Is solar worth it in Texas in 2026?

How Texas pays for your solar power

No statewide rule; set by each utility. Texas has no statewide net metering rule for homes; export pay is set by your retail electric provider's buyback plan or by your city utility (Austin Energy, CPS Energy).

In the calculator, 40% of your solar output is used at home at the retail price and the rest is exported at about 30% of retail, so each solar kWh is worth 58% of the retail price on average. Change it if your utility pays more or less. Method

State or utility incentive	What it is worth
Property tax exemption for solar devices	The added appraised value from a solar device used mainly for on-site energy is exempt from property tax (Tax Code 11.27)

How exports are credited

Texas has no statewide net metering rule for homeowners. The only net metering mandate found in state law is Utilities Code section 39.914, which applies to independent school districts. For everyone else, what you are paid for surplus solar power depends on who sells you electricity. That makes Texas a utility-by-utility market, so the first step is to find out which of the three setups below covers your address.

Deregulated areas (most of the ERCOT grid). Retail electric providers (REPs) choose whether to offer a buyback plan at all, and set their own rates, limits and contract terms. Choose Texas Power, an electricity plan marketplace, listed these plans in a page updated July 7, 2026: TXU Energy Solar Buyback Plus 24 at 6 cents per kWh (up to 100% of energy charges), TXU Solar Buyback Saver 24 at 3.5 cents per kWh on a two-year term, and Gexa Energy Solar Export Saver 12 at 3 cents per kWh on a one-year term. Plans change often, so check the provider’s current Electricity Facts Label before enrolling. Buyback plans are designed for people who already own panels, and the credits typically offset the energy charge on the bill.

Austin Energy (city-owned). Austin uses a Value of Solar rate rather than net metering. The utility meters all solar production and credits 100% of it, not just the exported part, at a flat rate, while charging for all consumption at normal rates. The rate effective October 1, 2026 is 12.89 cents per kWh for systems under 1 MW (it was 9.91 cents per kWh in fiscal year 2026). It is recalculated every three years, and Austin Energy’s page says it is subject to change. Excess credits carry over month to month with no cash value. Batteries are not part of the calculation.

CPS Energy (San Antonio). CPS Energy uses monthly net billing. Power sent to the grid is subtracted from power drawn, and you pay for the net kWh. If you send out more than you draw, the net excess is credited at a low rate. A CPS Energy billing guide shows $0.0165 per kWh from October to May and $0.0202 per kWh from June to September, and says the credit cannot exceed the electric bill, with leftover credit carried to the next month. Those rates come from a sample bill in the guide, so confirm current figures with CPS Energy.

State incentives in 2026

Property tax exemption. Tax Code section 11.27 exempts the appraised value added by a solar or wind-powered energy device that is primarily for on-site energy. Owners apply through the county appraisal district.

Utility rebates. CPS Energy’s residential solar page says it does not currently offer rebates for residential solar. Austin Energy’s page mentions solar rebates for homes and businesses, but their 2026 amounts and availability were not verified here. No statewide rebate or state income tax credit was found.

What it means for payback

Because export credits are low or absent in many Texas territories, the value of a system depends on how much of the output the household uses itself. In Austin, the flat credit applies to all production, so the rate matters more than the timing of use. In CPS Energy territory, power used on site offsets the full energy charge while surplus earns little, so sizing the system to daytime and annual use matters. In REP markets, the buyback rate sets the value of exports, and it varies widely by plan, so compare the whole electricity plan, not only the buyback rate.

Other rules worth knowing

Texas Property Code section 202.010 generally bars a property owners’ association from prohibiting solar energy devices, with listed exceptions such as roofline and placement limits, color of frames, and prior approval requirements. Read the exceptions against your own HOA rules.

Many Texas cooperatives and municipal utilities set their own solar rules. Under section 39.914, municipally owned utilities and cooperatives make their own net metering determinations under federal law, so ask your utility directly.