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Residential Rate
Your Project, Our Responsibility — No lead sharing. Your dedicated NuWatt team handles design, permits, and installation.
Based on 8kW system at current rates
System Cost
$22,288
State Incentive
$0
Net Cost
$22,288
Payback Period
14.3 years
Annual Savings
$1,561
25-Year Savings
$56,911
AEP Texas serves Texas with a residential electricity rate of $0.16 per kWh. This is 3% below the national average of $0.168/kWh, though solar still delivers strong returns with today’s lower installation prices.
At current rates, a typical AEP Texas household using 900 kWh per month spends approximately $1,756 per year on electricity. An 8 kW solar system can offset most or all of that usage, saving an estimated $1,561 annually and $56,911 over the 25-year life of the system. The estimated payback period is 14.3 years.
Heat pump rebates of up to $500 are available. Third-party ownership through solar leases and power purchase agreements (PPAs) is available, which can qualify for the 30% commercial Investment Tax Credit under Section 48.
The federal residential solar tax credit (Section 25D) expired at the end of 2025. State and utility-level incentives are now the primary financial benefits for homeowners going solar. NuWatt Energy handles the entire process from system design through permits and AEP Texas interconnection, ensuring you receive every available rebate.
Net Metering
Not available
Third-Party Ownership
PPAs/Leases allowed
Credit Type
none
AEP Texas is a transmission and distribution utility (TDU) in the deregulated ERCOT market and does not sell retail electricity or administer net metering. Solar customers must choose a Retail Electric Provider (REP) that offers a solar buyback plan — popular options include TXU Energy, Green Mountain Energy, and Chariot Energy, with buyback rates ranging from 3-7 cents/kWh for fixed plans. AEP Texas will reprogram the meter to measure surplus generation and report it to the REP. Simplified interconnection applies for systems up to 50 kW under PUCT rules.
Heat Pump
$500
Rebate available
Review your recent AEP Texas electricity bills to understand your average monthly kWh consumption. This helps determine the right solar system size. Most AEP Texas customers use between 600-1,200 kWh per month.
Request a free, no-obligation solar estimate from NuWatt Energy. We analyze your roof, energy usage, and local sun exposure to design the optimal system for your home.
Receive a detailed proposal including system size, expected production, savings projections, and financing options. NuWatt offers cash purchase, solar loans, and lease options to fit your budget.
NuWatt takes care of all permitting and submits the interconnection application to AEP Texas on your behalf. We handle all the paperwork so you don't have to.
Our certified installation team completes your solar installation in 1-3 days. NuWatt manages your entire project from start to finish.
After installation and inspection, AEP Texas activates your net metering connection. Your system begins generating clean energy and reducing your electricity bill from day one.
ZIP Codes (50)
At $0.16/kWh, AEP Texas customers see strong returns from solar.