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

Solar Panel Cost in Houston, Texas

Fact-checked by Sorted & Saved data desk
Updated Data verified Nov 5, 2026

Houston gets about 1,421 kWh per kW per year[1] from a rooftop solar array, according to NREL's PVWatts model at the city's coordinates. CenterPoint's residential customers paid an average of [data unavailable] and used [data unavailable]. A system sized to that use, about 9.3 kW est.[1,2], costs roughly $31,500 to $43,000 est.[1,2,3] before incentives, and pays back in more than 25 years est.[1,2,3,4,5] for a cash buyer.

On this page [ 8 ]

Houston solar at a glance

Output per kW of panels1,421 kWh/yr[1]PVWatts, this city
Sunlight on panels5.22 kWh/m²/day[1]Annual average
CenterPoint avg. price16.03¢/kWh
CenterPoint avg. home use1,096 kWh/mo
Typical system9.3 kWCovers 100% of use
Typical price$37,200Estimate, before incentives
Year-1 savings$1,060Estimate
Payback>25 yrsEstimate, cash purchase
Estimated monthly output of a 9.3 kW system in Houston (PVWatts, typical weather year)kWh / month

CenterPoint credits exports at Set by your retail plan; we model 0¢ unless you enter your plan’s buyback rate (No net metering mandate; export credit only via a retail electric provider (REP) buyback plan). Assumptions: methodology.

How CenterPoint Energy Houston Electric, LLC treats solar

UtilityExport policyExport creditAvg. residential priceMonthly basic charge
CenterPointNo net metering mandate; export credit only via a retail electric provider (REP) buyback planSet by your retail plan; we model 0¢ unless you enter your plan’s buyback rate[5]n/a$4.90[6]

CenterPoint Energy Houston Electric, LLC: No net metering mandate; export credit only via a retail electric provider (REP) buyback plan

CenterPoint Energy Houston Electric is the regulated 'poles and wires' utility. It approves interconnection, reprograms the meter to capture excess generation, and passes the readings to the REP. Billing credits for exported energy come only from the customer's REP, and buyback options vary by REP.

  • TDU fixed delivery charges (residential): Customer Charge $2.11 + Metering Charge $2.79 = $4.90/month, effective 02/26/26 (Revision 22); passed through on the REP bill, plus per-kWh charges and riders[6]
  • Role of CenterPoint: CenterPoint delivers power for REPs and does not sell electricity to end users[5]
  • Existing solar on a purchased home: New owners or renters must apply before turning on an existing system[5]

Permits and local programs in Houston

  • Permitting: Houston is listed as a SolarAPP+ jurisdiction for automated residential solar permits (PV and main panel upgrade; PV+storage not checked)[7]
  • Local incentive: CenterPoint pays participating installers $135/kW DC (up to 15 kW) for new PV on existing single-family homes, passed to customers as an invoice credit[8]
  • Retail choice: Houston is in the competitive ERCOT market: CenterPoint delivers power, and any solar buyback credit comes from the customer's chosen REP[5]

Houston solar cost by system size

SystemPrice before incentives[3]After incentiveskWh in year 1[1]Year-1 savings[4][5]Payback (years)
4 kW$16,000$15,5005,680$460>25
6 kW$24,000$23,2008,530$680>25
8 kW$32,000$30,90011,370$910>25
10 kW$40,000$38,70014,210$1,140>25
12 kW$48,000$46,40017,050$1,370>25

Incentives for Houston 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 · rebateAvailable

CenterPoint Energy Houston Electric residential solar PV incentive

$135 per kW DC, capped at 15 kW (maximum $2,025), credited on the installer's invoice[8]

The $2,025 maximum is computed ($135 x 15 kW), not stated by CenterPoint. Not a direct-to-customer program: the incentive reaches the customer as a credit on the installer's invoice. The fact sheet (12/2024) gives the same $135/kW.

Who
Existing single-family homes in CenterPoint's Houston Electric service territory, using a participating service provider. New construction and homes with existing PV are excluded, and the customer must sign an interconnection agreement.
Maximum
$2,025
Deadline
No end date stated; PUCT-approved energy-efficiency program funding
Checked
November 5, 2026

Every Texas incentive →

FAQ

Frequently asked questions

How much do solar panels cost in Houston?

About $37,200 est.[1,2,3] before incentives for a 9.3 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 CenterPoint pay for solar I send to the grid?

Under No net metering mandate; export credit only via a retail electric provider (REP) buyback plan, CenterPoint credits exports at Set by your retail plan; we model 0¢ unless you enter your plan’s buyback rate[5], 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 Houston?

Our model estimates more than 25 years est.[1,2,3,4,5] for a cash purchase, with year-one savings of about $1,060 est.[1,2,4,5]. Financing, a battery or a different rate plan changes this; the calculator lets you test each.

sources

[ 10 ]

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 5A: Residential average monthly bill by stateeia.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. EIA Electric Power Monthly, Table 5.6.B: Average price of electricity by state, year-to-date (August 2026, preliminary)eia.gov · checked Nov 5, 2026
  5. CenterPoint: No net metering mandate; export credit only via a retail electric provider (REP) buyback plancenterpointenergy.com · checked Nov 5, 2026
  6. CenterPoint residential tariffassets.centerpointenergy.com · checked Nov 5, 2026
  7. Houston: Permittinggosolarapp.org · checked Nov 5, 2026
  8. Houston: Local incentivecenterpointenergy.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

City data last re-checked November 5, 2026.