National Solar Capacity Ranking: 2nd
Data Current Through: Q3 2024
As the Texas economy continues to grow, electricity consumption has correspondingly increased. Environmental regulations and various market pressures have forced a significant amount of generation to exit the market in recent years while older generation sources continue to be retired. Thus, new solar generation capacity is required to meet the Texas market’s demand. Texas is poised to become a nationwide leader in solar energy, with more than 4 GW of capacity expected to be installed over the next 5 years, with appropriate state policy that removes market barriers and recognizes solar’s benefits.
37,713
2nd (1st in 2023)
4,586,093 homes
7.25%
12,421
689 (115 Manufacturers, 261 Installers/Developers, 313 Others)
$45.2 billion
37% over the last 10 years
51144 MW over the next 5 years (ranks 1st)
279,434
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 Energy Storage Policy and Market Overview
Texas is a colossal leader in the energy storage market and has one of the largest battery storage procurements in the US. The deregulated environment has shaped a wildly competitive environment. Significant actions by ERCOT are easing market barriers, mitigating interconnection risk, and supporting grid resiliency in Texas.
Texas is undoubtedly leading energy storage with about 7 GW of capacity. State policy actions codifying deregulation (SB 1012), and a centralized and streamlined interconnection process are supporting a prosperous market. Several ERCOT task forces are encouraging deployment across sectors. The Aggregate Distributed Energy Resource (ADER) Task Force focuses on regulatory efficiency and aims to establish Virtual Power Plant programs for homeowners. Additionally, the Real-Time Co-optimization plus Batteries Task Force (RTCBTF) is working to coordinate timelines and market readiness for sustained battery storage growth.
ERCOT is leading the storage deployment charge and forecasts Texas reaching over 100,000 MW by 2030. Residential system deployment rates slowed in 2024 due to inflated costs, but active navigation of a VPP program by ERCOT could reignite investments. The fast-track approval process, financial incentives, effective regulatory actors, and the low and abundant cost of land are solidifying Texas as the top energy storage market.
Texas Energy Storage Policy Resources