Solar Companies in Texas
5.5 hrs/day
Peak Sun Hours
$0.13/kWh
Electricity Rate
$12,180
Avg. System Cost (6kW)
Texas is the second-largest solar market in the United States by installed capacity, driven by abundant sunshine, a massive population, and competitive installation costs. The state averages 5.5 peak sun hours per day, with west Texas and the Rio Grande Valley receiving even more. Texas has a unique deregulated electricity market where retail electricity providers (REPs) compete for customers in most of the state, creating opportunities for solar buyback plans that function similarly to net metering.
Unlike most states, Texas does not have a statewide net metering mandate. Instead, some REPs in the ERCOT market offer solar buyback plans that credit excess generation at varying rates. Municipal utilities like Austin Energy and CPS Energy (San Antonio) operate outside the deregulated market and offer their own solar programs and rebates. The property tax exemption for solar systems applies statewide, ensuring your home value increases without higher property taxes. Electricity rates average about $0.13/kWh, though the deregulated market means prices vary widely by plan and provider.
Houston, Austin, San Antonio, Dallas, and Fort Worth are the largest markets. A typical 6kW system costs about $12,180 after the federal credit - among the lowest in the nation due to the competitive installer market. Payback periods range from 7-12 years depending on the buyback plan and location. The February 2021 winter storm that caused widespread blackouts accelerated interest in solar-plus-battery systems, with many Texas homeowners now viewing solar as essential infrastructure for grid resilience.
Solar Incentives in Texas
Federal ITC: 30% tax credit on total system cost (through 2032)
Net Metering: None
State Tax Credit: No state-level credit
Texas has no statewide net metering requirement, but some retail electricity providers offer buyback plans for solar exports. Several utilities offer rebates: CPS Energy (San Antonio), Austin Energy, and Oncor provide incentives. Property tax exemption applies to solar equipment value.