Solar payback in Texas
A 7.7 kW home solar system in Texas pays for itself in about 25.3 years at 2026 prices, with no federal tax credit. That ranks #50 of 51 states, where 1 is the fastest.
- Installed price
- $4.00/W
- Texas median, 2025
- Solar output
- 1,421 kWh
- per kW a year, Houston weather
- Electricity rate
- 15.88¢/kWh
- average home rate, EIA
- Value of a solar kWh
- 11.1¢
- no statewide net metering
Pays back in year 26
- Cost up front
- $30,800
- Saved per year
- $1,216
- Ahead after 25 years
- -$393
Payback by quoted price and roof direction
Find your installer's price per watt (total price divided by system watts) to read your payback in Texas. Nationally, cash buyers paid a median of $3.00 per watt in 2025 and loan buyers $4.50, because loan fees are often built into the price. East and west roofs make 11% and 11% less power than south here.
| Price per watt | 7.7 kW costs | South roof | East roof | West roof |
|---|---|---|---|---|
| $2.50 | $19,250 | 15.8 years | 17.8 years | 17.8 years |
| $3.00 | $23,100 | 19.0 years | 21.3 years | 21.3 years |
| $4.00 (Texas median) | $30,800 | 25.3 years | 28.4 years | 28.4 years |
| $4.50 | $34,650 | 28.5 years | 32.0 years | 32.0 years |
System size barely changes payback here: a bigger system costs more and saves more in about the same proportion.
Questions about solar in Texas
How does Texas pay for solar power I send to the grid?
Texas has no statewide net metering. Buyback plans depend on your retail electricity provider or utility and often pay less than the retail rate. We assume you use 40% of your solar power at home, which makes the average solar kWh worth 11.1¢. This summary comes from secondary sources, so confirm it with your utility. Source.
How much did the end of the federal tax credit change payback in Texas?
With the 30% credit that ended in 2025, the same system would have paid back in about 17.7 years instead of 25.3. The credit ended for systems installed after December 31, 2025. Leased systems and power purchase agreements can still pass on a business credit, but then you do not own the panels.
Is 1,421 kWh per kW a lot?
The range across states runs from about 922 kWh in Alaska to about 1,779 in the Southwest. Sunshine matters less than people expect: the electricity rate and how your utility credits exports move payback more.
States near Texas in the ranking
- Michigan 20.3 years
- North Dakota 20.7 years
- North Carolina 23.3 years
- Utah 27.4 years