Complete Guide to Solar Energy in Texas

Your complete resource for solar energy in Texas. Everything you need to know about solar laws, solar costs, solar financing, and solar installation.

$2.16-$2.84
Cost per Watt (2025)
6-10 years
Average Payback Period
230 days
Annual Sunny Days
100%
Property Tax Exemption

Why Texas is Perfect for Solar Energy

Abundant Sunshine

Texas enjoys approximately 230 sunny days per year with excellent solar radiation levels, ranking 4th nationally for solar potential. From Dallas-Fort Worth to Houston and San Antonio, the state’s sunny climate provides optimal conditions for solar energy generation year-round.

100% Property Tax Exemption

Texas offers a complete 100% property tax exemption on the appraised value increase from solar installations. Unlike other states with partial exemptions, Texas homeowners pay zero additional property tax on their solar investment, providing substantial long-term savings.

Deregulated Energy Market

Texas’s unique deregulated electricity market allows homeowners to choose from multiple retail electricity providers offering competitive solar buyback plans. This creates opportunities for better rates, bill credits, and flexible solar compensation options unavailable in regulated markets.

Federal Tax Credit Expiring

The 30% federal Investment Tax Credit expires December 31, 2025, offering final opportunity for maximum federal savings. Combined with Texas’s 100% property tax exemption and competitive installation costs, 2025 represents the optimal year for solar investment in the state.

Quick Solar Facts

Average System Size: 7-8 kW
Annual Generation: 10,000-12,000 kWh
Federal Tax Credit: 30% (until December 31, 2025)
Typical Payback: 6-10 years
System Lifespan: 25-30 years

Quick Solar Savings Calculator

Important 2025 Updates

Federal ITC Expiration

The 30% federal Investment Tax Credit expires December 31, 2025. Systems must be installed and operational by year-end to qualify. After expiration, there is no residential solar tax credit.

IRS Residential Clean Energy Credit →

Enhanced HOA Solar Rights

New legislation effective May 29, 2025 expands homeowner protections for solar roof tiles and solar installations. HOAs cannot prohibit solar devices under Texas Property Code §202.010.

Texas Property Code §202.010 →

Texas Solar Laws & Regulations

Understanding the legal framework that supports solar energy in Texas

Federal Incentives

30% Investment Tax Credit (ITC) available through December 31, 2025, saving $4,500-$7,500 on typical residential systems. No residential credit after 2025.

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Property Tax Exemption

Texas provides a 100% property tax exemption on the appraised value increase from solar, wind, or biomass installations. Homeowners pay zero additional property tax on solar systems.

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Solar Access Rights

Texas Property Code §202.010 protects homeowners’ rights to install solar energy devices. HOAs cannot prohibit installations but may impose reasonable restrictions on placement.

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