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Solar by stateSeptember 2026

Solar in Texas: how the rules work

How Texas credits the power solar panels send back to the grid, what homes there pay for electricity, and what to check when a home with solar is bought or sold.

Export credit
Varies by utility
Depends on the utility
Largest utility
Oncor (wires utility; crediting is set by your retail electric provider)
Home electricity
16.1¢/kWh
Rising ~2.3%/yr over 10 years (EIA)
Typical installed price
$2.25/W
State average quote before incentives (EnergySage)

How exported power is credited

There is no single statewide rule; each utility sets its own terms for exported power.

There is no statewide net metering. In competitive ERCOT areas, the retail provider sets the buyback, from ~3 cents up to retail-match plans (e.g., some TXU plans). Municipal utilities set their own terms (Austin Energy Value-of-Solar ~9.9 cents; CPS Energy lower). There is no grandfathering because it is plan-by-plan.

What changes for a home with solar

What a system saves depends on which utility serves the address, so two similar homes in the same state can see very different results.

Electricity here costs about 16.1¢ per kWh (2026) and has risen about 2.3% a year over the last decade. A lease or PPA escalator above that pace makes the solar payment rise faster than utility rates have.

When a home with solar is sold in Texas

Have the solar contract for a Texas home?

Upload it and get a letter-graded report card: price, production, payment changes, value and transfer terms, measured against Texas’s rates and rules.

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Sources

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