State Solar Policy

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Texas Solar

As the Texas economy continues to grow, electricity consumption has correspondingly increased. Environmental regulations and various market pressures have forced a significant amount of generation to exit the market in recent years while older generation sources continue to be retired. Thus, new solar generation capacity is required to meet the Texas market's demand. With appropriate state policy that removes, or at least does not create, market barriers and recognizes solar's benefits, the Texas solar market should see significant growth in the coming years.

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Facts on the Texas Solar Industry

  • There are currently more than 497 solar companies1 at work throughout the value chain in Texas, employing 7,030 people2.
  • In 2015, Texas installed 212 MW of solar electric capacity, ranking it ninth nationally. Installed solar capacity in Texas has grown by 65% over the last year3
  • In 2015, $372 million was invested on solar installations in Texas.  This represents a 48% increase over the previous year, and is expected to grow again this year. 
  • The 566 MW of solar energy currently installed in Texas ranks the state tenth in the country in installed solar capacity.  There is enough solar energy installed in the state to power 61,000 homes.
  • Over the next five years, Texas is expected to install 4,612 MW of solar electric capacity, ranking the state second over that time span. This amount is more than 10 times the amount of solar installed over the last five years.
  • Installed solar PV system prices in the U.S. have dropped steadily- by 12% from last year and 66% from 2010.

View more solar data.

Notable Solar Installations in Texas

  • Alamo Solar Farm 1 was completed in 2014 by developer OCI Solar Power.  This photovoltaic project has the capacity to generate 39 MW of electricity-- enough to power over 4,200 Texas homes4
  • At 30 MW, Austin Energy Project in Webberville is among the largest solar installations in Texas.  Completed in 2015 by Standard Solar & PPC Solar, this photovoltaic project has enough electric capacity to power more than 3,200 homes5
  • Several large retailers in Texas have gone solar, including REI, Kohl's, Campbell's Soup, and Target. FedEx has installed one of the largest corporate photovoltaic systems in the state with 2,244 kW of solar capacity at their location in Hutchins6.

See our solar installations maps.

SEIA Texas State Policy Priorities

  • Educate lawmakers, public utility commissioners and their respective staff on sound solar policies and defend the solar industry against legislation and regulations that may impede solar’s growth in the state.
  • Participate in discussions and proceedings at the Electric Reliability Council of Texas (ERCOT) and the Public Utility Commission of Texas (PUCT) to open the market for solar energy, remove market barriers and prevent the creation of new obstacles to the industry’s growth.
  • Support policies that promote additional solar capacity to ensure future electric reliability at an affordable rate. 

Solar Companies in Texas

There are currently more than 497 solar companies at work throughout the value chain in Texas.  These companies provide a wide variety of solar products and services ranging from solar system installations to the manufacturing of components used in photovoltaic panels.  These companies can be broken down across the following categories: 96 manufacturers, 19 manufacturing facilities, 173 contractor/installers, 44 project developers, 44 distributors and 140 engaged in other solar activities including financing, engineering and legal support.

NSD Map Key

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How much do solar panels cost in Texas? 

Solar panel costs have fallen significantly in the last 5 years and now installing solar panels can be one of the best investments you can make for your home. There are also now a lot of products on the market utilizing sophisticated financing vehicles to make solar panels for your home affordable. This website will show you the average retail price of installing home solar panels in Texas.

Solar rebates and solar tax credits in Texas.

Solar incentives are offered at the utility, county, state and federal level. These solar incentives can take various forms including solar tax credits, up front solar rebates, premium feed in tariffs (known as net metering) or solar production incentives.The eligibility and rules for each incentive program can vary greatly. This solar panel calculator allows you to enter your address and it will tell you what solar incentives will apply at your house and the value of these if you go solar.

Finding the right solar company for you:

There are many solar companies in Texas offering a wide variety of brands and options. This consumer reviews website will show you the consumer ratings of each solar installer that services your area and will also show you what brands of solar panels.

Texas State Solar Policy Resources

Public Utility Commission - Learn about the governing body that regulates the electricity rates and services of Texas public utilities

State Legislature - Track pending legislation affecting solar energy, locate and contact individual legislators, and stay up to date on current legislative issues in Texas

State Energy Office - Find a wide variety of information on state government energy programs, policy, projects, energy-saving strategies and energy-related statistics

DSIRE incentives database - Texas - Search a public clearinghouse for specific solar energy incentives in Texas and across the United States

U.S. Energy Information Administration - Texas State Profile - Explore official energy statistics, including data on electricity supply and demand, from the U.S. government


2The Solar Foundation, 2015 National and State Solar Jobs Census,
3This and all other data in this section from SEIA/GTM Research U.S. Solar Market Insight