How much do solar panels cost in Texas?
Solar is priced by the watt. Austin Energy’s rebate records show Texas homes paid an average of $3.27 a watt in 2025, without a battery. Your total depends mostly on how big a system you need.
Bars start at zero. $3.27 is Austin Energy’s 2025 average for home systems without a battery. Most U.S. home systems were 5 to 12 kW in 2025, according to Berkeley Lab.
Bars start at zero. Each installer’s typical price before incentives, from the Lawrence Berkeley National Laboratory, a federal research lab (August 2026).
The same installer can charge very different prices, so quotes vary a lot. Prices fell about 50 cents a watt from 2024 to 2025, Berkeley Lab found, and loans were priced well above cash deals.
Did the solar tax credit really end?
Yes. The IRS says the 30% Residential Clean Energy Credit covered systems installed from 2022 through December 31, 2025, and isn't available for any property placed in service after that. A 2025 federal law ended it years early.
- 12022 to 2025: 30% back
Homeowners could take 30% of the cost of solar and battery storage off their federal taxes.
- 2December 31, 2025: the cutoff
The install date is what counts, not when you signed or paid. A system finished in 2026 doesn't qualify, even if you paid in 2025.
- 32026: $0 federal credit
For cash and loan buyers, there's no federal home solar credit. The companion credit for windows, insulation and heat pumps ended too.
Bars start at zero. The sticker price didn't change; the $7,800 of federal help did. That's about 43% more out of pocket.
What solar incentives are left in Texas?
Smaller ones. None comes close to the old federal credit, so check which apply where you live.
To claim the property tax break, file Form 50-123 with your county appraisal district. Texas has no state income tax, so there's no state solar tax credit. Not sure who your utility is? Use our utility finder, then see Oncor or Austin Energy. For every program, read Texas solar incentives and solar buyback plans.
Is solar still worth it in Texas without the credit?
It can be, but the math is tighter. A higher upfront cost means it takes longer for your savings to pay the system off.
An example only. Real savings depend on your usage, your electricity price, your roof and any buyback plan.
Your savings depend on what you pay for power now. See Texas electricity rates, what homes like yours pay and our full guide, is solar worth it in Texas?
Estimate your 2026 solar cost
Type a system size and price per watt from a quote. You'll see the 2026 out-of-pocket cost, what the old credit would have saved, and a rough payback.
That’s 8 kW at $3.27 a watt. There's no federal home solar credit for systems installed in 2026.
Estimates only, not a quote or tax advice. Leases and power purchase agreements are priced differently.
What about batteries and solar leases?
The same change hit batteries, and it complicates leases.
Battery storage qualified for the 30% credit through 2025. Batteries installed in 2026 don't. They can still be worth it for backup power and buyback programs: see is a home battery worth it?
With a lease or power purchase agreement, a company owns the panels and claims any business credit, not you. The 2025 law changed those rules too, so don't assume a lease still carries the old 30%. Compare its total cost against buying. See the catch with free solar.
How do I know if my solar quote is fair?
Run every quote through these four checks before you sign.
Bars start at zero. Berkeley Lab found these “soft costs” and other parts make up about 80% of a typical 2025 price. That’s why two quotes for the same panels can differ by thousands.
- 1Divide by the watts
Total price divided by system watts. Under $3 is a strong price. Over $4, ask why: about 6 in 10 big installers charged less in 2025.
- 2Ask for the cash price
Get the price with no tax credit math. Loan prices often include a dealer fee, and Berkeley Lab found loan deals cost noticeably more.
- 3Check your roof first
If your roof needs replacing soon, do it before solar goes on. See what a new roof costs and how hail claims work.
- 4Get at least three quotes
Compare price per watt, equipment and warranties side by side. See best solar companies in Texas.
Solar cost questions, answered
How much do solar panels cost in Texas in 2026?
About $3.27 a watt, the 2025 average Austin Energy recorded for home systems without a battery. That’s about $26,000 for a typical 8 kW system. With the federal credit gone, that’s the real out-of-pocket cost for cash and loan buyers.
Did the solar tax credit really end?
Yes. The IRS says the 30% Residential Clean Energy Credit isn't available for any property placed in service after December 31, 2025. A 2025 federal law ended it early. If your system was installed and running by that date, you can still claim it on your 2025 return.
How much more does solar cost without the credit?
On a $26,000 system, the old 30% credit was worth $7,800. A system installed in 2026 gets $0, so the same system costs about $7,800, or roughly 43%, more out of pocket than it would have in 2025.
I paid in 2025 but my system was installed in 2026. Do I get the credit?
No. The install date is what counts. The IRS says you claim the credit for the year the property is installed, not just purchased, and it isn't available for property placed in service after December 31, 2025.
What solar incentives are left in Texas?
Texas exempts the value solar adds to your home from property tax under Tax Code section 11.27. Some electric companies offer buyback plans. Some utilities pay rebates, like Austin Energy’s $4,000 and Oncor’s 2026 program, which works with or without a battery. Texas has no state income tax, so there’s no state solar credit.
Is solar still worth it in Texas?
It can be, but payback takes longer now. For example, a $26,000 system saving $1,800 a year pays off in about 14.4 years without the credit, versus 10.1 years with it. Your usage, electricity price, roof and buyback plan decide your real number.
What's a good price per watt for solar in Texas?
Under $3 a watt is a strong price. About a quarter of the 100 biggest U.S. installers charged that little in 2025, Berkeley Lab found, and Austin homes averaged $3.27. Divide any quote’s total by its watts, and if it’s over $4, ask what’s included.
Does a solar lease still get the 30% credit?
Not for you. With a lease or power purchase agreement, a company owns the panels and claims any available business credit. The 2025 law changed those rules too, so don't assume a lease carries the old 30% benefit. Compare its lifetime cost with buying.
Do home batteries still get a tax credit?
Not for 2026 installs. Battery storage qualified for the 30% federal credit through 2025, but like solar, it isn't available for property placed in service after December 31, 2025. Batteries can still pay off through backup power and buyback programs.
Should I wait for solar prices to drop?
There's no guarantee they will. Equipment and labor costs don't fall just because a credit ended. Compare current quotes by price per watt and judge each deal on today's numbers, including your electricity price and roof condition.
Sources and updates
Sources (9)
- Internal Revenue Service, Residential Clean Energy Credit: 30% for property installed 2022 through December 31, 2025, not available for property placed in service after that date, and claimed for the year the property is installed, not merely purchased.
- Internal Revenue Service, Instructions for Form 5695: the 30% rate for 2022 through 2025, battery storage as qualified property, and the end of the residential clean energy and energy efficient home improvement credits after December 31, 2025.
- Austin Energy, Austin Energy Solar Programs (presentation to the city, October 20, 2025): a 2025 residential average of $3.27 a watt without storage, from its solar rebate program.
- Lawrence Berkeley National Laboratory, U.S. Distributed Solar and Storage, 2026 Data Update: 2025 price ranges across the 100 biggest home installers, a median home system of 7.7 kW, falling prices, higher loan pricing and soft costs near 80% of the price.
- Austin Energy, Power Up with Sunshine (August 24, 2026): the increased $4,000 home solar rebate and Value of Solar bill credits.
- Oncor, 2026 Solar Program Manual: home options with and without battery storage, a 20 kW size cap, a $1,774,000 budget and a November 30, 2026 deadline.
- AEP Texas, Solar energy: electric companies set buyback terms, and some pay nothing for extra solar power.
- Texas Legislature, Tax Code, Chapter 11 (Section 11.27): the property tax exemption for solar and wind-powered energy devices.
- Texas Comptroller, Form 50-123: the application for the solar and wind-powered energy device property tax exemption.
Changelog · last updated October 5, 2026 · 1 update
- October 5, 2026: Guide published: 2026 Texas solar prices from Austin Energy and Berkeley Lab records, the end of the 30% federal credit, the incentives that remain, payback math, a fair-quote check and a 2026 cost estimator.
How to cite this page: The Day Company, "What do solar panels really cost in Texas in 2026?", updated October 4, 2026, https://theday.company/tx/solar-panel-cost.
Prices come from Austin Energy’s 2025 rebate records and Berkeley Lab’s national data; your price will vary by home and installer, and examples are illustrative, not quotes. Tax information reflects IRS guidance as of October 5, 2026 and is not tax advice; the date a system is placed in service decides credit eligibility. The Day Company is not affiliated with any installer, utility or electric company named here.