Solar Savings in Austin, Texas

Austin homeowners on Oncor Electric Delivery pay an average of $160/month. At 12.0¢/kWh (Tier 1), here is what solar can realistically do for that bill.

$160
Avg Monthly Bill
$110
Est. Monthly Savings
$1,320
Est. Annual Savings
5.2 hrs/day
Peak Sun Hours

Oncor Electric Delivery Rates in Austin

Oncor Electric Delivery charges 12.0¢/kWh for the first 1000 kWh/month (Tier 1) and 14.0¢/kWh above that (Tier 2). The average Austin household uses around 1200 kWh/month, putting most usage into the higher Tier 2 bracket — where solar saves the most per kWh.

Rate trajectory

Oncor Electric Delivery rates have increased 22% (2014-2024). At that pace, the average Austin bill could reach $195/monthby 2036 without solar. A solar system locks in production at today's value and insulates you from future hikes.

UtilityOncor Electric Delivery
Tier 1 rate12.0¢/kWh (first 1000 kWh/mo)
Tier 2 rate14.0¢/kWh (above 1000 kWh/mo)
Avg monthly bill$160
Avg monthly usage1200 kWh
Net meteringNo statewide mandate — varies by retail provider
Export creditvaries by retail electric provider
Rate increase (10yr)22% (2014-2024)

Solar Production in Austin

Austin receives 5.2 peak sun hours per day. This is the key input that determines how much electricity your panels produce. More sun hours mean more kWh generated, which translates directly to a lower bill.

10,629 kWh
Annual Production (7kW system)
886 kWh
Monthly Production
5.2 hrs/day
Peak Sun Hours

Production estimates use a 7kW system at 80% efficiency (accounting for inverter losses, shading, and temperature derating). Actual output depends on roof orientation, tilt, and shading.

Real Savings Math for Austin

At Oncor Electric Delivery's 12.0¢ and 14.0¢/kWh rates, the average Austin homeowner pays ~$160/month. A 7kW system producing 886 kWh/month replaces most of that grid usage — cutting the bill to around $38/month.

Current bill
$160/mo
With solar
$38/mo
Monthly savings
$110/mo

Based on a 7kW system at $3/watt. Actual savings depend on your roof, usage pattern, and Oncor Electric Delivery rate plan. NEM 3.0 export credits (varies by retail electric provider) apply to power sent to the grid.

System Cost and Payback in Austin

A 7kW system in Austin costs approximately $21,000 installed (at ~$3/watt, the current California market rate). With annual savings of $1,320, the estimated break-even point is 15.9 years. Systems carry 25-year manufacturer warranties, leaving 15+ years of essentially free electricity.

System size7kW (typical for this usage level)
Installed cost (~$3/W)$21,000
Est. monthly savings$110
Est. annual savings$1,320
Payback period15.9 years
25-year savings$33,000+
Peak sun hours5.2 hrs/day
Annual production10,629 kWh
UtilityOncor Electric Delivery
CountyTravis

Solar Incentives for Austin Homeowners (2026)

  • ✓Net metering (NEM 3.0 in CA) — sell excess power back to your utility
  • ✓Federal Section 48E credit (commercial/PPA structures only — residential Section 25D expired Dec 31 2025)
  • ✓Texas property tax exemption — added solar value excluded from taxable home value
  • ✓Some Oncor retail providers offer export credits — confirm before signing

Incentive eligibility depends on your tax situation and installation timeline. Consult a licensed solar installer before making decisions.

Frequently Asked Questions — Solar in Austin

How much can Austin homeowners save on solar?
At Oncor Electric Delivery's current 12.0¢/kWh (Tier 1) and 14.0¢/kWh (Tier 2) rates, a typical Austin household pays around $160/month. A 7kW solar system producing roughly 886 kWh/month can reduce that bill to approximately $38/month — saving around $1,320 per year.
What is the payback period for solar in Austin?
A 7kW system in Austin costs approximately $21,000 installed (at ~$3/watt). With annual savings of $1,320, the estimated payback period is 15.9 years. Systems typically last 25-30 years, so you can expect 15+ years of free electricity after payback.
How many peak sun hours does Austin get?
Austin averages 5.2 peak sun hours per day. This means a 7kW system produces approximately 10,629 kWh per year.
What is NEM 3.0 and how does it affect Austin solar savings?
NEM 3.0 (Net Energy Metering 3.0) took effect in April 2023 for Oncor Electric Delivery customers. Unlike NEM 2.0, export credits are now around varies by retail electric provider instead of near-retail rates. This means self-consumption — using solar power as it is produced — is more valuable than exporting to the grid. Pairing solar with a battery shifts more production to evening hours when you would otherwise buy from the grid.
What incentives are available for solar in Austin in 2026?
In 2026, Austin homeowners can benefit from: California's property tax exclusion for solar, the SGIP battery incentive, and the California Solar Rights Act (HOAs cannot block installation). Note: the federal residential solar tax credit (Section 25D) expired December 31, 2025. The commercial Section 48E credit remains active for PPAs and business installations.

More Solar Guides for Austin

Solar Savings
Solar Savings in Austin, Texas: How Much Can You Save?
Solar Cost
Solar Panel Cost in Austin, Texas (2026 Prices)
Best Time to Go Solar
Is Now a Good Time to Go Solar in Austin, Texas?
Incentives
Solar Incentives in Austin, Texas: What You Can Claim in 2026
Payback Timeline
Solar Payback Period in Austin, Texas: When Does It Pay Off?
NEM 3.0 Impact
NEM 3.0 and Solar in Austin, Texas: What Changed?

Get a Real Quote for Austin

These numbers are based on Oncor Electric Delivery rates and Austin sun data. A local installer will give you exact figures based on your roof, shading, and actual usage.

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