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.
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).
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.