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Solar incentives in Texas
What is actually on offer here in 2026 — the state incentive, the federal position, and the export rule, which is usually worth more than either.
The state incentive
Local utility rebates vary. No state credit. Austin Energy, CPS and some co-ops offer their own rebates.
The federal position
§25D, the 30% residential credit, expired for systems placed in service after 31 December 2025 — installed, not merely purchased. §48E did not expire on that schedule, and a company owning panels on your roof under a lease or PPA can still claim it. That asymmetry, not anything specific to Texas, is the largest single change in residential solar economics. The detail, with sources.
Rate schedules and export rules
What your surplus earns is set here, and it is where two identical systems a mile apart stop being comparable.
Texas retail provider — Solar buyback plan
No statewide net metering. Each retailer sets its own buyback, and the ones that pay more charge more. Fixed charge $9.95/month.
Summer Flat $0.17.
Winter Flat $0.15.
Exports: a fixed 4.5¢/kWh buyback, though this varies by retail provider.
Source: Composite of TXU Solar Buyback, Gexa Solar Export Saver and comparable ERCOT plans
Production in Texas
| City | kWh per kW / year | 7 kW system |
|---|---|---|
| Austin, TX | 1,366 | 9,560 |
| Houston, TX | 1,296 | 9,069 |
Policy changes affecting Texas
- The 30% residential solar credit is gone. What replaced it is not a credit.The 4 July begin-construction deadline has passed. What that means for commercial projects.Net billing is the default now, and it changes what a solar panel is for
Work out your own number
Credits are the easy part. What decides payback is how much of your own production you use versus export, hour by hour, against the schedules above.
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