State guide · facts checked July 2026
Texas is one of the cheapest places in the country to buy solar hardware and one of the easiest places to get a bad deal on it. There is no statewide net metering, the federal tax credit for purchases ended December 31, 2025, and solar sales complaints to the Texas AG roughly quadrupled between 2020 and 2024. The state noticed: a new law, SB 1036, now regulates solar sales directly.
Here is the honest picture as of July 2026, with sources at the bottom.
The price
Competitive quotes in Texas average about $2.20 per watt before incentives (EnergySage marketplace data, June 2026), among the lowest in the country. Door-to-door and financed quotes often run well above $3.00 for the same equipment.
One thing that changed in 2026: with the federal credit gone for cash and loan buyers, the sticker price IS the price. Nobody is coming to give you 30% back, so the quoted number deserves more scrutiny, not less.
Check your quote against this, freeExports
If a rep says "Texas has net metering," stop the conversation. It does not, and never has statewide. What your exports earn depends entirely on your utility situation, and the differences are big.
Deregulated areas (most of the state: Oncor, CenterPoint, AEP, TNMP territory): you must shop for a retail electricity plan with a solar buyback. In 2026 most fixed buyback credits pay roughly 3 to 5 cents per kWh, and even "1 to 1" plans usually pair the credit with higher rates or fees. Your buyback deal only lasts as long as the plan contract, so you will re-shop it for the life of the system.
Austin Energy: credits all your solar production at its Value of Solar rate, currently 9.91 cents per kWh, the best export deal among big Texas utilities. CPS Energy (San Antonio): your solar offsets your own usage within the month at retail, but monthly excess earns only about 2 cents per kWh, so oversizing is wasted money there.
Incentives
Ended December 31, 2025 under the July 2025 federal law. A system installed in 2026 gets $0 federal credit. Any rep promising it on a purchase is wrong about the biggest number in the deal.
Finance companies can still capture a federal credit on systems they own, on a winding-down schedule. It goes to them, not you, and any pass-through is their pricing choice. Watch for reps pivoting hard to leases while implying "you" get the credit.
Texas Tax Code 11.27 exempts 100% of the home value increase from an owned solar system. File Form 50-123 with your county appraisal district once, by April 30. Owned systems only; a leased system belongs to the finance company.
Increased to $4,000 in July 2026 for eligible homes. Requires an Austin Energy participating contractor, a system of at least 3 kW, and a rebate confirmation letter BEFORE installation. Third-party PPAs are not eligible.
Oncor's program pays per watt but requires a battery with the solar and runs on a first-come annual budget that historically runs out mid-year. Check current funding status with Oncor before letting a rep count it in your savings.
Discontinued since the end of 2022 and not renewed. CPS currently offers rebates to businesses and schools only. A quote in San Antonio that includes a "CPS rebate" is using stale numbers.
What they gloss over
What you hear
"Texas has net metering, the utility pays you back at full price."
What's true
No statewide net metering exists. In deregulated areas, 2026 fixed buyback credits mostly pay 3 to 5 cents per kWh, and the plan expires with your contract. Savings models assuming retail-rate exports are fiction.
What you hear
"You still get the 30% federal tax credit."
What's true
Not on a purchase installed in 2026 or later. It ended December 31, 2025. Only leasing companies can still claim a credit, on their systems, for themselves.
What you hear
"Your electric bill will be zero."
What's true
TDU delivery charges and base fees generally cannot be offset by export credits, and minimum charges exist at municipal utilities too. Low is possible. Zero is a red flag on the whole pitch.
What you hear
"I'm with Oncor" (or CenterPoint, or "your utility").
What's true
Utilities do not door-knock to sell solar, and under SB 1036 claiming utility or government affiliation is explicitly prohibited. The Texas AG has active enforcement against solar companies for deceptive sales, including a 2026 lawsuit against a San Antonio installer.
What you hear
"This deal is only good if you sign tonight."
What's true
Texas law now gives you 5 business days to cancel a solar purchase, lease, or PPA without penalty, and the contract must state your cancellation deadline and address. From September 2026, sellers and individual salespeople must also be registered with TDLR. No honest deal expires tonight.
Your city and utility
Permitting and interconnection are local. We keep a plain-English database of both for Texas:
Sources
Every claim above was checked against a primary source in July 2026. Policies change; if you spot something stale, trust the source over us and tell us.
Educational guidance for your own research, not financial, tax, or engineering advice. Verify current rates and program status with your utility and a licensed professional before signing anything.