Newpowa State Solar Guide

Solar Panels in Texas

Texas sun is excellent, but the incentive playbook is different here. No statewide net metering, property tax breaks that actually matter, and a grid that fails at the worst possible time. Here's what works in 2026.

5.3avg peak sun hours / day statewide
No net meteringERCOT deregulated — shop your REP buyback plan
Federal credit2026 rules changed — verify before buying

1 · Texas solar incentives in 2026

Texas doesn't hand out rebates like other states. The wins come from exemptions and buying smart.

In flux — check IRS

Federal solar tax credit

The 30% Residential Clean Energy Credit schedule was cut short by federal law changes in mid-2026. Whether you can claim it on a 2026 purchase depends on timing — confirm your year on the official IRS page before you budget.

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Property tax exemption

Texas law exempts the added value of a solar installation from your property tax assessment. A $25k system doesn't raise your property tax bill — ever, as long as you own the system.

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Sales tax exemption + no net metering

Solar equipment purchases are exempt from Texas state sales tax. But there is no statewide net metering — you must shop your retail electricity provider (REP) for a solar buyback plan, which range from ~3¢ to ~13¢/kWh.

2 · What that sun feels like where you live

West Texas & the Desert
El Paso, Midland, Lubbock
6.0–6.5 hrs/day
Central Texas
Austin, San Antonio, Waco
~5.3 hrs/day
East Texas & the Gulf Coast
Houston, Dallas, Beaumont
4.5–5.0 hrs/day

5 · Texas solar FAQ

Is the 30% federal tax credit still available in Texas?

The federal credit schedule changed under the July 2026 federal law update. Whether it applies to your purchase depends on timing — check the official IRS page (linked below) for your tax year.

How does Texas net metering actually work?

It doesn't — not statewide. Texas has no mandatory net metering law. Instead, your retail electricity provider (REP) offers a solar buyback plan. Rates range from ~3¢/kWh (near wholesale) to ~13¢/kWh (near retail). Shop carefully — the wrong REP can cut your solar savings by 30–50%.

Do I still save money if net metering is bad?

Yes — because the math in Texas is about self-consumption, not export. Use solar during the day (AC, appliances, EV charging), store what you can, and size your system to offset as much bill as possible rather than oversending. The property tax exemption and sales tax exemption help too.

Why does grid reliability matter for Texas solar?

ERCOT has had rolling blackouts during summer heat and winter freezes. Adding solar + battery storage lets you ride through outages without a generator. Even a basic inverter + battery setup powers essentials when the grid drops.