Loading NuWatt Energy...
We use your location to provide localized solar offers and incentives.
We serve MA, NH, CT, RI, ME, VT, NJ, PA, and TX
Loading NuWatt Energy...
Texas has no enabling statute for community solar. No statewide program exists. CPS Energy Roofless Solar is commercial only. Multiple legislative attempts have failed since 2013. Here is an honest look at why Texas lags 42 other states — and what you can do instead.
No Community Solar in Texas: As of February 2026, Texas has no enabling statute for community solar. No statewide program. No residential community solar subscriptions available. 42 other states have some form of community solar — Texas does not.
Community solar allows multiple households or businesses to share the benefits of a single solar installation — typically a large ground-mount or rooftop array in their area. Subscribers receive credits on their electric bill for their share of the solar production, without installing panels on their own property.
A large solar array (typically 1-5 MW) is built in the community. Multiple subscribers share the output. Each subscriber gets a portion of the electricity credits based on their subscription size.
Subscribers receive monthly credits on their electric bill for their share of the solar production. No panels on your roof. No installation. Just sign up and save on your bill.
Renters, apartment dwellers, homeowners with shaded or unsuitable roofs, and anyone who cannot install panels. Community solar democratizes solar access — except in Texas.
42 states have some form of community solar. States like Minnesota, New York, Massachusetts, and Colorado have thriving community solar markets with thousands of subscribers. Texas is one of the few major states without any community solar enabling legislation or statewide program.
Four structural and political factors explain why Texas has repeatedly failed to pass community solar legislation.
Texas uses a deregulated electricity market in 85% of the state (ERCOT territory). Retail Electric Providers (REPs) compete for customers and argue that community solar would bypass the competitive market, undermining their business model. In regulated states, utilities run community solar programs because they are the only provider. In TX, there are 100+ REPs, and none have incentive to sponsor community solar that could benefit competitors.
Community solar requires state legislation that defines how subscribers connect to a shared solar project, how credits flow to subscriber bills, and how the utility or REP processes those credits. Texas has never passed this legislation despite multiple attempts since 2013. Without an enabling statute, there is no legal framework for community solar operation in the deregulated market.
Both delivery utilities (Oncor, CenterPoint, AEP Texas, TNMP) and retail electric providers have opposed community solar legislation. Delivery utilities are concerned about grid integration costs and billing system changes. REPs see community solar as competition that could reduce their customer base. This opposition has been effective in blocking all legislative attempts.
Austin Energy and CPS Energy are municipal utilities outside the deregulated market. They have the authority to create their own programs — but only CPS Energy has launched anything resembling community solar (Roofless Solar, now commercial only). Austin Energy offers its own residential solar rebate and Value of Solar tariff instead.
CPS Energy in San Antonio launched Roofless Solar as a community solar alternative, but it is now limited to commercial customers.
CPS Energy in San Antonio launched Roofless Solar as a community solar alternative, but it is now limited to commercial customers only. Residential participation was previously available but has been paused. Commercial customers can subscribe to a solar block and receive credits on their CPS Energy bill. The program is powered by the Alamo 6 solar farm.
CPS Energy commercial account holders only. Residential subscriptions are not currently available.
Subscribers pay a premium of approximately 2-3 cents/kWh above the standard commercial rate for solar blocks.
Some Texas electric cooperatives in rural areas offer limited shared solar or community solar-like programs for their members. These are small programs outside the ERCOT deregulated market.
PEC serves the Texas Hill Country and has explored community solar options for members. PEC allows members with solar to interconnect and receive credits, though this is individual rooftop solar, not shared. PEC has expressed interest in community solar but has not launched a formal program.
No Active ProgramGVEC serves south-central Texas (Seguin, Gonzales area) and has investigated community solar for rural members. GVEC offers a SolarShare program for members who want to support local solar without installing panels. Limited capacity and subscription availability.
Limited ProgramElectric cooperatives serve approximately 15% of Texas electricity customers, primarily in rural areas. Co-op programs are small-scale and not available in major metro areas (DFW, Houston, Austin, San Antonio).
How does Texas compare to states with successful community solar programs? The contrast highlights what Texans are missing.
| State | Community Solar? | Market Type | Capacity (MW) | Key Feature |
|---|---|---|---|---|
| Texas | Deregulated | 0 | No enabling statute. Multiple failed bills since 2013. | |
| Minnesota | Regulated | 800+ | National leader. First enabling legislation (2013). Xcel Energy virtual net metering. | |
| New York | Mixed | 2,000+ | NY-Sun + VDER. Largest community solar market by subscribers. | |
| Massachusetts | Mixed | 1,500+ | SMART program includes community solar. Strong low-income access. | |
| Colorado | Regulated | 500+ | Xcel Energy community solar gardens. 40% low-income carve-out. | |
| Illinois | Deregulated | 400+ | Proof that community solar works in deregulated markets. Climate and Equitable Jobs Act. |
The most common argument against community solar in Texas is that the deregulated ERCOT market is incompatible. However, Illinois — which also has a deregulated electricity market — passed the Climate and Equitable Jobs Act in 2021 and now has over 400 MW of community solar capacity. The Illinois model uses virtual net metering credits processed through the utility (ComEd, Ameren). A similar framework could theoretically work in Texas through the delivery utilities (Oncor, CenterPoint) even in the deregulated REP market.
The absence of community solar in Texas disproportionately affects certain groups who cannot access rooftop solar.
Over 3.7 million Texas renter households cannot install solar on a roof they do not own. Community solar would give them access to clean energy savings. Instead, their only option is choosing a 100% renewable REP plan, which may cost slightly more.
Multifamily housing residents face shared roofs, HOA restrictions, and structural limitations. Even in owned condos, installing individual solar panels is often impractical. Community solar would allow these residents to subscribe to a shared local project.
Many Texas homes have significant tree coverage, unfavorable roof orientation, or structural issues that make rooftop solar impractical. Community solar would let these homeowners subscribe to a nearby solar project and still benefit from clean energy.
Rooftop solar requires credit approval and either capital or roof ownership. Low-income households are the least able to access these. Community solar programs in other states include low-income carve-outs (40% in Colorado) that guarantee equitable access.
Many small businesses lease their space and cannot install rooftop solar. Community solar would allow small businesses to subscribe to a shared project and reduce their electricity costs without building modifications or landlord approval.
Community solar would create a massive new market for Texas solar developers, installers, and manufacturers. Other states have seen billions in investment from community solar development. Texas is missing out on economic growth and job creation by blocking this market.
Without community solar in Texas, here are the four best alternatives for getting solar benefits — whether you own your home, rent, or have an unsuitable roof.
In the deregulated market, choose a Retail Electric Provider with a competitive solar buyback plan. The best plans offer 7-8.5 cents/kWh fixed export credits or even retail-match (TXU). This effectively gives you the financial benefit of solar without owning panels — you buy electricity at competitive rates and your REP purchases solar on the wholesale market.
A solar financing company installs panels on your roof and you either lease the system (fixed monthly payment) or sign a PPA (pay per kWh generated). The financing company owns the panels and claims the 30% commercial ITC (Section 48/48E). Your savings come from paying less for solar electricity than you would to the grid.
Some Texas electric cooperatives (co-ops) in rural areas offer limited community solar or shared solar programs for their members. These are small-scale programs outside the ERCOT deregulated market. Examples include Pedernales Electric Cooperative and Guadalupe Valley Electric Cooperative.
If you simply want to support solar energy without panels, choose a REP that sources 100% of its electricity from renewable sources. Green Mountain Energy, Chariot Energy, and others offer plans backed entirely by wind and solar. While you are not directly using solar panels, your electricity dollars support renewable generation.
Community solar has been proposed in every Texas legislative session since 2013. Every bill has failed.
Failed in committee. Utility opposition and deregulated market structure cited as barriers.
Passed the House but died in the Senate Utilities Committee. Would have created a pilot program in ERCOT territories.
Both bills failed. Deregulated market REPs argued community solar would distort the competitive market.
No community solar legislation advanced. Legislature focused on grid reliability (SB 3) and market reform.
Filed but did not advance. Continued utility and REP opposition. No enabling legislation passed.
Legislature focused on ERCOT market reforms and reliability. Community solar remains absent from TX policy.
The Texas Legislature meets every two years. The next session begins in January 2027. With growing consumer demand for community solar, falling costs, and 42 states already having programs, there is increasing pressure to pass enabling legislation. However, the same structural opposition from utilities and REPs remains. Watch for bill filings in late 2026 as the session approaches.
Common questions about community solar in Texas.
REP buyback rates, 1:1 net metering vs excess credits, best plans for solar owners.
Read guideWhich financing option makes sense now that the 25D ITC is gone for homeowners.
Read guideComplete overview of going solar in Texas — costs, incentives, and timeline.
Read guideLast updated: February 18, 2026. Community solar policy and program availability may change. Contact NuWatt Energy for help evaluating your best solar options in Texas.
Community solar is not available in Texas, but there are still great options. NuWatt Energy helps homeowners and businesses evaluate rooftop solar, lease/PPA, and REP buyback plans to find the best fit for their situation and budget.