Electricity rate as of 2026-06-01. Sun hours: NREL NSRDB, El Paso fixed tilt annual average. GHI: 5.86 kWh/m2/day; latitude-tilted: 6.51 kWh/m2/day. 300+ sunny days per year.. Cost per watt: EnergySage April 2026, El Paso County. For a 10.72 kW average system, approximately $24,376 gross.. Payback estimate assumes zero federal residential credit (Section 25D expired December 31, 2025) and current utility net-metering tariffs.

Net metering in El Paso

El Paso Electric (EPE) net metering for residential systems up to 50 kW. Credit structure: retail-rate credit for energy consumed below production; avoided-cost credit (approximately 3 to 5 cents per kWh) for excess production above consumption. A $50 payment is issued when accumulated credits reach the $50 threshold. El Paso is not in the ERCOT deregulated market - it operates under WECC (Western Interconnection) and is regulated by the Texas Public Utility Commission and the New Mexico Public Regulation Commission. EPE customers cannot switch to a solar buyback REP. Critical 2026 change: in April 2026 the PUCT approved EPE's rate case that replaced the previous $30.25 fixed monthly minimum bill for solar customers with a new variable residential demand charge averaging $28.50 to $47.50 per month, tied to each customer's highest burst of grid usage that month. The April 2026 rate increase raises average residential bills by approximately $13 per month (from $98 to $111 per month average). Texas HB 912, signed in 2025, requires EPE to conduct a cost-benefit analysis before future solar fee changes, but the current demand charge was approved before HB 912 took effect.

Available programs

Solar incentives in El Paso, TX for 2026

Incentives available in TX

Federal residential solar credit (Section 25D): expired. The Section 25D residential investment tax credit expired December 31, 2025. The residential credit rate is 0%. State and local incentives below may still significantly reduce your net system cost. Commercial systems still qualify for Section 48E (30%).

Active solar incentives in TX
Program	Benefit	Eligibility	Status	Source
Texas 100% Property Tax Exemption (TX Tax Code Section 11.27) Local/State Incentive	The full added value of a solar system is 100% exempt from property tax assessment. File Form 50-123 with El Paso Central Appraisal District by April 30.	Owned systems only (not leased). All Texas homeowners.	Active	DSIRE (opens in new tab)
Texas Sales Tax Exemption on Solar Equipment Local/State Incentive	Solar equipment is exempt from the Texas 8.25% sales tax, saving approximately $1,700 on a typical $20,000 to $21,000 El Paso system.	All Texas solar equipment purchases	Active	DSIRE (opens in new tab)
El Paso Solar Co-op (Solar United Neighbors) Local/State Incentive	Group-purchase co-op connecting El Paso residents with vetted installers at negotiated group rates. Verify current co-op status at solarunitedneighbors.org/co-ops/texas/el-paso-solar-co-op-2/ before inquiring. Cohort enrollment windows are time-limited.	El Paso area residents. Verify current status at solarunitedneighbors.org/co-ops/texas/	Limited	DSIRE (opens in new tab)
EPE Net Metering - $50 Credit Payment Threshold Local/State Incentive	Accumulated net metering credits are paid out as a $50 check once the threshold is reached. Retail-rate credit applies only to consumption offset portion. Excess production earns approximately 3 to 5 cents per kWh at avoided cost. New demand charge (April 2026) affects overall solar bill economics. Verify current EPE solar tariff at epelectric.com.	El Paso Electric residential solar customers	Active	DSIRE (opens in new tab)
Texas HB 912 - EPE Solar Fee Protections Local/State Incentive	Requires EPE to conduct a cost-benefit analysis before any future solar fee changes. Advocates are pushing for retroactive analysis of the April 2026 demand charge. Effective September 1, 2025. Does not retroactively address the April 2026 demand charge. Public comment process ongoing as of June 2026.	El Paso Electric solar customers	Active	DSIRE (opens in new tab)

Data last verified June 29, 2026. Incentive programs change; verify current amounts and availability at dsireusa.org (opens in new tab) before committing to a project.

California property-tax exclusion sunsets December 31, 2026. Solar systems installed and permitted by December 31, 2026 lock in the exclusion for the life of the system under current California law (Revenue and Taxation Code Section 73). Systems installed in 2027 may not qualify if the Legislature does not extend the exemption. Verify current legislative status at ftb.ca.gov before signing a contract.

Why El Paso homeowners are moving now

After the January 2025 wildfires, battery storage became a priority

El Paso is the sunniest major city in Texas and one of the best solar locations in the country. At 6.0 peak sun hours per day and 300 or more sunny days annually, a system in El Paso produces roughly 20% to 30% more energy per installed watt than the same system in Houston. This higher output directly reduces payback period despite El Paso's lower electricity rate. The April 2026 EPE demand charge reform is the biggest local solar news story in the market: EPE's new variable demand charge has shocked existing solar customers - one widely reported case saw a monthly bill jump from $30 to $117 after the change took effect. This creates a compelling market for battery storage as demand-charge mitigation. El Paso is now a battery-recommended market. Fort Bliss (U.S. Army base) is among the largest employers in the region, creating a military and government contractor buyer base.

Source: EPE PUCT-approved demand charge for solar customers, effective April 2026 (2026).

Illustrative example

What does a typical El Paso solar system actually cost and save?

Zero federal residential credit applied (Section 25D expired December 31, 2025). Figures are estimates based on market data as of 2026-06-29. Your numbers depend on your roof, your utility, and your bill.

System inputs

System size: 9 kW
Gross cost ($2.27/W): $20,430
Federal residential credit: $0 (expired Dec 31, 2025)
TX property tax exemption (100% of added value, Form 50-123): Applied
TX sales tax exemption on equipment (~8.25%): Applied
Estimated net cost: $20,430

Estimated outcomes

Annual savings range: $1,500 to $2,300
Estimated payback: 9 years

A 9 kW system in El Paso costs approximately $20,430 gross at the 2026 market average of $2.27 per watt - the lowest installed cost of any major Texas metro. Zero federal residential credit applies - Section 25D expired December 31, 2025. At 6.0 peak sun hours, a 9 kW system produces roughly 16,000 to 18,000 kWh per year. At 13 cents per kWh retail, annual offset value is approximately $2,000 to $2,300 on the self-consumed portion. The EPE demand charge (April 2026, $28.50 to $47.50 per month) is not included in this estimate - it is additive and depends on your peak grid draw. Verify current EPE solar tariff details with your installer. Battery storage that reduces peak grid draws can offset the demand charge impact; add $10,000 to $15,000 to gross cost for battery.

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Neighborhoods we serve

Solar in El Paso: high-adoption areas, equity zones, and post-fire demand corridors

High-adoption neighborhoods

Established solar saturation; higher installers per block, active neighbor referrals, and permit history at LADBS.

West El Paso
Upper Valley
Northeast El Paso
Horizon City
Eastside

Equity program target areas

Designated disadvantaged communities (DAC) eligible for SGIP equity resiliency, DAC-SASH, and other income-qualified programs. Income verification required.

Lower Valley
South El Paso

LOCAL INSTALL PHOTO -- EL PASO -- TO BE PROVIDED

Permitting and interconnection

How solar permitting works in El Paso

Authority Having Jurisdiction (AHJ)

Permit office: City of El Paso Building and Safety Inspection Division
SolarAPP+ status: SolarAPP+: Not adopted by this AHJ
Permit fee: Approximately $145 (county permit plus utility interconnection fee combined). Standard residential permit process.
Typical contract-to-energization: 4 to 8 weeks (city permit 2 to 4 weeks; EPE interconnection 2 to 4 weeks)

We handle the permit and interconnection filings

LADBS permit application and plan set preparation
SolarAPP+ submission for qualifying systems
LADWP or SCE interconnection application
Inspection coordination and utility sign-off
Certificate of Completion delivery to homeowner

El Paso does not use SolarAPP+. Standard City of El Paso Building and Safety Inspection Division process. EPE interconnection review adds to the overall timeline. Total project timeline: 4 to 8 weeks for standard residential projects.

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Serving El Paso and surrounding TX communities

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West El Paso, TX REVIEW -- TO BE PROVIDED

[REVIEW TEXT - TO BE PROVIDED: real customer testimonial with system details, EPE demand charge impact, and specific bill comparison before and after April 2026 change]

System: 9 kW rooftop solar, El Paso Electric net metering, $2.27/W installed cost

Upper Valley, TX REVIEW -- TO BE PROVIDED

[REVIEW TEXT - TO BE PROVIDED: real customer testimonial mentioning battery storage as demand-charge mitigation strategy and 6.0 peak sun hours advantage]

System: 10 kW solar plus battery, El Paso Electric territory, demand-charge mitigation

Northeast El Paso, TX REVIEW -- TO BE PROVIDED

[REVIEW TEXT - TO BE PROVIDED: real customer testimonial mentioning Fort Bliss proximity, El Paso permit process, and property tax exemption savings]

System: 8.5 kW rooftop solar, El Paso County permit, EPE interconnection

For business owners and property managers

Commercial Solar in El Paso

El Paso's Chihuahuan Desert sun resource (6.0 peak hours per day, 300+ sunny days) makes it one of the best commercial solar locations in the country. Fort Bliss, the university, and the growing industrial base near the US-Mexico border create significant commercial rooftop opportunity. Businesses and nonprofits can still capture the 30% Section 48E investment tax credit if construction starts before July 4, 2026. Approximately 30% of Texas's planned new utility-scale solar capacity is being built near El Paso in the Permian Basin. Verify EPE's commercial solar rate structure before project sizing.

See commercial solar options

Commercial solar projects must begin construction by July 4, 2026 to qualify for the 30 percent Section 48E federal tax credit. After that date, the system must be placed in service by December 31, 2027.

Schedule a Free Commercial Assessment

El Paso solar questions

What El Paso homeowners ask

City-specific answers. Every number references your utility and your permit office.

Why is El Paso one of the best solar cities in Texas?

El Paso averages 6.0 peak sun hours per day and 300 or more sunny days per year. Located in the Chihuahuan Desert at 3,760 feet elevation, the dry air and high-altitude irradiance give panels a significant output advantage - roughly 20% to 30% more production per installed watt than the same system in Houston. El Paso also has the lowest installed cost per watt in Texas at approximately $2.27 per watt. These two factors - more production at lower cost - produce some of the shortest payback periods in the state.

What is the new EPE demand charge for solar customers?

In April 2026, the Texas Public Utility Commission approved El Paso Electric's rate case that replaced the previous $30.25 fixed monthly minimum for solar customers with a new variable demand charge. The demand charge averages $28.50 to $47.50 per month, based on each customer's highest burst of grid usage in that billing period. This is unusual for residential customers nationwide. The charge adds billing uncertainty that did not previously exist. Battery storage that reduces your peak grid draws can significantly lower or eliminate the demand charge. Verify the current EPE solar tariff at epelectric.com before sizing your system.

Is there a federal solar tax credit in 2026?

No. The Section 25D residential federal tax credit expired December 31, 2025. For El Paso homeowners, the main financial incentives are the Texas 100% property tax exemption (file Form 50-123 with El Paso Central Appraisal District by April 30) and the Texas sales tax exemption on solar equipment (approximately 8.25% of hardware cost). No city-level residential rebate is currently available.

Does El Paso have SolarAPP+ permitting?

No. El Paso does not use SolarAPP+ as of 2026. The City of El Paso Building and Safety Inspection Division handles standard residential solar permits. Total project timeline: 4 to 8 weeks including El Paso Electric interconnection review. El Paso's standard permit fees are the lowest in Texas at approximately $145.

Should I add battery storage to my El Paso solar system?

Battery storage is strongly worth considering in El Paso for two reasons. First, the new EPE demand charge (effective April 2026) is based on your peak grid draw. A battery that powers evening loads reduces your peak grid draws, which can lower or eliminate the demand charge. Second, El Paso's desert climate means cooling loads dominate - a battery lets you store midday solar production and use it during hot evenings when the grid rate peaks. Verify current EPE demand charge details with your installer before finalizing system sizing.

More solar resources for Texas:

Texas solar guide All cities

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El Paso Solar Installation 2026