Texas Solar Energy
Learn more about solar power and its impact on the Texas energy industry.
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How does solar energy work?
Solar panels are devices made of silicon solar cells that absorb sunlight and generate direct current (DC) electricity. An inverter installed within the solar array then converts DC electricity into alternating current (AC), which is the kind of power used by residences and businesses. Solar panels can be used on rooftops, in ground-mounted arrays, or as part of large-scale solar “farms.”
Some homeowners who invest in solar panels also add battery storage, which reserves excess electricity to use when the sun isn’t out. Most residential systems are grid-tied, allowing solar owners to draw energy from the grid and participate in net metering programs.
How Texans can benefit from solar energy
Every electricity plan in Texas contains a percentage of renewable energy. If you live in Texas and want to further reduce your carbon footprint, you have a couple of options for powering your home with solar energy: Choose a provider offering a 100% green energy plan powered by solar, or install solar panels and generate your own solar energy.
Choose a 100% green energy plan in Texas
Choose Texas Power works with four providers that specialize in 100% green energy plans: Gexa Energy, Rhythm Energy, Green Mountain Energy, and Octopus Energy. Plans from these providers are fully powered by wind and solar energy in Texas.
Other providers on our marketplace offer green plans in addition to traditional ones. In all these cases, buying a green plan doesn’t mean green energy will be delivered to your home. Instead, the provider will buy renewable energy credits (RECs) to offset your electricity use.
Install a residential solar energy system
Home solar panels have become more common across the nation, but especially in Texas. The Lone Star State ranks second in the U.S. for solar energy generation (coming in just behind California). According to data from the Energy Information Administration (EIA), Texas households accounted for almost 8% of residential solar electricity generation nationwide in 2025.
Investing in residential solar panels is one way to ensure you use green energy in your home. In addition to lowering your carbon footprint, solar panels can significantly reduce your reliance on the power grid and lower your electricity bills.
Best Texas energy plans using solar power
The Texas energy market is deregulated, giving you the power to choose your energy provider and plan. If you are interested in enrolling in an energy plan powered by solar, you can find several top-tier options on the free Choose Texas Power marketplace.
The following table outlines some of the most popular 100% green energy plans currently featured on Choose Texas Power:
Provider |
Plan |
Electricity rate (1,000 kWh) |
Est. monthly bill |
Key details |
|---|---|---|---|---|
| Gexa Energy | Gexa Eco Saver Plus 12 | 8.2 cents/kWh | $82 | Receive a $125 bill credit when you use at least 1,000 kWh |
| Rhythm Energy | Rhythm Max Saver 24 | 8.8 cents/kWh | $88 | Earn a $125 credit when you use at least 1,000 kWh per month |
| 4Change Energy | Maxx Select Green 12 | 13.4 cents/kWh | $134 | Receive $100 every month you use 1,000 kWh or more |
| Green Mountain Energy | Pollution Free Conserve 12 Preferred | 17.9 cents/kWh | $179 | Switch to another plan within 90 days without paying a penalty |
*Electricity rates are accurate at the time of writing.
Find a solar energy plan on the Choose Texas Power marketplace
Our marketplace is free to use and easy to navigate. We can help you find the best green energy plan available in your area in three simple steps.
- Enter your ZIP code. We’ll provide a list of Texas energy plans currently available in your area.
- Filter by renewable energy. Our marketplace offers a variety of filters, including one that will narrow your results to plans powered by 100% green energy. You can compare Texas electricity rates and plans from a number of trusted electric companies near you.
- Sign up online or by phone. If you’d like to discuss your options with an energy expert, call the number on this page. Otherwise, we can help you sign up for your chosen green energy plan online in a matter of minutes.
Solar energy costs for Texas residents
As solar panels have grown in popularity in recent years, the price for residential solar systems has decreased. Currently, the average cost for a home solar panel system is between $16,250 and $32,500. That price range is based on data from the National Renewable Energy Laboratory (NREL) showing the average cost per watt in 2024 was $3.25 and the typical residential system size of between 5 kW and 10 kW.
Even though prices have decreased, the upfront cost to buy a solar panel system is still significant. Thankfully, there are some ways to offset the initial price of solar panels.
- Understanding the return on investment. Homeowners can offset the installation cost in 15 years or less from the savings on electricity bills. Depending on where you live, you may be able to shorten your payback period with state or local solar incentives.
- Getting a loan. Traditional lenders and solar installation companies offer loans for homeowners who want to go solar. Terms vary depending on the amount borrowed and other factors. It’s important for homeowners to weigh the cost of repaying the loan against their existing monthly electricity bills to ensure they’re getting a good deal.
- Leasing the system. Solar companies often pay the installation cost in return for a homeowner’s agreement to pay a set amount each month for 15 to 20 years. Again, the repayment should be less than the homeowner’s monthly bill.
Frequently asked questions about solar power in Texas
How long will my system last?
According to NREL, solar panels will typically last for 20 to 25 years. However, it should be noted that panel performance degrades over time, so it may not be as efficient as it gets older. Yearly maintenance and cleaning can help to prolong your system’s lifespan.
Should I replace my roof before adding panels?
Maybe. Most roofs last about 20 years. If yours is near that age or in poor condition, it may make sense to replace it before you install solar panels. Otherwise, the panels will have to be removed and reinstalled, which will add to the project’s cost.
Will solar panels lower my home’s value?
Studies have found that solar panels actually raise a home’s value. Zillow released a study in 2019 showing homes with functioning solar panels sold for 4.1% more than comparable homes without solar. This increased value averaged to about $9,274 for the median-valued home.
How can I use electricity at night or on cloudy days?
Photovoltaic panels still generate electricity if clouds partially block the sun, and they don’t require direct sunshine. Systems come with battery storage, too, and most remain connected to the state’s electricity grid, so you’re covered when there’s no sun.