Your guide to a better future

If you're a Lone Star State resident looking to save some money on your energy costs, check out these solar alternatives.

Lisa Iscrupe is a CNET contributor with a background in residential energy and solar power. She explores a spectrum of energy-adjacent topics, from saving money on electric bills to finding the best electric vehicle charger. Readers can expect straightforward explanations, reviews and advice on all things energy. Her articles have been referenced by CNN, The Daily MBA, The Media Bulletin and other national media outlets.

Sunshine is abundant in Texas, making the state an excellent place for residents and businesses to save money and generate electricity through solar power. Behind only California , Texas currently has the second-greatest solar generating capacity in the country, according to Statista. 

However, the Texas power grid has occasionally left residents to manage rolling blackouts or extended power outages during storms and other high-energy-demand months. Because of this, more and more Texans have been turning to solar for increased energy independence. 

According to the most recent data from the US Energy Information Administration, the average electricity bill in Texas is $150.56, placing it among the top 10 states with the highest average residential electricity rate. If you're looking for options to help reduce those costs, consider solar panels.

The cost of residential solar panels has decreased over the past two decades, while stronger incentives and rebates are now available at the local, state and federal level. Texas residents installing solar panels can benefit from:

The exact cost will vary depending on your home's energy consumption and solar array size. The Lawrence Berkeley National Laboratory's Tracking the Sun report releases annual data to help give a better idea of the cost of solar for Texas residents. Their data below "focuses on systems installed through year-end 2021 and is based on data from roughly 2.5 million systems."

Cash is the interest-free way to pay for solar panels in Texas. However, financing options are available, resulting in a lower upfront cost. Solar loans are available through most banks, credit unions and solar installers. Alternately, solar leases and Power Purchase Agreements let homeowners pay a flat monthly fee. The drawback is you will not qualify for tax incentives with these options, since you do not own your system. The average time to break even on the initial investment for Texas residents who finance is six to 10 years.

Advertiser Disclosure: CNET's corporate partner, SaveOnEnergy, can help you find the right energy fit for your home. The SaveOnEnergy marketplace helps you search, compare, sign up and save on the right energy fit for your home -- all for free. If you're interested in solar, answer a few questions to get an exact price quote from our solar advisors.

Texans buying solar panels between 2022 and 2032 can qualify for a 30% federal tax credit called the Residential Clean Energy Credit. This solar tax credit, once called the Investment Tax Credit, could save you more than $8,500 on the median solar system price of $28,888. Texas residents can apply for the Clean Energy Credit with IRS form 5695 using these instructions. 

Below are other opportunities to save in Texas with local and state solar incentives.

Texas residents have hundreds of options when selecting a solar panel installer. According to the Solar Energy Industry Association, over 500 solar companies operate across Texas, including several large-scale solar farms capable of providing power to tens of thousands of homes. 

We can help you cut through the abundant options by narrowing down the Texas solar panels installers to several of the top trusted solar companies based on data from customer reviews and buying trends. 

ADT Solar has been installing solar panels since 2007 under the name Sunpro Solar. ADT acquired the company in 2021. ADT, the security company, has been around for nearly 150 years, so this well-established business now backs ADT Solar.

According to Wood MacKenzie, Palmetto is among the 10 largest solar installers in the US. Palmetto handles the entire solar installation process, from design to permitting applications, to long-term customer support.

SunPower is known for its proprietary solar panels and batteries made by its sister company, Maxeon. Maxeon panels are among the most efficient residential solar panels available. However, the high quality comes with a higher price tag, as SunPower panels are several hundred dollars above the industry average.

Sunrun encourages solar leases and PPAs, which means the customer pays less money upfront for installation. Sunrun retains ownership of the system, so the homeowner cannot benefit from solar rebates and incentives, including the 30% Clean Energy Credit. Sunrun is the largest US solar company, boosted by its acquisition of the second-largest solar company, Vivint Solar, in 2020. 

Tesla offers solar panels or solar shingles (also known as the Tesla Solar Roof), and the Powerwall battery lineup. Tesla is one of the only solar companies offering a free online quote without scheduling a technician visit. 

None of us wants to invest thousands of dollars in home improvements unless we're sure it's the best decision for our circumstances. Homeowners considering solar panels should consider these questions before continuing their renewable energy journey. 

Do you own or rent your home? If you rent, you can inquire with your landlord about installing solar, although renters are often prohibited from making the types of changes to the property that solar panels entail. Renters may be eligible for community solar programs, such as Arcadia, instead. A community solar subscription can provide bill credits from energy produced by solar panels at an off-site location.

What is the shape of your roof? Roofs needing repair may be subject to additional upkeep before solar panels can be applied. The size and slope of your roof can affect the placement of panels and how much electricity a solar system can create. Roofs with a slope between 15 and 40 degrees are most efficient, according to the Department of Energy. A reputable solar installer will determine if your roof requires maintenance before installation.

No. Texas does not subsidize solar panels. The Federal Clean Energy Credit allows solar owners to claim a 30% tax credit. Plus, many rebates and incentives are available on the state and county levels to Texas residents. Net metering, which offsets your electricity bill by sending excess energy back to the power grid, is another way that solar panels in Texas earn a return on their investment. 

Overall, Texas is a great place to install residential solar panels because the state receives plenty of sunlight year-round. Texas solar rebates and incentives can offset the out-of-pocket cost and net metering benefits from Texas electricity providers can reduce electricity bills for qualified customers. On the other hand, Texas solar panels may not be a good choice if you already have a relatively low electric bill or if trees or buildings extremely shade your home. Additionally, if your roof needs replacement, that extra cost could extend the time it takes to see a return on your solar panel investment. 

Yes. Tesla installs solar in Texas. In Austin, Texas, Tesla has created a solar community where Tesla solar packages are available for purchase with the sale of new homes.