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CPS Energy is a municipal utility — not part of the deregulated ERCOT market. The federal 25D tax credit is gone, but Section 48E lease/PPA financing is still available through July 4, 2026. Here is what San Antonio solar actually costs and the strategies that make it work at 12.5¢/kWh with 5.5 peak sun hours.
2026 Alert: The federal residential solar tax credit (Section 25D) expired December 31, 2025. CPS Energy residential solar rebates have been phased out. San Antonio homeowners who purchase solar with cash or a loan receive $0 in federal tax credits and $0 in utility rebates. The Texas property tax exemption is now the primary financial incentive.
What you actually pay for solar in San Antonio in 2026 with no rebates, no federal tax credit, and CPS Energy avoided-cost export credits.
| System Size | Cost Range | Annual Production | Est. Payback |
|---|---|---|---|
| 6 kW | $15,000–$17,400 | 9,900 kWh | 12-14 yrs |
| 8 kW | $20,000–$23,200 | 13,200 kWh | 12-13 yrs |
| 10 kW | $25,000–$29,000 | 16,500 kWh | 11-13 yrs |
| 12 kW | $30,000–$34,800 | 19,800 kWh | 11-12 yrs |
| 15 kW | $37,500–$43,500 | 24,750 kWh | 11-12 yrs |
Prices based on NuWatt Energy installer network data for San Antonio, March 2026. Costs include panels, inverter, racking, labor, and permits. No federal 25D credit and no CPS Energy rebate are included. Actual costs vary by roof condition and equipment choice.
Larger systems have lower $/W due to economies of scale. Most SA homes install 8-12 kW.
Multi-story homes, steep pitch, or tile roofs common in SA add $0.10-0.30/W to installation costs.
Hyundai 440W (entry) vs Silfab 440W (FEOC/Propel) vs REC 460W (premium). Heat tolerance matters in SA summers.
SA has a smaller installer market than DFW or Houston. Fewer quotes may mean higher prices. Get at least 3 quotes.
String inverters are cheapest, microinverters cost more but perform better with partial shading.
CPS Energy interconnection is straightforward for systems under 25 kW. City of SA permits are relatively quick.
CPS Energy was once one of the best utilities in Texas for solar incentives. Here is what happened and what you have left in 2026.
The SolarHost residential rebate program funds are exhausted. CPS Energy previously offered $2,500 or more per residential installation. SolarHostSA remains for commercial only.
Section 25D expired December 31, 2025 under the OBBBA. $0 for homeowners who buy solar with cash or a loan. This was previously 30% of system cost.
CPS Energy has never offered true 1:1 net metering. Exports are credited at avoided cost, not retail rate. This has always been the case.
TX Tax Code Section 11.27 exempts the full added value of your solar system from property taxes. At Bexar County's 2.23% rate, this saves approximately $602/year on a $27,000 system.
CPS Energy credits excess solar production at the avoided-cost rate of approximately 3-4 cents per kWh. Low, but not zero. Credits are applied as bill credits monthly.
Programs like Propel Solar use a third-party owner to claim the 30% commercial ITC (Section 48/48E) for projects beginning construction before July 4, 2026. Savings passed through as lower fixed payments with $0 down.
San Antonio installation costs are competitive with other major Texas metros. Municipal utility territory means straightforward interconnection through CPS Energy.
Annual electricity savings of approximately $1,617 (70% self-consumed at 12.5¢/kWh retail + 30% exported at ~3.5¢/kWh avoided cost) plus $602/year in property tax savings at Bexar County's 2.23% rate. Combined annual benefit of $2,219 yields a payback period of approximately 12.2 years without any rebates or federal tax credits.
San Antonio is one of the few major Texas cities NOT served by the deregulated ERCOT retail market. CPS Energy is a municipal utility owned by the City of San Antonio. This has major implications for solar.
Owned by the City of San Antonio. Not-for-profit. Board appointed by city council.
Fixed 12.5¢/kWh. CPS rates have increased more slowly than ERCOT retail plans. No surprise spikes like the Feb 2021 Uri crisis.
You cannot shop for electricity providers. CPS Energy is your only option for power delivery and retail service.
Cannot shop for competitive solar buyback rates. Stuck with CPS avoided-cost export credit of ~3-4¢/kWh.
Multiple retail electric providers (REPs) compete for your business. You can switch providers.
Some REPs offer 1:1 net metering or competitive solar buyback rates (8-12¢/kWh), dramatically improving solar ROI.
Rates change with contract renewals. Summer plans can be 18-22¢/kWh. Variable plans are risky.
Solar buyback rates are not guaranteed long-term. REPs can modify or discontinue plans at contract renewal.
| Factor | San Antonio (CPS) | Dallas/Houston (ERCOT) |
|---|---|---|
| Utility Type | Municipal (city-owned) | Deregulated (REPs) |
| Retail Rate | 12.5¢/kWh (fixed) | 12-22¢/kWh (varies) |
| Export Credit | 3-4¢/kWh avoided cost | 0-12¢/kWh (plan-dependent) |
| Provider Choice | None — CPS only | 100+ providers |
| Solar Buyback | No competitive plans | Multiple buyback plans |
| Rate Stability | High (slow increases) | Low (contract renewal risk) |
| Grid Reliability | CPS manages own grid | ERCOT grid (Uri exposure) |
CPS Energy's municipal status means you get rate stability but terrible export credits. In Dallas or Houston, you could shop for a solar buyback plan paying 8-12¢/kWh for exports. In San Antonio, you are stuck with 3-4¢/kWh. This makes self-consumption optimization absolutely critical for San Antonio solar owners. Every kWh you use directly saves 12.5¢, while every kWh you export earns only 3-4¢. The ERCOT deregulation guide has more details on how deregulation affects solar economics.
The residential 25D tax credit is dead. But the commercial clean energy ITC (Section 48E) is still available for third-party owned systems through July 4, 2026. Here is how San Antonio homeowners can access it.
Third-party ownership unlocks the commercial ITC
A third-party company (not you) owns the solar panels installed on your roof.
As a commercial entity, they claim the 30% Section 48E tax credit on the system cost.
The tax benefit funds your $0 down cost and lower monthly payment compared to your CPS Energy bill.
After the financing period (~5 years with Propel), full ownership transfers to you at no cost.
Projects must begin construction before July 4, 2026 to qualify for the Section 48E credit. After that date, this pathway disappears entirely. For San Antonio homeowners, this means signing a lease/PPA or Propel agreement and having equipment delivered before the deadline. Do not wait until June to start the process.
With CPS Energy exporting solar at only 3-4 cents per kWh while you buy at 12.5 cents, every kilowatt-hour you use directly is worth 3 to 4 times more than every kilowatt-hour you export. Maximizing self-consumption is the key to making San Antonio solar work.
Do not overbuild. Size your system to match 80-90% of your annual usage. Every kWh of production beyond what you consume earns only 3-4 cents instead of saving 12.5 cents. A smaller, perfectly-sized system often has better ROI than an oversized one in the CPS Energy territory.
Run your dishwasher, washing machine, dryer, and pool pump during peak solar hours (10 AM to 4 PM). Program your thermostat to pre-cool your home during midday when solar production peaks. San Antonio summers demand heavy AC usage, and running it during solar production hours maximizes self-consumption.
A battery storage system (Tesla Powerwall, Enphase IQ Battery) lets you store daytime solar production for evening use, effectively turning every kWh into a 12.5 cent savings instead of a 3.5 cent export credit. Battery payback improves significantly when the alternative is exporting at avoided cost. Plus, after Winter Storm Uri, backup power has real value in San Antonio.
Smart home energy management systems can automatically shift loads to match solar production patterns. Many modern inverters (Enphase, SolarEdge) include monitoring apps that help you track production vs consumption in real time, allowing you to adjust behavior for maximum self-consumption.
If you have an electric vehicle, schedule charging for midday when your solar panels are producing. A typical EV uses 3-4 kWh per hour of Level 2 charging. This absorbs excess production that would otherwise be exported at the low avoided-cost rate, saving you the full 12.5 cents per kWh.
With CPS Energy rebates gone and the federal 25D expired, the Texas 100% property tax exemption is now the most important financial incentive for San Antonio solar owners. And Bexar County's high tax rate makes this exemption especially valuable.
When you install solar panels, your home value increases. Normally, this would mean higher property taxes. Texas Tax Code Section 11.27 exempts 100% of the added value of your solar system from property taxes. Your property taxes stay the same as if the solar panels were never installed.
Have your solar system installed and pass CPS Energy interconnection inspection.
Get the Exemption Application for Solar or Wind-Powered Energy Devices from the TX Comptroller website.
Submit the completed form to the Bexar County Appraisal District by April 30 of the year following installation.
Check your property tax statement to confirm the exemption is applied. Contact BCAD if not reflected.
Do not skip this step. The exemption is not automatic. Many San Antonio homeowners miss out on hundreds of dollars per year because they do not file Form 50-123. It takes 10 minutes and saves you $11,440 over 25 years.
| County | Tax Rate | Annual Savings (10 kW) | 25-Year Savings |
|---|---|---|---|
| El Paso County | 2.48% | $670/yr | $12,722 |
| Harris County (Houston) | 2.31% | $624/yr | $11,850 |
| Tarrant County (Fort Worth) | 2.26% | $610/yr | $11,594 |
| Bexar County (San Antonio)You | 2.23% | $602/yr | $11,440 |
| Dallas County | 2.17% | $586/yr | $11,132 |
| Collin County (Plano) | 2.07% | $559/yr | $10,619 |
| Travis County (Austin) | 1.98% | $535/yr | $10,157 |
Based on a $27,000 system value with depreciation over 25 years. Bexar County ranks 4th among major TX metros for property tax exemption value.
No rebates and no federal tax credit make the economics tighter. But three factors keep San Antonio solar financially viable for most homeowners.
San Antonio gets excellent solar irradiance year-round. A 10 kW system produces approximately 16,500 kWh annually. More production means more savings through self-consumption, even without generous export rates.
At $2.50-$2.90/W, San Antonio is in line with other major Texas metros. A 10 kW system at $27,000 reflects current market pricing with tariff impacts factored in. The cost is still below many Northeast states where solar costs $3.00-$3.50/W.
Bexar County's 2.23% property tax rate means $602/year in avoided tax increases. Over 25 years, that adds $11,440 in real savings. This is not hypothetical; it is money you would otherwise owe to the county each year.
A 10 kW solar system in San Antonio generates approximately $1,617 in annual electricity savings and avoids $602/year in property tax increases — a combined annual benefit of $2,219. After recovering the $27,000 investment in approximately 12 years, you earn free electricity for the remaining 13+ years of the system's life. The total 25-year net savings of $24,865 includes both electricity savings and property tax exemption benefits.
Austin is just 80 miles north, but solar economics differ significantly. Here is a direct comparison so you know what to expect.
Austin is objectively better for solar ROI. The $2,500 rebate and 9.91¢/kWh Value of Solar tariff make a significant difference. San Antonio costs are similar ($2.50-$2.90/W vs $2.60-$3.00/W for Austin), but the $2,500 rebate gap and the 6+ cent difference in export rates give Austin a clear edge. If you live in San Antonio, solar still makes financial sense as a long-term investment, but set realistic expectations: approximately 12-year payback, not 8. Propel financing or a Section 48E lease can improve the economics significantly.
Enter your details to get a personalized estimate of solar costs, production, payback period, and 25-year savings for your San Antonio home. Accounts for CPS Energy rates, no 25D credit, and the 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.
The calculator uses CPS Energy's avoided-cost export credit of approximately 3-4 cents per kWh. Unlike Austin Energy's 9.91 cent Value of Solar rate, CPS Energy exports earn significantly less. Self-consumption is critical for ROI.
CPS Energy eliminated solar rebates. The 25D residential tax credit is expired. Export credits are just 3-4¢/kWh. Propel Solar solves this — $0 down, a fixed monthly payment that leverages the Section 48E commercial ITC, and full ownership by year 5.
A third-party financing company owns your system and captures the 30% Section 48 commercial ITC — savings that homeowners cannot access since 25D expired. That tax benefit funds your $0 upfront cost.
If your CPS Energy bill is $150/mo, your Propel payment is approximately $135/mo — saving roughly 10% from day one. The payment is fixed and predictable, unlike utility rates that increase 3-5% annually.
Full ownership transfers to you after approximately 5 years at no additional cost. Silfab 440W American-made panels with free maintenance during the financing period. You own the panels for the remaining 20+ years of their lifespan.
For San Antonio homeowners who do not have $27,000 in cash or prefer not to take out a solar loan, Propel Solar provides immediate savings with zero upfront risk. The third-party owner handles maintenance, monitoring, and any warranty claims during the financing period.
Common questions about solar panel costs in San Antonio.
Complete overview of going solar in Texas: costs, incentives, timelines, and what to expect.
Read guideCompare San Antonio solar costs with Houston, Dallas, Austin, El Paso, and other Texas metros.
Read guideHow solar export credits work across Texas utilities including CPS Energy, Austin Energy, and ERCOT REPs.
Read guideCompare financing options for Texas solar in 2026. Cash purchase, solar loans, and lease/PPA with Section 48E.
Read guideComplete guide to solar with CPS Energy: rates, export credits, interconnection, and the post-rebate reality.
Read guideHow to file Form 50-123, county-by-county savings, and common mistakes to avoid.
Read guideLast updated: March 16, 2026. Prices, CPS Energy policies, and property tax rates may change. Contact NuWatt Energy or CPS Energy for current information.
NuWatt Energy works with licensed solar contractors in the San Antonio metro area. Get a free assessment, accurate pricing for your roof and CPS Energy account, and help maximizing your savings through self-consumption optimization and the property tax exemption. No high-pressure sales.