Solar Panel Cost in Texas 2026: Maximizing Savings in the Lone Star State

Feb 16, 2026 James Mitchell

Texas has some of the lowest solar costs in the country and some of the highest potential for energy independence, especially with the state's unique deregulated energy market.

1. Average Solar Cost in Texas

Texas homeowners pay an average of $2.40 to $2.90 per watt in 2026. This is significantly lower than the national average due to a competitive installer market and favorable land use policies.

2. Key Texas Incentives

Renewable Energy Property Tax Exemption: 100% of the value added by solar is exempt from property taxes.
Utility Rebates: Companies like Austin Energy and CPS Energy (San Antonio) offer thousands in direct rebates.
Solar Buyback Plans: Many REPs in deregulated areas offer programs that credit you for excess generation.

3. Energy Independence and Grid Reliability

Following recent grid stability challenges, many Texans are opting for battery backups. Adding a battery like the Tesla Powerwall 3 adds about $10,000 to the system cost but ensures power during emergency outages.