State Overview

Texas

National Solar Capacity Ranking: 2nd

Data Current Through: Q3 2024

 

 

Texas State Solar Overview

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.

SEIA Texas State Policy Priorities

  • SEIA’s efforts to extend two critical property tax abatement programs (Chapter 312 and Chapter 313) found success in 2019. The legislature extended the Chapter 312 program for a period of 10 years. However, the legislature did not act to extend the Chapter 313 program during this year’s legislative session, which SEIA will seek to address in the 2021 legislative session.
  • SEIA’s proactive bill to prevent utilities from charging fees to solar customers that other similarly situated customers do not pay (HB 2860) remained pending in Committee at the end of session and will remain a priority for the 2021 legislative session.

 

Just The Facts

  • Solar Installed (MW):

    37,713

  • National Ranking:

    2nd (1st in 2023)

  • Enough Solar Installed to Power:

    4,586,093 homes

  • Percentage of State's Electricity from Solar:

    7.25%

  • Solar Jobs:

    12,421

  • Solar Companies in State:

    689 (115 Manufacturers, 261 Installers/Developers, 313 Others)

  • Total Solar Investment in State:

    $45.2 billion

  • Prices have fallen:

    37% over the last 10 years

  • Growth Projection and Ranking:

    51144 MW over the next 5 years (ranks 1st)

  • Number of Installations:

    279,434

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Texas State Solar Policy Resources

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