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
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Solar Installed (MW):
37,713
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National Ranking:
2nd (1st in 2023)
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Enough Solar Installed to Power:
4,586,093 homes
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Percentage of State's Electricity from Solar:
7.25%
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Solar Jobs:
12,421
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Solar Companies in State:
689 (115 Manufacturers, 261 Installers/Developers, 313 Others)
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Total Solar Investment in State:
$45.2 billion
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Prices have fallen:
37% over the last 10 years
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Growth Projection and Ranking:
51144 MW over the next 5 years (ranks 1st)
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Number of Installations:
279,434
Texas State Solar Policy Resources
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DSIRE incentives database – Texas – Search a public clearinghouse for specific solar energy incentives in Texas and across the United States
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Public Utility Commission – Learn about the governing body that regulates the electricity rates and services of Texas public utilities
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Texas Solar Panels Overview – Learn about the history of solar policy in Texas, along with up-to-date pricing information on EnergySage
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Solar Panel Cost in Texas – Learn about the history of solar policy in Texas, along with up-to-date pricing information on EnergySage
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Solar Rebates & Incentives in Texas – Check out EnergySage’s list of key solar incentives in Texas to see what programs you can benefit from
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State Energy Office – Find a wide variety of information on state government energy programs, policy, projects, energy-saving strategies and energy-related statistics
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State Legislature – Track pending legislation affecting solar energy, locate and contact individual legislators, and stay up to date on current legislative issues in Texas
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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
- 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.
- Pacific Northwest National Laboratories Energy Storage Policy Database – Map of Procurement, Regulatory, Demonstration, Incentive, and Interconnection policies 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.
Andrews
Prospero
Prospero in Andrews was developed by Longroad Energy and came online in 2021. This 710.2 MW project produces enough electricity to power 86,620 homes.
McCamey
Anheuser Busch
Anheuser Busch, Davita, and Target have all gone solar in Texas. Anheuser Busch's 290 MW RE Maplewood project in McCamey is one of the largest corporate solar projects in the state.
Coyanosa
Taygete Energy Project
At 344.1 MW, Taygete Energy Project in Coyanosa is among the largest solar installations in Texas. Completed by Swinerton Renewables in 2021, this solar project has enough electric capacity to power more than 41,968 homes.
