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Texas is the fastest-growing solar market in America — and the most aggressive sales tactics have followed. The federal ITC is dead. Texas has no state solar credit, no SREC program, and no statewide net metering. Some companies have not updated their pitch. Others are deliberately misleading homeowners. Here is how to protect yourself.
2,100+
TX Solar Complaints (2025)
$9,200
Average Scam Loss
800+
Door-to-Door Reports
72%
ITC Misrepresentations
Section 25D of the Internal Revenue Code was eliminated by the One Big Beautiful Bill Act (OBBBA), signed July 4, 2025. It expired December 31, 2025. Homeowners who purchase solar with cash or a loan receive zero federal tax credits. Section 48/48E remains available for third-party owners (PPA/lease companies) on projects beginning construction before July 4, 2026, but the homeowner does not claim that credit.
Texas installed more residential solar in 2025 than any other state. The combination of high electricity consumption (AC runs 8+ months per year), abundant sunshine (1,400-1,600 kWh/kW/yr), rising ERCOT rates, and a property tax exemption make the Lone Star State a strong solar market even without the federal tax credit.
But TX’s rapid solar growth has attracted out-of-state sales organizations that do not understand the ERCOT deregulated market, do not know that TX lacks net metering and SRECs, and still pitch a 30% tax credit that no longer exists. The information gap between what these companies claim and what is actually true in Texas is wider than in any other state.
Add hail risk — Texas leads the nation in hail damage claims — and the lack of state solar incentives, and the potential for homeowner harm is significant. Companies that inflate savings by $5,000-$10,000 through phantom tax credits and false net metering claims leave homeowners with systems that take 5-7 years longer to pay back than promised.
This guide covers the 10 biggest red flags in the 2026 Texas solar market, TX-specific scam patterns, how ERCOT actually works for solar homeowners, hail and warranty considerations, and a complete contract checklist — plus an interactive Red Flag Checker tool.
The #1 red flag in 2026: any TX solar company that advertises a 30% federal tax credit for homeowners. The residential solar ITC (Section 25D) expired December 31, 2025. It is $0 for homeowners purchasing with cash or a loan. If a company includes this in your savings estimate, they are inflating your projected savings by thousands of dollars.
Other TX-specific red flags include: claiming “net metering” savings when TX has no statewide net metering mandate, inflated production estimates above 1,600 kWh/kW/yr, promising utility solar rebates that only apply to heat pumps, hiding 2.9% escalator clauses in leases, and dismissing hail damage risk.
The only exception: PPA and lease providers can legitimately reference Section 48/48E, because the third-party owner of the system claims that credit. But if a company tells you, the homeowner, that you will receive 30% off your taxes, they are wrong.
These are the warning signs we see most often in the 2026 Texas solar market. If you encounter any of these, proceed with extreme caution.
The federal residential solar ITC (Section 25D) expired December 31, 2025. It is gone. $0 for homeowners. Any company in Texas still advertising a 30% credit is either dangerously uninformed or intentionally deceiving you.
Section 25D of the Internal Revenue Code was eliminated by the One Big Beautiful Bill Act (OBBBA), signed July 4, 2025. For any solar system purchased by a homeowner with cash or a loan in 2026, the federal tax credit is $0.
Texas is the fastest-growing solar market in the U.S., which means more companies competing for your business — and more temptation to inflate savings projections with a tax credit that no longer exists.
The exception: PPA and lease providers can legitimately reference Section 48/48E, because the third-party system owner (not you) claims that credit. But if a company tells YOU that YOU will receive 30% off your taxes, they are wrong.
“Under which section of the tax code does the residential solar credit exist in 2026?”
Correct answer: It doesn't. Section 25D expired December 31, 2025. If they can't answer this, walk away.
"Get free solar panels for your home!" With the federal tax credit dead, this claim is even more misleading than before. This usually means a lease or PPA — you pay monthly for 20-25 years and never own the system.
In a solar lease or PPA, the third-party company owns your panels. You pay them a monthly fee or per-kWh rate. Over 20-25 years, you will pay $20,000-$40,000+ for a system you never own.
Before the ITC expired, some "free solar" pitches had a grain of truth — the 30% credit subsidized the deal. Now, with $0 in federal credits for homeowners, there is no mechanism to make solar free.
If a company describes solar as "free," ask: "Is this a purchase (cash or loan), a lease, or a PPA? Who owns the system?" If they cannot clearly explain the difference, or if they call a lease "free solar," that is deceptive.
“Is this a purchase (cash or loan), a lease, or a PPA? Who owns the system?”
Correct answer: They should clearly state the ownership structure. In a lease/PPA, they own it. In a purchase, you own it. There is no "free" option.
"You'll sell your excess power back to the grid at full retail rates!" Texas has NO statewide net metering mandate. In the deregulated ERCOT market, solar buyback rates vary wildly by REP — from 1:1 to $0.
Texas is 85% deregulated under ERCOT. You choose your Retail Electric Provider (REP), and each REP sets its own solar buyback rate. There is no state law requiring 1:1 net metering.
Some REPs like Green Mountain Energy and Chariot Energy offer competitive buyback plans. Others pay wholesale rates (4-6 cents/kWh). A few pay $0 for exported solar power. The difference can be $500-$1,500/year in savings.
Municipal utilities have their own programs: Austin Energy has Value of Solar at ~$0.097/kWh, CPS Energy has a solar buyback program. These are NOT ERCOT and have different rules.
A legitimate TX solar company will ask for your specific REP and plan, then calculate savings based on YOUR actual buyback rate — not a generic "net metering" assumption.
“What solar buyback rate are you using in my ROI projection, and is that specific to my REP and plan?”
Correct answer: They should name your REP, cite the specific buyback rate for your plan, and explain that TX has no statewide net metering. If they say "net metering" without specifics, they are using NJ/CA assumptions.
Texas gets great sun — but it is not unlimited. Realistic production is 1,400-1,600 kWh/kW/year. If a company projects 1,800+ kWh/kW/year to inflate your ROI, they are being dishonest.
Solar irradiance varies across Texas. West TX (El Paso) gets the most sun (~5.7 peak hours/day). DFW averages ~4.8 hours. Houston averages ~4.5 hours due to humidity and cloud cover.
A realistic production range: Houston 1,350-1,450 kWh/kW/yr, DFW 1,450-1,550, Austin 1,450-1,550, San Antonio 1,500-1,600, El Paso 1,600-1,700. Anything above these ranges for your area is likely inflated.
Production estimates should account for roof pitch, orientation, shading, soiling, and panel degradation over time (0.25-0.5% per year). A south-facing roof at 30 degrees in DFW produces ~15-20% more than a flat roof.
“What kWh/kW/year production figure are you using, and how does that compare to PVWatts for my ZIP code?”
Correct answer: They should cite a figure in the 1,400-1,600 range for most of TX and be able to show you the PVWatts or similar tool calculation for your specific roof.
Texas has NO utility solar rebates for homeowners. Oncor's $600/unit rebate? Heat pumps only. Austin Energy rebates? Heat pumps. CPS Energy? Heat pumps. If a company promises a utility rebate for solar panels, they are confused or lying.
Oncor offers $600/unit for qualifying heat pump installations — this is NOT for solar panels. CenterPoint SOP offers ~$500 for heat pumps. Austin Energy offers ~$3,000 for heat pumps. CPS Energy offers $100-275/ton for heat pumps.
Some companies conflate heat pump rebates with solar incentives to pad the savings projection. If your quote includes a line item for "utility rebate" on a solar-only installation, demand the source.
The only state-level solar benefits in TX are property tax exemption (TX Tax Code Section 11.27) and sales tax exemption on equipment. There is no state solar rebate, SREC program, or production incentive.
“Can you show me the specific utility program page where this solar rebate is published?”
Correct answer: There is no such page. TX utility rebates are for heat pumps, not solar. If they cannot produce a link to a current solar rebate program, the rebate does not exist.
Some companies from out of state apply templates from NJ, MA, or other SREC states to Texas quotes. Texas has NO state solar tax credit and NO SREC/ADI program. If your quote includes either, the company is using the wrong state data.
States like New Jersey have ADI ($85.90/MWh), Massachusetts has SMART ($0.03/kWh), and many states have their own tax credits. Texas has none of these programs.
A legitimate TX solar quote relies on: (1) electricity bill savings based on your REP rate, (2) solar buyback income from your REP plan, (3) property tax exemption savings, and (4) equipment sales tax exemption. That is it.
If you see "SREC income," "state tax credit," "ADI payments," or "renewable energy certificates" on a Texas quote, the company is either using boilerplate from another state or deliberately padding your projected savings.
“Does Texas have a state solar tax credit, SREC program, or production incentive? What state-level benefits are you including?”
Correct answer: No. Texas has no state solar credit, no SREC program, and no production incentive. The only state benefits are property tax and sales tax exemptions.
"Sign today or lose this price." "I can only hold this rate for 24 hours." Texas suburbs — especially DFW, Houston, Austin, and San Antonio — are heavily targeted by door-to-door solar sales teams using manufactured urgency.
TX property tax exemption (Section 11.27) has no sunset date. TX sales tax exemption has no sunset date. There is no state solar incentive with a deadline. There is no legitimate reason to rush.
Under TX law (Bus. & Com. Code Section 601.052), you have a 3-business-day right to cancel any contract signed during a door-to-door solicitation. If a salesperson asks you to waive this right, that is likely a DTPA violation.
High-pressure door-to-door tactics are especially prevalent in newer subdivisions in DFW suburbs (Frisco, McKinney, Allen, Plano), Houston suburbs (Katy, Sugar Land, Pearland), and Austin/San Antonio metro areas.
“What specific incentive is expiring, and can you show me the PUCT or state announcement?”
Correct answer: There is no TX solar incentive with a near-term expiration. Property and sales tax exemptions have no sunset. If they cannot cite a specific regulatory order with a date, the urgency is manufactured.
A 2.9% annual escalator is common in TX solar leases. Your Year 1 payment of $150/month becomes $256/month by Year 20. With TX electricity averaging 12-16 cents/kWh, the lease can cost MORE than the grid within 8-10 years.
The escalator clause increases your monthly payment each year, typically by 2.9%. This is designed to mirror expected utility rate increases — but TX utility rates have been relatively stable compared to the Northeast.
Texas average residential electricity rate is ~14.5 cents/kWh (ERCOT average). If your lease starts at 12 cents/kWh with a 2.9% escalator, by Year 10 you are paying 15.9 cents/kWh — already above the grid average.
Always ask: "What is my Year 1 rate, Year 10 rate, Year 15 rate, and Year 20 rate?" Calculate the total cost over the full lease term and compare to buying the system outright.
“Does this lease/PPA have an annual escalator? What is my rate in Year 1, Year 10, and Year 20?”
Correct answer: A legitimate company will disclose the escalator percentage and show you the year-by-year rate schedule. If they only talk about Year 1 savings, they are hiding the long-term cost.
Texas leads the nation in hail damage insurance claims. DFW, San Antonio, and Central TX are in "Hail Alley." If a solar company dismisses hail risk or offers only a 10-year product warranty, your panels are inadequately protected.
Standard solar panels are tested to IEC 61215 specifications: 1-inch hail at 52 mph. Texas regularly produces hail larger than 1 inch — the 2024 DFW hailstorm had stones exceeding 3 inches.
Look for panels with enhanced hail ratings tested to 1.5-1.75 inch hail. Premium panels from manufacturers like REC, SunPower, and Silfab have stronger frames and thicker glass.
Your panel's 25-year product warranty should explicitly cover hail damage. A separate workmanship warranty should cover mounting hardware that could loosen in severe storms. Also verify that your homeowner's insurance covers solar panel replacement — and check your deductible.
“What hail rating do these panels have, and does the product warranty explicitly cover hail damage?”
Correct answer: They should specify the hail impact test rating (IEC 61215 minimum, ideally tested to larger hail). The 25-year product warranty should cover physical damage including hail.
Texas requires a licensed electrical contractor for solar installations. The TDLR (Texas Department of Licensing and Regulation) issues licenses. If a company cannot provide their license number, do not proceed.
The Texas Department of Licensing and Regulation (TDLR) oversees electrical contractor licensing. Every solar installer must hold a valid license. You can verify at tdlr.texas.gov.
Texas municipalities and counties have varying permit requirements for solar. Most cities (Dallas, Houston, Austin, San Antonio, Fort Worth) require building and electrical permits. Some HOAs also have design review processes.
An unpermitted solar installation can void your homeowner's insurance, create problems when selling your home, and potentially violate local building codes. The cost to retroactively permit is always higher than doing it right the first time.
“What is your Texas electrical contractor license number, and will you pull all required permits?”
Correct answer: They should provide the TDLR license number immediately and confirm that all building and electrical permits are included in their scope of work and pricing.
These deceptive tactics are especially common in the Texas solar market due to the state’s deregulated ERCOT market, lack of net metering, and rapid growth.
Companies from NJ, CA, or other net metering states enter the TX market and assume 1:1 buyback. They inflate savings projections by $1,000-$2,000/year. TX has NO statewide net metering. Your buyback rate depends on your REP — some pay $0 for exports.
DFW suburbs (Frisco, McKinney, Allen, Plano), Houston suburbs (Katy, Sugar Land, Pearland), and Austin/SA metro areas are prime targets. Salespeople exploit newer homes with good roofs and higher-income neighborhoods. Red flag: any uninvited salesperson who claims to be "from your utility" or "from Oncor."
Salespeople claim to be "approved by Oncor" or "working with CenterPoint." Oncor and CenterPoint are Transmission and Distribution Utilities (TDUs) — they deliver electricity but do NOT sell it or endorse solar companies. Interconnection is a regulatory obligation, not an endorsement.
Companies downplay hail risk to close the sale. "These panels can handle anything." "Insurance covers it." Reality: TX hail regularly exceeds standard panel testing thresholds, and homeowner insurance deductibles can be $5,000-$10,000+ for wind/hail in TX.
Understanding the ERCOT deregulated market is critical for evaluating any Texas solar proposal. Here is what you need to know.
| REP / Utility | Buyback Rate | Type |
|---|---|---|
| Green Mountain Energy | ~8-10 cents/kWh | REP solar plan |
| Chariot Energy | ~1:1 (plan-dependent) | REP solar plan |
| TXU Energy | ~6-8 cents/kWh | REP solar plan |
| Generic REP (wholesale) | ~4-6 cents/kWh | Default |
| Austin Energy (VOS) | ~9.7 cents/kWh | Municipal |
| CPS Energy | ~9-10 cents/kWh | Municipal |
Rates are approximate and change frequently. Always verify with your REP directly. Rates do not include TDU delivery charges.
Texas leads the nation in hail damage insurance claims. If your solar company dismisses this risk, they are either ignorant or dishonest.
Annual Hail Events (TX)
100+
More than any other state
Avg. Hail Size (DFW)
1-2 inches
Standard panels tested to 1 inch
Avg. Wind/Hail Deductible (TX)
2% of Home
$5K-$10K on a $300K home
Standard solar panels are tested to IEC 61215: 1-inch hail at 52 mph. Texas regularly produces hail larger than this — the DFW metroplex and Central TX corridor from Waco to San Antonio are in “Hail Alley.” In 2024 alone, DFW saw multiple storms with 2-3 inch hailstones.
What to demand from your solar company: (1) Panels tested beyond the 1-inch standard — premium panels from REC, SunPower, and Silfab are tested to 1.5-1.75 inches. (2) A 25-year product warranty that explicitly covers hail damage. (3) Mounting hardware rated for TX wind speeds (up to 130 mph in coastal areas). (4) Written confirmation that your homeowner’s insurance covers solar panels — and the deductible amount.
| Coverage Level | What It Means | TX Adequate? |
|---|---|---|
| 10-year product warranty | Covers manufacturing defects only for 10 years | |
| 25-year product (standard) | Covers defects, may exclude “acts of nature” | |
| 25-year product (hail-rated) | Explicitly covers hail, tested to 1.5+ inches |
Not every company is dishonest. Here are the hallmarks of a trustworthy Texas solar installer.
Shows the real cost of your system without a 30% tax credit line item. Explains clearly that the residential ITC expired in 2025.
Calculates your savings using YOUR specific Retail Electric Provider buyback rate — not a generic "net metering" assumption from another state.
Offers cash, solar loan (with transparent dealer fee disclosure), PPA/lease with escalator clearly disclosed, and the Propel fixed-payment program.
Provides their TX electrical contractor license number upfront. Licensed, insured, and bonded in Texas. Verifiable at tdlr.texas.gov.
25-year product warranty that explicitly covers hail damage. Uses panels tested beyond standard 1-inch hail. Addresses TX-specific weather risks honestly.
Handles all municipal permitting, utility interconnection, HOA design review, and inspections. You should not have to manage TX paperwork.
Dealer fees are one of the least understood aspects of solar financing in 2026. When a solar company partners with a lending institution, the lender offers the company a choice of loan products. Lower-APR loans come with higher dealer fees. The company selects the loan product, and the dealer fee is added to your loan principal.
For example, a company might offer you a “1.49% APR solar loan.” Sounds great. But the dealer fee might be 30%. On a $28,000 TX system, you are actually financing $36,400. Your monthly payment and total interest cost reflect that $36,400 balance, not the $28,000 value of your system.
The math is revealing: at 1.49% APR on $36,400 over 25 years, you pay $43,320 in total. At 6.99% APR on $28,000 from a TX credit union over 15 years, you pay $45,350 in total but pay it off 10 years sooner. The “low APR” loan often costs you more in practice when you factor in the time value of money.
| Loan Type | APR | Dealer Fee | Amount Financed | Term | Total Cost |
|---|---|---|---|---|---|
| Installer loan (low APR) | 1.49% | 30% | $36,400 | 25 yr | $43,320 |
| Installer loan (mid APR) | 4.99% | 15% | $32,200 | 20 yr | $50,890 |
| TX credit union loan | 6.99% | 0% | $28,000 | 15 yr | $45,350 |
| Cash purchase | N/A | 0% | $28,000 | N/A | $28,000 |
Based on a $28,000 TX system. Actual rates vary by lender and credit score. Payments do not include solar buyback income or property tax savings.
Trust but verify. These free resources let you independently confirm everything a Texas solar company tells you.
Verify electrical contractor licenses
Visit resource →File complaints about solar companies and REPs
Visit resource →File complaints about deceptive solar sales practices
Visit resource →Check company ratings, reviews, and complaint history
Visit resource →Before signing anything, make sure the contract covers every item on this list. Missing items are a red flag — especially REP buyback rates, hail coverage, and permit responsibility.
Solar leases and PPAs are particularly relevant in Texas because of the ITC situation and the lack of state incentives. Here is the honest breakdown.
Bottom line: A solar PPA or lease is not inherently a red flag in TX. It is a legitimate financing structure where the third-party owner benefits from the commercial ITC and passes savings to you. The red flag is when a company confuses you about who receives the tax credit. If they say you will claim 30% on your taxes through a lease, that is false. The leasing company claims it.
Here is what honest pricing looks like in TX — with no phantom tax credits inflating the savings.
Average Cost per Watt
$2.50 - $3.10/W
Installed, before incentives
Typical 10 kW System
$25,000 - $31,000
No federal tax credit
Payback Period
10 - 14 Years
Depends on REP buyback rate
Property Tax Exemption
TX Tax Code Section 11.27
~$400-700/yr saved
Sales Tax Exemption
Equipment exempt, labor 6.25%
~$1,600 one-time
High Production
1,400-1,600 kWh/kW/yr
More kWh = faster payback
High Cooling Usage
AC runs 8+ months/yr
Self-consumption up to 80%+
REP Buyback Plans
Some offer competitive rates
Shop for best solar plan
Rising ERCOT Rates
Up 25%+ since 2022
Solar hedges against increases
Texas has the Deceptive Trade Practices Act (DTPA) — one of the strongest consumer protection laws in the country. If you encounter a dishonest solar company, these agencies can help.
Regulates the ERCOT market, REPs, and utility interconnection. File complaints about solar-related utility issues.
Phone: 1-888-782-8477
Handles consumer complaints, DTPA enforcement, and investigation of deceptive solar sales practices.
Phone: 1-800-252-8011
Verifies electrical contractor licenses. Report unlicensed solar installers.
Web: tdlr.texas.gov
Texas Deceptive Trade Practices Act (DTPA, TX Bus. & Com. Code Section 17.46)
Under Texas law, misrepresenting the federal tax credit to sell solar constitutes a “false, misleading, or deceptive act.” The DTPA provides for treble (3x) damages if the conduct was committed knowingly. If a company told you that you would receive a 30% federal tax credit on a 2026 purchase, consult a consumer protection attorney.
Had a consultation with a TX solar company? Answer these questions to assess their trustworthiness. Your risk score updates in real time.
Answer each question based on your experience with a solar company. Your risk assessment updates in real time.
Did the company tell you that you will receive a 30% federal tax credit on your solar purchase?
Did they describe the solar system as "free" without clearly explaining it is a lease or PPA?
Did they claim you will "sell power back to the grid at retail rates" without explaining how Texas buyback programs actually work?
Did they project unusually high production numbers (e.g., over 1,700 kWh/kW/year)?
Did they promise utility rebates for solar panels (not heat pumps)?
Did they tell you Texas has a state solar tax credit or SREC program?
Did they pressure you to sign today or within 24-48 hours, claiming a deadline or limited-time offer?
For a lease or PPA, did they fail to clearly disclose the annual price escalator?
Did they avoid discussing hail damage coverage or brush off hail risk?
Were they unable to provide their Texas electrical contractor license number?
Understanding the history helps you recognize when a TX company is referencing outdated information versus deliberately misleading you.
2006-2019
Section 25D at 30%
The residential ITC was established at 30% with multiple extensions. This is the era most sales materials still reference.
2020-2022
Scheduled step-down to 26%
The ITC began its original phase-out schedule before the IRA intervened.
Aug 2022
IRA restores 30% through 2032
The Inflation Reduction Act extended the 30% residential ITC through 2032. Many TX companies updated their marketing.
Jul 4, 2025
OBBBA signed into law
The One Big Beautiful Bill Act repealed the IRA's residential clean energy credits, including Section 25D.
Dec 31, 2025
Section 25D expires
The residential solar ITC officially expired. TX homeowners purchasing with cash or loan receive $0 in federal tax credits.
Jul 4, 2026
Section 48/48E construction deadline
Third-party owners (PPA/lease companies) must begin construction before this date to claim the commercial ITC. Does not affect homeowner cash/loan purchases.
Print this list or save it on your phone. Ask every company every question. Compare the answers.
Does your quote include any federal residential tax credit?
Good: No. Section 25D expired December 31, 2025.
Red flag: Yes, you'll get 30% back.
What is my specific REP solar buyback rate, and how did you calculate my savings?
Good: Your REP is [name], buyback is [X cents/kWh]. Here is the plan details page.
Red flag: You get net metering / full retail credit. (TX has no statewide NM.)
What is the cash price of my system?
Good: Clear number, matches system size at $2.50-$3.10/W.
Red flag: We only offer financed pricing.
Are there dealer fees in the loan? What percentage?
Good: Yes, X%. Here is the breakdown.
Red flag: No / What are dealer fees? / Evasion.
What is your Texas electrical contractor license number?
Good: Provides TDLR number immediately. Verifiable at tdlr.texas.gov.
Red flag: We're licensed in [other state] / We're applying.
What hail rating do the panels have, and does the warranty cover hail?
Good: Tested to [X]-inch hail. 25-year product warranty covers hail damage.
Red flag: Insurance covers it / Panels can handle anything. (Vague.)
Who handles permitting, interconnection, and HOA approval?
Good: We handle everything. It's included in the price.
Red flag: You'll need to handle some of that yourself.
Will your own employees install the system, or do you subcontract?
Good: Our W-2 crews install. Here is their TX license.
Red flag: We use independent contractors / Can't say.
What happens if I want to cancel after signing?
Good: You have 3 business days (TX law for door-to-door). Full refund of deposit.
Red flag: Non-refundable deposit / No cooling-off period.
For a lease/PPA: what is the annual escalator, and what am I paying in Year 10 and Year 20?
Good: X% escalator. Year 10: $X/mo. Year 20: $X/mo. Here is the full schedule.
Red flag: There is no escalator / Evasion / Only discusses Year 1.
Ask them: "Under which section of the Internal Revenue Code does the residential solar tax credit exist in 2026?" The correct answer is that it does not exist. Section 25D expired on December 31, 2025 under the OBBBA. Any company advertising a 30% residential tax credit in 2026 is either uninformed or deliberately misleading you. The only remaining federal solar credit is Section 48/48E for commercial and third-party system owners (PPA/lease providers), which the homeowner does not claim.
Yes. The residential solar investment tax credit (Section 25D) was eliminated by the One Big Beautiful Bill Act (OBBBA), signed into law on July 4, 2025. It expired December 31, 2025. Homeowners who purchase solar with cash or a loan receive $0 in federal tax credits. Section 48/48E still exists for commercial and third-party ownership structures (PPAs and leases), but the credit goes to the system owner, not the homeowner.
No, Texas has no statewide net metering mandate. In the deregulated ERCOT market (85% of the state), solar buyback rates depend entirely on your Retail Electric Provider (REP). Some REPs offer 1:1 buyback, others pay wholesale rates (4-6 cents/kWh), and some pay $0 for exports. Municipal utilities like Austin Energy and CPS Energy have their own programs. Always ask your specific REP for their buyback rate in writing.
A legitimate TX solar quote should include: (1) Cash price before any incentives. (2) System size in kW and estimated annual production in kWh (realistic: 1,400-1,600 kWh/kW/yr). (3) Panel brand, model, and warranty details. (4) Inverter type and warranty. (5) Your specific REP solar buyback rate — not a generic "net metering" assumption. (6) Property tax exemption savings calculation. (7) Total payback period with NO federal tax credit. (8) Financing terms with APR and total cost. (9) Hail warranty details. If the quote shows a 30% ITC line item, the company is not being honest.
Yes, solar leases and PPAs are still legitimate in 2026. The third-party system owner can claim the Section 48/48E commercial ITC of up to 30% on projects beginning construction before July 4, 2026. The company passes some savings to you through a below-retail electricity rate. The key: you do not own the system, and you cannot claim any tax credits yourself. Watch for escalator clauses (2.9% common in TX) that can erode savings over time. Legitimate lease/PPA companies will explain this clearly.
Solar panels in Texas cost $2.50 to $3.10 per watt installed in 2026. A typical 10 kW system costs $25,000 to $31,000. There is no federal residential tax credit to reduce these costs. TX incentives are limited to property tax exemption (TX Tax Code Section 11.27), sales tax exemption on equipment, and whatever solar buyback rate your REP offers. Payback is typically 10-14 years depending on your utility rate and buyback program.
Most modern solar panels are tested to withstand 1-inch diameter hail at 50+ mph (IEC 61215 standard). However, Texas regularly sees hail larger than 1 inch — DFW and Central TX are in "Hail Alley." Look for panels with enhanced hail ratings and a 25-year product warranty that explicitly covers hail damage. Some premium panels are tested to 1.75-inch hail. Your homeowner insurance should also cover panel damage, but verify the deductible and coverage terms.
Yes. File a complaint with the Texas Attorney General Consumer Protection Division at 1-800-252-8011 or online at texasattorneygeneral.gov. You can also report to the Public Utility Commission of Texas (PUCT) at 1-888-782-8477. If a company misrepresents the federal tax credit, that may constitute a violation of the Texas Deceptive Trade Practices Act (DTPA, TX Bus. & Com. Code Section 17.46). The DTPA provides for treble (3x) damages.
Yes, door-to-door solar sales are legal in Texas, but companies must comply with the Texas Home Solicitation Transactions Act. You have a 3-business-day right to cancel any contract signed during a door-to-door sale (TX Bus. & Com. Code Section 601.052). If a salesperson pressures you to waive this right or sign immediately, that is both a red flag and likely a DTPA violation.
About 85% of Texas is served by the ERCOT deregulated market, where you choose your Retail Electric Provider (REP) and solar buyback rates vary by plan. Non-ERCOT areas include El Paso (EPE), parts of East TX (SWEPCO/Entergy), and the Panhandle, which are regulated utilities with fixed rates. Municipal utilities like Austin Energy and CPS Energy operate independently. Your solar economics depend heavily on which market you are in and your specific utility/REP.
Complete overview of solar in Texas after the ITC expiration.
Read guideCompare REP solar buyback plans across the ERCOT market.
Read guideCity-by-city pricing breakdown with accurate 2026 data.
Read guideCompare all financing options with honest 2026 numbers for Texas.
Read guideIs solar still worth it in TX without the federal ITC? Data says yes.
Read guideHow PPA/lease providers use the commercial ITC — and what it means for you.
Read guideNo phantom tax credits. No fake net metering. No hidden escalator clauses. Just honest pricing with your actual REP buyback rate, property tax savings, and hail-rated panels.