See how much it will cost to install solar panels for your home in Texas
Our estimates used by
Solar power in Texas
Last fact-checked on April 14, 2023, by Catherine Lane
The investment return and savings homeowners can make by buying solar panels varies more by city and utility in Texas than in any other state. This is mainly because 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 to the people of Texas.
Some utility companies in Texas, like Austin Energy and Oncor Electric, offer upfront rebates that help reduce the costs of installing solar. These rebates, coupled with the 30% solar tax credit and a good solar buyback program, make it possible to pay back your solar system in 10 years or less.
Compare solar quotes from the top solar companies in Texas
Texas solar power facts
$2.58 watt
Average cost: 5kW solar power system
?6 Years 8 Months
Average payback time
$86,105
Average lifetime savings
?4¢ 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 Solar-Estimate marketplace.
How much can solar panels save you in Texas
Average total cost of solar panel installation in Texas
| System Size | Cash purchase After 30% solar tax credit |
Financed purchase After 30% solar tax credit |
|---|---|---|
| 3kw | $5,649 | $6,101 |
| 4kw | $7,364 | $7,953 |
| 5kw | $9,030 | $9,752 |
| 6kw | $10,584 | $11,431 |
| 7kw | $12,103 | $13,071 |
| 8kw | $13,496 | $14,576 |
| 9kw | $14,868 | $16,057 |
| 10kw | $16,100 | $17,388 |
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?
One of the biggest advantages of installing solar panels in Texas is the amount of sunshine the state gets! More sun is great for solar panel customers because more energy is generated! If you live in an area of Texas where you have access to net metering or solar buyback programs, your savings will be even higher. Oncor and Austin Energy customers can also take advantage of rebates that will increase their savings. But, even if you aren’t serviced by either one of these utilities, you can still use the 30% federal solar tax credit and the state’s renewable energy system property tax exemption.
There are, unfortunately, a few drawbacks to going solar in Texas. For starters, the state does not require any utilities or retail electric providers to pay solar homeowners for the solar energy sent to the grid. So, while some companies provide buyback programs, there is no law mandating them to do so. Thus, they can end these programs at any time if they choose.
Also, some of the programs offered by retail electric providers put a cap on how much solar energy they’ll purchase from you, leading to lower savings. And the programs that you can participate in usually only have one to three-year terms, so there’s no telling if there will be a good replacement plan once your contract is up.
That being said, there are still plenty of opportunities for great savings when you go solar in The Lone Star state; you just need to know where to look.
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
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Compare solar quotes from the top solar companies in Texas
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
What rebates, solar tax credits, and other solar incentives are available in Texas?
Oncor Electric Delivery solar + storage rebate
Customers of Oncor, the largest power utility company in Texas, can get a rebate worth thousands of dollars when they install panels and an energy storage system to their homes. As of 2023, you can qualify for up to $9,000, which can be combined with other incentives. If you live in Texas and are a customer of Oncor, this incentive is definitely something you’ll want to look into!
Austin Energy solar rebate
If you live in the Austin area, you can earn a $2,500 rebate from Austin Energy when you install solar panels. You can earn this rebate by following a few simple steps: apply for the incentive, complete a short solar education course, and then select a participating contractor to install the system once you pass the course.
Net metering in Texas
The state of Texas does not mandate net metering by law. However, many Retail Electricity Providers (REPs) and municipal power companies do offer buyback programs for excess power generated by your solar system. If you are a Texas resident looking to go solar, keep this in mind and shop around for both a REP and an installer that provides the best benefits!
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:
| Incentive Name | Eligibility | Type |
|---|---|---|
| Residential Clean Energy Tax Credit | Federal | Personal Tax Credit |
| Renewable Energy Property Tax Incentive | State | Property Tax Incentive |
| Austin Energy - Residential Solar PV Rebate Program | Utility | Rebate Program |
| Xcel Energy - Residential and Hard-to-Reach Standard Offer Program | Utility | Rebate Program |
| CPS Energy - Solar PV Rebate Program | Utility | Rebate Program |
| Oncor Electric Delivery - Solar Photovoltaic Standard Offer Program (Waitlist) | Utility | Rebate Program |
| AEP Texas North and Central Company - SMART Source Solar PV Rebate Program | Utility | Rebate Program |
| City of San Marcos - Distributed Generation Rebate Program | Utility | Rebate Program |
| Austin Energy - Value of Solar Rate | Utility | Feed In Tarrif |
| City of Brenham Net Metering | Utility | Net Metering |
| CPS Energy Net Metering (San Antonio) | Utility | Net Metering |
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.
