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Is solar worth it in Texas?

Short answer: on illustrative average numbers, a typical 8 kW system bought with cash pays back in about 12 years in Texas — then keeps saving for the rest of the panels' ~25-year life. But it hinges on your rates, usage, and net-metering terms, so run your own numbers below.

Approximate Texas averages (~2026) · not financial advice

15¢
avg electricity rate ($/kWh)
1,450
kWh per kW of solar / year (sun)
~12 yrs
illustrative cash payback

What drives solar economics in Texas

Two things move the needle most: how much you pay for grid power, and how much sun your panels get. Texas's residential electricity runs around 15¢/kWh, close to the US average. And with solid sun (about 1,450 kWh per kW installed each year), an 8 kW system produces roughly 11,600 kWh/year.

The third factor is net metering. Texas has no single statewide net-metering mandate, so what you're credited for exported solar varies by utility. Check your provider's solar/buyback tariff.

Remember solar offsets the generation part of your bill, not delivery and fixed fees — so even a great system in Texas won't take your bill to zero.

A typical system, run honestly

For an 8 kW system at about $3/W (≈$24,000), minus the 30% federal tax credit (≈$7,200), the net cost is roughly $16,800. On Texas's averages that returns about $25,317 net over 25 years, with first-year savings near $1,235. These are illustrative — your quote, roof, and utility will differ.

Run your Texas numbers

This opens the calculator pre-filled with Texas averages — then adjust to match your quote and bill.

Run the Numbers →

FAQ

Is solar worth it in Texas?

For a typical 8 kW cash system (~$16,800 after the federal credit), payback is about 12 years on illustrative averages, then it keeps saving for ~25 years. Confirm with your own rates and net-metering terms.

What's the average payback period in Texas?

About 12 years for a cash purchase at ~15¢/kWh and 1,450 kWh/kW of sun. A loan lengthens it because of interest.

Does Texas have net metering?

Varies by utility. Texas has no single statewide net-metering mandate, so what you're credited for exported solar varies by utility. Check your provider's solar/buyback tariff.

Figures are approximate Texas averages (~2026) for illustration, drawn from public EIA rate data and NREL production ranges. Net-metering policy changes often. Verify everything against your own bill and current utility tariffs. Not financial advice.

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Net metering, explained →

What exported solar is really worth.