Solar Panels in Texas | 2022 Cost and Incentives | SaveOnEnergy®

Texas Solar Panels Pricing and Incentives

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Solar Power in Texas

Texas is one of the nation’s leaders in solar power generation. It is second after California with the highest installed solar generating capacity in the U.S. Abundant sunshine, lower solar panel costs, and frequent storms impacting the power grid have boosted the residential solar market in Texas in recent years. There are many benefits to installing a solar system for your home or RV, including significant savings on your electricity bill and a positive environmental impact. Here is a walkthrough of what you need to know about solar panel costs and incentives in Texas

Texas solar panel cost

The cost of solar panels is one of the most important considerations for homeowners interested in installing a solar system. The cost is normally measured in dollars per watt. According to Lawrence Berkeley National Laboratory’s Tracking the Sun report, in Texas solar panel system price per watt ranges between $3.23 and $4.01 per watt, with system sizes ranging from 5.4-kW to 10.2-kW, resulting in a system cost range between $17,293 and $41,053. The Texas median solar panel system price per watt is $3.80, and median system size is 7.4-kW, resulting in a $28,288 median system cost.

The exact cost will depend on your energy consumption, solar system size, the type of solar panels used, roof condition and orientation, local permitting fees, and other factors. Homeowners can opt for different financing options or solar leases if the upfront cost is too high. If you choose to buy a solar system for your home, the average period to break even on a solar installation ranges between six to ten years.

Price Per Watt  System Size (kW) Cost
High $4.01 10.2 kW $41,053
Median $3.80 7.4 kW $28,288
Low $3.23 5.4 kW $17,293


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Texas solar panel incentives and rebates

As a solar owner in Texas, you can take advantage of federal and state incentives to offset your upfront investment. Currently, Texas doesn’t offer statewide solar tax credits or rebates, but does exempt the property value increase of residential solar systems from taxes. A solar system must be located on the owner’s property for on-site energy use to be eligible for this incentive.

Many utilities and local governments in Texas offer incentives to support solar adoption in the state. Since there are dozens of such incentives across Texas, it is worth researching locally available incentives to lower the cost of solar panels. Below is a list of just a few incentives available to residential solar system owners in the Lone Star state.

Incentive Sources Details
TXU Energy Renewable Buyback Plan Residential customers enrolled in the TXU Energy Renewable Buyback plan will receive bill credits for the excess energy their solar panels generate. There is no fee to switch to the plan.
Austin Energy Austin homeowners are eligible for a $2,500 rebate to install solar panels. Before applying for the rebate, you must complete the Austin Energy Solar Education Course and pass the Solar Ed Quiz.
Garland Power & Light Customers of this utility who install a solar system can receive utility bill credits.
CPS Energy Residential and commercial customers of CPS Energy are eligible to receive a rebate ranging between $1,500 and $2,500 for energy generated by their solar panels.
Guadalupe Valley Electric Cooperative GVEC provides rebates to its customers for installing PV solar panels. Rebate amounts depend on solar technology. GVEC has specific equipment eligibility requirements before approving a rebate for a customer, so it is important to look for details on the utility’s website.
City of Sunset Valley Sunset Valley offers a rebate to local homeowners who install solar systems on their properties, up to $1.00/W. The rebate amount is up to $3,000 per household.
Federal Tax Credit Homeowners in Texas who install solar panels on their primary or secondary residence can claim a 26% federal tax credit for systems installed in 2022. There’s no cap on the amount you can claim, meaning the larger your solar system is, the more you can claim with the federal tax credit. This tax credit only applies if you’ve purchased or financed your solar system. It doesn’t apply to solar leases or PPAs.

Why choose Texas solar power?

There are several reasons to invest in solar power. Consumers most often list lesser energy costs, energy independence, and lowering the carbon footprint of their homes as their primary reasons.

Lower energy costs

One of the biggest selling points of solar power is that you can significantly reduce your monthly energy bills. Energy generated by your solar system can meet most of your home’s electricity needs. As mentioned above, installing a solar system can also increase the value of your home. A study by Lawrence Berkeley National Laboratory found that a solar system increases the resale value of a home by an average of $15,000. Depending on the cost of your system, that alone might be enough to support your initial investment, not even factoring in the amount you would save on your electricity bills.

Increased energy independence

By installing a solar system for your home, you can reduce — or in some cases eliminate — your dependence on the electricity grid. Some homeowners find that they can go off the grid with their solar systems. During hours of high demand, typically in the mornings and evening, you will minimize your impact on the grid thanks to your solar system. 

These benefits apply to both homeowners and business owners. Most residential solar system owners remain connected to the grid to use energy from the power grid at night or during periods of lower production. However, they are significantly less reliant on the power grid, and their energy bills are much lower than those without solar panels.

Go green

Solar energy is beneficial to the environment. The traditional electricity grid relies on burning coal or natural gas to generate power. Greenhouse gas emissions from traditional power generation, such as carbon dioxide, contribute to climate change. By switching to solar power, you help reduce your home’s carbon footprint by using green energy and cutting your electricity costs.

Should I buy or lease my solar panels?

If you are interested in going solar, there are a few different options to acquire the panels. You can buy the system upfront, take out a solar loan, or lease it. If you can afford it, buying your solar panels outright is the best alternative because it will pay for itself quickly. A solar loan or lease can cost you more money over the contract period because of interest and fees.

While leasing solar panels can reduce the upfront costs and avoid potentially costly repairs, there are drawbacks to leasing that you should consider. First, there’s no way to recover that cost when you make lease payments. You don’t have the option of reselling your system to get some of your money back. If you move before your lease is over, you’ll need to find homeowners willing to take on your lease payments.

Second, you will not be eligible for the federal solar tax credit if you lease solar panels. The federal tax credit is only available to homeowners and businesses that have purchased or financed their systems. Overall, homeowners who buy their solar panels will see greater savings in the long run than those who lease them.

Texas solar panel companies

There are many available solar panel companies in Texas that can install solar panels for your home. You can choose from a number of trusted solar installers in Texas, who can customize a solar panel system that meets your energy needs. We vet our installers and provide you a curated customer experience.

Want to learn more about solar energy?

Here at SaveOnEnergy, we’re your guide to everything solar energy, from checking your availability and discussing your home’s needs to getting you customized options to go solar with ease. 

Want to talk with a human? Call our dedicated solar advisors to discuss your solar energy options. 

Give us a call at 877-307-7668.

Important solar installation factors to consider

Before installing a solar power system on your property, there’s a lot to consider. There’s no doubt that it’s a significant investment, and you want to do your due diligence upfront. Some of the key factors to consider include:

  • The condition and angle of your roof: According to the U.S. Department of Energy, solar panels perform best on south-facing roofs with a slope of 15 to 40 degrees. Solar may not be suitable for older roofs that need to be replaced very soon.
  • The amount of sun your property gets: Solar panels may be more effective for homes with enough exposure to sun and minimal shading. Texas gets more than 200 days of sunlight per year, making it one of the most favorable states to invest in solar generation.
  • Your HOA or neighborhood rules: Depending on where you live, your homeowner association might either prohibit adding anything to your roof or require approval before you can install solar panels. Be sure to check your neighborhood guidelines before signing a solar contract.

Solar energy generation in Texas

Texas is a national leader in renewable energy. Solar energy has grown rapidly in the state over the past decade, and the state currently ranks second nationwide for solar power generation behind only California and produces more than 10% of the nation’s total solar power.

Texas began investing in solar energy in 1981 when the state created a Renewable Energy Systems Property Tax Exemption, allowing individuals and businesses to save money by having solar or wind-powered energy devices installed.

Because solar energy and wind power are so prominent in Texas, every traditional electricity plan in the state includes a percentage of renewable energy in the mix. If you are enrolled in a traditional energy plan, check your electricity facts label (EFL) to find the exact amount.

Texas solar power FAQs

How much would solar cost in Texas? Expand / Collapse Toggle

The cost of solar panels in Texas, or anywhere else in the U.S., will depend on several key factors, including your energy consumption, solar system size, solar panel types, local installation costs, and others. You can expect to pay between $11,160 to $46,500, depending on system size and before applying federal tax credits and other incentives that can help lower the upfront cost.

Is solar power a good investment in Texas? Expand / Collapse Toggle

Yes. Texas has strong solar insolation year-round. If you decide to install solar panels on your property in Texas, you’re likely to save a considerable amount on your monthly energy bill and experience a shorter payback period. A solar system can also increase the value of your home.

How much could I save by investing in solar in Texas? Expand / Collapse Toggle

Your savings from solar panels will largely depend on how much energy you use and how much your system generates. The average electricity bill for Texas residents was $144.90 as of June 2022. You can estimate savings with solar by using a simple formula. For instance, if the total cost of solar is $14,800 for a 5kW solar system after applying a federal tax credit: $14,800 : $144.90 x 12 = $1,226. So, the average savings from solar generation is $1,226 per year. You can further maximize your savings if there are state financial incentives you can take advantage of. 

Where can I find a good solar panel installer in Texas? Expand / Collapse Toggle

Numerous professional solar companies in Texas can help you install and make the most of your solar system. Before selecting a solar installer, read reviews and testimonials about the company, ask for references, and research their company history. This will help ensure that you are making an informed choice. SaveOnEnergy can also give you various tips and resources about the solar industry.

How does Texas solar power help the environment? Expand / Collapse Toggle

Reducing your dependence on traditional electricity sources, such as coal or natural gas, slashes your home’s greenhouse gas emissions. As a clean and renewable energy resource, solar power doesn’t emit carbon dioxide or methane. Using solar panels will reduce your home’s carbon footprint.

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