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6.0 peak sun hours per day. The best solar production in Texas. El Paso Electric is NOT in ERCOT, meaning different rules entirely. At $1.95–$2.35/W with 18,000 kWh annual production from a 10 kW system, El Paso is the solar production champion of Texas, even without rebates or the federal 25D tax credit.
2026 Alert: The federal residential solar tax credit (Section 25D) expired December 31, 2025. El Paso Electric does not offer solar rebates. Homeowners who purchase solar with cash or a loan receive $0 in federal tax credits and $0 in utility rebates. The Texas property tax exemption is the primary financial incentive.
What you actually pay for solar in El Paso in 2026 with no rebates and no federal tax credit. The lowest costs in Texas combined with the highest production.
| System Size | Cost Range | Annual Production | Est. Payback |
|---|---|---|---|
| 6 kW | $11,700–$14,100 | 10,800 kWh | 9-11 yrs |
| 8 kW | $15,600–$18,800 | 14,400 kWh | 9-10 yrs |
| 10 kW | $19,500–$23,500 | 18,000 kWh | 8-10 yrs |
| 12 kW | $23,400–$28,200 | 21,600 kWh | 8-10 yrs |
| 15 kW | $29,250–$35,250 | 27,000 kWh | 8-9 yrs |
Annual savings of $1,854 based on 70% self-consumption at 13¢/kWh retail rate + 30% exported at ~4¢/kWh avoided cost. Property tax savings of approximately $10,131 over 25 years at El Paso County's 2.48% rate. Payback of approximately 11.6 years. Higher production from 6.0 sun hours partially compensates for the lack of rebates and tax credits.
Prices based on NuWatt Energy installer network data for El Paso, February 2026. Costs include panels, inverter, racking, labor, and permits. No federal 25D credit included. Actual costs vary by roof condition and equipment.
El Paso is the only major Texas city that operates outside the ERCOT grid. El Paso Electric connects to the Western Interconnection, the same grid as New Mexico and Arizona. This fundamentally changes how solar works compared to the rest of Texas.
Most Texas solar guides focus on the ERCOT deregulated market where you choose a Retail Electric Provider (REP) and shop for solar buyback plans. None of that applies to El Paso. Here is what is different.
You cannot shop for solar buyback plans like homeowners in Dallas or Houston. El Paso Electric's avoided-cost export rate is fixed at approximately 3-5¢/kWh, and there is no competitive alternative. This makes self-consumption optimization just as important in El Paso as it is in San Antonio with CPS Energy. Size your system to match your usage and minimize exports. The upside: El Paso Electric's regulated, stable rate structure makes long-term savings more predictable than the volatile ERCOT market.
El Paso has the highest solar irradiance of any major Texas city, producing more kilowatt-hours per installed watt than anywhere else in the state.
| City | Sun Hrs/Day | 10 kW Production | 10 kW Cost | Payback |
|---|---|---|---|---|
| El PasoBest Sun | 6 | 18,000 kWh/yr | $21,500 | ~9 yrs |
| Lubbock | 5.7 | 17,100 kWh/yr | $21,500 | ~10 yrs |
| McAllen | 5.6 | 16,800 kWh/yr | $21,000 | ~10 yrs |
| Austin | 5.5 | 16,500 kWh/yr | $23,000 | ~7 yrs |
| San Antonio | 5.5 | 16,500 kWh/yr | $22,000 | ~10 yrs |
| Dallas | 5.4 | 16,200 kWh/yr | $22,500 | ~10 yrs |
| Houston | 5.3 | 15,900 kWh/yr | $22,000 | ~10 yrs |
A 10 kW system in El Paso produces 18,000 kWh per year compared to 15,900 kWh in Houston, a difference of 2,100 kWh annually. At 13¢/kWh retail rate, those extra kilowatt-hours are worth approximately $273 per year in additional savings. Over 25 years, El Paso's superior sun exposure generates approximately $6,800 more value than the same system size in Houston.
El Paso's desert climate creates ideal conditions for solar panels that go beyond just more sunlight.
El Paso averages over 300 sunny days per year, one of the highest in the continental United States. Minimal cloud cover means consistent, predictable solar production year-round.
Average humidity of 30-40% compared to Houston's 75%. Lower humidity means less atmospheric moisture absorbing solar radiation before it reaches your panels. This directly increases power output per peak sun hour.
At 3,740 feet above sea level, El Paso has a thinner atmosphere than coastal Texas cities. This means stronger direct solar irradiance reaching your panels, contributing to the 6.0 peak sun hour average.
Low rainfall means less tree debris and biological growth on panels. However, desert dust can accumulate. Annual or bi-annual panel cleaning is recommended. Most El Paso homeowners need less frequent cleaning than humid-climate systems.
El Paso summers regularly exceed 100°F. Solar panels lose approximately 0.3-0.5% efficiency per degree Celsius above 25°C (77°F). This means peak summer production per panel is slightly reduced despite maximum sun exposure. However, the extremely high irradiance more than compensates for heat losses. Choose panels with low temperature coefficients (look for -0.30%/°C or better) for optimal performance in El Paso's climate.
El Paso County has the highest property tax rate among major Texas metros at 2.48%. This means the 100% solar property tax exemption saves more money here than in any other major Texas city.
El Paso County's 2.48% rate is the highest of any major TX metro, which means the solar property tax exemption is worth more here. Travis County (Austin) at 1.98% saves approximately $8,088 over 25 years on the same system, while El Paso saves $10,131.
Complete installation and pass El Paso Electric interconnection inspection.
Download the Exemption Application for Solar or Wind-Powered Energy Devices from the TX Comptroller.
Submit to the El Paso Central Appraisal District by April 30 of the year following installation.
Verify on your tax statement. Contact EPCAD at (915) 780-2000 if not reflected.
This is not automatic. You must file Form 50-123 with EPCAD after installation. At $533/year, skipping this step costs you real money every year you own the system.
El Paso Electric's interconnection and export credit rules differ from the ERCOT deregulated market. Here is how solar exports work with your only utility option.
Just like CPS Energy in San Antonio, El Paso Electric's low export rate means self-consumption is critical for ROI. Each kWh you use directly saves 13¢. Each kWh you export earns only 3-5¢. Size your system to match 80-100% of your usage. Run heavy loads during peak solar hours. Consider battery storage to shift daytime production to evening use.
El Paso has fewer solar installers than DFW, Houston, or Austin. This means less competition on pricing and potentially longer wait times for installation. Some national installers serve El Paso, and regional companies from Las Cruces and Albuquerque also work in the area. Get at least 3 quotes, including from both local and regional companies, to ensure competitive pricing.
Enter your details to estimate costs, production, payback, and 25-year savings for your El Paso home. Accounts for El Paso Electric rates, 6.0 peak sun hours, no 25D credit, and the property tax exemption.
Estimate your solar cost, payback period, and 25-year savings for any major TX metro.
Federal Residential Solar Tax Credit (Section 25D) Expired
Homeowners who purchase solar with cash or a loan receive $0 in federal tax credits. Section 25D expired December 31, 2025.
CenterPoint delivery area. Deregulated — choose a solar buyback REP for best export value. High humidity reduces panel efficiency slightly. Strong solar irradiance despite cloud cover. Largest TX solar market by installed capacity.
Cost Range
$2.00–$2.40/W
Peak Sun Hours
5.3 hrs/day
Avg Electric Rate
$0.14/kWh
County Tax Rate
2.31%
Annual Production
15,476
kWh/year
Annual Savings
$1,800
per year
Payback Period
12.2
years
25-Year Savings
$65,627
total
Estimates based on average 2026 TX solar pricing, 5.3 peak sun hours/day, 0.5%/year panel degradation, 3%/year electricity rate increase, and TX property tax exemption (Tax Code §11.27). Actual costs vary by installer, roof condition, and system configuration. Section 25D residential ITC expired Dec 31, 2025 — $0 federal tax credit for cash/loan purchases.
The calculator reflects $0 federal tax credit for cash and loan purchases. Section 25D expired December 31, 2025. If you choose a lease or PPA, the third-party system owner may claim the 30% commercial ITC (Section 48/48E) for projects beginning construction before July 4, 2026.
El Paso's 6.0 peak sun hours produce more energy per panel than any other Texas metro. The calculator uses El Paso-specific irradiance data. Your actual production may vary based on roof orientation, tilt angle, and shading.
Common questions about solar panel costs in El Paso.
Compare El Paso solar costs with Houston, Dallas, Austin, San Antonio, and other Texas metros.
Read guideHow to file Form 50-123 and maximize your savings under TX Tax Code Section 11.27.
Read guideComplete overview of going solar in Texas: costs, incentives, timelines, and expectations.
Read guideLast updated: February 18, 2026. Prices, El Paso Electric policies, and property tax rates may change. Contact NuWatt Energy or El Paso Electric for current information.
NuWatt Energy connects you with licensed solar contractors serving the El Paso area. Get a free assessment, accurate pricing for your roof and El Paso Electric account, and help maximizing your 6.0 peak sun hours of production. No high-pressure sales.