Solar SME Texas
Trusted Expert Solar Installation Service
Switch to solar with confidence and upgrade your home with solar & battery backup
Texas is the 2nd most populous state with approximately 31 million residents. With a peak of 220–250 sunny days a year, it is also the top state for solar potential. Despite this, Texas is facing a critical energy crisis. Like, when Hurricane Beryl struck, it left around 2.7 million homes and businesses in the dark for days in Southeast Texas. With demand on the rise, going solar in Texas is now not just a choice but is becoming the state’s energy foundation. Solar SME is a Texas-based certified solar installation company serving 11 states across the United States. We offer tailored solar and backup power solutions as per your unique energy needs.
How much you can save with solar in Texas in 2025?
A typical electricity user in the state uses 1,652.00 kWh every month and 19824 kWh per year. The residential electricity rates are projected to rise between 15% and 40% by 2030, according to the ICF Climate Center, and could double by 2050. However, installing solar panels in Texas will typically break even in 6 years, and you can enjoy free electricity for 17-18 years. Solar helps you save money by lowering or eliminating your monthly electric costs and maximizing grid independence. Additionally, if you install solar with battery storage, you not only maximize your grid independence but also earn energy credits for excess power generation. Moreover, federal and state solar incentives and rebates also help to lower the initial expense.
25–30 years
17–18 years
6 years
Solar Financing Options in Texas by Solar SME
Installing a solar energy system in Texas is a smart investment for your home or business nowadays. Although losing a 30% federal tax credit will increase the upfront cost, rising electricity rates, inflation, and climate-driven grid instability still reflect the value of solar. There are 3 main financing options for managing initial solar expenses. However, the best option depends on your financial priorities.
Purchasing a solar panel system outright offers the highest long-term returns. There is no loan paperwork, no interest calculations, no increasing lease payments, and no monthly payments after installation. Also, your home value will boost by 7%-14% and you qualify for the federal and other solar incentives in Texas.
If you don't have enough cash to pay for your solar panel system up front but still want to get the most out of it, a solar loans in Texas are a viable alternative for you. You will make fixed monthly payments for 5-25 years while benefiting from instant energy savings. Fixed payments provide cost predictability, unlike utility bills or lease escalators, which rise over time. The good news is that the Federal Reserve cut interest rates for the first time this year, dropping the federal funds rate another 25 basis points, bringing the benchmark lending rate down to 4.0% - 4.25%. The best part is that you will be qualified for available state tax incentives and rebates. The trusted solar installer in Texas, like Solar SME, can help you to go solar with 0% APR option.
As the 30% tax credit is expiring, solar leasing is emerging as the best alternative to take advantage of solar power. Third-party financing requires you to pay a fixed monthly lease payment or per-kWh rate (PPA) for the solar energy produced by the system. According to the U.S. Department of Energy, this rate is 10% to 30% lower than your electric bills. With this option, the leasing company installs and owns, maintains, and monitors the system while you enjoy immediate savings. As you are not the owner, the federal tax credit and other solar incentives' expiry will not impact your savings. However, it is vital to choose your solar leasing plans wisely. Solar SME, the top solar provider in Texas, offers the best solar lease options for making your solar journey affordable.
Best Texas Solar Incentives and Rebates for Homeowners
Texas is an ideal location to go solar. As a state homeowner, you can take advantage of some of the best Texas solar panel incentives and local rebates that can significantly increase the return on your investment in solar panels and battery backup systems. These incentives can result in thousands of dollars in savings on the initial cost of solar and the long-term cost of electricity.
01- Residential Clean Energy Credit
The Residential Clean Energy Credit, also known as the federal investment tax credit (ITC), can lower the cost of a solar panel system by 30%. This Texas solar tax credit applies to the entire system, including equipment, labor, permits, and sales tax. However, it will expire on December 31, 2025. On July 4, 2025, President Trump signed legislation that completely canceled the home solar panels tax credit beginning January 1, 2026, nearly a decade before its initial expiration date.
02- Texas Solar Property Tax Exemption
03- Texas Solar Rebates from Utilities and Local Governments
Texas does not offer statewide solar rebates. However, several utility companies, including Oncor Energy, American Electric Power (AEP) Texas, and Austin Energy, offer incentives for solar panel installations. Local Texas solar programs by the government, such as Sunset Valley, provide rebates as well. Unlike the solar investment tax credit, all of these local and utility incentives are upfront refunds that immediately lower the solar panels cost in Texas.
04- Battery Storage Incentives in Texas
Although there is no statewide solar batteries incentive available in the state. However, Tesla Powerwall owners in some areas of Oncor and CenterPoint’s service territory can utilize Tesla Energy as their REP to participate in a Virtual Power Plant in Texas. Tesla gives you a $10 credit on your electric bill every month. In exchange, you allow Tesla to release the stored energy in your Powerwall, reducing grid stress. Moreover, some solar panels grant in Texas, like the Oncor Residential Solar Program, are also specific to homeowners who install solar panels for home with battery storage.
Texas Net Metering and Solar Buyback Plans
Texas does not have a net metering law, which means that utility companies and retail electric providers (REPs) have no obligation to compensate customers for excess energy generation. Still, many utility companies offer net metering and solar buyback programs in Texas to help solar owners save money on their energy bills. However, how much you are compensated will depend on whether or not you live in a regulated or deregulated area of Texas. Some utility providers will buy your electricity at the wholesale cost, which is far lower than the retail rate. Others will pay at a fixed price. Some electric providers also do not allow you to roll over credits from month to month or year to year.
Commercial Solar Installation in Texas
Switching to commercial solar power in Texas is an effective way for businesses to combat all of the power challenges. Businesses can generate power using free and unlimited sunlight via commercial solar panels. Furthermore, using solar electricity combined with a reliable battery backup system like Tesla Powerwall 3 eliminates power disruptions. Hence, enabling smooth workflow and increased operational resiliency. Also, solar power incentives in Texas for businesses are another compelling reason to switch to low-cost clean energy options.
Like residential solar installation, you are also eligible for a 30% federal tax credit for commercial solar systems. Apart from this, Production Tax Credit, MACRS Depreciation, and Texas PACE Financing options are available to minimize the upfront cost for business solar installation. Explore all commercial solar incentives in detail!
Why is it Worth it to Switch to Solar in Texas?
The U.S. Energy Information Administration (EIA) expects U.S. residential electricity prices to average 16.8 cents per kilowatt-hour (kWh) in 2025, up 2% from last year. With reduced solar panel costs, rising bad weather conditions, and long power outages, solar continues to deliver major financial benefits in Texas. Top reasons to switch to solar in Texas include:
Low Electric
Bills
Grid Independence
Flexible Financing Options
Earn Energy Credits
Increased Home Value
The best way to determine how to maximize your solar savings in Texas is to consult with a local solar installer. Solar companies near you can guide you with the best solar solutions and incentives in your area and can help you to get the most out of your solar investment.
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Solar SME is among the best, solar providers near you delivering its valuable clients with an exceptional solar experience by designing solutions according to its customers’ unique needs. Also, we hold a positive image in solar marketplaces like Energysage. Moreover, we are accredited with BBB, and our happy customers share their solar experience and highly recommend Solar SME for the best solar services in Texas.
City: Dallas
System Size: 15Kwh
Annual Savings: $4000
City: San Antonio
System Size: 20Kwh
Annual Savings: $8000
City: Houston
System Size: 10.4 kW
Annual Savings: $2500
City: Austin
Annual Savings: $4000
City: El Paso
Annual Savings: $11,000
City: Plano
System Size: 18kWh
Annual Savings: $6,000
Frequently Asked Questions
Although Texas does not offer free solar panels, there are incentives that can significantly reduce the cost. Advertisements for free solar panels or solar programs are most likely referring to PPAs or solar leases. As you will not own your system under these types of solar financing options, so you won't be eligible for the incentives.
The federal solar tax credit, which offers a 30% credit on your tax return for the overall cost of your solar installation, is the most important incentive. However, it is expiring after December 31, 2025. You can explore local solar programs in Texas to maximize your savings. However, some TX solar rebates are still available to make solar affordable.
There are three ways to pay for solar: cash, solar loans, or solar leases or power purchase agreements (PPAs). Buying with cash offers the biggest long-term savings. By dividing out the expenditures over time, solar loans let you own your system. PPAs and leases offer lesser overall savings but don't require any upfront costs.
Yes, Texas's high electricity prices, ample sunlight, and substantial potential for cost savings and property value growth make solar panels a typically wise investment. Homeowners should expect a payback period of roughly 9 to 15 years and an average return on investment (ROI) of 9% to 10%, though these numbers vary depending on system cost and energy consumption.
Solar SME is a Texas-based certified solar installer offering top solar panels and backup storage solutions at a competitive price. We offer industry leading warranties and flexible financing option for making solar affordable. As a NABCEP solar installation company, we ensure to compliance with NEC solar code 2023 for a safe solar energy system.