Solar in Texas: Costs, Electricity Rates & Solar Buyback (2026)
Texas is a large and fast-growing solar market, but the economics are highly dependent on your utility territory and electricity plan. Unlike California, Texas does not have one statewide residential buyback rate that applies to every homeowner.
Texas solar at a glance
| Metric | Latest figure used |
|---|---|
| Residential electricity price | 15.94¢/kWh (July 2026) |
| 2024 average retail price | 9.79¢/kWh |
| Solar market structure | Utility territory and retail electricity plan matter significantly |
| Key consideration | Compare export/buyback terms, not just the advertised solar price |
EIA’s July 2026 preliminary figure puts Texas residential electricity at 15.94¢/kWh. EIA notes that average retail prices are not the same thing as an individual utility’s rate plan.
How much does solar cost in Texas?
Texas solar costs depend on system size, equipment, roof conditions, labor, permitting, financing and whether you add storage. The most useful way to compare quotes is to look at total cash price, price per watt, system size and estimated annual production together.
Use our Solar Cost Calculator →
Why your Texas utility matters
Texas electricity markets are not uniform. Homeowners may have different retail electricity providers, utilities and contract structures depending on where they live. The value of excess solar can therefore differ substantially between plans.
Before buying solar, check your utility’s interconnection requirements and the exact terms for exported electricity in your electricity plan. Do not assume that every Texas solar customer receives one-for-one retail credit for excess generation.
Is a battery worth it in Texas?
A battery can increase the amount of solar energy you use at home and provide backup power during outages. It can be particularly useful when the economics of exporting excess solar are less attractive than using that energy later.
Compare usable kWh capacity, power output in kW, backup loads, warranty, round-trip efficiency and total installed cost.
Read our Home Battery Sizing Guide →
Texas solar payback
- Use your actual annual electricity consumption.
- Estimate annual solar production for your location.
- Estimate how much generation you will consume directly.
- Model the value of exported electricity under your actual plan.
- Subtract the net project cost you expect to pay.
- Compare the result with financing costs and battery costs, if applicable.
Learn how solar payback works →
What to compare in Texas solar quotes
- Total cash price and price per watt
- System size and annual production estimate
- Panel, inverter and battery equipment
- Interconnection assumptions
- Export/buyback terms
- Financing APR, term and total payments
- Warranties
- Installer experience in your utility territory
Bottom line
Texas can be attractive for solar because of abundant sunshine and a large residential market, but your electricity plan and export compensation can materially change the economics. Evaluate the system around your own usage and utility territory rather than using a statewide payback number.