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Honest guide after residential rebates ended. CPS Energy’s SolarHost program is depleted, the federal 25D tax credit expired, and CPS only pays 3–4¢/kWh for exported solar. Self-consumption strategy is everything now.
CPS Energy residential solar rebates are no longer available
SolarHost funds depleted. SolarHostSA is commercial only. Federal 25D expired Dec 31, 2025.
2026 Reality Check: San Antonio solar customers face two losses: CPS Energy’s residential solar rebate is depleted ($0 available), and the federal residential tax credit (Section 25D) expired December 31, 2025 ($0 for cash/loan purchases). All costs shown reflect the full out-of-pocket price.
CPS Energy once had one of the best solar rebate programs in Texas. Those days are over. Here is the timeline of what happened.
$2,500+ per installation
Reduced / waitlisted
Commercial only
$0
Yes, but the math has changed dramatically. Here is an honest assessment of why solar still works — and what is different now.
Low installation costs ($2.10/W)
Texas has some of the lowest solar costs in the country. San Antonio averages $2.10/W, well below the $2.85/W national average.
5.5 peak sun hours per day
Strong solar resource means high production. A 10 kW system produces ~16,500 kWh annually in San Antonio.
Property tax exemption saves ~$491/yr
Bexar County at 2.23% means your $21,000 system would add ~$491/yr in property taxes without the exemption.
High self-consumption value at 12.5¢/kWh
Every kWh you use from your own panels is worth the full retail rate. This is where the real savings come from.
Battery backup value (ERCOT grid)
Solar + battery provides resilience during ERCOT grid events and maximizes self-consumption.
Federal 25D tax credit: $0
Expired December 31, 2025. No federal credit for cash or loan purchases. This alone added 2-3 years to payback periods.
CPS solar rebate: $0
SolarHost program fully depleted. No replacement program for residential customers.
Poor export rate: 3–4¢/kWh
CPS uses avoided-cost pricing, not net metering. Exported kWh are worth only 25-30% of the retail rate.
Longer payback: 9-11 years
Without rebates or credits, and with a poor export rate, payback takes longer than in Austin or deregulated markets with good buyback plans.
Solar in San Antonio still delivers positive lifetime returns thanks to low installation costs, excellent sun, and the property tax exemption. But the economics are tighter than they used to be. The key to a good return is maximizing self-consumption — use as much of your own solar as possible rather than exporting at 3–4¢/kWh. A battery dramatically improves the math.
Here is the real cost breakdown for a typical 10 kW solar system in San Antonio with CPS Energy service. No sugar-coating.
Annual savings of $1,650–$1,900 depend heavily on how much solar you consume directly vs. export. With 50-60% self-consumption and smart load shifting, you save about $1,650/yr. With a battery boosting self-consumption to 80-90%, savings reach ~$1,900/yr. Without any optimization (30-40% self-consumption), savings drop to ~$1,175/yr and payback extends to 12+ years. Sizing your system correctly and optimizing self-consumption is critical with CPS Energy.
With CPS Energy paying only 3–4¢/kWh for exports, every kWh you use yourself is worth 3–4x more than every kWh you send back to the grid. This section is the most important part of this guide.
Full retail rate avoided. This is real money saved on your CPS Energy bill.
Avoided-cost rate. Worth only 25-30% of retail. Minimize this.
| Scenario | Self-Consumption | Exported kWh | Export Value | Self-Consumed Value | Total Annual Value |
|---|---|---|---|---|---|
| No battery, no load shifting | 30-40% | ~10,000 kWh | ~$350 | ~$825 | ~$1,175 |
| No battery, smart load shifting | 50-60% | ~7,000 kWh | ~$245 | ~$1,200 | ~$1,445 |
| With battery (10-13 kWh)Best | 80-90% | ~2,500 kWh | ~$88 | ~$1,750 | ~$1,838 |
Unlike markets with net metering, oversizing your system on CPS Energy is counterproductive. Each excess kWh exported earns only 3–4¢ instead of the 12.5¢ you would save by consuming it. Size your system to cover daytime load — typically 60-80% of total annual usage for homes without batteries. This maximizes the value of every panel.
A 10–13 kWh battery stores midday solar excess and discharges it in the evening when your home needs power. This can push self-consumption from 40-60% up to 80-90%, adding ~$400–$650/yr in value. Combined with backup power during grid outages, a battery is highly justified on CPS Energy.
Run your dishwasher, washing machine, dryer, and pool pump during peak solar hours (10 AM – 3 PM). Smart plugs, programmable timers, and Wi-Fi thermostats make this easy. Pre-cooling your home in the afternoon (before solar production drops) reduces evening AC demand. Even small shifts add up to 10-15% more self-consumption.
If you have an EV, schedule charging for solar hours. A typical EV charging at Level 2 (7.6 kW) for 3–4 hours during peak solar absorbs 23–30 kWh per session — energy that would otherwise be exported at 3–4¢/kWh. At 12.5¢/kWh avoided, this is worth $2.50–$3.75 per charging session.
Both are municipal utilities, but Austin Energy offers dramatically better solar economics. Here is a side-by-side comparison.
| Metric | CPS Energy (San Antonio) | Austin Energy |
|---|---|---|
| Utility Type | Municipal | Municipal |
| Solar Rebate | $0 (depleted) | $2,500 |
| Export Rate | 3-4¢/kWh (avoided cost) | 9.91¢/kWh (value of solar) |
| Electric Rate | ~12.5¢/kWh | ~12.0¢/kWh |
| Avg Install Cost (10 kW) | ~$21,000 | ~$23,000 |
| Net Cost After Rebate | ~$21,000 | ~$20,500 |
| Peak Sun Hours | 5.5 hrs/day | 5.5 hrs/day |
| Payback Period | 9-11 years | 6-8 years |
| Property Tax Exemption | Yes (Bexar 2.23%) | Yes (Travis 1.8%) |
Austin Energy’s $2,500 rebate and 9.91¢/kWh value-of-solar export rate make it the best municipal utility for solar in Texas. CPS Energy’s only advantage is slightly lower install costs in the San Antonio market. If you are comparing the two cities strictly on solar economics, Austin is the clear winner with a 6–8 year payback vs. CPS Energy’s 9–11 years. However, CPS Energy solar still pencils out positively over 25 years — it just takes longer to see the returns.
With no CPS Energy rebate and no federal 25D credit for homeowners, third-party ownership models have become more competitive relative to cash purchases.
A third-party company installs and owns the panels on your roof at no upfront cost.
The system owner claims the 30% commercial ITC (Section 48/48E) because they own the system.
ITC savings are passed to you as lower monthly lease/PPA payments.
You pay a fixed monthly rate that is typically lower than your CPS Energy bill for the same kWh.
The third-party system owner can claim the 30% commercial ITC (Section 48/48E) only for projects that begin construction before July 4, 2026. After that date, the commercial ITC phases down significantly. If you are considering a lease or PPA on CPS Energy, act before this deadline to get the best terms.
A battery is more valuable for CPS Energy customers than for almost any other Texas utility, because it converts low-value exports into high-value self-consumption.
Push self-consumption from 40-60% to 80-90%, adding ~$400–$650/yr in value
Protection during grid events. San Antonio experienced extended outages during Winter Storm Uri.
CPS Energy may launch demand response programs that pay battery owners for grid support
Battery improves solar payback from 11 to 8–10 years by maximizing high-value self-consumption
Without a battery, midday solar surplus gets exported at 3–4¢/kWh. With a battery, you store that surplus and use it at night, saving 12.5¢/kWh. The value gap is 8.5–9.5¢/kWh, making every stored kWh worth 3–4x more than exporting it. Over a year, a 10 kWh battery capturing this difference adds roughly $400–$650 in value.
On Austin Energy, the export rate is 9.91¢/kWh, so the gap between self-consumption and export is only ~2¢/kWh. A battery adds much less financial value because exports are already fairly compensated. The battery is mostly for backup, not economics. On CPS Energy, the battery is an economic tool, not just a backup device.
Common questions about solar with CPS Energy in San Antonio.
City-by-city pricing for 12 Texas metros. See how San Antonio compares.
Read guideCompare REP buyback rates in deregulated markets. CPS is municipal — see how others fare.
Read guideCPS Energy still offers heat pump rebates ($100–$275/ton). Electrify your HVAC.
Read guideAustin’s $2,500 solar rebate — how to qualify for the best incentive in Texas.
Read guideHeat pump pricing across Texas metros. Bundle with solar for all-electric home savings.
Read guideAll Texas solar, heat pump, and energy guides in one place.
View allLast updated: February 2026. Prices, programs, and utility rates may change. Contact NuWatt Energy or CPS Energy for current information.
CPS Energy rebates are gone, but solar still pencils out in San Antonio with the right strategy. Get a free assessment from NuWatt Energy — we will show you exactly how to size your system, maximize self-consumption, and whether a battery makes sense for your home.