Solar power in Texas
The investment return and savings that can be made by buying solar panels varies more by city and utility in Texas than in any other state in the country. This is largely due to the fact that Texas’s electric utilities are deregulated, making it possible for people in most cities to choose which retail electric provider they want to use. This causes a lot of variation in the types of solar incentives available for the people of Texas.
In some cities like Austin, Brenham, El Paso, and San Antonio, upfront utility rebates are abundant. 1-for-1 net metering programs offered by providers create a great environment for homeowners to install solar. These incentives, coupled with the 26% solar tax credit make it plausible to pay back the cost of the solar system installation in 8 years or less. What that means is that over the course of 8 years, you will have saved as much as you paid for the system.
In other cities, utilities and providers do not offer upfront rebates or 1-for-1 net metering. The payback for systems in these areas can take up to 15 years.
Compare solar quotes from the top solar companies in Texas
Texas solar power facts
$2.58 watt
Average cost: 5kW solar power system
?7 Years
Average payback time
$84,486
Average lifetime savings
?5¢ kWh
Levelized cost of solar energy
25¢ kWh
If you don't get solar
?17,958 kWh
Annual power production
Cash flow graph based on cash purchase of a 13.2kW system
This 13.2kW system would offset 100% of your energy usage if your typical monthly bill in Texas is $214, however, your situation may vary so try our solar calculator to get a result tailored to you.
14
Solar companies in Texas that provide pricing through the SolarEstimate marketplace.
How much can solar panels save you in Texas
Average total cost of solar panel installation in Texas
| System Size | Cash purchase After 26% solar tax credit |
Financed purchase After 26% solar tax credit |
|---|---|---|
| 3kw | $5,972 | $6,450 |
| 4kw | $7,785 | $8,408 |
| 5kw | $9,546 | $10,310 |
| 6kw | $11,189 | $12,084 |
| 7kw | $12,795 | $13,818 |
| 8kw | $14,267 | $15,409 |
| 9kw | $15,718 | $16,975 |
| 10kw | $17,020 | $18,382 |
How much do solar panels cost in Texas?
$2.58 per watt
Cash purchased solar system
Before 26% solar tax credit
$2.87 per watt
Financed solar system
Before 26% solar tax credit
$0.0¢ /kWh
Lease/PPA
Ave 15 year term, 2.5% price escalator
What are the pros and cons of installing solar panels in Texas?
An advantage of installing solar panels in Texas is that there is a high amount of radiant energy emitted from the sun, also known as solar irradiation. If you live in an area where net metering is offered, the high production of your system has the potential to save you a ton of money on your electric bill. Green Mountain Energy and Reliant Energy are two examples of retail electric providers that offer net metering programs. The state also offers a renewable energy system property tax exemption, so 100% of the appraised value of your solar system is exempt from your property taxes.
SolarPowerRocks provides a great breakdown of solar incentives and policy for each state within the US.
Some disadvantages of installing solar in Texas include the fact that there are no statewide residential incentive programs and that the state does not require every utility to offer net metering programs. Also, many electric providers and utilities do not offer incentives or rebates to their customers.
However, because you have the ability to choose your electric provider in Texas, you can always see if there is a provider in your area that does offer solar incentives.
Enter your details to calculate the cost and savings you are likely to get from installing solar panels for your home.
Best solar companies in Texas
Find local city information
Find local information for cities in Texas
Compare solar quotes from the top solar companies in Texas
Best brands of solar panels
To find the best brands of solar panels you can use America's most trusted solar panel comparison and reviews website, SolarReviews.
However, reviews of solar panels can be a bit meaningless because most consumer owners have not had any issues and so while solar company reviews are very important when choosing solar installers they are of less use when choosing solar panels.
For more information to help you make an informed decision about this topic, I would recommend this article about buying solar panels.
How much electricity will solar panels produce in Texas
Solar panels produce different amounts of energy in different locations.
Around the Austin area solar panels installed on a south-facing 20-degree pitch roof will typically produce:
1,360kWh
per year per 1kW of peak DC
(direct current) capacity
For more information about how your location, roof direction, and roof tilt affects solar power production use the solar panels calculator and enter your zip code.
I want to buy a solar panel kit and install it myself
Texas Solar Calculator
Regardless of what you want to know about the economics of installing solar panels for your home or business in Texas, we have a solar calculator that can show you exactly the information you require.
What you can find out about installing solar panels in Texas using our full monthly solar calculator
This solar calculator requires you to input your address, utility company, your average monthly power spend - It tells you:
- What size solar system do you need?
- Answers the question of How many solar panels do I need?
- How many square feet of roof space you need for solar panels
- Solar electricity production in annual kWh (kilowatt-hours) you can expect from your solar system in Texas
- The value of solar tax credits and other incentives you are entitled to based on the estimated size of system you need, your location and your utility provider.
- Likely cost based on an average of prices charged for solar systems of that size in the last year in Texas or Austin ;
- The likely payback period on your solar panels and your investment return.
- Your total lifetime solar savings based on each of the major solar finance options, a cash purchase, a cash purchase funded with a HELOC sol (home equity line of credit) and a zero-down PPA or third party lease product.
If you want to see all of the above but also see live pricing, the three best solar deals available in your city and get binding quotes from each of these solar companies then use this Texas solar panels calculator. This calculator requires you to also input your name and contact details because most of our 200+ installer partners will only authorize the sharing of their live solar pricing where we have validated that you are a real homeowner with a home in their service area. We respect the privacy of your data and only share your contact details with the solar companies you ask us to get binding quotes from.
Going solar in Texas
Check out all of the ways energy providers of Texas can help you be more energy-efficient and save money.
The following programs are available:
Find your local rebates and incentives
Your city may have further incentives to offer. Please keep in mind that the best source of up-to-date information on incentives is the solar installers who specialize in your area.
