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EcoWatch is a community of experts publishing quality, science-based content on environmental issues, causes, and solutions for a healthier planet and life.
The rainforest in the Biological Reserve Monteverde cloud forest in Costa Rica. Javier Fernández Sánchez / Moment / Getty Images

Spreading coffee pulp, a waste product from coffee production, over degraded lands helps them recover quickly, a recent study found. By dumping 30 truck-loads of coffee pulp on a plot of degraded land in Costa Rica, researchers watched a small forest grow at a remarkable speed in just two years, the British Ecological Society reported.

Read More Show Less
EcoWatch Daily Newsletter
Scientists want to freeze samples of Earth life and store it on the moon. John M Lund Photography Inc / DigitalVistion / Getty Images

Scientists at the University of Arizona have proposed a literal conservation moonshot.

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CHBD / iStock / Getty Images

The sprawling size and sunny days of Texas make it one of the top states for solar energy. If you live in the Lone Star State and are interested in switching to a solar energy system, you may be wondering: What's the average solar panel cost in Texas?

In this article, we'll discuss the cost of solar panels in Texas, what factors affect pricing, Texas' solar incentives and more. Of course, the only way to know for sure how much you would pay to install a solar panel system on your roof is to receive a free, no-obligation quote from a top solar company near you. You can get started by filling out the quick form below.

How Much Do Solar Panels Cost in Texas?

Thanks to the growing investment in renewable energy technology statewide, homeowners now enjoy a below-average cost of solar in Texas. Based on market research and data from top brands, we've found the average cost of solar panels in Texas to be $2.69 per watt. This means a 5-kW system would cost around $9,953 after the federal solar tax credit. This is especially valuable when you take into account the unpredictable Texas energy rates.

Here's how that average calculates into the cost of the most common sizes of home solar panel systems:

Size of Solar Panel SystemTexas Solar Panel CostCost After Federal Tax Credit
5kW$13,450$9,953
6kW$16,140$11,944
7kW$18,830$13,934
8kW$21,520$15,925
9kW$24,210$17,915
10kW$26,900$19,906

Though this data reflects the statewide averages, you'll need to contact a solar installer near you to get an accurate quote for your home. Savvy customers will get free quotes from multiple companies and compare them to the state averages to make sure they receive the best value possible. Bear in mind that the biggest providers of solar won't always have the best prices.

What Determines the Cost of Solar Panels in Texas?

The main factor determining the cost of solar panel installations in Texas is the homeowner's energy needs. No two homes are the same, and installation costs will look far different for a home needing a basic 5kW system and a home needing 10kW with backup power capabilities. The solar financing and installation company a homeowner chooses will also affect a customer's overall solar costs in Texas. Here's how each factor comes into play:

Solar Equipment

Similar to phones, cars and other technology, solar products and system costs vary greatly based on their quality, scale and included features. Some customers may be satisfied with a modest array of affordable solar panels and inverters, while others may opt for a system with premium panels, full-home backup power and cutting-edge energy monitoring technology.

Solar Financing

The overall cost of solar depends significantly on how a customer chooses to finance their system. The three most common solar financing options include paying in cash, taking out a solar loan and solar leasing.

  • The most economical way to purchase solar, an upfront cash purchase provides the best long-term return on investment and the lowest overall cost.
  • Customers can choose to take out a solar loan to purchase the system outright and make monthly payments to repay the loan. The typical payback period for a solar loan averages around 10 years. Systems purchased with a loan are still eligible for the federal solar tax credit.
  • Signing a solar lease or power purchase agreement (PPA) allows a solar customer to rent solar panels from a company or third party. Though requiring the least amount of money upfront, solar leases provide the least amount of overall value. Also, solar leases aren't eligible for the federal tax credit, as the homeowner doesn't actually own the system.

Solar Installation Company

Texas has seen some of the strongest solar energy market growth over the last few years, and the SEIA reports that there are now nearly 600 solar companies based in Texas, and each is looking to expand its market share.

Price ranges can differ significantly based on the installer. Larger solar providers like Sunrun offer the advantage of solar leases and quick installations. Local providers, on the other hand, provide more personalization and competitive prices to undercut the biggest national companies.

Because of this, it's wise to get quotes from a few local and national installers and compare rates — because of the stiff competition between companies, you could end up saving several thousand dollars.

Texas Solar Incentives

For the most part, Texas taxes are administered by local governments. As a result, the state doesn't offer a large number of statewide solar-related policies, and incentives will depend more on the locality in which you live.

However, all homeowners in the state remain eligible for the federal solar tax credit, and there are some statewide local property tax exemptions for both photovoltaic solar and wind-powered renewable energy systems. Let's walk through how to find what incentives are available to you.

Federal Solar Tax Credit

All Texans can claim the federal solar investment tax credit, or ITC, for PV solar panels and energy storage systems. By claiming the ITC on your tax returns, the policy allows you to deduct 26% of the total cost of the solar system from the taxes you owe the federal government.

The tax credit is available to both residential and commercial system owners who have installed solar panels at any point since 2006. The credit is worth 26% through the end of 2022 and will drop to 22% in 2023. It is set to expire at the end of 2023 unless congress extends it.

Net Metering Policies in Texas

Net metering programs allow customers to sell unused solar energy back to their local utility company in exchange for credits that can be cashed in when panels aren't producing energy. Due to the energy bill savings, this incentive can greatly reduce the solar investment payback period.

As is true with most of Texas' solar rebates and incentives, there is not one net metering program that is offered throughout the entire state. Rather, your eligibility will depend on the policy of your local utility company or municipality. Most utilities in the state have a net metering policy, including American Electric Power (AEP), CPS Energy, Green Mountain Energy, El Paso Electric, TXU Energy in Dallas and more.

The rate at which your local utility will compensate for this excess energy will depend on your local policy, so we encourage you to look into the policy offered by your utility company.

Local Solar Rebates in Texas

In addition to identifying your local net metering program, look into any local rebates available to you. Homeowners who live in the top cities for solar in Texas, like Austin, San Marcos or Sunset Valley might have more luck than customers in other areas. The Database of State Incentives for Renewables & Efficiency has a full list of local rebates, solar loan programs and more.

FAQ: Solar Panel Cost Texas

Is it worth going solar in Texas?

Long, sunny days and below-average solar installation costs make Texas one of the best states in the U.S. for generating energy with solar panels. The ample sunshine provides more than enough energy for most families, serving up huge benefits to homes in Texas equipped with solar panels.

How much does it cost to install solar panels in Texas?

As of 2021, the average cost of solar panels in Texas is $2.69 per watt. This means a 5-kW system would cost around $9,953 after the federal solar tax credit. This is slightly below the national average due to the resource availability in Texas, current energy costs and the state's available sunlight. The best way to assess how much solar would cost you is to consult local providers near you for a free estimate.

Do solar panels increase home value in Texas?

Solar panels increase home value everywhere, but mostly in areas with generous net metering policies and solar rebates. As such, the proportion at which solar panels increase home value in Texas corresponds with the areas with the most solar-friendly policies.

How much do solar panels cost for a 2,500 sq foot house?

Though knowing the size of a house is helpful in determining how many solar panels could fit on its roof, the energy use of the house is the more important factor in determining solar panel cost in Texas. The higher your energy use, the greater your solar needs will be.

Karsten Neumeister is a writer and renewable energy specialist with a background in writing and the humanities. Before joining EcoWatch, Karsten worked in the energy sector of New Orleans, focusing on renewable energy policy and technology. A lover of music and the outdoors, Karsten might be found rock climbing, canoeing or writing songs when away from the workplace.

Greta Thunberg in a video conversation with Swedish professor and joint director of the Potsdam Institute for Climate Impact Research Johan Rockstrom, broadcasted live to a global audience from Nobel Prize Museum in Stockholm, Sweden on April 22, 2020. JESSICA GOW / TT News Agency / AFP via Getty Images

When you want a seat on the UN Security Council, the last thing you need is a teenage activist, practiced at the art of shaming government officials, working against you. However, that's just what Norway and Canada have.

Read More Show Less
Trending
Empty freeways, such as this one in LA, were a common sight during COVID-19 lockdowns in spring 2020. vlvart / Getty Images

Lockdown measures to stop the spread of the coronavirus pandemic had the added benefit of reducing greenhouse gas emissions by around seven percent, or 2.6 billion metric tons, in 2020.

Read More Show Less
Pexels

By Mark McCord

  • An academic paper suggests key tipping points can significantly reduce carbon emissions, which would help to slow global warming.
  • Government policies are making coal uneconomical.
  • Electric vehicle pricing structures have helped reduce the number of petrol and diesel cars on the world's roads.

There may be light at the end of the tunnel in the battle to reduce carbon emissions.

Read More Show Less
A new study endorses protecting 30 percent of the world's land and ocean by 2030. David Merron Photography / Getty Images

A first-of-its-kind study has examined the benefits of protecting the world's oceans.

Read More Show Less
A lone tree stands in the Amazon rainforest near Santarem, Para state, Brazil, on September 4, 2019. Nelson Almeida / AFP / Getty Images

By Jessica Corbett

New data from a Norwegian nonprofit is generating fresh concerns about humanity's destruction of the natural world, revealing Monday that people have ravaged about two-thirds of original tropical rainforest cover globally.

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Trending
A late snowfall could set back the growth of this budding lilac. oddharmonic / Flickr, CC BY-SA

By Richard B. Primack

Weather patterns across the U.S. have felt like a roller coaster ride for the past several months. December and January were significantly warmer than average in many locations, followed by February's intense cold wave and a dramatic warmup.

Read More Show Less
An electric Nissan Leaf charging at a loading station in Moss, Norway on August 3, 2015. Sigrid Harms / picture alliance / Getty Images

By Maddy Savage

Americans love their cars — their gas-guzzling, air-polluting, smog-producing cars. Although the vast majority agree that if we all drove electric vehicles we could reduce oil consumption and pollution, only a third would consider buying one anytime soon. Far fewer are actually making the switch.

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Trending
Conservation charity British Divers Marine Life Rescue (BDMLR) led the rescue of a stranded orca in Scotland. Emma Neave-Webb and Imogen Sawyer / British Divers Marine Life Rescue / Facebook

A rare orca stranding on Scotland's Orkney Islands had a happy ending when volunteers and local residents teamed up to send the animal back out to sea.

Read More Show Less
A mountain lion in the Bridger Mountains of Montana. Joe McDonald / The Image Bank / Getty Images

In 2017, a team of researchers went to the Santa Cruz Mountains to study how mountain lions responded to human disturbance. Hanging speakers that broadcasted human voices, they found mountain lions were fearful of the sounds, altering their eating behaviors and the corresponding food chain, The Atlantic reported.

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Artist's impression of an Othalo community, imagined by architect Julien De Smedt. Othalo

By Victoria Masterson

Using one of the world's problems to solve another is the philosophy behind a Norwegian start-up's mission to develop affordable housing from 100% recycled plastic.

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EcoWatch is a community of experts publishing quality, science-based content on environmental issues, causes, and solutions for a healthier planet and life.
The rainforest in the Biological Reserve Monteverde cloud forest in Costa Rica. Javier Fernández Sánchez / Moment / Getty Images

Spreading coffee pulp, a waste product from coffee production, over degraded lands helps them recover quickly, a recent study found. By dumping 30 truck-loads of coffee pulp on a plot of degraded land in Costa Rica, researchers watched a small forest grow at a remarkable speed in just two years, the British Ecological Society reported.

Read More Show Less
EcoWatch Daily Newsletter
Scientists want to freeze samples of Earth life and store it on the moon. John M Lund Photography Inc / DigitalVistion / Getty Images

Scientists at the University of Arizona have proposed a literal conservation moonshot.

Read More Show Less
CHBD / iStock / Getty Images

The sprawling size and sunny days of Texas make it one of the top states for solar energy. If you live in the Lone Star State and are interested in switching to a solar energy system, you may be wondering: What's the average solar panel cost in Texas?

In this article, we'll discuss the cost of solar panels in Texas, what factors affect pricing, Texas' solar incentives and more. Of course, the only way to know for sure how much you would pay to install a solar panel system on your roof is to receive a free, no-obligation quote from a top solar company near you. You can get started by filling out the quick form below.

How Much Do Solar Panels Cost in Texas?

Thanks to the growing investment in renewable energy technology statewide, homeowners now enjoy a below-average cost of solar in Texas. Based on market research and data from top brands, we've found the average cost of solar panels in Texas to be $2.69 per watt. This means a 5-kW system would cost around $9,953 after the federal solar tax credit. This is especially valuable when you take into account the unpredictable Texas energy rates.

Here's how that average calculates into the cost of the most common sizes of home solar panel systems:

Size of Solar Panel SystemTexas Solar Panel CostCost After Federal Tax Credit
5kW$13,450$9,953
6kW$16,140$11,944
7kW$18,830$13,934
8kW$21,520$15,925
9kW$24,210$17,915
10kW$26,900$19,906

Though this data reflects the statewide averages, you'll need to contact a solar installer near you to get an accurate quote for your home. Savvy customers will get free quotes from multiple companies and compare them to the state averages to make sure they receive the best value possible. Bear in mind that the biggest providers of solar won't always have the best prices.

What Determines the Cost of Solar Panels in Texas?

The main factor determining the cost of solar panel installations in Texas is the homeowner's energy needs. No two homes are the same, and installation costs will look far different for a home needing a basic 5kW system and a home needing 10kW with backup power capabilities. The solar financing and installation company a homeowner chooses will also affect a customer's overall solar costs in Texas. Here's how each factor comes into play:

Solar Equipment

Similar to phones, cars and other technology, solar products and system costs vary greatly based on their quality, scale and included features. Some customers may be satisfied with a modest array of affordable solar panels and inverters, while others may opt for a system with premium panels, full-home backup power and cutting-edge energy monitoring technology.

Solar Financing

The overall cost of solar depends significantly on how a customer chooses to finance their system. The three most common solar financing options include paying in cash, taking out a solar loan and solar leasing.

  • The most economical way to purchase solar, an upfront cash purchase provides the best long-term return on investment and the lowest overall cost.
  • Customers can choose to take out a solar loan to purchase the system outright and make monthly payments to repay the loan. The typical payback period for a solar loan averages around 10 years. Systems purchased with a loan are still eligible for the federal solar tax credit.
  • Signing a solar lease or power purchase agreement (PPA) allows a solar customer to rent solar panels from a company or third party. Though requiring the least amount of money upfront, solar leases provide the least amount of overall value. Also, solar leases aren't eligible for the federal tax credit, as the homeowner doesn't actually own the system.

Solar Installation Company

Texas has seen some of the strongest solar energy market growth over the last few years, and the SEIA reports that there are now nearly 600 solar companies based in Texas, and each is looking to expand its market share.

Price ranges can differ significantly based on the installer. Larger solar providers like Sunrun offer the advantage of solar leases and quick installations. Local providers, on the other hand, provide more personalization and competitive prices to undercut the biggest national companies.

Because of this, it's wise to get quotes from a few local and national installers and compare rates — because of the stiff competition between companies, you could end up saving several thousand dollars.

Texas Solar Incentives

For the most part, Texas taxes are administered by local governments. As a result, the state doesn't offer a large number of statewide solar-related policies, and incentives will depend more on the locality in which you live.

However, all homeowners in the state remain eligible for the federal solar tax credit, and there are some statewide local property tax exemptions for both photovoltaic solar and wind-powered renewable energy systems. Let's walk through how to find what incentives are available to you.

Federal Solar Tax Credit

All Texans can claim the federal solar investment tax credit, or ITC, for PV solar panels and energy storage systems. By claiming the ITC on your tax returns, the policy allows you to deduct 26% of the total cost of the solar system from the taxes you owe the federal government.

The tax credit is available to both residential and commercial system owners who have installed solar panels at any point since 2006. The credit is worth 26% through the end of 2022 and will drop to 22% in 2023. It is set to expire at the end of 2023 unless congress extends it.

Net Metering Policies in Texas

Net metering programs allow customers to sell unused solar energy back to their local utility company in exchange for credits that can be cashed in when panels aren't producing energy. Due to the energy bill savings, this incentive can greatly reduce the solar investment payback period.

As is true with most of Texas' solar rebates and incentives, there is not one net metering program that is offered throughout the entire state. Rather, your eligibility will depend on the policy of your local utility company or municipality. Most utilities in the state have a net metering policy, including American Electric Power (AEP), CPS Energy, Green Mountain Energy, El Paso Electric, TXU Energy in Dallas and more.

The rate at which your local utility will compensate for this excess energy will depend on your local policy, so we encourage you to look into the policy offered by your utility company.

Local Solar Rebates in Texas

In addition to identifying your local net metering program, look into any local rebates available to you. Homeowners who live in the top cities for solar in Texas, like Austin, San Marcos or Sunset Valley might have more luck than customers in other areas. The Database of State Incentives for Renewables & Efficiency has a full list of local rebates, solar loan programs and more.

FAQ: Solar Panel Cost Texas

Is it worth going solar in Texas?

Long, sunny days and below-average solar installation costs make Texas one of the best states in the U.S. for generating energy with solar panels. The ample sunshine provides more than enough energy for most families, serving up huge benefits to homes in Texas equipped with solar panels.

How much does it cost to install solar panels in Texas?

As of 2021, the average cost of solar panels in Texas is $2.69 per watt. This means a 5-kW system would cost around $9,953 after the federal solar tax credit. This is slightly below the national average due to the resource availability in Texas, current energy costs and the state's available sunlight. The best way to assess how much solar would cost you is to consult local providers near you for a free estimate.

Do solar panels increase home value in Texas?

Solar panels increase home value everywhere, but mostly in areas with generous net metering policies and solar rebates. As such, the proportion at which solar panels increase home value in Texas corresponds with the areas with the most solar-friendly policies.

How much do solar panels cost for a 2,500 sq foot house?

Though knowing the size of a house is helpful in determining how many solar panels could fit on its roof, the energy use of the house is the more important factor in determining solar panel cost in Texas. The higher your energy use, the greater your solar needs will be.

Karsten Neumeister is a writer and renewable energy specialist with a background in writing and the humanities. Before joining EcoWatch, Karsten worked in the energy sector of New Orleans, focusing on renewable energy policy and technology. A lover of music and the outdoors, Karsten might be found rock climbing, canoeing or writing songs when away from the workplace.

Greta Thunberg in a video conversation with Swedish professor and joint director of the Potsdam Institute for Climate Impact Research Johan Rockstrom, broadcasted live to a global audience from Nobel Prize Museum in Stockholm, Sweden on April 22, 2020. JESSICA GOW / TT News Agency / AFP via Getty Images

When you want a seat on the UN Security Council, the last thing you need is a teenage activist, practiced at the art of shaming government officials, working against you. However, that's just what Norway and Canada have.

Read More Show Less
Trending
Empty freeways, such as this one in LA, were a common sight during COVID-19 lockdowns in spring 2020. vlvart / Getty Images

Lockdown measures to stop the spread of the coronavirus pandemic had the added benefit of reducing greenhouse gas emissions by around seven percent, or 2.6 billion metric tons, in 2020.

Read More Show Less
Pexels

By Mark McCord

  • An academic paper suggests key tipping points can significantly reduce carbon emissions, which would help to slow global warming.
  • Government policies are making coal uneconomical.
  • Electric vehicle pricing structures have helped reduce the number of petrol and diesel cars on the world's roads.

There may be light at the end of the tunnel in the battle to reduce carbon emissions.

Read More Show Less