Solar Panel Cost in Texas (2026): Prices, Buyback Plans and Payback

In retail-choice areas (e.g., Houston/CenterPoint, Dallas/Oncor), state law makes a solar owner sell surplus electricity to the REP serving their load at whatever value they agree on. REPs are permitted but not required to offer buyback, and there is no state-set export rate. Municipal utilities (Austin Energy, CPS Energy) and co-ops set their own policies.^[5] Utilities Code 39.916(h) says an electric utility or REP MAY contract to credit the net value of surplus solar electricity, so offering buyback is voluntary.^[5] In practice this means three very different situations:

• Houston, Dallas and the rest of the competitive market. CenterPoint and Oncor deliver the power but do not buy your surplus; your retail electricity provider does, if your plan includes a buyback. Plans range from none at all to credits close to the energy charge. When you go solar, choosing a plan with a fair buyback is as important as choosing the installer. We model these areas conservatively with no export credit; enter your plan's buyback rate in the calculator.
• Austin Energy. Austin pays a Value-of-Solar credit on every kWh your system produces, 12.89¢ per kWh^[6], while you buy all your power at normal rates. Austin Energy also offers $4,000 flat rebate per qualifying residential solar system^[7]. Third-party PPAs are not allowed there: Third-party solar power purchase agreements are not allowed in Austin Energy territory^[7]
• CPS Energy (San Antonio). CPS nets your production against your use each month, so energy you export offsets energy you buy in the same month; any monthly surplus earns a small net excess credit. No residential solar rebate currently offered; CPS rooftop solar incentives now cover small businesses, schools and nonprofits only^[8]

With the federal homeowner credit gone for systems installed after 2025, Texas incentives come from utilities and property tax:

In the Houston area, CenterPoint Energy Houston Electric residential solar PV incentive^[11] pays $135 per kW DC, capped at 15 kW (maximum $2,025), credited on the installer's invoice^[11]. The Dallas-area program is ending^[12]: Incentive paid to the installer, based on modeled kWh and peak-demand savings (PUCT TRM / PVWatts); capped at 50% of total project cost. Options with or without battery storage.^[12]. These are paid to installers, so ask that the amount appears as a line on your quote.

Texas now regulates residential solar sales. SB 1036 created Occupations Code Chapter 1806, regulating residential solar sales and leases through TDLR. It became law without the Governor's signature on June 20, 2025. Contract and cancellation rules took effect Sept 1, 2025; retailer/salesperson registration and the prohibited-acts enforcement subchapter took effect Sept 1, 2026.^[13] Residential solar buyers and lessees can cancel without penalty by written notice within 5 business days of signing. An affiliated or referred lender must cancel the accompanying loan.^[14] Contracts must name the licensed electrical contractor who will do the work: Contracts must say installation will be done by a licensed electrical contractor (named, with license number), and that the retailer or contractor will get permits and utility interconnection approval.^[15] And since this fall, Since Sept 1, 2026, residential solar retailers and salespersons must be registered with TDLR. Prohibited acts (false statements, implying utility or government affiliation, ignoring no-soliciting signs) are enforceable. Civil penalties are up to $2,500 per violation, or up to $10,000 if a person over 65 was harmed.^[16] Our Texas installer guide shows how to check both registrations with TDLR.

Many Texans buy solar for resilience as much as savings. Solar panels alone shut off during a grid outage for safety; you need a battery or a generator interlock for backup. Austin Energy pays $500 per enrolled battery system^[17] for batteries enrolled in its program, and CPS Energy offers $10 bill credit per battery dispatch event^[18]. A 2025 law also eased inspections for home backup power: SB 1202 added Local Government Code 247.0025. A licensed master electrician, an electrical inspector, or another authorized third party may review plans and inspect home backup power installations (generators, energy storage, standby systems at 600 V or less for 1-2 family homes) instead of the city. The authority must issue the permit within 3 business days of notice. Signed June 20, 2025; effective Sept 1, 2025.^[19]