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NuWatt designs, installs, and manages solar, battery, heat pump, and EV charger systems across 9 states. One company, one warranty, one point of contact.
Get a Free QuoteTexas solar homes have unique advantages and considerations. Property tax 100% exempt under Section 11.27, TDU interconnection stays with the address, and the buyer gets to choose their own REP and solar buyback plan. But hail disclosure requirements, Tesla VPP non-transferability, and lower electric rates affect the sale strategy. Here is the complete Texas guide.
TX solar homes sell for 2-3% more. Solar is 100% property tax exempt under Section 11.27. The TDU interconnection (Oncor, CenterPoint, AEP, TNMP) stays with the address permanently. The buyer's REP is NOT tied to the property -- they choose their own provider and solar buyback plan. Tesla Electric VPP contracts do NOT transfer; the buyer must apply separately. Texas law requires disclosure of hail damage. HOA cannot ban solar (Property Code Section 202.010). Battery backup is a major selling point given ERCOT grid concerns. Start warranty transfers 30-60 days before closing.
Texas offers several strong advantages for selling a solar home, led by the 100% property tax exemption and one of the simplest interconnection transfer processes in the country.
Property Tax Code Section 11.27 exempts the full appraised value of solar equipment from property taxes. Automatic -- no application needed.
Deregulated market means the buyer can shop for the best solar buyback rate available. This is an advantage, not a limitation.
Interconnection is permanent. No reapplication, no transfer paperwork, no waiting period. Solar works from day one for the buyer.
Property Code Section 202.010 prohibits HOAs from banning solar panels. Buyer can keep the system with full legal protection.
After Winter Storm Uri and ongoing ERCOT concerns, battery backup is a premium selling point in Texas that commands real value.
Texas averages 5+ peak sun hours per day. Strong production numbers make the system economics easy to demonstrate to buyers.
Texas Property Tax Code Section 11.27 provides a complete property tax exemption for solar and wind energy devices. This applies to the full appraised value of the solar panels, inverters, batteries, racking, and related equipment.
The exemption is automatic when the appraisal district identifies the solar installation. Some districts require a one-time application. Verify with your county appraisal district.
Include "Solar panels -- 100% property tax exempt under TX Tax Code 11.27" in your MLS listing. Texas property taxes average 1.6-2.0% of appraised value. A $30,000 solar system being 100% exempt saves the buyer $480-$600 per year in property taxes. Pair this with the electric bill savings and you have a compelling financial story.
In Texas's deregulated electricity market, the Retail Electric Provider (REP) is a contract between the customer and the provider -- it does NOT transfer with the property. When you sell your home, your REP contract terminates. The buyer selects their own REP and chooses a solar buyback plan.
Buyers are not locked into your REP or your rate. They can shop the current market for the best solar buyback plan available. In a competitive deregulated market, this means the buyer gets current (often better) rates rather than inheriting a contract that may have been signed years ago.
| REP | Plan | Buyback Rate | Term | Notes |
|---|---|---|---|---|
| TXU Energy | Solar Buyback 12/24 | 1:1 credit at retail rate | 12 or 24 months | One of the best buyback rates. Credit for excess generation at full retail price. |
| Chariot Energy | Solar Buyback | 1:1 credit at retail rate | 12 months | Competitive rates with straightforward 1:1 crediting. |
| Green Mountain Energy | Pollution Free Solar Buyback | 1:1 credit at retail rate | 12 months | 100% renewable energy company. Good fit for environmentally motivated buyers. |
| Rhythm Energy | Solar Buyback | Varies by plan | 12-24 months | Offers multiple plan tiers with different buyback rates. |
| Reliant Energy | Solar Payback | Bill credit for excess | 12-24 months | Large established REP with dedicated solar support. |
Create a one-page summary of available solar buyback plans in your TDU territory. Include the top 3-5 options with rates and terms. This shows the buyer exactly how they will save money from day one and removes uncertainty about the deregulated market.
NuWatt provides pre-sale system inspections and documentation packages for Texas homeowners. We verify production, confirm warranty status, and check for hail damage before you list.
Get Pre-Sale AssessmentIf your home is enrolled in Tesla Electric's Virtual Power Plant (VPP) program, the buyer needs to know this contract does not transfer. The VPP agreement is between you and Tesla Electric as your Retail Electric Provider -- it terminates when you close your account.
The buyer can apply for their own Tesla Electric VPP plan after closing. Tesla Electric eligibility requires a Powerwall and Tesla solar system -- which the buyer inherits with the home. Alternatively, the buyer can choose any other REP with a solar buyback plan. Include information about both options in your sale documentation.
Texas experiences some of the most severe hailstorms in the country, and solar panels can sustain damage. As a seller, you have legal obligations to disclose known damage.
Before listing, have your solar system inspected for hail damage. This protects you from post-sale liability and gives the buyer confidence.
Disclosure and documentation is key. Show that the system still performs within specifications or that repairs have been completed.
Texas provides strong legal protections for solar panel installations in HOA-governed communities. Property Code Section 202.010 expressly prohibits HOAs from banning solar panels on residential properties.
Include a copy of your original HOA approval letter (if you obtained one) and a reference to Property Code Section 202.010. This assures the buyer that the solar installation has legal protection and the HOA cannot force removal. If your HOA imposed any placement conditions at installation, document those as well.
Unlike the REP (which does NOT transfer), the TDU interconnection is permanently tied to the physical address. The buyer does not need to reapply. Here is the status by TDU territory.
| TDU | Territory | Interconnection | Buyer Action |
|---|---|---|---|
| Oncor | DFW Metroplex, Central TX | Stays with address -- no transfer needed | Buyer selects their own REP. Any REP with a solar buyback plan works. |
| CenterPoint Energy | Greater Houston | Stays with address -- no transfer needed | Buyer selects REP of choice. CenterPoint interconnection remains active. |
| AEP Texas | South Texas, Corpus Christi | Stays with address -- no transfer needed | Buyer selects REP. AEP interconnection remains active. |
| TNMP (Texas-New Mexico Power) | Scattered TX areas | Stays with address -- no transfer needed | Buyer selects REP. Fewer solar buyback options in TNMP territory. |
Texas electricity rates average around $0.14/kWh -- significantly lower than the national average and much lower than Northeast states ($0.18-$0.30/kWh). This means the annual dollar savings from solar are more moderate, which translates to a smaller home value premium.
Moderate rate means moderate solar savings per kWh compared to high-rate states.
For a $400K home: $8,000-$12,000 in additional value with an owned system.
Battery backup commands a premium in TX due to ERCOT grid reliability concerns.
NuWatt offers comprehensive pre-sale solar inspections for TX homeowners. We check for hail damage, verify production, confirm warranty status, and prepare a buyer-ready documentation package.
Schedule System InspectionHow much solar adds to Texas home values
Complete guide to Section 11.27 exemption
Compare REP buyback rates and plans
Panels rated for Texas hailstorms
Complete guide covering all 9 NuWatt states
The buyer perspective for Texas solar homes
Yes. Texas provides a 100% property tax exemption for solar energy devices under Property Tax Code Section 11.27. The appraised value of your solar panels, inverters, batteries, and related equipment is completely excluded from your property tax assessment. This means the buyer will not pay any additional property taxes for the solar system. This exemption is automatic -- the buyer does not need to apply for it. It applies to both rooftop and ground-mount systems.
We provide pre-sale hail inspections, system health checks, and buyer-ready documentation packages for Texas homeowners.