Texas averages 4.8–6.5 peak sun hours per day, has no state income tax, and offers a 100% property tax exemption on solar added value. With rising electricity rates driven by summer AC demand — and ERCOT grid reliability concerns — solar + battery storage is one of the smartest home investments you can make in Texas. Enter your ZIP to compare quotes.
Texas has the second-largest solar capacity in the United States and growing. The combination of high sun exposure, rising electricity rates, deregulated energy markets (in most of the state), and strong incentives makes solar particularly compelling.
Texas homeowners served by Oncor (DFW), CenterPoint Energy (Houston), AEP Texas (West/South TX), CPS Energy (San Antonio), and Austin Energy pay bills ranging from $120–$220/month — often higher in summer. A properly sized solar system eliminates most of that.
The Inflation Reduction Act provides a 30% federal tax credit on the full cost of your solar system — dollar for dollar off federal income taxes. On a $30,000 TX system, that's $9,000 back. This is the single most valuable solar incentive for Texas homeowners since there is no state income tax credit.
Texas law exempts the added assessed value of a solar installation from property taxes under Texas Tax Code §11.27. A $30,000 solar system might increase your home's assessed value by $20,000. At Texas's average effective property tax rate of ~1.6%, this exemption saves approximately $320/year or $4,800+ over 15 years.
Solar energy devices are exempt from Texas state sales tax (6.25%) under Texas Tax Code §151.317. Local sales tax may vary. On a $30,000 system, that's approximately $1,875 saved at purchase.
CPS Energy (San Antonio) and Austin Energy (Austin) both offer solar rebate programs. Austin Energy's Value of Solar (VOS) tariff pays customers for excess solar production. CPS Energy offers rebates for qualifying systems. Oncor and CenterPoint do not currently offer solar rebates but allow interconnection.
Winter Storm Uri in 2021 exposed ERCOT grid vulnerabilities that millions of Texans experienced firsthand. Battery storage paired with solar provides backup power during outages. Battery systems added alongside solar qualify for the full 30% federal ITC — making solar + battery an increasingly popular choice in Texas.