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Texas · 5 cities covered

Solar in Texas: what homeowners need to know

How Texas credits home solar, which utilities follow which rules, and a free consultation with one local specialist.

Check your home

About a minute. No cost, no obligation.

Step 1 of 3

Do you own the home?

Typical monthly electric bill

How much shade is on your roof?

Texts are optional. Your request goes to one local company, never a list.

The rules

How solar is credited in Texas

Tex. Util. Code §39.916

What the law and the utilities say

  • In the parts of Texas open to retail competition, homeowners buy electricity from a retail electric provider they choose, while a regulated transmission and distribution utility such as Oncor, CenterPoint Energy Houston Electric or AEP Texas owns the wires and the meter.
  • State law says a solar owner in those areas sells surplus power to the retail electric provider serving the home at a value the two agree on, so credit for exported solar depends on whether that provider offers a buyback plan and on its terms, and no statewide net metering rule sets that credit.
  • City owned utilities such as Austin Energy and CPS Energy, and electric cooperatives such as Pedernales Electric Cooperative, set their own buyback rates and run their own interconnection processes.
  • The homeowner or installer registers the system with the local wires utility through an interconnection application, and a signed interconnection agreement and permission to operate come before the system is switched on.

The state rule

Texas Utilities Code, interconnection of distributed renewable generation, Tex. Util. Code §39.916

Recent changes

Senate Bill 1036 (2025) placed residential solar sales and leases under the Texas Department of Licensing and Regulation, requiring since September 1, 2025 that contracts let the buyer cancel without penalty on or before the fifth business day, and requiring retailers and salespersons to register with the agency beginning September 1, 2026.

Federal tax credit

The residential solar credit (section 25D) ended for systems completed after 2025. Confirm your own situation with a tax professional.

Utilities

The main electric utilities in Texas

Your utility decides how your solar is credited. Check the name on your electric bill.

Oncor Electric Deliverywires utility. Dallas, Fort Worth and large parts of north and central Texas.
CenterPoint Energy Houston Electricwires utility. Houston and surrounding communities.
AEP Texaswires utility. South and west Texas.
CPS Energymunicipal. San Antonio and parts of nearby counties.
Austin Energymunicipal. The Austin area.
Pedernales Electric Cooperativecooperative. Much of Central Texas.

Where we work

Texas cities we cover

Each city page covers the local utility, how it credits solar, and who issues permits.

Dallas, TXOncorFort Worth, TXOncorHouston, TXCenterPoint EnergySan Antonio, TXCPS EnergyAustin, TXAustin Energy

Questions

Common questions in Texas

Does Texas require my electric provider to buy back extra solar power?

No statewide rule sets a buyback rate. In areas with retail choice, state law says surplus power is sold to your retail electric provider at a value you agree on, so you can shop for a plan that includes a buyback option. City owned utilities and electric cooperatives set their own buyback rates.

Who approves connecting my solar system to the grid in Texas?

Your local wires utility, meaning the transmission and distribution utility, city owned utility or cooperative that owns your meter, reviews an interconnection application and issues an interconnection agreement. The Public Utility Commission of Texas says the homeowner or the installer must register the system with that utility.

What protections apply when I buy or lease a home solar system in Texas?

The Texas Department of Licensing and Regulation oversees residential solar sales and leases, and since September 1, 2025 contracts must let you cancel without penalty by written notice on or before the fifth business day after signing. Beginning September 1, 2026, residential solar retailers and salespersons must be registered with the agency.

Is there still a federal tax credit for home solar?

The federal residential clean energy credit, section 25D, ended for home solar expenditures made after December 31, 2025, under the law signed July 4, 2025. The IRS treats the expenditure as made when installation is completed, so a system completed in 2026 does not qualify even if it was paid for earlier.

Does the consultation cost anything?

No. The consultation is free for homeowners, and there is no obligation to buy anything.

Who will contact me?

Our team confirms a few details with you, then one local solar company for your area contacts you to set up the visit. Your request never goes to a list.

Sources (checked September 26, 2026)

Rules and programs change, so confirm current terms with your utility before you decide.

See if solar fits your home in Texas

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