal just as you would a normal electricity plan.
Sources & standards
Texas has no statewide net-metering mandate, so buyback rates and the federal credit are worth checking directly rather than trusting an old estimate.
- Database of State Incentives for Renewables & Efficiency (DSIRE) — N.C. Clean Energy Technology Center / U.S. DOE
Tracks current Texas solar incentives, property tax exemptions and any local utility rebates referenced above. - Public Utility Commission of Texas (PUCT) — State of Texas
Regulates retail electricity providers and confirms that Texas has no statewide net-metering requirement, the basis for this page's buyback-plan framing. - Electric Reliability Council of Texas (ERCOT) — ERCOT
Grid operator for the deregulated market where retail providers set their own solar buyback rates, as described above. - Home energy tax credits (Residential Clean Energy Credit) — Internal Revenue Service
Official IRS page for the federal solar tax credit — check here for the current credit status referenced in the federal credit section above.