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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.
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We sell solar, but we will not sell it to everyone. In Texas, your electricity PLAN matters more than your location. If your rate is ultra-cheap, your utility has no buyback, or your lot is heavily shaded -- solar may not be the right investment. Here is our honest take.
In most states, the question is simple: what is your electricity rate? In Texas, it is more nuanced because of the deregulated market. Two homeowners on the same street can have completely different solar economics based on their electricity plan.
The rule: Your electricity plan determines solar ROI more than your zip code, roof direction, or panel brand. A homeowner in Houston paying $0.08/kWh on a locked-in contract should NOT go solar. Their neighbor paying $0.16/kWh on a solar buyback plan absolutely should. Same house. Same sun. Completely different math.
If any of these apply to you, solar is likely a poor investment right now. These are not hypothetical -- we turn away prospective customers who fit these profiles because we would rather be honest than make a sale that does not serve you.
Some Texas plans (especially locked-in contracts from 2023-2024) offer rates as low as $0.065-$0.09/kWh. At these rates, solar savings are too small to justify the investment. A 10 kW system saves only $1,300-$1,800/year at $0.08/kWh vs $3,200+ at $0.16/kWh. Your payback stretches to 17-20+ years.
Some Texas municipal utilities (Lubbock LP&L, San Marcos SMEC, some co-ops) do not credit you for excess solar sent to the grid. You only save on what you self-consume. Since a typical home exports 30-50% of solar production, no buyback means 30-50% of your investment generates zero return. Payback stretches to 14-16+ years.
Texas averages 4.7-5.6 peak sun hours, but a heavily treed lot can drop that to 2-3 hours. If mature oaks, pecans, or your neighbor's two-story home shade your south-facing roof for more than 40% of daylight hours, solar production drops below economic viability. Tree removal costs $2,000-$10,000 per tree and may violate city heritage tree ordinances.
Solar payback in Texas is 7-12 years (no federal ITC in 2026). If you sell in 3-4 years, you will recover 50-70% of the cost through increased home value, but you will NOT break even. Studies show Texas solar adds $10,000-$15,000 to home value on a $30,000 system. You lose $15,000-$20,000 net unless you stay long enough for payback.
Installing solar on a roof that needs replacement in 2-3 years means you will pay $2,000-$5,000 to remove and reinstall panels during the reroof. Texas hail damage further complicates this. If your roof is 15+ years old (asphalt shingle lifespan in TX), replace it first, THEN install solar. A solar + reroof combo can save 10-15% vs doing them separately.
Small bills mean small savings. A $80/month bill suggests ~600 kWh/month usage, likely a small apartment or very efficient home. A solar system to offset this costs $10,000-$15,000 for a 3-4 kW system with payback of 12-15 years. The minimum viable system economics in Texas need at least $120-$150/month in electricity costs.
This is the table that every Texas homeowner should see before going solar. Your plan type determines whether solar is excellent, marginal, or a bad deal.
| Plan Type | Your Rate | Buyback Credit | Solar Payback | Verdict |
|---|---|---|---|---|
| Solar Buyback Plan (Chariot, GM) | $0.12-$0.14/kWh | $0.08-$0.12/kWh | 9-11 years | WORTH IT |
| Free Nights Plan (TXU) | $0.17-$0.22/kWh (day) | None needed (self-consume) | 9-10 years | WORTH IT |
| Standard Fixed Plan ($0.14/kWh) | $0.14/kWh | None | 13-15 years | MARGINAL |
| Ultra-cheap Plan ($0.08/kWh) | $0.08/kWh | None | 18-20+ years | NOT WORTH IT |
| Municipal (Austin Energy) | $0.11-$0.15/kWh (tiered) | $0.097/kWh VoS | 7-8 years | EXCELLENT |
| Municipal (No buyback) | $0.095-$0.10/kWh | $0.00/kWh | 14-16 years | NOT WORTH IT |
* Based on 10 kW system, cash purchase, no federal ITC (25D expired Dec 31, 2025). Buyback rates vary by REP and plan. Check PowerToChoose.org for current rates.
For most Texas homeowners, solar is still a strong investment. Here are the scenarios where the math clearly works, even without the federal tax credit.
The majority of Texas homeowners pay $0.14-$0.18/kWh. With a buyback plan, payback is 9-11 years. Your solar earns money every hour of every day.
Municipal utilities with guaranteed solar credits. Austin: $0.097/kWh VoS. CPS Energy: tiered buyback. Payback: 7-8 years. These are the best markets in Texas.
After Winter Storm Uri (2021), millions of Texans lost power for days. Solar + battery provides backup regardless of grid failure. Peace of mind has real value even if pure ROI is marginal.
Solar + EV eliminates your fuel bill entirely. A Texas driver saves $1,500-$2,500/year by replacing gas with solar-charged EV. This dramatically shortens solar payback to 6-8 years.
Take a Load Off Texas pays up to $4,500 for solar + $4,500 for battery = $9,000 in rebates. This brings payback from 10-11 years down to 7-8 years in Oncor territory.
Solar is not the only way to cut energy costs in Texas. These alternatives have faster payback periods and work regardless of your electricity plan or roof situation.
Texas has 100+ REPs competing for your business. Switching from $0.14/kWh to $0.09/kWh saves $600/year on a typical TX home. Use PowerToChoose.org. It takes 10 minutes and costs $0. This should be your FIRST step before even considering solar.
Texas cooling costs are 40-60% of your annual bill. Upgrading from a 10 SEER to 17 SEER2 heat pump saves $720+/year. Even a 13 to 17 upgrade saves $420/year. Faster payback than solar and you get better comfort too.
Texas attics reach 150 degrees F in summer. Most TX homes have R-19 insulation when they need R-38 to R-49. Adding blown-in cellulose costs $1,500-$3,000 and saves 15-25% on cooling. The fastest energy ROI in Texas.
Ecobee, Nest, or Honeywell T9 costs $100-$250 and saves 10-15% on heating/cooling. Some Texas REPs offer free smart thermostats. Demand response programs (like Oncor Rush Hour Rewards) pay you an additional $50-$85/year for brief AC adjustments on peak days.
Texas homes lose 20-30% of conditioned air through leaky ducts in hot attics. Professional duct sealing ($300-$800) and weatherstripping ($100-$200) can save 15-20% on your cooling bill. Combined with insulation, this is the most cost-effective energy upgrade in Texas.
Walk through these questions in order. Your answer to each determines the next step.
Some Texas homeowners believe their HOA will not allow solar. This is wrong. Texas law explicitly prohibits HOAs from banning solar panels. Any CC&R provision prohibiting solar installation is void and unenforceable. Your HOA can require specific placement and screening but cannot deny your right to install.
Get a free, no-pressure assessment. We will review your electricity plan, roof, and usage to give you an honest recommendation -- even if that recommendation is "wait" or "skip solar."