Texas Solar Permit Overview
Texas is a unique solar market. The deregulated ERCOT grid covers about 90% of the state, but "deregulated" refers to retail electricity choice — not solar interconnection. Interconnection with the distribution grid still goes through the utility that owns the poles and wires at your address. For most Texans, that's CenterPoint Energy (Houston area), Oncor (Dallas/Fort Worth), AEP Texas, or TNMP — plus dozens of electric cooperatives serving rural areas.
The critical Texas distinction: there is no state-mandated net metering program. Each utility sets its own buyback policy for excess solar generation. CenterPoint, Oncor, and the other transmission and distribution utilities (TDUs) don't purchase power directly — your retail electricity provider (REP) does, if they offer a buyback plan. The economics of solar in Texas depend heavily on which REP you choose, not just which TDU serves your address.
In deregulated Texas (ERCOT territory), your TDU handles interconnection but your Retail Electricity Provider (REP) handles buyback rates. Plans vary from $0/kWh (no buyback) to near-retail rates. Before finalizing your solar system design, confirm what buyback plan your REP offers — and whether switching REPs after installation affects your interconnection agreement.
Texas Solar — Key Facts
| Item | Detail |
|---|---|
| Grid | ERCOT (most of TX); SPP (Panhandle); MISO (East TX); WECC (El Paso) |
| Net Metering Mandate | None statewide — utility/REP programs vary |
| TDUs (main) | CenterPoint (Houston), Oncor (DFW), AEP Texas, TNMP |
| HOA Solar Law | Tex. Prop. Code § 202.010 — HOAs cannot prohibit solar outright |
| HOA Standard | "Impractical" threshold — no specific dollar/percent caps in statute |
| Contractor License | TDLR Electrical Contractor license required |
| NEC Version (typical) | 2020 NEC (adopted statewide for electrical) |
| IBC Version (typical) | 2021 IBC (varies by municipality) |
Texas County Solar Permit Guides
Harris County (Unincorporated)
Houston metro. CenterPoint Energy TDU. Relatively simple permit process. No city code in unincorporated areas. $100–$300 fee.
Full county guide →Travis County (Unincorporated)
Austin metro outside city limits. PEC or Bluebonnet EC territory in most unincorporated areas. Co-op interconnection varies. $150–$350 fee.
Full county guide →Bexar County (San Antonio)
CPS Energy (municipal utility) serves San Antonio. CPS has its own solar incentive program. City permit for incorporated areas. $150–$400 fee.
Full county guide →Dallas County
Oncor TDU. Retail provider buyback varies. Most of Dallas County is incorporated — verify city vs. county AHJ. $150–$400 fee.
Full county guide →Texas Interconnection — TDU vs. REP
Understanding the Texas two-entity system is essential for solar permitting:
Your TDU (Transmission & Distribution Utility)
Your TDU owns the poles, wires, and meter at your address. They handle the physical interconnection of your solar system to the grid and the installation of a bidirectional meter. You file the interconnection application with your TDU, not your REP. TDU interconnection timelines: CenterPoint 15–25 days; Oncor 15–30 days; AEP Texas 20–35 days; TNMP 20–35 days.
Your REP (Retail Electricity Provider)
Your REP is your electricity supplier — TXU, Reliant, Green Mountain, or any of dozens of others. They set the buyback rate for your exported solar power. After your TDU issues interconnection approval and installs the bidirectional meter, notify your REP and confirm your solar buyback plan is active. Some REPs require advance notice before you go solar. Confirm your REP's buyback policy before signing an installation contract.
HOA Solar Rights — Tex. Prop. Code § 202.010
Texas Property Code § 202.010 prohibits HOA restrictions that effectively prevent solar installations. Unlike Arizona or California, Texas law uses the "impractical" standard rather than specific dollar or percentage thresholds. An HOA can require panels on the back roof slope — but only if the back slope receives adequate sun. Placing panels where they generate negligible power meets the "impractical" test. Full guide: HOA Solar Rights by State.
Major Texas City Solar Permits
| City | Department | TDU | Notes |
|---|---|---|---|
| Houston | Houston Dept. of Neighborhoods / Inspections | CenterPoint | City permit required; unincorporated areas use Harris County |
| San Antonio | San Antonio Dev. Services | CPS Energy (municipal) | CPS Energy has solar incentive program; verify current program status |
| Austin | Austin Dev. Services Dept. | Austin Energy (municipal) | Austin Energy has robust solar rebate program; verify current offerings |
| Dallas | Dallas Dev. Services | Oncor | Oncor handles interconnection; REP handles buyback |
| Fort Worth | Fort Worth Dev. Services | Oncor | Same Oncor process as Dallas |
| El Paso | El Paso Dev. Services | El Paso Electric | EPE is on WECC grid (not ERCOT); different interconnection rules |
Texas Solar FAQ
Texas has no statewide net metering mandate. In ERCOT territory, your Retail Electricity Provider (REP) sets buyback rates — which range from nothing to near-retail depending on the plan. In non-ERCOT areas (El Paso Electric, Entergy Texas), the local utility sets buyback policy under their own tariff. Always confirm your REP's solar buyback plan and rate before finalizing your system design.
Yes. A TDLR-licensed electrical contractor must obtain an electrical permit for solar installations in Texas. The permit is filed with your city or county AHJ. In many unincorporated areas, Texas has relatively minimal building code enforcement compared to urban areas — but the interconnection application with your TDU still requires documentation that the system was properly installed, which practically requires a permit and inspection.
CenterPoint Energy handles interconnection for most of the Houston area. Submit the Distributed Generation interconnection application at centerpointenergy.com. CenterPoint reviews the application, issues an interconnection agreement (which must be signed by the installer), installs a bidirectional meter after the county final inspection, and issues Permission to Operate. Timeline: typically 15–25 business days from final inspection to PTO. Full steps: Interconnection Application Steps.