Last updated: 2026-08-10

Solar in Texas 2026: Buyback Plans, Cheap Power & Real Payback

Texas solar is cheap to install ($2.55/W) but has no statewide net metering. Here is how Texas solar buyback plans work, which providers pay the most, and realistic payback.

The cheapest installs, the most confusing policy

Texas installs solar at about $2.55/W — among the cheapest in the US. But there is no statewide net metering law. Your solar value depends entirely on your retail electric provider's buyback plan, which ranges from avoided cost (~3–6¢/kWh) to generous 1:1 solar-specific plans.

How Texas buyback plans work

In deregulated areas (ERCOT), you choose a retail provider — some offer solar buyback plans that credit exports at your retail rate or give bill credits. Providers like Oncor and CenterPoint territories differ. Compare plans carefully; a good buyback plan can cut payback from 15 years to 10–12 years.

Texas payback in 2026

With 16.2¢/kWh electricity and 1,421 kWh/kW production, a typical 6–8 kW Texas system pays back in roughly 11–14 years depending on your buyback plan and $/W price. Property tax exemption applies. Get 3–5 quotes and compare buyback plans side by side.

FAQ

Is solar worth it in Texas in 2026?

Yes for most long-term owners, especially with a good buyback plan — payback typically 11–14 years, faster if you use most of your power yourself.

Does Texas have net metering?

No statewide law — it is utility/retail-provider dependent. Some offer 1:1 buyback plans; others pay avoided cost.

How much does solar cost in Texas?

About $2.40–$2.70/W installed — among the lowest in the US. A 6 kW system runs roughly $14,400–$16,200 gross.

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Sources

Disclaimer: informational only — not a quote, tax, or financial advice. Figures are dated and sourced (EIA, NREL PVWatts, DSIRE, 2026). Federal residential ITC (Section 25D) expired Dec 31, 2025. Verify current figures with primary sources before deciding.