Solar panels in Texas
Key numbers that decide whether solar pays off in Texas. Each figure links to its source and shows when we last checked it.
Last checked:
Average residential electricity rate
14.9¢/kWh
Source: Electric Sales, Revenue, and Average Price 2024, Table 5A: Residential average monthly bill by state · Oct 24, 2026
Peak sun hours per day
5.4 hours
Source: PVWatts v8 (NSRDB PSM V3 TMY-2020). Our runs: 1 kW DC, fixed roof mount, 20 degree tilt, south-facing, 14% losses, 96% inverter efficiency · Oct 24, 2026
Net metering
Varies by utility
How exported solar is credited depends on who supplies your power. In areas open to retail competition, you can shop for an electricity plan that includes a buyback rate; in other areas, ask your utility. City-owned utilities and electric cooperatives set their own buyback rates, and the Public Utility Commission of Texas notes that buyback rates are usually lower than the retail price you pay. Austin Energy, for example, credits all solar production at its Value of Solar rate of 12.89 cents per kWh; unused credits roll over but cannot be cashed out.
Source: Thinking About Solar Panels for Your Home? (consumer guide) · Oct 24, 2026
State and utility incentives
Property tax exemption for solar energy devices (Tax Code 11.27)
The appraised value that a solar energy device adds to your home is exempt from property tax when the system mainly produces power for on-site use. Apply to your county appraisal district with Comptroller Form 50-123.
Oct 24, 2026
Austin Energy residential solar rebate
Austin Energy customers can get a $4,000 rebate for systems larger than 3 kW (up from $2,500 on July 1, 2026). Use a participating contractor and get a rebate confirmation letter before installation.
Oct 24, 2026