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Quick Answer
Texas electricity averages ~$0.15/kWh but varies widely by REP (retail electric provider) from $0.10-$0.22/kWh. The deregulated ERCOT market means you can shop rates, but solar locks in long-term savings regardless of market volatility. With 1,600+ kWh/kW annual production and a 100% property tax exemption, TX solar payback is 11-15 years.
Track Texas electricity rates across the deregulated ERCOT market. See how solar protects against rate volatility and summer price spikes.
Statewide Average
15.0¢/kWh
Year-over-Year Change
+11.8%DFW
$0.15/kWh
Houston
$0.16/kWh
Austin
$0.12/kWh
San Antonio
$0.125/kWh
Last verified: 2026-03-02 | Source: PUCT statewide average, EIA Form 861
TX Solar Production
1,600 kWh/kW
33% more than Northeast (1,200)
Annual Savings (avg rate)
$2,400
10kW system at $0.15/kWh
25-Year Savings (avg)
$82,769
With 3% annual rate escalation
Texas rates are volatile due to the deregulated ERCOT market. Summer peaks regularly exceed winter baselines by 15-20%, and extreme weather events can cause dramatic wholesale price spikes.
| Period | Rate ($/kWh) | Change | Source |
|---|---|---|---|
| 2024-01 | $0.1275 | -- | EIA Form 861 |
| 2024-06 | $0.1538 | +20.6% | EIA Form 861 (summer peak) |
| 2025-01 | $0.1342 | -12.7% | PUCT statewide average |
| 2025-06 | $0.1495 | +11.4% | EIA Form 861 (summer peak) |
| 2026-01 | $0.1500 | +0.3% | PUCT statewide average |
Key Context: ERCOT Volatility
ERCOT rates swing dramatically between seasons: summer peaks ($0.15-0.18) vs. winter lows ($0.12-0.14). During extreme events like Winter Storm Uri (2021), wholesale prices exceeded $9,000/MWh. Solar production is highest during the expensive summer months, offsetting the most costly electricity.
Texas has no state solar rebate and the federal residential ITC (25D) expired, but high sun hours and the property tax exemption make solar competitive.
Texas solar panels produce approximately 33% more energy than the same panels in New England (1,600 vs. 1,200 kWh/kW/year). This means a 10kW system in Texas generates about 16,000 kWh/year, offsetting even large homes with pools, EVs, and central air.
Texas has no statewide net metering mandate. Compensation for exported solar varies by utility territory:
Texas law exempts the added value of solar installations from property tax assessments. A $27,500 solar system adds zero to your property tax bill. Given Texas property tax rates average 1.6-2.2%, this exemption saves $440-$605/year compared to a taxable home improvement.
Your solar payback depends heavily on your retail electric provider rate. Here's how a 10kW system performs at Texas's typical rate tiers.
| Rate Tier | Typical Area | Annual Savings | Payback | 25-Year Value |
|---|---|---|---|---|
| Low ($0.12) | Austin / San Antonio | $1,920 | 14.3 yrs | $66,215 |
| Average ($0.15) | DFW / Statewide avg | $2,400 | 11.5 yrs | $82,769 |
| High ($0.18) | Higher REP plans | $2,880 | 9.5 yrs | $99,323 |
* 10kW system at $2.75/W = $27,500. Production: 1,600 kWh/kW/year. No federal ITC (25D expired). No state rebate.
Texas solar production peaks exactly when rates are highest (summer AC season). Your panels produce the most when electricity costs the most.
ERCOT rates are unpredictable. Solar locks in your cost at $0/kWh. No more worrying about summer spikes or wholesale market events.
A $27,500 system adds $0 to your property taxes. At TX's high property tax rates (1.6-2.2%), this saves $440-$605 every year.
While homeowner ITC is gone, PPA/lease providers still claim Section 48 ITC (30%), passing savings through as reduced PPA rates for you.
The statewide average Texas electricity rate is approximately $0.15/kWh as of January 2026. However, Texas is a deregulated market, so rates vary widely: DFW averages $0.15/kWh, Houston $0.16/kWh, Austin $0.12/kWh (municipal utility), and San Antonio $0.125/kWh (CPS Energy). Individual retail electric provider (REP) plans range from $0.10-$0.22/kWh.
About 85% of Texas operates in the deregulated ERCOT market, meaning you can shop among dozens of retail electric providers (REPs). While this offers competitive pricing, it also means rate volatility -- summer peaks can see wholesale prices spike dramatically (as during Winter Storm Uri in 2021). REPs pass varying portions of these costs to consumers depending on plan type (fixed vs. variable).
Yes. While Texas rates are lower than the Northeast, Texas has significantly higher solar production -- about 1,600 kWh/kW/year versus 1,200 in New England. A solar system in Texas produces 33% more energy. Combined with the property tax exemption and no state income tax (meaning your total cost isn't inflated by state taxes), payback is typically 12-16 years depending on your REP rate.
Texas does not have a statewide net metering mandate. Net metering availability varies by utility: Oncor (largest, serves DFW) offers buyback through participating REPs at varying rates. Austin Energy has a value-of-solar tariff (~$0.097/kWh). CPS Energy (San Antonio) provides value of solar credits. Most deregulated REPs offer some form of solar buyback, but rates vary from $0.05-0.12/kWh for exported power.
Texas offers a 100% property tax exemption for solar installations, which prevents your property taxes from increasing due to the added home value. There is no state solar rebate or state tax credit (Texas has no state income tax). The federal residential ITC (25D) expired December 31, 2025. Some utilities offer local incentives: Austin Energy has solar rebates, Oncor offers a battery rebate, and CPS Energy provides a solar buyback program.
Solar payback depends heavily on your REP rate. At $0.12/kWh (low end, Austin), payback is about 14-16 years. At $0.15/kWh (average), payback is 11-13 years. At $0.18/kWh (higher REP plans), payback drops to 9-11 years. The key advantage of solar in Texas is production volume: 1,600+ kWh/kW means even at lower rates, total kWh savings are substantial.
Get a free solar estimate customized for your Texas home. See your exact savings based on your REP rate and local sun hours.