Independent solar advice in Houston

Houston Solar Installation 2026

Only Texas metro with SolarAPP+ permitting. ERCOT deregulation means you pick your REP solar buyback rate - Green Mountain Energy leads at 8.5 cents per kWh fixed in CenterPoint territory.

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The federal residential solar tax credit ended on December 31, 2025. We tell you the truth about what is left in 2026: which state programs still apply, and which financing paths can still capture federal value.

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Average local electricity rate (cents/kWh): 14.8
Peak sun hours per day (NREL): 4.85
Typical installed cost per watt: $2.70
Estimated payback (years, zero federal credit): 12

Electricity rate as of 2026-06-01. Sun hours: NREL PVWatts, Houston fixed tilt annual average (range 4.5 to 5.2). Cost per watt: NuWatt and EnergySage 2026, Harris County (range $2.50 to $2.90/W). Payback estimate assumes zero federal residential credit (Section 25D expired December 31, 2025) and current utility net-metering tariffs.

Net metering in Houston

ERCOT deregulated market: CenterPoint Energy is the transmission and distribution utility. CenterPoint does not sell retail electricity and does not administer solar buyback credits. Solar customers choose a Retail Electric Provider (REP) with a solar buyback plan. Top buyback rates in CenterPoint territory (2026): Green Mountain Energy Pollution Free Solar Buyback 36 at 8.5 cents/kWh fixed (highest fixed rate in CenterPoint territory); Chariot Energy Solar Buyback 24 at 7.0 cents/kWh fixed; Shell Energy Buyback Plan at 7.0 cents/kWh (credits forfeit in December); Constellation Solar Buyback 12 at 6.5 cents/kWh. TXU Energy's 1:1 retail-match buyback plan is not available in CenterPoint territory - it is exclusive to Oncor (Dallas-Fort Worth).

Available programs

Solar incentives in Houston, 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. A $27,000 system avoids roughly $605/year in Harris County taxes. File Form 50-123 with Harris County 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 $2,000 to $2,400 on a typical $25,000 to $29,000 system.	All Texas solar equipment purchases	Active	DSIRE (opens in new tab)
Harris County Switch Together Group-Buy Program Local/State Incentive	Vetted installer network at group pricing through Solar United Neighbors. Optional add-ons for battery storage and EV chargers. Verify current program status at switchtogether.com/en/solar/harriscounty/ before signing. Group-buy cohorts open periodically.	Harris County residents. Program details at switchtogether.com/en/solar/harriscounty/	Limited	DSIRE (opens in new tab)
East Houston Solar Co-op (Solar United Neighbors) Local/State Incentive	Group-purchase co-op giving access to vetted installers at negotiated group rates. SUN has hosted 20+ Texas co-ops totaling 3.2 MW installed. Co-op enrollment windows are time-limited. Verify current status before inquiring.	East Houston area residents. Verify active status at solarunitedneighbors.org/co-ops/texas/	Limited	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 Houston homeowners are moving now

After the January 2025 wildfires, battery storage became a priority

Houston experienced major grid outages after Hurricane Harvey (2017) and Hurricane Beryl (2024). Battery-backed solar systems maintained power during outages that left hundreds of thousands of Houston-area homes dark for days. The sprawling suburbs of The Woodlands, Katy, Sugar Land, and Pearland have the largest untapped rooftop solar potential in the metro, per Rice University's Kinder Institute. Houston's climate plan targets 5 million MWh of local solar by 2050. New homes in Houston are subject to solar-ready construction codes under Appendix U.

Source: Hurricane Beryl grid outage; Kinder Institute Houston rooftop solar potential study (2024).

Illustrative example

What does a typical Houston 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: 10 kW
Gross cost ($2.7/W): $27,000
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: $27,000

Estimated outcomes

Annual savings range: $1,600 to $2,500
Estimated payback: 12 years

A 10 kW system in Houston costs approximately $25,000 to $29,000 gross. Zero federal residential credit applies - Section 25D expired December 31, 2025. The Texas 100% property tax exemption and sales tax exemption reduce your effective cost but do not reduce gross purchase price. At 14.8 cents/kWh average retail and 4.85 peak sun hours, a 10 kW system produces roughly 14,000 to 15,500 kWh per year. On a Green Mountain Energy 8.5 cents/kWh buyback plan, exported kWh earn less than you pay to consume - sizing to self-consumption matters. Payback estimate of 12 years assumes a blended self-consumption and buyback scenario. Your REP buyback rate selection significantly affects this figure.

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Neighborhoods we serve

Solar in Houston: 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.

The Woodlands
Sugar Land
Katy
Pearland
Kingwood

Equity program target areas

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

East Houston

Post-fire and growth corridors

Wildfire-affected and adjacent neighborhoods where battery storage demand surged following the January 2025 fires. Rebuilding homeowners and proximate neighbors with elevated grid-resilience priorities.

Galveston County coastal communities

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Permitting and interconnection

How solar permitting works in Houston

Authority Having Jurisdiction (AHJ)

Permit office: City of Houston Permitting Center (Houston Permitting Center - SolarAPP+)
SolarAPP+ status: SolarAPP+: Available (standard review)
Permit fee: $250 to $500 for building permit plus a separate electrical permit. SolarAPP+-eligible systems: same-day to 3 business days for permit approval. Standard plan review (non-SolarAPP+ systems): 2 to 4 weeks. Plan review fee: 25% of permit fee, due at submission.
Typical contract-to-energization: 6 to 12 weeks (SolarAPP+ permit same-day to 3 business days; standard permit 2 to 4 weeks; CenterPoint interconnection 2 to 4 additional 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

Houston launched SolarAPP+ on July 15, 2024, making it the only major Texas metro on the automated permitting platform. CenterPoint interconnection approval and meter reprogramming typically adds 2 to 4 additional weeks after permit issuance. Apply at HoustonPermittingCenter.org.

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Serving Houston and surrounding TX communities

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The Woodlands, TX REVIEW -- TO BE PROVIDED

[REVIEW TEXT - TO BE PROVIDED: real customer testimonial with system details, REP plan selection, and specific bill comparison]

System: 10 kW rooftop solar, CenterPoint territory, Green Mountain Energy buyback plan

Katy, TX REVIEW -- TO BE PROVIDED

[REVIEW TEXT - TO BE PROVIDED: real customer testimonial mentioning SolarAPP+ permit speed and battery-backup motivation after Hurricane Beryl]

System: 9.5 kW rooftop solar, SolarAPP+ permit, CenterPoint interconnection

Sugar Land, TX REVIEW -- TO BE PROVIDED

[REVIEW TEXT - TO BE PROVIDED: real customer testimonial mentioning group-buy co-op savings and CenterPoint interconnection timeline]

System: 11 kW rooftop solar, Harris County Switch Together co-op participant

For business owners and property managers

Commercial Solar in Houston

Houston's energy sector, commercial real estate, and no-zoning-code environment create significant commercial solar opportunity. Businesses and nonprofits can still capture the 30% Section 48E investment tax credit if construction starts before July 4, 2026. Houston's SolarAPP+ permit process and large industrial rooftops make commercial projects faster to initiate here than in most Texas metros.

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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.

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Houston solar questions

What Houston homeowners ask

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

How does solar work in Houston's deregulated ERCOT market?

CenterPoint Energy owns the power lines in Houston but does not sell electricity. You choose your own Retail Electric Provider (REP). To get credit for solar power you export to the grid, you must switch to a REP that offers a solar buyback plan. Green Mountain Energy's Pollution Free Solar Buyback 36 pays 8.5 cents per kWh, the highest fixed rate in CenterPoint territory as of 2026. Compare plans before signing your installation contract.

Is Houston the only Texas city with SolarAPP+ permitting?

Yes. Houston launched SolarAPP+ on July 15, 2024, making it the only major Texas metro using the automated permitting platform. Eligible systems receive permit approval in the same day to 3 business days. Standard (non-SolarAPP+) systems still require 2 to 4 weeks. CenterPoint interconnection adds 2 to 4 more weeks after permit issuance.

Is there a federal solar tax credit available in Houston in 2026?

No. The Section 25D residential federal tax credit expired December 31, 2025. Texas also has no state income tax, so there is no state credit. The main financial incentives for Houston homeowners are the Texas 100% property tax exemption (file Form 50-123 with Harris County Appraisal District) and the Texas sales tax exemption on solar equipment.

Can I sell excess solar power back to the grid in Houston?

Yes, but only if you are enrolled with a REP that offers a solar buyback plan. Not every REP in ERCOT buys back solar. You must actively select and sign up for a buyback plan before or at the time of installation. Ask your installer to help you compare available REP plans in CenterPoint territory before you sign.

What is the Harris County Switch Together program?

Harris County Office of Consumer Affairs runs the Switch Together group-buy program through Solar United Neighbors. It connects residents with vetted installers at group pricing. Optional add-ons include battery storage and EV chargers. Check switchtogether.com/en/solar/harriscounty/ for current cohort availability.

More solar resources for Texas:

Texas solar guide All cities

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