Texas Solar Calculator

Enter your utility territory and monthly bill — get system size, REP buyback savings, Oncor battery incentive, property tax exemption, and 25-year savings.

Your Texas solar inputs

Monthly electric bill?

Utility territory / TDU?

System size?

Roof orientation?

Battery backup?

Texas solar estimate

20 × 400W panels (8 kW system)

Recommended size for your bill: 12.5 kW

Monthly usage1,500 kWh/mo

Annual production (TX 5.0 PSH)11,680 kWh/yr

Solar buyback savings (est.)$1,191/yr

Gross system cost$22,000

Federal ITC (30%)-$6,600

Net cost after incentives$15,400

Property tax exemption (est.)$5,280

Payback period12.9 yrs

25-year savings$29,784

Texas is a deregulated market — your REP (Retail Electric Provider) determines your solar buyback rate. Compare REPs at powertochoose.org for the best solar buyback plan.

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Extended AnalysisREP buyback, Oncor battery incentive & grid independence

Utility territory?

System size?

Monthly electric bill?

Battery size?

kWh

Annual production for a 10kW system in Oncor: 16,133 kWh. Self-consumption (10,486 kWh) earns full retail value. Exported (5,647 kWh) earns the REP buyback rate. Total annual value: $1,791.

Self-consumption valueExport buyback value

Total annual savings

$1,791

Bill offset

68%

Est. payback period

10.7 yrs

Property tax savings/yr

$495

How to Use This Calculator

Enter your bill and select your utility territory (TDU)

Texas is a deregulated electricity market — your TDU (Transmission & Distribution Utility) owns the wires, but your REP (Retail Electric Provider) sets your electricity rate and solar buyback terms. Select the TDU that serves your area: Oncor serves Dallas/Fort Worth and North Texas; CenterPoint serves Houston; AEP Texas covers San Antonio and West Texas; TNMP covers West Texas and the Panhandle. If you know your exact REP rate, use the Custom REP rate option.

Consider adding battery for the Oncor incentive

If you're in Oncor territory (Dallas/Fort Worth), adding a battery unlocks the Oncor ConnectedSolutions incentive: $2,250 per kWh of battery capacity, up to $9,000 for a 4+ kWh battery. A 13.5 kWh Powerwall would qualify for the full $9,000. Combined with the 30% federal ITC, battery storage in Dallas can be essentially cost-neutral after incentives — making it one of the best battery incentives in the United States.

Understand Texas solar buyback

Unlike states with fixed net metering laws, Texas solar buyback rates vary by REP. Some REPs offer retail-rate buyback; others offer avoided cost (~50% of retail). The calculator estimates buyback at 50% of your retail rate for exported electricity — a conservative estimate. Self-consumed solar is worth your full retail rate. Choosing a solar-friendly REP plan can significantly improve your economics.

The Formula

Monthly kWh = Monthly Bill ÷ Electricity Rate Annual Production = System kW × 1000 × 5.0 PSH × 365 × 0.80 efficiency × Orientation Factor ÷ 1000 Self-consumed kWh = Annual Production × 0.70 (Texas A/C daytime overlap) Exported kWh = Annual Production − Self-consumed kWh Annual Savings = (Self-consumed × Retail Rate) + (Exported × Buyback Rate) Buyback Rate = Retail Rate × 0.50 (conservative estimate) Gross Cost = System kW × 1000 × $2.75/W + Battery ($12,000 if added) ITC Credit = Gross Cost × 30% Oncor Incentive = min(Battery kWh × $2,250, $9,000) — Oncor territory only Net Cost = Gross Cost − ITC Credit − Oncor Incentive Payback = Net Cost ÷ Annual Savings

Texas uses 5.0 peak sun hours (PSH) statewide average — El Paso gets 6.2 PSH, Houston gets 4.9, Dallas gets 5.1. The 70% self-consumption ratio reflects Texas's high daytime A/C usage, which means more solar energy is used directly rather than exported. The buyback estimate at 50% of retail is conservative; shop REPs at powertochoose.org for higher buyback rates.

Example

James — Dallas Oncor customer adding battery

James is in Dallas (Oncor territory) paying $200/month for electricity at $0.12/kWh. He wants a 10kW system with a 13.5kWh battery to take advantage of the Oncor incentive.

Monthly bill$200 (Oncor, $0.12/kWh)

System10 kW + battery, south-facing

LocationDallas, TX (5.1 PSH)

Result

Annual production~14,600 kWh/yr

Annual savings (buyback est.)~$1,680/yr

Gross system cost~$39,500

Federal ITC (30%)-$11,850

Oncor battery incentive-$9,000

Net cost after incentives~$18,650

Payback period~11.1 years

25-year savings~$42,000

James's combination of ITC and Oncor incentives reduces his net cost by $20,850 — over 50% of gross cost. After incentives, he has a battery system in Dallas for about what a panels-only system would cost in other states. The battery provides backup power during Texas grid events (like Winter Storm Uri) and qualifies for Oncor's demand response program for additional annual payments.

FAQ

What is the Oncor battery incentive and how do I get it? ▼

The Oncor ConnectedSolutions program pays $2,250 per kWh of battery capacity, up to $9,000 for batteries 4 kWh or larger. A Tesla Powerwall (13.5 kWh) qualifies for the full $9,000. To participate, your battery must be enrolled in Oncor's demand response program — during grid stress events, Oncor may remotely draw from your battery for 2-4 hours. You choose a program participation level. Your solar installer handles the enrollment application. This incentive is in addition to the 30% federal ITC, not exclusive. Oncor territory covers Dallas, Fort Worth, and much of North and West Texas.

How does solar buyback work in deregulated Texas? ▼

Texas does not have a mandatory net metering law. Instead, deregulated Texas lets REPs (Retail Electric Providers) set their own solar buyback rates. This means: (1) Some REPs offer retail-rate buyback — your exported solar is credited at the same rate you pay; (2) Most REPs offer lower buyback rates, typically 50-70% of retail; (3) Some REPs have no buyback at all — exported solar generates $0. Before signing a solar contract, compare REP plans specifically for solar buyback terms at powertochoose.org. Switching REPs after installation is allowed but shop before you sign.

Does Texas have a state solar tax credit? ▼

No — Texas has no state income tax and therefore no state solar tax credit. However, Texas offers a 100% property tax exemption on the added value of a solar system — your home's taxable value for property taxes does not increase because of solar. Texas property taxes are among the highest in the US (1.5-2.5% of value), making this exemption worth $300-600+ per year. Texas also has no sales tax on solar equipment. The 30% federal ITC applies to all Texas residents.

Is solar worth it in Texas given variable buyback rates? ▼

Yes — Texas's high electricity consumption (highest average monthly usage in the US at ~1,200 kWh/month), strong 5.0 PSH sunshine, 100% property tax exemption, and the 30% federal ITC make solar economically strong. The key is maximizing self-consumption — solar energy used directly is worth your full retail rate, bypassing the buyback rate issue. Texas's intense afternoon A/C load aligns well with solar peak production. Adding battery storage further increases self-consumption to 80-90%, nearly eliminating dependence on REP buyback rates.

What happened during Winter Storm Uri and how does solar help? ▼

Winter Storm Uri (February 2021) caused millions of Texans to lose power for days. Solar panels alone don't help during a grid outage — without battery storage, grid-tied solar automatically shuts off for safety when the grid goes down. However, solar + battery provides backup power even when the grid fails. A properly sized battery (10-20 kWh) can power critical loads — heating, refrigerator, phone charging — for 1-3 days. This is a key reason Texas homeowners increasingly add batteries despite the cost, especially in areas prone to weather-related outages. The Oncor incentive makes battery storage particularly attractive for Dallas/Fort Worth homeowners.

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