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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.
People march along Hiawatha Avenue on May 26, 2020 in Minneapolis, Minnesota, to protest the killing of George Floyd. Stephen Maturen / Getty Images

By Ilana Cohen, Evelyn Nieves, Judy Fahys, Marianne Lavelle, James Bruggers

When New York Communities for Change helped lead a demonstration of 500 on Monday in Brooklyn to protest George Floyd's killing in Minneapolis, the grassroots group's activism spoke to a long-standing link between police violence against African Americans and environmental justice.

Read More Show Less
EcoWatch Daily Newsletter
A USGS map showing the location of a 6.5 magnitude quake that shook Idaho Tuesday evening. USGS

Idaho residents were rattled Tuesday evening by the biggest earthquake to shake the state in almost 40 years.

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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.

The land around Red Knoll near Kanab, UT that could have been razed for a frac sand mine. Tara Lohan

By Tara Lohan

A sign at the north end of Kanab, Utah, proclaims the town of 4,300 to be "The Greatest Earth on Show."

Read More Show Less
Trending
This electric eel is helping to control the lights on a Tennessee Aquarium Christmas tree. The Tennessee Aquarium

A Christmas tree at the Tennessee Aquarium has a shocking secret: its lights are triggered by the charges released by an electric eel.

Read More Show Less

A typical adult takes around 20,000 breaths per day. If you live in a megacity like Beijing, with many of those lungfuls you're likely to inhale a noxious mixture of chemicals and pollutants.

Read More Show Less
India's Lonar Lake has suddenly turned pink. SANTOSH JADHAV / AFP via Getty Images

A crater lake in India has mysteriously turned pink, and scientists aren't sure why.

Read More Show Less
Mario Gutiérrez / Moment / Getty Images

By Emily Long

Electric vehicles (EVs) are getting cheaper — so whether you're looking for a way to save on the hassle and cost of gas, shrink your carbon footprint, or simply zip around in a new Tesla, there are lots of reasons to consider a hybrid or electric car.

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Trending
Visitors observe the Grand Canyon National Park in northwestern Arizona on May 11, 2013. Edwin Remsburg / VW Pics via Getty Images

With social distancing as the new norm and spring break plans canceled, many families and people finding themselves temporarily out of work are looking for a getaway that is both beautiful and isolating. They have found the U.S. national parks open and ready to welcome them, which have parks staff worried about exposure to the novel coronavirus, according to The Guardian.

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Los Angeles-Long Beach, California is listed as the nation's smoggiest city. Pixabay

Seven million more Americans lived in areas with unhealthy levels of air pollution between 2015 and 2017 than between 2014 and 2016, and climate change is partly to blame, Time reported Wednesday.

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Trending

This story is a roundup of articles from The Conversation's archives.

As cold weather settles in across North America, some communities have already started up their snowplows, while others keep watchful eyes on the forecast. Snow and ice can wreck travel plans, but they also play important ecological roles. And frozen water can take amazing forms. For days when all talk turns to winter weather, we spotlight these five stories from our archives.

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The Need for EV Charging Stations

By Jeremy Deaton

A driver planning to make the trek from Denver to Salt Lake City can look forward to an eight-hour trip across some of the most beautiful parts of the country, long stretches with nary a town in sight. The fastest route would take her along I-80 through southern Wyoming. For 300 miles between Laramie and Evanston, she would see, according to a rough estimate, no fewer than 40 gas stations where she could fuel up her car. But if she were driving an electric vehicle, she would see just four charging stations where she could recharge her battery.

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The San Miguel Power Plant, the groundwater beneath a family ranch is contaminated with at least 12 pollutants leaking from coal ash dumps at concentrations more than 100 times above safe levels. Ari Phillips, Environmental Integrity Project

An examination of monitoring data available for the first time concludes that 91 percent of U.S. coal-fired power plants with monitoring data are contaminating groundwater with unsafe levels of toxic pollutants.

The study by the Environmental Integrity Project, with assistance from Earthjustice, used industry data that became available to the public for the first time in 2018 because of requirements in federal coal ash regulations issued in 2015.

Read More Show Less
EcoWatch is a community of experts publishing quality, science-based content on environmental issues, causes, and solutions for a healthier planet and life.
People march along Hiawatha Avenue on May 26, 2020 in Minneapolis, Minnesota, to protest the killing of George Floyd. Stephen Maturen / Getty Images

By Ilana Cohen, Evelyn Nieves, Judy Fahys, Marianne Lavelle, James Bruggers

When New York Communities for Change helped lead a demonstration of 500 on Monday in Brooklyn to protest George Floyd's killing in Minneapolis, the grassroots group's activism spoke to a long-standing link between police violence against African Americans and environmental justice.

Read More Show Less
EcoWatch Daily Newsletter
A USGS map showing the location of a 6.5 magnitude quake that shook Idaho Tuesday evening. USGS

Idaho residents were rattled Tuesday evening by the biggest earthquake to shake the state in almost 40 years.

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.

The land around Red Knoll near Kanab, UT that could have been razed for a frac sand mine. Tara Lohan

By Tara Lohan

A sign at the north end of Kanab, Utah, proclaims the town of 4,300 to be "The Greatest Earth on Show."

Read More Show Less
Trending
This electric eel is helping to control the lights on a Tennessee Aquarium Christmas tree. The Tennessee Aquarium

A Christmas tree at the Tennessee Aquarium has a shocking secret: its lights are triggered by the charges released by an electric eel.

Read More Show Less

A typical adult takes around 20,000 breaths per day. If you live in a megacity like Beijing, with many of those lungfuls you're likely to inhale a noxious mixture of chemicals and pollutants.

Read More Show Less
India's Lonar Lake has suddenly turned pink. SANTOSH JADHAV / AFP via Getty Images