Residential solar in Texas.
Deregulated retail electricity, no statewide net metering, and a surge in backup-power demand after the 2021 winter event. Picking the right installer — and the right retail electricity provider — matters more here than in most states.
Texas is the most complicated solar market we cover. The state doesn't mandate net metering, so the deal you get for excess production depends on your retail electricity provider (REP). Some REPs offer 1:1 buyback. Most credit at wholesale rates. Choose carefully.
What's different about Texas
Deregulated retail market. If you're in deregulated TX (most of the state outside Austin, San Antonio, and El Paso), you choose your retail electricity provider. Some — Green Mountain Energy, Rhythm, Chariot Energy — offer solar buyback plans that credit excess production at retail rate. Most credit at wholesale rates that aren't worth optimizing for.
Municipal utility areas. Austin Energy and CPS Energy (San Antonio) operate their own residential solar incentive programs with rebates and 1:1 buyback plans. Generally favorable for solar economics.
Backup power is a big driver. The February 2021 winter storm and grid event left a million Texas homes without power for days. Battery + transfer switch installs surged afterward and remain the dominant configuration in Texas. Even homeowners who don't care about bill savings are installing for grid resilience.
Federal ITC + property tax exemption. 30% federal ITC. Property tax exemption on the added home value from solar. No state income tax (no state credit either).
What we'd suggest
For a typical Texas premium-suburb household: 8–12 kW of panels paired with a 13.5 kWh battery and a transfer switch for backup power. List price $28,000–48,000. After 30% federal ITC, net roughly $19,600–33,600. Backup-capable battery is the right configuration for most TX installs in 2026 — both for time-of-use shifting and for grid-event resilience. Pair with a solar-friendly REP if you're in deregulated territory.
Vetted installers in Texas
Lone Star Solar Group
Hill Country Solar
Where solar is harder in Texas
- REPs with poor buyback plans. If you're in deregulated TX and locked into a long-term contract with a non-solar-friendly REP, switch your REP before installing solar.
- HOA restrictions. Common in Plano, Frisco, Sugar Land master-planned communities. Texas has solar rights legislation (Property Code §202.010) that protects most installs, but exceptions exist.
- Older roofs. TX summer heat ages shingle roofs faster than most. Replace 20+ year roofs first.
- Hail-prone areas. Most tier-1 panels are rated for 1-inch hail at 50 mph. Areas with regular larger hail (parts of North Texas) — verify panel hail rating with your installer.