Solar in Texas vs California: Two Completely Different Economies

Texas: cheap power, cheap install, utility-dependent buyback

Texas residential electricity averages about 16.2¢/kWh (EIA 2026), one of the lowest among big states, and installed costs run around $2.55/W — among the lowest in the country. But Texas has no statewide net metering statute. Solar value depends entirely on your retail electric provider's buyback plan, which can range from avoided-cost (~3–6¢/kWh) to generous solar-specific plans. That makes a 6 kW system's payback swing wildly — often 13–15 years.

California: expensive power, NEM 3.0, battery math

California residential rates average ~33¢/kWh (EIA 2026), nearly double Texas. But NEM 3.0 (April 2023) cut export credits from ~29¢/kWh to about 5¢/kWh, extending payback from ~6 to 9–11 years. The winning move in California is now self-consumption: oversized daytime usage (EV charging, heat pump) or a battery that stores power to use at night instead of exporting at 5¢.

The head-to-head

For the same 6 kW system, California offsets about 1.9× more bill value per kWh produced (33¢ vs 16¢), but pays ~25% more per watt installed. Texas can still win if you get a good buyback plan and low $/W pricing. Run the PVFig state comparison tool with your exact usage to see which state math applies to you.

Is solar worth it in Texas in 2026?

It depends on your retail electric provider's buyback plan. With a good solar buyback plan and low $2.40–2.70/W pricing, payback can reach 10–12 years. With a weak buyback, it can exceed 15 years. Texas also exempts solar from property tax increases.

Is solar worth it in California in 2026?

Yes for most long-term owners, because power is expensive (~33¢/kWh) — but the strategy changed under NEM 3.0. Add a battery and maximize daytime self-consumption; payback is roughly 9–11 years, or faster with SGIP battery rebates for qualifying households.