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Here’s a quick look at the estimated cost of solar in Texas:
*Average system size is calculated using data from the Energy Information Administration. This price is after tax credit. **Payback period is calculated assuming the system is purchased in cash.
By Karsten Neumeister, Solar Expert
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As a homeowner in Texas, you may be wondering: How much do solar panels cost in your area? In this article, we’ll discuss the average cost of a solar installation, how much that can save you on energy for your home and what incentives are available in your region. If you want to jump straight to getting a quote for an installation, you can follow the links below to speak with a verified professional.
The sprawling size and sunny days of Texas make it one of the top states for solar energy. If you live in the Lone Star State and are interested in switching to a solar energy system, you may be wondering: What’s the average solar panel cost in Texas?
In this article, we’ll discuss the cost of solar panels in Texas, what factors affect panel cost, and more. Of course, the only way to know for sure how much you would pay to install a solar panel system on your roof is to receive a free, no-obligation quote from a top solar company near you.
Here is a list of preferred partners in this area.
Thanks to the growing investment in renewable energy technology statewide, homeowners now enjoy a below-average cost of solar in Texas. Based on market research and data from top brands, we’ve found the average cost of solar panels in Texas to be $2.69 per watt. This means a 5-kW system would cost around $9,953 after the federal solar tax credit. This is especially valuable when you take into account the unpredictable Texas energy rates.
Here’s how that average calculates into the cost of the most common sizes of home solar panel systems:
Though this data reflects the statewide averages, you’ll need to contact a solar installer near you to get an accurate quote for your home. Savvy customers will get free quotes from multiple companies and compare them to the state averages to make sure they receive the best value possible. Bear in mind that the biggest providers of solar won’t always have the best prices.
Read Also: What are the best solar companies in Texas?
The final cost of your solar panel system in Texas will primarily depend on the solar equipment, installer and financing option you choose. Net metering, solar rebate programs and the federal tax credit can also save you money, so make sure you take advantage of the many solar incentives in Texas .
Similar to any home improvement project, the quality of materials you choose will have a large impact on your final bill.
The first consideration in choosing a solar panel is the level of power and efficiency that you’ll require to offset your home’s electricity use. The more efficient the model of panel you choose, the pricier your installation will become.
Luckily for Texans, the state receives enough sunshine that homeowners don’t need the most powerful solar panels on the market to get the job done. Standard, more affordable panels are sufficient in most cases, meaning lower overall costs for the average Texan.
One other consideration surrounding your equipment: Texas has experienced prolonged power outages due to extreme weather in the past. If your area is vulnerable to extreme weather or blackouts, it’s worth considering a solar backup battery as an investment in your home’s security.
Solar batteries typically add $10,000 to a final estimate, but the cost of losing power under extreme conditions can be even scarier.
Further, if you’re worried about weather-related damages, you may want to opt for a warranty with extensive coverage as well. The brands with the best warranties also tend to be the most expensive.
Texas’ energy economy is decentralized, meaning there are no state-wide policies affecting cost. Rather, policies like net metering and solar rebates are left up to the jurisdiction of cities, counties and specific electricity providers.
However, many energy companies still offer net metering to their customers, and all Texas residents are eligible for the federal solar credit. These can help reduce the expenses surrounding a solar installation.
Check with your municipality or electricity provider to learn more about local rebates or financing programs available in your area. Solar rebates can lower the cost of purchasing your solar PV system by 10%-20%.
Additionally, your county may offer Property Assessed Clean Energy lending (PACE) programs, which offer affordable, long-term financing options to property owners looking to upgrade the energy efficiency of their homes. Learn more about Texas PACE programs here .
The solar industry in Texas is rapidly growing, meaning you have plenty of options for solar panel installers across the state. Strong competition between solar companies means that you can shop around to get the best deal. Check out our best solar companies in Texas guide to see our top picks.
Your choice of installer will have a large impact on your bottom line. Each company offers a different estimate based on the depth of its services, the quality of its equipment and its costs of operation.
For example, national powerhouse SunPower installs state-of-the-art solar panels with industry-leading power and efficiency, backed by a fully comprehensive warranty and a nearly 40-year track record of dependability.
The costs associated with hiring a local mom-and-pop shop to install some discount solar panels could be thousands of dollars less. That’s why we recommend consulting with at least two or three companies and getting a sense of the price points available to you and your budget.
When you decide to install solar on your home, you have to make sure all your bases are covered. Check out these additional considerations and costs that you should be aware of when going solar:
For the most part, Texas taxes are administered by local governments. As a result, the state doesn’t offer a large number of statewide solar-related policies, and incentives will depend more on the locality in which you live.
However, all homeowners in the state remain eligible for the federal solar tax credit, and there are some statewide local property tax exemptions for both photovoltaic solar and wind-powered renewable energy systems. Let’s walk through how to find what incentives are available to you.
All Texans can claim the federal solar investment tax credit, or ITC, for PV solar panels and energy storage systems. By claiming the ITC on your tax returns, the policy allows you to deduct 26% of the total cost of the solar system from the taxes you owe the federal government.
The tax credit is available to both residential and commercial system owners who have installed solar panels at any point since 2006. The credit is worth 26% through the end of 2022 and will drop to 22% in 2023. It is set to expire at the end of 2023 unless congress extends it.
Net metering programs allow customers to sell unused solar energy back to their local utility company in exchange for credits that can be cashed in when panels aren’t producing energy. Due to the energy bill savings, this incentive can greatly reduce the solar investment payback period.
As is true with most of Texas’ solar rebates and incentives, there is not one net metering program that is offered throughout the entire state. Rather, your eligibility will depend on the policy of your local utility company or municipality. Most utilities in the state have a net metering policy, including American Electric Power (AEP), CPS Energy, Green Mountain Energy, El Paso Electric, TXU Energy in Dallas and more.
The rate at which your local utility will compensate for this excess energy will depend on your local policy, so we encourage you to look into the policy offered by your utility company.
In addition to identifying your local net metering program, look into any local rebates available to you. Homeowners who live in the top cities for solar in Texas, like Austin, San Marcos, or Sunset Valley might have more luck than customers in other areas. The Database of State Incentives for Renewables & Efficiency has a full list of local rebates, solar loan programs, and more.
The brand of solar panel you choose for your home will have an impact on the power production, the size of the system you need and, of course, the price you pay to go solar.
The table below provides a quick comparison of relative prices for some of the best solar panel brands in Texas. These should help you figure out which brands are likely to fit into your budget.
If you are ready to see how much solar panels will cost for your Texas home, select one of our recommended providers below to receive a free, no-obligation quote.
Here is a list of preferred partners in this area.
Texas is a great state for solar panels, and it’s no wonder that Texas is now ranking first in the country for new installations. Texas residents pay an average price for solar equipment, but receive one of the largest returns on their investment in the country — the typical solar user saves $21,350 in energy costs over the lifetime of their solar panels.
The climate of Texas varies greatly throughout the state, but overall, the state receives 204 sunny days a year. That’s plenty of sunshine for most Texas homeowners to enjoy the benefits of solar energy.
The amount of energy your solar panels will generate in Texas depends heavily on the amount of sunlight your solar panels receive. Shading, angle and orientation of your panels will factor into this as well.
Bear in mind that your roof can only fit so many solar panels — if you have a small roof, or one with skylights, chimneys or other obstructions, you won’t be able to generate as much energy.
Take a look at your energy bill to see how much energy you’re using each month. A smaller 3 kW solar panel system can generate between 3,600 and 4,800 kWh in a year, while a larger 10 kW system may generate between 12,000 and 16,000 kWh per year.
Seeing as the average home in Texas uses around 15,000 kWh per year, it’s possible to completely offset their high electricity bills in Texas with solar.
The solar market in Texas has been rapidly growing, and Texas is now ranked first for new solar installations nationwide. Despite this wild growth, solar in Texas still only accounts for 2% of in-state electricity generation.
The good news is that solar makes up the largest share of Texas’s energy capacity additions, accounting for nearly half of all energy additions in the state. 1
Texas’s solar policy dates back to 1981, when the state created a Renewable Energy Systems Property Tax Exemption, exempting homeowners with solar from paying taxes on the increased property tax value from new energy installations.
A renewable portfolio standard (RPS) was implemented in 1999, requiring utilities to offer at least 3% of their energy sales from renewable sources. However, utility companies in Texas continue to surpass these requirements, and a more ambitious RPS requirement has yet to pass.
Texas still has room to grow when it comes to solar policy. Texas does not have a statewide rebate program for solar, although there are some rebate programs through local energy providers like Austin Energy.
The state does not have a statewide net metering program, which would allow residents to earn credits for excess energy generated by their solar system. However, some utility companies like Austin Energy and Green Mountain Energy offer some compensation for customers generating electricity with solar panels.
At EcoWatch, we’re happy to get questions about the process and costs of getting rooftop solar from Texas residents. Below are some of the questions we see most often, along with our responses. If you have specific questions that aren’t answered here, reach out to our team of solar experts at solar@ecowatch.com.
As of 2021, the average cost of solar panels in Texas is $2.69 per watt. This means a 5-kW system would cost around $9,953 after the federal solar tax credit. This is slightly below the national average due to the resource availability in Texas, current energy costs, and the state’s available sunlight.
Solar panels increase home value everywhere, but mostly in areas with generous net metering policies and solar rebates. As such, the proportion at which solar panels increase home value in Texas corresponds with the areas with the most solar-friendly policies.
Though knowing the size of a house is helpful in determining how many solar panels could fit on its roof, the energy use of the house is the more important factor in determining solar panel cost in Texas. The higher your energy use, the greater your solar needs will be.
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