Houston Solar Panels: 2022 Cost and Local Incentives

How much do solar panels cost in Houston?

Written by Michelle Honeyager

Edited by Hannah Whatley

Last updated 08/26/2022

Westend61/Westend61/Getty images

Houston solar panels

Are you thinking of making the jump toward energy grid independence and more sustainable energy? Read on to learn about the cost of solar panels in Houston, Houston solar incentives, and the best places to buy solar panels.

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Cost of solar panels in Houston

The cost of solar panels in Houston can vary based on the installer. The median national cost to install a solar system is $3.82 per watt.  

The median residential solar panel system size in Texas was also 7.4 kW in 2020, according to the Tracking the Sun report. In the same report, Texas had a median of $3.80 per watt for residential systems installed in 2020. For a 7.4 kW system at the average price of $3.80 per watt, the total cost of a residential solar panel system in Houston would be $28,120. 

How much do solar panels cost in Houston in 2022?

First, let’s take a look at how much you would pay for different solar system sizes. The size of the system can depend on how large your roof is, how much sunlight different parts of the roof get, and where it’s most feasible to place solar panels. The Tracking the Sun report lists the average residential system in Texas at the size of 7.4 kW, which means that, at the state median price of $3.80 per watt, a homeowner would pay about $28,000 for the system.  

If you were to go for a smaller array (around 2.4 kW), you would be paying $9,120 at the $3.80-per-watt rate. At the same rate, you would pay $24,700 for a larger 6.5 kW array. The size of the system is dependent on energy usage. Your solar installer will review your utility bill to help you decide on the right system size for your needs.

The Center for Sustainable Energy lists payback periods for panels at six to nine years. Houston’s current electricity rates are about 13.6 cents per Kilowatt-hour (kWh). A solar panel system that costs $9,120 with a 13-cent cost of electricity and a yearly energy usage rate of 11,280 watts puts the period of paying back the system at 6.22 years.

For an address in the Houston ZIP code of 77084, Google’s Project Sunroof calculator states an estimated savings of $5,000 over the 20 years after the solar purchase.    

Average solar panel cost by system size in Houston

The national median cost per watt is $3.82. Texas costs include: 

High$4.0110.2 kW$41,053
Median$3.807.4 kW$28,288
Low$3.235.4 kW$17,293

To find out the size of the solar array you’d need, calculate how much energy you use each month. Energy bills should show this information. The total number of watts you used each month over the last year will give you an average of how much energy you will need your solar array to produce.  

For example, let’s say you use an average of about 900 kWh per month. The solar array would need to produce at least the same or more energy for a fully sufficient system. If you pay $150 per month at the $0.13 per kWh rate, an 8.8 kW system would still produce slightly more energy than you would use, according to the KW Solar calculator.   

The recently activated Residential Clean Energy Credit (part of the Inflation Reduction Act) is a 30% federal tax credit that could help bring your total costs down by thousands of dollars if you purchase your system between 2022 and 2032. If you were to get a 5 kW system at the $3.80 per watt rate, it would cost $19,000. After applying the 30% off through the tax credit, you would be looking at a total cost of $13,300. Be sure to take advantage of this substantial tax credit, as it will decrease after 2032. 

Meanwhile, Google’s Project Solar estimates a 2.2% increase in utility prices each year. However, even though the energy market can be erratic and electricity prices tend to increase, the cost of solar is decreasing, and incentives and rebates are available to keep your costs down.

Get an exact quote from our solar advisors

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.

1. Complete the form below
2. Schedule an appointment with a solar advisor
3. Get an exact price quote for solar panels for your home

Ready to go solar? Call 877-307-7668 to be connected with a solar expert today!

Incentives for solar panels in Houston

Houston solar incentives as well as those offered by the federal government can help people convert to solar. These programs can save you money and make the upfront cost of installing solar less intimidating. For instance, the 30% federal tax credit example above could save you $5,700 on your income taxes for a 5 kW system.      

Here are a few examples of the local utility and governmental incentives available. Be sure to regularly check with your utility or your city for any new solar incentives.  

IncentiveLocal, State, or Federal? Incentive Details 
Residential Clean Energy CreditFederal30% tax credit active through 2032; can also be retroactively applied to solar systems purchased in the beginning of 2022
Residential Energy Conservation Subsidy Exclusion  FederalPersonal tax exemption 
TXU Solar Buyback CreditsLocal Utility Buys back solar credits, as long as the property is in the service area
Renewable Energy Property Tax ExemptionState100% property tax exemption on the appraised value of devices  
FHA PowerSaver Loan ProgramFederalFinancing options for making energy-efficient improvements to the home, including installing solar 


Solar companies in Houston

If you’re ready to look into solar, SaveOnEnergy can help connect you with a solar installer in your area. Feel free to look at our guides on solar panel installation to learn more about the installation process as a whole. You can also contact us directly to get the process started — simply fill out the form below or call the number above to speak with an advisor.   

Is going solar in Houston right for you?

There are several ways to finance solar based on your living situation or your preferred payment methods. Read on to learn about the main ways to finance solar.   

Solar for renters

If you’re a renter, you might have to take a more indirect path toward solar. You may want to discuss the benefits of installing solar with your landlord since they own the property. You could even look into smaller, more portable solar systems that fit on your balcony or patio, or small solar devices, like solar phone charging systems.    

Solar for homeowners

If you own a home, you can install your own solar panels on your roof. One of your options is a Solar Power Purchase Agreement (PPA), a contract in which a solar developer manages and installs the system on your property. You are then free to use the electricity generated by the array.  

Some homeowners also opt for conventional financing. They may lease the full array, paying back the borrowed amount and interest over several years, though this option may affect the ability to take advantage of incentives and rebates. Some people also use other financing options like home-equity lines of credit or cash-back refinancing to access the funds for solar panels.

Community solar

Another option that often appeals to homeowners is community solar, where groups of residents subscribe to a large solar array and receive enough energy from that one array to power all the subscribers’ homes. It can be a more budget-friendly option for anyone who doesn’t want to take on the financial burden of a whole solar array alone. It can also be a good option for someone who does not have the type of roof to support an array, such as one in a shaded yard or an old roof that can’t support the extra weight.

Solar power FAQs

  • That can depend on the size of the array and the rates local installers are charging. The average cost in Texas for a solar array is $3.80 per watt. A standard 7.4 kW panel would then cost about $28,000 on average. It’s important to shop around with different installers in the area to find the best price. 

  • Solar power can be a great long-term investment for many Houston homeowners. With energy prices rising over time, cutting those energy bills by generating your own electricity can help you save in the long run.  

  • You can start the process of connecting with a good solar panel installer by filling out the form above or calling the number on the screen. SaveOnEnergy works with local solar installers to connect residents who are interested in solar with the top installers.

  • Solar power does not emit carbon dioxide like coal or oil, making it a green resource. It is also a completely renewable resource, since it draws its power from sunlight. Installing solar is one of the most direct ways to reduce your home’s carbon footprint.

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