Federal solar credit ended Dec 31, 2025
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Solar costs · Austin, TX

Solar Panel Cost in Austin, Texas

Updated Data verified Nov 5, 2026

Austin gets about 1,476 kWh per kW per year[1] from a rooftop solar array, according to NREL's PVWatts model at the city's coordinates. Austin Energy's residential customers paid an average of 12.58¢ per kWh[2] and used 834 kWh a month[2]. A system sized to that use, about 6.8 kW est.[1,2], costs roughly $23,000 to $31,500 est.[1,2,3] before incentives, and pays back in about 19 years est.[1,2,3,4] for a cash buyer.

On this page [ 8 ]

Austin solar at a glance

Output per kW of panels1,476 kWh/yr[1]PVWatts, this city
Sunlight on panels5.38 kWh/m²/day[1]Annual average
Austin Energy avg. price12.58¢/kWh[2]2024 average, bundled customers
Austin Energy avg. home use834 kWh/mo[2]2024 average
Typical system6.8 kWCovers 100% of use
Typical price$27,200Estimate, before incentives
Year-1 savings$1,290Estimate
Payback19 yearsEstimate, cash purchase
Estimated monthly output of a 6.8 kW system in Austin (PVWatts, typical weather year)kWh / month

Austin Energy credits all solar production at 12.89¢ per kWh (Value-of-Solar Rider (buy-all/sell-all style production credit)); you buy all your use at retail. Assumptions: methodology.

How Austin Energy treats solar

UtilityExport policyExport creditAvg. residential priceMonthly basic charge
Austin EnergyValue-of-Solar Rider (buy-all/sell-all style production credit)12.89¢ per kWh[4]12.58¢ per kWh[2]$17.35[5]

Austin Energy: Value-of-Solar Rider (buy-all/sell-all style production credit)

Austin Energy meters total solar production and credits every kWh at the Value-of-Solar rate, separate from consumption, which is billed at normal tiered rates. Credits offset the electric bill. Any unused credit rolls forward month to month with no expiry, but has no cash value and is forfeited if the account closes.

  • Residential customer charge: $17.35 per month (inside City of Austin)[5]
  • Value of Solar history: 9.91 cents/kWh in FY2023-FY2026; 12.89 cents/kWh in FY2027-FY2029 (fiscal year Oct-Sep)[6]
  • Excess VoS credits: Unused credits roll over and do not expire, but have no cash value and end if the account closes[6]
  • Third-party PPAs: Third-party solar power purchase agreements are not allowed in Austin Energy territory[7]
  • Rebate minimum system size: Rebated systems must be at least 3 kW DC and mostly unshaded[7]

Permits and local programs in Austin

  • Permitting: All solar and battery systems need an Auxiliary Power Electrical Permit (Austin Build + Connect); ground-mount and solar-shingle systems inside city limits also need Residential Plan Review and a building permit. Austin is not on the SolarAPP+ jurisdiction list.[8]
  • Local rebate: Austin Energy pays a $4,000 residential solar rebate (participating contractor, at least 3 kW DC)[7]
  • No solar PPAs: Third-party solar PPAs are not allowed in Austin Energy territory (purchase or lease only)[7]

Austin solar cost by system size

Estimated cost, output and payback by system size in Austin, TX
SystemPrice before incentives[3]After incentiveskWh in year 1[1]Year-1 savings[2][4]Payback (years)
4 kW$16,000$12,0005,900$76016
6 kW$24,000$20,0008,860$1,14018
8 kW$32,000$28,00011,810$1,52019
10 kW$40,000$36,00014,760$1,90020
12 kW$48,000$44,00017,710$2,28020

Incentives for Austin homeowners

Federal · tax creditEnding soon

Business credit for leased and PPA systems (48E)

Claimed by the system owner, not the homeowner; solar must begin construction by July 4, 2026 or be in service by December 31, 2027[9]

If a company owns the panels on your roof (a lease or power purchase agreement), that company may claim the business clean electricity investment credit and can reflect it in your price. You cannot claim it yourself.

Who
Third-party-owned systems (leases and PPAs). Ask the provider whether the price assumes this credit.
Deadline
December 31, 2027
Checked
November 5, 2026
State · tax exemptionAvailable

Texas property tax exemption for solar energy devices (Tax Code 11.27)

100% of the added appraised value from an on-site solar energy device is exempt from property tax[10]

Statute text was read from the Legislature's statute file server (tcss.legis.texas.gov/resources/TX/htm/TX.11.htm), which backs statutes.capitol.texas.gov. Last amended by Acts 2021, 87th Leg., Ch. 533 (S.B. 63). The homeowner claims it with Comptroller Form 50-123, filed with the county appraisal district (https://comptroller.texas.gov/forms/50-123.pdf).

Who
Solar (or wind) devices primarily for production and distribution of energy for on-site use. Subsection (a-1) also exempts a device owned by someone who does not own the real property it sits on.
Deadline
No sunset in statute
Checked
November 5, 2026
Utility · performance paymentAvailable

Austin Energy Power Partner Battery - annual performance payment

$75 per kW of average event performance per year (Austin Energy example: about $324/year for a Powerwall at 20% reserve)[11]

Paid annually by check after each calendar year.

Who
Same as the upfront rebate. Up to 40 events a year (excluding grid emergencies), typically 2-3 hours each, and customers can opt out of individual events.
Deadline
Pilot; no end date stated
Checked
November 5, 2026
Utility · rebateAvailable

Austin Energy Power Partner Battery - upfront rebate

$500 per enrolled battery system[11]

Page last reviewed 06/11/2026. The program is described as a demand response pilot. There is no limit on how many battery systems you can enroll.

Who
Customer-owned residential batteries (not third-party-owned) on the eligible list (Enphase, FranklinWH, Generac, SolarEdge, Tesla) installed by a participating contractor, with PTO on or after 2/18/25. Solar is not required.
Deadline
Pilot; funding limited, first-come first-served; offerings subject to change without notice
Checked
November 5, 2026
Utility · rebateAvailable

Austin Energy Residential Solar Rebate

$4,000 flat rebate per qualifying residential solar system[7]

Third-party solar PPAs are not allowed in Austin Energy territory. The contractor applies for the rebate. The check is mailed after inspection, the solar meter install (PTO) and QA review.

Who
Austin Energy residential customers installing a new system of at least 3 kW DC, mostly unshaded, through an Austin Energy participating contractor. You must complete the Solar Rebate Quiz and receive a Rebate Confirmation Letter before installation.
Maximum
$4,000
Deadline
No end date stated (page last reviewed 10/01/2026)
Checked
November 5, 2026
Utility · bill creditAvailable

Austin Energy Value-of-Solar (VoS) bill credit

12.89 cents per kWh for ALL solar production (residential, FY2027 tariff effective Oct 1, 2026)[12]

In the Value-of-Solar Rider (Electric Tariff, October 1, 2026), the rate is $0.0959 avoided cost plus $0.0330 societal benefit = $0.1289/kWh for non-demand accounts. FAQ history: 9.91 cents for FY2023-FY2026, 12.89 cents for FY2027-FY2029. An April 2026 staff presentation showed $0.1288 and a Nov 1 start; the adopted tariff and web pages say 12.89 cents and October 1, 2026.

Who
Automatic for Austin Energy accounts with interconnected on-site solar under 10,000 kW-ac.
Deadline
Rate recalculated every three years; next update scheduled October 2029 per Austin Energy FAQ
Checked
November 5, 2026

Every Texas incentive →

FAQ

Frequently asked questions

How much do solar panels cost in Austin?

About $27,200 est.[1,2,3] before incentives for a 6.8 kW est.[1,2] system, using Texas's median installed price of $4.00 per watt est.[3]. Get at least three written quotes; prices for the same system often differ by thousands of dollars.

How does Austin Energy pay for solar I send to the grid?

Under Value-of-Solar Rider (buy-all/sell-all style production credit), Austin Energy credits exports at 12.89¢ per kWh[4], well below the retail price, so using your solar power at home is worth more than exporting it.

How long is the payback for solar in Austin?

Our model estimates about 19 years est.[1,2,3,4] for a cash purchase, with year-one savings of about $1,290 est.[1,2,4]. Financing, a battery or a different rate plan changes this; the calculator lets you test each.

sources

[ 12 ]

Every number on this page links to one of these sources. Dates show when we last checked each one.

  1. NREL/NLR PVWatts v8 (1 kW-DC, fixed roof mount, 20° tilt, south-facing, 14% losses, TMY weather)pvwatts.nlr.gov · checked Nov 5, 2026
  2. EIA Electric Sales, Revenue, and Average Price 2024, Table 6: Utility bundled retail sales, residentialeia.gov · checked Nov 5, 2026
  3. U.S. Distributed Solar and Storage 2026 Data Update (Barbose, Darghouth, O'Shaughnessy, Forrester), Berkeley Labeta-publications.lbl.gov · checked Nov 5, 2026
  4. Austin Energy: Value-of-Solar Rider (buy-all/sell-all style production credit)austinenergy.com · checked Nov 5, 2026
  5. Austin Energy residential tariffaustinenergy.com · checked Nov 5, 2026
  6. Austin Energy: Value of Solar historyaustinenergy.com · checked Nov 5, 2026
  7. Austin Energy: Third-party PPAsaustinenergy.com · checked Nov 5, 2026
  8. Austin: Permittingaustinenergy.com · checked Nov 5, 2026
  9. Public Law 119-21 - Sec. 70513(a) and (g)(5) (48E); Sec. 70512(a) and (l)(4) (45Y)govinfo.gov · checked Nov 5, 2026
  10. Texas Tax Code Sec. 11.27, Solar and Wind-Powered Energy Devicesstatutes.capitol.texas.gov · checked Nov 5, 2026
  11. Austin Energy - Power Partner Batteryaustinenergy.com · checked Nov 5, 2026
  12. Austin Energy - Value of Solar Rateaustinenergy.com · checked Nov 5, 2026

City data last re-checked November 5, 2026.