Incentives, ERCOT market dynamics, utility buyback programs, and installer data — independent research, no industry affiliations
| Incentive | Type | Amount | Status | Notes |
|---|---|---|---|---|
| Federal ITC (Solar Tax Credit) | Federal tax credit | 30% of system cost | Active | Available to all TX homeowners. Expires Dec 2032. |
| Property Tax Exemption | State tax exemption | 100% of added solar value | Active | Solar cannot increase your property tax assessment. Permanent in state law. |
| Austin Energy Value of Solar Tariff | Utility export credit | ~$0.097/kWh | Active | Austin Energy customers only. One of the best solar programs in Texas. |
| CPS Energy Rebate (San Antonio) | Utility rebate | $2,500 (for 6 kW system) | Active | Budget-limited — apply early. San Antonio CPS customers only. |
| Oncor Solar Buyback (DFW) | Utility program | Varies by REP | REP-dependent | Oncor does not offer net metering. Solar buyback rate depends on your retail provider. |
| ERCOT Market Solar Buyback | Market mechanism | Varies by REP plan | Market-set | Retail electric providers set their own buyback rates. Best REPs: Rhythm, Green Mountain. |
REP = Retail Electric Provider. Most of Texas operates in the deregulated ERCOT market where REPs compete for customers and set their own solar export rates.
In Texas's deregulated ERCOT market, covering most of the state, your retail electric provider determines whether — and at what rate — they'll credit your excess solar generation. Rates range from near-retail at a handful of providers to zero at others. This creates a major variable in Texas solar economics that doesn't exist in states with mandated net metering.
If you are in ERCOT territory, the choice of retail electric provider materially affects your solar economics:
Austin Energy and CPS Energy (San Antonio) are municipal utilities that operate outside the ERCOT deregulated market. Austin Energy's Value of Solar Tariff (~$0.097/kWh export rate) is one of the most straightforward and transparent solar programs in the state. San Antonio's CPS Energy offers a rebate program and buyback credits. If you're in either city, your solar economics are significantly better than the ERCOT average.
The lack of guaranteed net metering makes battery storage a stronger financial case in Texas than in most states. Battery storage lets you shift midday solar generation to high-demand evening hours — capturing value that would otherwise be lost or paid at low buyback rates. Following Winter Storm Uri in 2021, backup power capability also has tangible value for many Texas homeowners.
| System size | Gross cost | After 30% ITC | Annual savings est. | Payback (est.) |
|---|---|---|---|---|
| 6 kW (small-avg home) | $16,680 | $11,676 | ~$1,050/yr | ~11.1 years |
| 8 kW (average Texas home) | $22,240 | $15,568 | ~$1,400/yr | ~11.1 years |
| 10 kW (larger home) | $27,800 | $19,460 | ~$1,750/yr | ~11.1 years |
| 12 kW (large home) | $33,360 | $23,352 | ~$2,100/yr | ~11.1 years |
Savings estimated assuming 85% self-consumption, no net metering credit. Austin/San Antonio customers with favourable export programs will see payback periods of 8–10 years. Consult your installer for utility-specific projections.
| Installer | Coverage | Avg rating | TECL licensed | Notes |
|---|---|---|---|---|
| Sunrun | DFW · Houston · Austin · SA | 4.0/5 (12k reviews) | Verified | Lease and PPA options. Large statewide service network. |
| ION Solar | DFW · Houston · Austin | 4.5/5 (6k reviews) | Verified | Fast installation turnaround. Strong post-install support scores. |
| Longhorn Solar | Central Texas | 4.8/5 (2k reviews) | Verified | Top-rated regional installer. Austin Energy approved contractor. |
| Freedom Solar Power | Statewide | 4.7/5 (4k reviews) | Verified | Texas-founded company. Authorised SunPower/Maxeon dealer. Excellent warranty terms. |
| Momentum Solar | Houston · DFW | 4.2/5 (3k reviews) | Verified | Competitive pricing. Multiple financing options. Volume installer. |
Rating data from Google, BBB, and EnergySage. Updated Q1 2026. Compare multiple quotes via EnergySage.
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Install cost data from EnergySage Q1 2026 market data report. Electricity rates from US EIA monthly data. Peak sun hours from NREL PVWatts state averages. Net metering and utility program data from DSIRE and individual utility tariff filings with PUCT. Installer ratings aggregated from public review platforms; no installer has paid for inclusion or ranking position. This page was last updated March 15, 2026.