Is solar worth it in Texas?
A 7.0 kW rooftop system near Houston produces about 9,950 kWh a year. Priced against 21 current residential tariffs in Texas, payback runs from 16 years on the best of them to 56 on the worst.
Why the tariff matters more than the panels
Two households in Texas with identical roofs and identical systems can see paybacks 16 and 56 years apart, purely because they are on different tariffs. Solar produces at midday; households consume in the evening. Only 52% of what these panels make is used as it is made — the rest is exported, and what an exported kWh earns is set by the tariff and by state net metering rules, not by the hardware.
That is why the figures here are computed hour by hour against each real tariff rather than by taking a bill and assuming solar removes a share of it. How this is modeled →
Payback by tariff in Texas
7.0 kW system at $3.00/W, household using 1000 kWh a month, no incentives. A range means the export credit is not filed with the tariff and the outcome depends on net metering rules — 17 of 21 tariffs here belong to a utility that reports residential net metering.
| Utility | Tariff | Structure | Annual saving | Payback |
|---|---|---|---|---|
| Entergy Texas Inc. | Residential Service | Time-of-use + tiered | $662–$1,277 | 16–32y |
| El Paso Electric Co | Residential Service - TOU (Alternative) | Time-of-use | $700–$1,255 | 17–30y |
| El Paso Electric Co | Residential Service | Time-of-use + tiered | $656–$1,250 | 17–32y |
| Southwestern Public Service Co | Residential Heating Service TOU - Rate 39 | Time-of-use | $811–$1,227 | 17–26y |
| Denton County Elec Coop, Inc | Residential Solar Savings | Flat | $623–$1,203 | 17–34y |
| Denton County Elec Coop, Inc | Residential | Flat | $614–$1,183 | 18–34y |
| Southwestern Electric Power Co (Texas) | Residential Service | Time-of-use + tiered | $588–$1,147 | 18–36y |
| Denton County Elec Coop, Inc | Residential Summer Savings | Time-of-use | $553–$1,127 | 19–38y |
| Entergy Texas Inc. | Residential Service - Time Of Day | Time-of-use | $478–$1,125 | 19–44y |
| Denton County Elec Coop, Inc | Public Buildings Rate (Under 35 kW) | Flat | $576–$1,112 | 19–36y |
| Denton County Elec Coop, Inc | Residential-TOU - Closed | Time-of-use | $562–$1,110 | 19–37y |
| Southwestern Public Service Co | R (Residential Service) - Rate 1 | Time-of-use | $539–$1,034 | 20–39y |
| Bluebonnet Electric Coop, Inc | Residential General Service | Flat | $495–$955 | 22–42y |
| City of San Antonio, Texas | RE - Residential Service | Time-of-use + tiered | $495–$922 | 23–42y |
| Southwestern Public Service Co | Residential Heating Service - Rate 39 | Time-of-use | $466–$884 | 24–45y |
Price it for your own usage and system size →
What would change this
Your roof. Production is modeled for Houston on a south-facing array at 20° tilt. Shading, orientation and pitch all move it, and solar resource varies within Texas itself.
Your usage pattern. A household at home during the day self-consumes more and exports less, which shortens payback wherever export credit is poor.
Rising rates. These figures hold today's prices flat. Electricity prices have been rising, and every rise shortens payback — so treat these as a conservative bound.
State and local incentives. Not included here, and in some states they are worth more than the federal credit was. Check your state energy office before deciding.