Solar Panels in Texas: Cost, Savings, and Rebates

Solar panels against a blue sky with a picture of the flag State of Texas

Solar Panels in Texas: Cost, Savings, and Rebates

Key Points

  • Texas generates over 18MW of solar energy, making it the second-highest rated state adopting the technology.
  • Texans can save up to $25,000 or more with solar panels.
  • Texans use over 1,100kWh of electricity a month, requiring larger solar panel systems.
  • Sunlight, location, and type of solar panels can affect the cost of solar in Texas.
  • NRG Clean Power Inc. and Texas Solar Professional LLC are recommended solar installers in Texas.
  • Solar panels in Texas can save homeowners thousands of dollars and result in net returns.
  • Texans can take advantage of federal solar tax credits and other incentives to lower the cost of installation.

Texas generates over 18MW of solar energy, making it the second-highest ranked state adopting the technology. This suggests that the state has a major interest in switching from traditional power sources. Those who follow suit can save up to $25,000 or more with solar panels in Texas.

However, budgeting for a new array can feel intimidating. In this article, we break down all the important numbers; from average costs to potential savings, so you’ll have an idea of where your money goes. We even show you how to do the math. Let’s get into it.

Average Cost of Solar Panels in Texas

Solar panels in Texas can pay off well, but homeowners first have to get past equipment rates. At an average price of $2.77 per watt, arrays tend to range toward the higher end. Those considering a typical 6kW system may have to budget $16,620 before incentives.

Additionally, Texans need to consider their electricity usage when determining overall value. Those in the Lone Star State use some of the most power in the country. Even though they have great rates, they end up paying nearly $140 a month. This means they’ll end up spending even more on an array, although there are still possibilities for excellent returns too.

If you’re ready to make the switch, the federal solar tax credit can help reduce installation costs. The program offers a 30% return on all solar purchases, including labor, equipment, and even sales tax. Texans purchasing the same 6kW system could watch the price drop from $16,620 to $11,634.

How Much Solar Do Texans Need?

The above example shows the average price of solar panels in Texas as it relates to the average system. However, homeowners in the Lone Star State use over 1,100kWh a month, the 6th most in the country. To cover these power requirements, they may need a larger system.

To find the right wattage for your solar array, you’ll need two numbers: your average daily electricity usage and the peak sun hours for your nearest city. You’ll divide the two to learn how much your system needs to produce. Let’s use Texas’ averages to demonstrate how to do this.

Homeowners in the Lone Star State use about 37.7kWh a day. When we divide that by the average peak sun in Texas (4.92 hours), we learn that our solar panel system needs to output 7.7kW an hour. Texans may pay around $21,329 before incentives for an array of this size.

Now that you know how to size your system, you can more accurately create a budget. Peak sun changes depending on where you live, so use this Texas sun chart to find the average for your nearest city.

Texas Solar Cost Factors

As we touched upon in the previous section, sunlight can affect the cost of solar in Texas. The Lone Star State measures nearly 270,000 square miles and spans in every direction. Those living closer to the Mexican border may experience more direct sun than others. For example, homeowners in El Paso receive 6.5 hours of peak sunlight, over 1.5 hours more.

For more on how location and peak sun can affect solar costs, compare Texas to its neighboring states:

You’ll also want to consider the type of solar panels used in your system. Typically, you’ll have a choice between two designs: monocrystalline and polycrystalline. The first offers better efficiency, and the second offers more affordability. Those living on the western side of the state may be able to take advantage of poly panels for their value.

Finally, you don’t want to skimp on installation quality. Some solar installers may undercut competitors by subcontracting labor, using poor equipment, or offering limited warranties. Texas has over 240 installation companies in the state, meaning you can choose the best one for your home.

Typical residential house with solar panel on shingle roof in suburbs Dallas, Texas, America.
Because of high power needs, homeowners may need more solar panels in Texas than in other states.

Best Solar Installers in Texas

When suggesting installation companies for solar panels in Texas, we trust EnergySage’s screening qualifications. With endorsements from the Solar Energy Industries Association (SEIA) and the Department of Energy, this reviewer offers valuable insights. When comparing solar installers, we’ll look at a set of requirements including:

  • Years in the industry
  • Contractor transparency
  • Equipment quality
  • Warranty coverage
  • Licenses and certifications

Here are two of our top choices.

With offices in Houston and Austin, NRG Clean Power Inc. has been serving Texans for over 30 years. The company has grown with the industry, so you can trust their expertise. NRG’s quality comes backed with excellent equipment such as Panasonic and LG, which are covered for their entire lifetime. That’s one of the best coverages in the entire country.

However, if you’re looking for something more local, you should consider Texas Solar Professional LLC. While the company was founded in 2021, its experts have over 20 years of experience. They work with top equipment and offer 25-year warranties for all aspects of an installation. And with a highly recognized NABCEP certification, you can expect to have your system taken care of.

Can Solar Energy Save Texans Money?

Texans use some of the most electricity in the country, requiring larger solar panel systems to cover their needs. Coupled with high equipment rates, homeowners in the Lone Star State are looking at a serious investment. However, solar panels in Texas still result in huge returns by offsetting electricity bills.

To learn how much you can save on power, you’ll first need to pay off the system. If we use the average annual utility bill of $1,662.72 to cover the cost, a 6kW system could be paid for in a little under 10 years. While some systems may take more time, this is about average around the country.

After covering the price of the system, you begin to earn net returns. Considering the average lifespan of solar panels of 20-25 years, this could range from $16,627 to $24,940. And with state and federal incentives, those savings can increase even more.

Solar Panels in Texas: Rebates, Credits, and Incentives

We’ve shown that solar panels in Texas can save you thousands of dollars while improving your carbon footprint. And while the Lone Star State may opt for traditional electricity, a few solar incentives exist to help you lower the cost of an installation.

Most importantly, Texans should utilize the federal solar tax credit, which cuts installation costs by 30%. Those who take advantage of this program can save over $5,000 right off the bat. And with net metering, solar rebates, and tax exemptions, there are plenty of ways to lower the cost. For a detailed look at what’s available, check out our Texas solar incentives guide.

Summary Table

Average Cost of Solar Panels in Texas$2.77 per watt, $16,620 for a typical 6kW system before incentives
Electricity Usage in TexasAverage of $140 a month
Federal Solar Tax Credit30% return on all solar purchases
Average Solar System Size Needed in Texas7.7kW an hour, costing around $21,329 before incentives
Top Solar Installers in TexasNRG Clean Power Inc., Texas Solar Professional LLC
Potential Savings from Solar Panels in Texas$16,627 to $24,940 over the lifespan of the panels
Solar Incentives in TexasFederal solar tax credit, net metering, solar rebates, and tax exemptions

Frequently Asked Questions

Is solar worth it in Texas?

With excellent sunlight and a high potential for large utility savings, homeowners in Texas should consider switching to solar energy. Those who purchase a 6kW system could see net returns as high as $25,000 or more.

How much does solar cost in Texas?

In Texas, homeowners can expect to pay about $2.77 per watt for solar energy. That equals around $16,620 for a 6kW system.

How long does it take for solar panels to pay back in Texas?

With an average annual electricity bill of $1,662.72, Texans can pay off a 6kW system in about 10 years. While some residents may need larger systems than this, it’s about the average time across the United States.

Can you get a federal tax credit for solar panels in Texas?

Homeowners in Texas can utilize the federal solar tax credit to save 30% on installation costs for solar energy. Those who purchase a 6kW system can cut the cost by over $5,000.

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