It’s not your imagination: Utility bills are increasing, every month. Electricity prices in the United States have risen more than twice as fast as inflation over the past 12 months. In Texas, utility costs have risen as much as 60% since 2021.1
Texas’ ever-increasing population, along with growing demand from businesses and large power users like data centers, means electricity rate increases will not slow down anytime soon. In fact, ERCOT estimates that the state’s power demands will nearly double over the next six years.
Solar, wind and energy storage already make up more than half of new power generation in Texas, and our state proudly ranks #1 in solar installations as of 2025. But to keep electricity affordable, we need more power generation of all kinds – solar, energy storage, and even natural gas — to address the coming growth.
Texas installed the most solar capacity in the first half of 2025 (3.8 GWdc), followed by California, Indiana, and Arizona. Source: Solar Market Insight Q3.
One of the ways Texans can control these rising costs is by installing solar on your home or business. But how affordable is it, now that federal tax incentives are going away?
Tired of feeling powerless over your electric bill?
Four in five Americans today feel a sense of powerlessness over rising energy costs, according to a recent nonpartisan consumer poll. Utility bills are one of the least understood costs in a household. Unlike other household expenses – rents or mortgages or even cell phone bills – no one really knows how much to expect on their utility bill from month to month.
While the PUC has put some controls in place for spiking electricity costs in deregulated markets in Texas, households are still at the mercy of an unpredictable power pricing system in Texas.
Solar helps keep utility costs under control in Texas
Installing solar on your home or business is a great way to keep rising utility costs at bay. Investing in a solar system today essentially means you are locking in the same low rate for your electricity for the next 20 or even 30 years. Adding an energy storage system keeps your home resilient from any power losses, and puts even more price control in your hands in terms of when to pull power from the grid, and when to use energy stored in your backup battery.
What’s happening with solar incentives?
For many years, incentives such as the federal Investment Tax credit (ITC) have helped Americans adopt solar. This 30% credit on the cost of a solar installation has saved Texans millions in energy costs. But recently the One Big Beautiful Bill cut the ITC short, and instead of ending in 2032 as was originally legislated, it will now end on December 31, 2025.
Fortunately, the cost of solar has declined so much in recent years that installing solar on your home or business still makes financial sense, even without the ITC. In Texas, the cost of solar has declined 42% over the last decade. There are also still healthy rebates and incentives coming from local utilities in Texas. (If you need more info on this, reach out to us and we can point you in the right direction.)
We are seeing a notable increase in customers installing systems across central Texas this fall, from Pflugerville to Plano and everywhere in between. After 16 years in Texas, Longhorn is proud to serve Texans’ energy needs with solar energy systems that save our customers money, create local jobs and help ensure cleaner air for all Texans.
Taking control of your energy future with solar in Texas
Rising utility bills aren’t slowing down—and Texas households will continue to feel the pinch as population growth, data demand, and extreme weather strain the grid. But homeowners and businesses don’t have to be powerless as costs escalate. Even without the full benefit of federal tax incentives, solar delivers long-term savings, stability and resilience. By locking in predictable energy rates for decades to come, you’re not just protecting your wallet – you’re insulating your household from an unpredictable utility market.
Contact your Longhorn team for more information on how to go solar for your home or business today.
1 In January 2021, the average price for a 12 month electricity plan was 10¢ per kWh, based on 1000 kWh a month. In December 2024, the average price was nearly 16¢ per kWh. That’s a 60% increase in electricity costs over a four-year period. Source: https://electricityplans.com/historical-texas-electricity-rates/
