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Texas: permits, projects, and counties

Contacts checked 2026-09-26 · Projects from ERCOT's September 2026 report

Texas has no statewide siting permit for solar or wind, and counties generally have no zoning. Projects are shaped mostly by site control, road use and tax agreements, state environmental permits, and grid interconnection.

Which grid serves Texas land?

ERCOT runs most of the state. Parts of the Panhandle and northeast Texas are in SPP, parts of east Texas are in MISO, and El Paso is on the western grid. The utility serving the land decides which process applies.

Rooftop or business solar instead of a land lease? See homes and businesses below, and your utility's application links.

Texas counties

Counties marked "none listed" have no projects in ERCOT's report; some are outside the ERCOT grid. A dash in the MW column means the county's only projects are self-limiting batteries, which ERCOT reports as 0 MW. Source: ERCOT Generator Interconnection Status (GIS) Report, September 2026. ERCOT prepares this report for planning purposes from data entered by developers and transmission providers, and notes it may contain errors or be out of date.

Solar and batteries for Texas homes

• Selling extra power: Texas has no statewide net metering rule. Where you can choose your electricity provider, a customer with rooftop solar sells surplus power to the retail electric provider "at a value agreed to" between them, so buyback depends on the plan you pick (PURA 39.916(j); Oncor: thinking about solar). City utilities and electric co-ops set their own terms; for example, Austin Energy credits solar production at a Value of Solar rate of 12.89 cents per kWh (Austin Energy).
• Connecting: under the Public Utility Commission rule for utilities it regulates, a pre-certified system is to be interconnected within four weeks of a complete application (six weeks otherwise), and the utility may not charge a study fee for pre-certified systems up to 500 kW that meet the rule's screens (16 TAC 25.211; current text (Cornell LII)). The commission has been rewriting these rules (Project 54233; discussion draft). Your utility's application steps are on our utility links page.
• Solar salespeople must register: since September 1, 2026, people selling or leasing most residential solar systems must register with the Texas Department of Licensing and Regulation. The contract must name the electrical contractor and license number (or list the contractors one will be chosen from), and a buyer or lessee can cancel by the fifth business day after signing (TDLR announcement; TDLR program page; SB 1036 bill analysis; enrolled text).
• HOAs: a property owners' association generally may not prohibit or restrict solar devices, with listed exceptions (for example, panels above the roofline or frames not in silver, bronze, or black). It may choose where panels go on the roof unless another spot would raise estimated annual production by more than 10% (Property Code 202.010).
• Property tax: the added value from a solar or wind device built mainly for on-site use is exempt from property tax; apply to the appraisal district on Comptroller Form 50-123 (Tax Code 11.27; Comptroller exemptions page).
• Home batteries: ERCOT's pilot for aggregated home batteries and other distributed resources reported 249 MW of its 500 MW limit in August 2026 and described itself as "nearly fully subscribed under current participation caps" (ERCOT ADER pilot update).

Solar and batteries for Texas businesses

• Interconnection: the same commission rule covers on-site generation of 10 MW or less connected below 60 kV at utilities it regulates; larger or non-certified systems can be charged study fees set in the utility's tariff (16 TAC 25.211). Owners of facilities of 1 MW or more also register with the commission (PUCT distributed generation).
• Franchise tax: a business may deduct 10% of the amortized cost of a solar energy device from its apportioned margin, amortized over at least 60 months (Tax Code 171.107).
• Property tax: the on-site-use exemption above also applies to business property (Tax Code 11.27).
• Seller registration: TDLR's residential solar program does not cover systems on nonresidential property (what TDLR regulates).

Federal tax credits after the July 2025 law

• Homes: the 30% residential clean energy credit (section 25D) is not allowed for expenditures made after December 31, 2025. The IRS treats an expenditure as made when installation is completed, so a system paid for in 2025 but finished in 2026 does not qualify (IRS FAQ on Public Law 119-21; IRS: residential clean energy credit).
• Businesses and third-party owners: for wind and solar facilities whose construction begins after July 4, 2026, the business credits (sections 48E and 45Y) end for facilities placed in service after December 31, 2027 (IRS Notice 2025-42; 26 U.S.C. 48E).
• Begin construction: construction begins when "physical work of a significant nature begins"; the older 5% cost safe harbor remains only for solar facilities of 1.5 MW or less (IRS Notice 2025-42).

Tax rules depend on your situation; ask a tax professional before relying on any credit.