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City-by-city pricing for 12 Texas metros. Houston averages $2.00–$2.40/W. Dallas $2.05–$2.45/W. Austin $2.10–$2.50/W with a $2,500 rebate. Texas solar costs are 23% below the national average — but the federal 25D tax credit is gone.
2026 Alert: The federal residential solar tax credit (Section 25D) expired December 31, 2025. Homeowners who purchase solar panels with cash or a loan receive $0 in federal tax credits. All prices shown reflect the full installed cost. Lease/PPA arrangements may still access the commercial ITC through the third-party system owner.
Installed costs for a 10 kW residential solar system in each major Texas metro area as of February 2026. Prices include panels, inverter, racking, labor, and permits.
| City | $/W Range | 10 kW Cost | Electric Rate | Sun Hrs/Day | Local Rebate | Payback (yrs) |
|---|---|---|---|---|---|---|
| Houston | $2.00–$2.40 | $22,000 | $0.14/kWh | 5.3 | None | 9-11 |
| Dallas | $2.05–$2.45 | $22,500 | $0.15/kWh | 5.4 | None | 9-11 |
| AustinBest Value | $2.10–$2.50 | $23,000 | $0.12/kWh | 5.5 | $2,500 (Austin Energy) | 6-8 |
| San Antonio | $2.00–$2.40 | $22,000 | $0.13/kWh | 5.5 | Ending (CPS) | 9-11 |
| Fort Worth | $2.00–$2.40 | $22,000 | $0.14/kWh | 5.4 | None | 9-11 |
| El Paso | $1.95–$2.35 | $21,500 | $0.13/kWh | 6 | None | 8-10 |
| Corpus Christi | $1.95–$2.35 | $21,500 | $0.14/kWh | 5.2 | None | 10-12 |
| McAllen | $1.90–$2.30 | $21,000 | $0.14/kWh | 5.5 | None | 9-11 |
| Lubbock | $1.95–$2.35 | $21,500 | $0.13/kWh | 5.7 | None | 9-11 |
| Midland-Odessa | $2.00–$2.40 | $22,000 | $0.14/kWh | 5.7 | None | 9-11 |
| Waco | $1.95–$2.35 | $21,500 | $0.14/kWh | 5.1 | None | 10-12 |
| Amarillo | $1.95–$2.35 | $21,500 | $0.12/kWh | 5.8 | None | 10-12 |
Austin Energy offers a $2,500 solar rebate for residential customers — the only major municipal solar rebate remaining in Texas. Combined with 5.5 peak sun hours per day, Austin delivers the shortest payback period (6-8 years) of any Texas metro despite slightly higher per-watt costs. CPS Energy in San Antonio previously offered solar rebates, but the program is ending.
Prices based on NuWatt Energy installer network data for Texas, February 2026. Actual costs vary by roof condition, equipment brand, and installer. Section 25D residential ITC expired — $0 federal tax credit for cash/loan purchases.
Six factors drive the difference between a $1.90/W and $2.50/W installation. Understanding these helps you evaluate quotes and avoid overpaying.
Larger systems have lower $/W due to economies of scale
Multi-story, steep pitch, tile/slate adds $0.10-0.30/W
Premium panels (REC, LG) vs budget (Longi, Trina)
Austin/DFW slightly higher labor costs
TX permitting is fast (1-2 weeks) and relatively inexpensive
String inverters cheapest, microinverters add cost but better per-panel optimization
Texas is one of the cheapest states in the country for solar panel installation, thanks to a competitive installer market, strong sun exposure, and streamlined permitting.
Texas solar averages $2.20/W compared to the national average of $2.85/W — a savings of $0.65/W or $6,500 on a 10 kW system. This advantage comes from a large, competitive installer market, minimal snow/ice considerations, fast permitting (1-2 weeks in most jurisdictions), and strong insolation across the state. Even without the federal tax credit, Texas remains one of the most cost-effective states for going solar.
More sun = more production per panel = faster payback
Large installer base drives prices down through competition
1-2 week permits reduce soft costs compared to other states
100% exemption under TX Tax Code §11.27 saves thousands
With the federal 25D tax credit gone, these strategies become even more important for lowering your net cost and shortening payback.
Texas has a highly competitive solar installer market. Getting 3-5 quotes typically saves 10-20% compared to accepting the first offer. Compare both price per watt and equipment quality. Online marketplaces and local installers often have different pricing models. Avoid high-pressure sales tactics — any reputable installer will give you time to compare.
Cash purchases give you the highest long-term savings and full ownership. You benefit from the property tax exemption, retain control of your roof, and avoid 20-25 year lease obligations. However, with the 25D ITC expired, leases and PPAs have become relatively more attractive since the financing company can claim the 30% commercial ITC (Section 48/48E) and pass savings through as lower payments. Evaluate both options carefully.
If you are an Austin Energy customer, this is the single largest local incentive in Texas. The $2,500 rebate combined with the property tax exemption makes Austin the best value city in Texas for solar. No other major Texas utility currently offers a comparable solar rebate. CPS Energy in San Antonio had a rebate program, but it is ending.
Texas Tax Code §11.27 provides a 100% property tax exemption for the added value of your solar system. On a $22,000 system with a typical Texas property tax rate of 2.0-2.5%, this saves $8,000-$15,000 over 25 years. You must file with your county appraisal district after installation — it is not automatic. This is the single largest financial incentive available to Texas solar owners in 2026.
In the deregulated Texas market (ERCOT territory), solar buyback rates vary widely by Retail Electric Provider. If your REP offers poor buyback rates, oversizing your system wastes money on excess production you cannot use or sell at a fair price. Size your system to offset 80-100% of your annual usage for optimal ROI. Larger systems have lower per-watt costs, but the savings only matter if the production has value.
Select your city and system size to see estimated costs, production, payback period, and 25-year savings. Accounts for the 25D expiration and Texas 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.
Texas Tax Code §11.27 exempts the full value of your solar system from property taxes. With Texas property tax rates averaging 2.0-2.5%, this saves thousands over the life of the system. The calculator factors this into your 25-year savings estimate.
Common questions about solar panel costs in Texas.
Complete overview of going solar in Texas — costs, incentives, and timeline.
Read guideREP buyback rates, 1:1 net metering vs excess credits, best plans for solar owners.
Read guideHow to file, which counties, and how much you save under Tax Code §11.27.
Read guideWhich financing option makes sense now that the 25D ITC is gone for homeowners.
Read guideHow to qualify for the $2,500 Austin Energy solar rebate, the best incentive in TX.
Read guideSan Antonio solar — CPS Energy rates, ending rebate, and net metering details.
Read guideLast updated: February 17, 2026. Prices, rebate amounts, and utility programs may change. Contact NuWatt Energy or your local utility for current information.
NuWatt Energy works with licensed solar contractors across Texas. Get a free assessment, accurate pricing for your city and roof, and help maximizing your savings — whether you are in Houston, Dallas, Austin, San Antonio, or anywhere in the Lone Star State.