State Overview
Texas
National Solar Capacity Ranking: 2nd
National Energy Storage Capacity Ranking: 2nd
Updated March 2026
Texas State Solar Overview
As Texas’ population and economy continue to grow, electricity demand is rising rapidly, driven by new large loads like data centers and industrial development. Solar and storage will be critical to an all-of-the-above strategy to meet this demand, as they are the largest sources of new generation on the ERCOT grid and can be deployed quickly and cost effectively. Texas is the country’s fastest-growing market for solar, storage, and solar manufacturing. The solar and storage industry contributes billions of dollars in local tax revenue and landowner payments, helping support rural communities while strengthening grid reliability.
Through legislative and regulatory advocacy, SEIA promotes policies that keep Texas the Energy Capital of the world.
SEIA Texas State Policy Priorities
- In the recent 2025 legislative session, SEIA and other stakeholders defeated overly-burdensome siting and permitting legislation, such as Senate Bill 819, which sought to establish a permitting process for renewable energy generation facilities that would not apply to other forms of energy. Among other mandates, it required operators to obtain a permit from the PUC before construction or operation, mandating setbacks, environmental impact assessments by TPWD, public notices, and hearings.
- SEIA and other stakeholders worked with legislators on consumer protection and education legislation. Senate Bill 1036 (Zaffirini) will strengthen consumer protections and industry standards in the residential solar market while House Bill 1640 (Vandeaver) provides guidelines and resources for customers seeking a residential solar system. SEIA is engaged in rulemaking at the Texas Department of Licensing & Regulation with rule coming to effect Sept. 1, 2026.
- SEIA and other stakeholders advocated passage of House Bill 2304 (Dean), residential permitting reform, which will streamline the local permitting of home back up power systems so that more Texans can enjoy the cost savings and energy independence that solar and storage offers.
- SEIA and other stakeholders also passed utility scale battery energy storage decommissioning policies and safety standards into law.
- On the regulatory front, SEIA intervened in the El Paso Electric Rate case (Project 57568) against the utility demand charge proposal where a full contested hearing was held.
- SEIA is monitoring and has been engaged on the implementation of the Dispatchable Reliability Reserve Service, DRRS (NPRR 1309/1310).
- SEIA is monitoring the ongoing implementation of Senate Bill 6, the large load legislation, and the associated rulemakings dealing with the net metering of large loads co-located with existing generation resources (Project 58479), load forecasting criteria (Project 58480), large load interconnection (58481), large load demand response (Project 58482), and transmission cost allocation (Project 58484)
- SEIA is monitoring and has been engaged on the ERCOT ancillary and reliability services cost allocation study (Project 58555) with a final report to the legislature Dec. 1, 2026.
Just The Facts
- Solar Installed (MW):
51,902 MWdc
- Storage Capacity
26,271 MWh
- National Ranking:
2nd (1st in 2025 additions)
- Enough Solar Installed to Power:
6,228,012 homes
- Percentage of State's Electricity from Solar:
10.74%
- Solar Jobs:
12,820
- Solar Companies in State:
673 (137 Manufacturers, 240 Installers/Developers, 296 Others)
- Total Solar Investment in State:
$67.8 billion
- Growth Projection and Ranking:
32,299 MW over the next 5 years (ranks 1st)
- Number of Installations:
319,600
Texas State Solar Policy Resources
- DSIRE incentives database – Texas – Search a public clearinghouse for specific solar energy incentives in Texas and across the United States
- Public Utility Commission – Learn about the governing body that regulates the electricity rates and services of Texas public utilities
- Texas Solar Panels Overview – Learn about the history of solar policy in Texas, along with up-to-date pricing information on EnergySage
- Solar Panel Cost in Texas – Learn about the history of solar policy in Texas, along with up-to-date pricing information on EnergySage
- Solar Rebates & Incentives in Texas – Check out EnergySage’s list of key solar incentives in Texas to see what programs you can benefit from
- State Energy Office – Find a wide variety of information on state government energy programs, policy, projects, energy-saving strategies and energy-related statistics
- State Legislature – Track pending legislation affecting solar energy, locate and contact individual legislators, and stay up to date on current legislative issues in Texas
- U.S. Energy Information Administration – Texas State Profile – Explore official energy statistics, including data on electricity supply and demand, from the U.S. government
Texas State Consumer Protection
During the 2025 state legislative session, SEIA supported and helped pass two consumer protection bills. Senate Bill 1036 and House Bill 1640 ensure that Texans interested in investing in rooftop solar are able to make informed transactions with responsible companies. Senate Bill 1036 (Zaffirini) will strengthen consumer protections and industry standards in the residential solar market while House Bill 1640 (Vandeaver) provides guidelines and resources for customers seeking a residential solar system.
Texas Public Utilities Commission: Consumer Protection Guide
Texas Energy Storage Policy and Market Overview
Texas is a national leader in energy storage and is one of the fastest-growing markets in the country. Its competitive, deregulated market structure and streamlined interconnection processes have helped accelerate deployment and reduce barriers. ERCOT continues to play a central role in supporting storage growth through ongoing market reforms and coordination efforts, including initiatives to enable distributed energy resources and better integrate batteries into real-time market operations. Recent legislation requires utility scale solar to be paired with “dispatchable resources” by 2027, which includes onsite storage or power contracts, which will further drive storage deployment in the state.
Strong fundamentals such as low-cost land, efficient permitting, and high demand for grid reliability are expected to drive continued expansion, with significant additional capacity projected in the coming years. Efforts to develop virtual power plant programs and improve market participation will help reignite behind the meter storage growth.
Texas Energy Storage Policy Resources
- Energy Storage Resources Dashboard – Graphical dashboard produced daily by ERCOT tracking average mega-watt values for total discharging, charging, and net output from Energy Storage Resources (ESRs).
- The Texas Energy Fund – Loan and grant funding opportunities financing the construction, maintenance, and modernization of Texas’ energy grid, including BESS. Check out SB 2726 for more information.
- ERCOT Battery Energy Storage – ERCOT energy and battery storage initiatives, guidelines on interconnection, and more.
- Real-Time Co-optimization plus Batteries Task Force (RTCBTF) –Non-voting committee providing policy and market recommendations on wholesale market design and battery rollout.
- Aggregate Distributed Energy Resource (ADER) Pilot Project –Pilot project testing and evaluating aggregated, multi-metered DER site projects.
- Tesla Electric Virtual Power Plant Pilot with ERCOT –Tesla & ERCOT VPP program supporting grid resiliency and providing compensation to owners of home batteries.
- DSIRE Texas Energy Storage Policy Database — Clearinghouse for financial incentives, regulations, and rebates for energy storage and lithium-ion technologies in Texas and across the United States.
- Energy Storage Cost in Texas – Up-to-date storage and solar-plus-storage pricing and find installers in Texas on EnergySage.
- Public Utility Commission of Texas – Governing body that regulates the electricity rates and services of Texas public utilities, search for regulatory dockets, programs, and initiatives.
- Texas Legislature – Pending, passed, and historical legislation affecting energy storage and battery systems, locate and contact individual legislators, and stay up to date on current legislative issues in Texas.
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