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Key Points
A 9-kilowatt system in Texas costs $29,430 on average before incentives and rebates.
Applying the 30% federal tax credit reduces the average cost to $20,601.
You could save over $2,000 a year on energy bills in Texas with solar panels.
Texas energy companies, such as TXU, Oncor, and Reliant, offer bill credits for excess energy generated from residential solar panels.
How much do solar panels cost in Texas?
The average price of solar panels in Texas is about $3.27 per watt, or $29,430for the average 9-kilowatt (kW) system, according to data from Find Energy. After applying the 30% federal tax credit, the average cost of solar panels in Texas decreases to $20,601. However, depending on your system size, the price may range from $9,810 to $49,050.
While solar is a significant investment, rising Texas electricity rates, lower solar panel costs, and concern about the reliability of the power grid make choosing solar energy worth the cost. Learn more about the cost of solar panels in Texas, financial incentives, and benefits.
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Cost by system size
The following table shows various system sizes and total costs based on Texas’s average price per watt (PPW) of $3.27 and the number of panels based on 300–400 watt panels.
System size
Total price
Number of panels*
3 kW
$9,810
8–10
6 kW
$16,620
15–20
9 kW
$29,430
23–30
12 kW
$39,240
30–40
15 kW
$49,050
38–50
*Estimated panel count is based on the average panel size ranging from 300 to 400 watts.
Customizing solar panels in Texas
Solar panel systems are not one-size-fits-all. The cost of solar panels in Texas depends on your energy consumption, the system size, manufacturer, installation costs, solar panel type, and other factors. Your solar installer will create a personalized solar design based on your home’s energy needs, and these details will influence the cost of your solar panel system.
How long does it take for solar panels to pay for themselves in Texas?
Prospective buyers are often curious about how long it will take to pay off solar panels in Texas. If you purchase a solar panel system, the average payback period is about 10 years. This calculation is based on Texas’ average 9 kW system size and cost of $29,430, savings from the 30% federal solar tax credit, and the state’s typical monthly electricity bill of $173). This number is an estimate, and your specific payback period will vary depending on your system and energy expenses.
How much could I save with solar in Texas?
The average residential electricity rate in Texas, based on the latest data, is 14.58 cents per kilowatt-hour (kWh). This rate is about 7.6% lower than the national average (15.73 cents per kWh). However, due to long, hot summers, Texans tend to use more electricity than residents in other states, so they typically pay more on electricity bills. After 20 years, the average Texas household could save nearly $21,000 on energy bills by switching to solar.
Cost of solar panels in Texas vs. the U.S.
The following table compares the average price per watt, system size, and cost of solar in Texas with nationwide averages.
Price per watt
System size
Installed price
(before tax credits)
Number of
panels*
Texas
$3.27
9 kW
$29,430
23–30
U.S.
$3.67
8.6 kW
$31,558
22–29
*Estimated panel count is based on the average panel size ranging from 300 to 400 watts.
Texas solar panel incentives or rebates
You can offset the cost of solar panels in Texas using incentives and tax credits. At the federal level, the Residential Clean Energy Credit offers 30% of the solar installation cost in credit to consumers who purchase their system. In Texas, this solar tax credit alone could save you an average of $8,829. Learn more about applying for the federal tax credit.
Austin homeowners who install solar panels are eligible for a $2,500 rebate. Customers can only collect this rebate if they complete Austin Energy’s solar education course and install qualifying solar products.
Customers of this utility who install solar systems in Texas can receive utility bill credits for every kWh of excess solar energy their system generates.
Check with your Dallas electricity provider to determine if net metering bill credits or buyback plans are available, such as Reliant Energy and TXU.
The city requires all new construction city buildings larger than 10,000 square feet to meet certain energy efficiency standards. Solar panels are among the eligible technologies that align with the required energy standards.
In 2011, the City of Fort Worth adopted the International Energy Conservation Code for commercial and residential buildings. Solar panels are one of the eligible efficiency technologies mentioned within the city code.
Big Sun Community Solar is a CPS Energy sponsored community solar program. The program is currently at capacity, but you can join the waitlist here.
Residential rooftop solar systems are eligible for a$2,500 rebatethrough CPS Energy.
Bring Solar Home is a San Antonio-based nonprofit solar program that offers free resources and solar education tools for residents interested in solar energy.
Should I buy or lease my solar panels?
There are a few different financing methodsfor residential solar panels. The cost of solar panels in Texas can be covered by paying upfront, financing with a loan, or signing a solar lease.
There are several benefits of installing solar panels in Texas, including lower energy costs, increased energy independence, and environmental benefits. The following is a more detailed explanation of why consumers choose solar.
Lower energy costs
One of the major benefits of solar power is that you can significantly reduce your monthly energy bills. Following your solar system’s payback period, you can save thousands on energy bills over your panels’ lifetime. The payback period in Texas averages about 10 years, while solar panels have 25-year warranties. This means you could have about 15 years of pure solar savings.
Increased energy independence
By installing solar systems in Texas, you can reduce — or in some cases eliminate — your dependence on the electricity grid. Most solar owners remain connected to the grid to use energy at night or during periods of lower production. During hours of high demand, typically in the mornings and evenings, you will minimize your impact on the grid because you rely more on the solar energy from your system. Off-grid solar systems are less common because they require plenty of battery backup, which can add to the cost.
Go green
Solar energy is a renewable resource, whereas 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.
Solar power is a cleaner alternative because it does not emit greenhouse gasses to generate electricity. By switching to Texas solar power, you help reduce your home’s carbon footprint by using green energy and cutting your electricity costs.
Texas solar panel companies
You can choose from a number of trusted solar installers in Texas that offer customized solar panels for your home. We vet our installers and provide you with a curated customer experience. The following table details a few top solar companies in Texas.
The key to selecting the best solar contractor for you is researching companies and getting multiple quotes. Here are a few other things to consider when navigating the solar industry and checking into the cost of solar panels in Texas:
DOs:
DON’Ts:
Do plenty of research
Don’t start shopping without a budget in mind
Do get multiple quotes
Don’t worry about asking lots of questions
Do get all agreements in writing
Don’t sign anything you don’t feel comfortable with
Do apply for incentives and rebates
Don’t base your decision on price alone
Do ask for and contact personal references
Don’t forget to ask about contractor licensing and insurance
Free solar panels in Texas scam
Free solar panels in Texas sound like an unbelievable deal, and that’s because it is. There is no such thing as free solar panels in Texas or elsewhere in the U.S. However, some solar companies use advertising such as “free solar panels” because they offer solar leases or PPAs with no money down or no initial upfront payment. These types of solar contracts typically have higher monthly costs, higher interest rates, or other caveats that are not beneficial to the customer.
The truth about solar panels in Texas
The truth about solar panels in Texas is that the average cost is $20,601 when accounting for the 30% solar tax credit. Despite the high cost, investing in solar can be financially beneficial for some homeowners. We recommend being extremely skeptical about any free solar panel offers and seeking out multiple solar panel quotes. SaveOnEnergy can relieve the stress of vetting solar companies by connecting you with a trusted installer in your area.
Important solar installation factors to consider
Before proceeding with solar installation in Texas, there’s a lot to consider. Solar panels are 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. If you have an older roof or one that needs repairs, you may need to replace or restore your roof before installing solar panels.
The amount of sun your property gets: Solar panels may be more effective for homes with enough exposure to the 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. You may also want to clear any trees blocking direct sunlight to your solar panels.
Your HOA or neighborhood rules: In Texas, homeowner’s associations are not allowed to ban or restrict solar panel installations. However, there may be specific design or placement requirements in your neighborhood. Be sure to check the guidelines in your area before signing a solar contract.
Yes, solar panels are a good investment in Texas due to abundant sunlight, potential energy bill savings, available incentives, and the positive environmental impact. However, consider your budget and financing options before making a decision. Consulting with a solar installation company in Texas can provide insights based on your specific needs.
There are a number of professional solar companies in Texas to choose from. Before selecting a solar installer, read reviews and testimonials about the company, ask for references, and research their company history. You should also get multiple quotes from different installers to ensure you are making an informed choice. SaveOnEnergy can help you find a credible solar installer in your area.
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 can reduce your home’s carbon footprint.
No. Texas doesn’t pay for solar panels. However, when homeowners apply for the Residential Clean Energy Credit, solar costs can be reduced by thousands of dollars. This federal tax incentive gives a 30% credit on their income tax returns to homeowners who purchase or finance solar panels in Texas.
