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...
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 Quote
Solar payback in Texas ranges from 7 years (Austin) to 12+ years (Lubbock). The #1 variable is not your location -- it is your electricity plan. Here is every major Texas city ranked by payback period, with the data to prove it.
People assume solar payback is determined by their city. In Texas, it is determined by their electricity plan. Two neighbors on the same street can have payback periods that differ by 4+ years depending on whether they have a solar buyback plan.
Houston homeowner WITH solar buyback
$0.12/kWh buyback credit + $0.16/kWh self-consumption = ~9.7 year payback
Houston homeowner WITHOUT buyback
$0.00/kWh for excess + $0.16/kWh self-consumption = ~14+ year payback
Sorted by payback period (fastest first). Based on a 10 kW system, cash purchase, no federal ITC. Deregulated cities assume a solar buyback plan is active.
| # | City | Utility | Market | Rate | $/W | Annual Save | Payback | Rating |
|---|---|---|---|---|---|---|---|---|
| 1 | Austin | Austin Energy | Municipal | $0.12 | $3.00 | $4,200 | 7.1 | Excellent |
| 2 | San Antonio | CPS Energy | Municipal | $0.13 | $2.95 | $3,600 | 8.2 | Excellent |
| 3 | Georgetown | Georgetown Utility | Municipal | $0.11 | $3.00 | $3,400 | 8.8 | Good |
| 4 | New Braunfels | NBU | Municipal | $0.12 | $2.95 | $3,300 | 8.9 | Good |
| 5 | Denton | Denton Municipal | Municipal | $0.10 | $3.05 | $3,200 | 9.5 | Good |
| 6 | Houston | CenterPoint (delivery) | Deregulated | $0.16 | $3.10 | $3,200 | 9.7 | Good |
| 7 | Pearland | CenterPoint (delivery) | Deregulated | $0.16 | $3.10 | $3,200 | 9.7 | Good |
| 8 | League City | CenterPoint (delivery) | Deregulated | $0.16 | $3.10 | $3,200 | 9.7 | Good |
| 9 | El Paso | El Paso Electric | Municipal | $0.11 | $2.90 | $3,000 | 9.7 | Good |
| 10 | Fort Worth | Oncor (delivery) | Deregulated | $0.15 | $3.05 | $3,100 | 9.8 | Good |
| 11 | Arlington | Oncor (delivery) | Deregulated | $0.15 | $3.05 | $3,100 | 9.8 | Good |
| 12 | Dallas | Oncor (delivery) | Deregulated | $0.15 | $3.10 | $3,100 | 10 | Good |
| 13 | Sugar Land | CenterPoint (delivery) | Deregulated | $0.15 | $3.10 | $3,100 | 10 | Good |
| 14 | Katy | CenterPoint (delivery) | Deregulated | $0.15 | $3.10 | $3,100 | 10 | Good |
| 15 | Garland | Garland Power & Light | Municipal | $0.10 | $3.05 | $3,000 | 10.2 | Average |
| 16 | Round Rock | Oncor (delivery) | Deregulated | $0.14 | $3.05 | $2,900 | 10.5 | Average |
| 17 | Pflugerville | Oncor (delivery) | Deregulated | $0.14 | $3.05 | $2,900 | 10.5 | Average |
| 18 | Cedar Park | Oncor (delivery) | Deregulated | $0.14 | $3.05 | $2,900 | 10.5 | Average |
| 19 | Plano | Oncor (delivery) | Deregulated | $0.14 | $3.10 | $2,900 | 10.7 | Average |
| 20 | McKinney | Oncor (delivery) | Deregulated | $0.14 | $3.10 | $2,900 | 10.7 | Average |
| 21 | Irving | Oncor (delivery) | Deregulated | $0.14 | $3.10 | $2,900 | 10.7 | Average |
| 22 | Corpus Christi | AEP Texas (delivery) | Deregulated | $0.14 | $3.00 | $2,800 | 10.7 | Average |
| 23 | Frisco | Oncor (delivery) | Deregulated | $0.14 | $3.15 | $2,900 | 10.9 | Average |
| 24 | The Woodlands | Entergy (delivery) | Deregulated | $0.15 | $3.15 | $2,900 | 10.9 | Average |
| 25 | Waco | Oncor (delivery) | Deregulated | $0.13 | $2.95 | $2,700 | 10.9 | Average |
| 26 | Conroe | Entergy (delivery) | Deregulated | $0.14 | $3.05 | $2,800 | 10.9 | Average |
| 27 | Temple | Oncor (delivery) | Deregulated | $0.13 | $2.95 | $2,700 | 10.9 | Average |
| 28 | Flower Mound | Oncor (delivery) | Deregulated | $0.14 | $3.15 | $2,900 | 10.9 | Average |
| 29 | Southlake | Oncor (delivery) | Deregulated | $0.14 | $3.20 | $2,900 | 11 | Average |
| 30 | Lubbock | LP&L | Municipal | $0.10 | $2.90 | $2,600 | 11.2 | Below Avg |
| 31 | San Marcos | SMEC | Municipal | $0.10 | $2.95 | $2,500 | 11.8 | Below Avg |
* Based on 10 kW system, cash purchase, 2026 pricing. No federal ITC (25D expired Dec 31, 2025). Deregulated city savings assume an active solar buyback plan. Without buyback, add 3-5 years to payback. Property tax exemption (TX Sec. 11.27) included in all calculations.
Austin Energy is the gold standard for solar in Texas. Their Value of Solar (VoS) rate pays $0.097/kWh for every kWh your system produces, credited monthly against your bill. Unlike deregulated areas where you need a specific buyback plan, Austin Energy customers automatically get solar credits. Combined with tiered rates that push summer bills above $0.15/kWh, Austin homeowners see the fastest payback in the state: 7-8 years.
Nearby cities to watch: Round Rock, Pflugerville, and Cedar Park are in Oncor (deregulated) territory, NOT Austin Energy. Their payback is 10-11 years with a buyback plan. Moving 10 miles from Austin to Round Rock can add 3 years to your payback because you lose Austin Energy VoS.
CPS Energy offers several solar-friendly rate plans and their base rates are competitive at $0.125/kWh. San Antonio also has lower installation costs ($2.95/W) than DFW due to straightforward permitting and a mature installer market. Payback averages 8.2 years, making it the second-best city for solar in Texas.
CPS Energy serves only San Antonio proper. Suburbs like New Braunfels, Schertz, and Cibolo have their own utilities with different (usually worse) solar policies.
DFW is entirely deregulated (Oncor delivery territory). Your payback depends almost entirely on which Retail Electric Provider (REP) you choose. With a strong solar buyback plan (Chariot Energy, Green Mountain, TXU), payback is 9.8-10.7 years. Without buyback, it stretches to 14+ years.
Oncor advantage: The Take a Load Off Texas rebate pays $0.50/W for solar + $0.50/W for batteries. On a 10 kW system + 10 kWh battery, that is $9,000 in rebates, reducing payback by 2-3 years.
Houston has higher average electricity rates ($0.16/kWh) than DFW ($0.14-$0.15/kWh), which actually helps solar payback. CenterPoint territory offers competitive solar buyback plans. The main downside: Gulf Coast humidity and occasional hurricane risk require hail-rated panels and robust mounting. Installation costs are slightly higher ($3.10/W) due to these requirements.
Watch out: Entergy Texas territory (The Woodlands, Conroe) has fewer buyback options than CenterPoint territory. If you are in Entergy territory, payback is typically 1-2 years longer.
Compare plans on PowerToChoose.org. Look for $0.08-$0.12/kWh export credit. Some plans offer 1:1 net metering equivalent. This alone can save you 3-5 years on payback.
Take a Load Off Texas pays up to $4,500 for solar and $4,500 for battery storage. That is $9,000 off your system cost. This rebate is the closest thing TX has to a state incentive.
In deregulated areas, excess solar sold back earns less than what you pay. Size your system to cover 80-100% of your usage, not 120%. Overbuilding reduces ROI.
Texas solar installers offer 5-15% discounts in October-February when demand drops. On a $30,000 system, that is $1,500-$4,500 saved, shaving 6-18 months off payback.
Texas Property Tax Code Section 11.27 exempts the added value of solar from property tax. On a $30,000 system at a 2% tax rate, this saves $600/year perpetually.
Enter your city, current electricity rate, and usage to get a personalized payback estimate for your Texas home.