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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.
Airborne microplastics are turning up in remote regions of the world, including the remote Altai mountains in Siberia. Kirill Kukhmar / TASS / Getty Images

Scientists consider plastic pollution one of the "most pressing environmental and social issues of the 21st century," but so far, microplastic research has mostly focused on the impact on rivers and oceans.

Read More Show Less
EcoWatch Daily Newsletter
Only parts of the skeleton have so far been recovered from the Pechevalavato Lake in northern Russia.

By Kristie Pladson

Russian scientists are excavating the well-preserved skeleton of a woolly mammoth found in a lake in northern Siberia, The Associated Press reported Friday.

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.

An aerial picture shows a deforested area close to Sinop, Mato Grosso State, Brazil, taken on August 7, 2020. Florian Plaucheur / AFP / Getty Images

A new study published Wednesday found that the destruction of primary forest increased by 12% in 2020, impacting ecosystems that store vast amounts of carbon and shelter abundant biodiversity.

Read More Show Less
Trending
Khalaktyrsky beach in the eastern Russian city of Petropavlovsk-Kamchatskiy in 2018. Yuri Smityuk / TASS / Getty Images

By Charli Shield

Local authorities in the eastern Russian city of Petropavlovsk-Kamchatskiy have been warning people against visiting the nearby Khalaktyrsky beach, after surfers complained of partially losing their eyesight and experiencing headaches, fevers and nausea when venturing into the water.

Read More Show Less
Wetlands play a key role in regulating the planet's climate. sdbower / Getty Images

By Tim Schauenberg

Although wetlands cover less than 4% of the Earth's surface, 40% of all animal species live or reproduce in them. One-third of all organic matter on our planet is stored in places like the gigantic Pantanal wetland in western Brazil, the Sudd floodplain in southern Sudan or the Wasjugan Marsh in western Siberia.

Read More Show Less
A frozen Niagara Falls in Ontario, Canada is an example of the polar vortex influencing extreme weather. Seyit Aydogan / Anadolu Agency / Getty Images

By Zachary Lawrence and Amy Butler

At the start of February 2021, a major snowstorm hit the northeast United States, with some areas receiving well over two feet of snow. Just a few weeks earlier, Spain experienced a historic and deadly snowstorm and dangerously low temperatures. Northern Siberia is no stranger to cold, but in mid-January 2021, some Siberian cities reported temperatures below minus 70 F. Media headlines hint that the polar vortex has arrived, as if it were some sort of ice tornado that wreaks wintry havoc wherever it strikes.

Read More Show Less
Pexels

By Anthony Richardson, Chhaya Chaudhary, David Schoeman, and Mark John Costello

The tropical water at the equator is renowned for having the richest diversity of marine life on Earth, with vibrant coral reefs and large aggregations of tunas, sea turtles, manta rays and whale sharks. The number of marine species naturally tapers off as you head towards the poles.

Read More Show Less
Trending
An aerial view of a grass fire in the fields in Bolotnoye District, Novosibirsk Region, south Siberia on April 23, 2020. Kirill Kukhmar / TASS via Getty Images

Wildfires in Siberia and the Russian Far East are as much as 10 times worse compared to this time last year, as the climate crisis and the coronavirus pandemic join forces to fan the flames.

Read More Show Less
UN Secretary General Antonio Guterres delivers a video speech at the high-level meeting of the 46th session of the United Nations Human Rights Council UNHRC in Geneva, Switzerland on Feb. 22, 2021. Xinhua / Zhang Cheng via Getty Images

By Anke Rasper

"Today's interim report from the UNFCCC is a red alert for our planet," said UN Secretary General Antonio Guterres.

The report, released Friday, looks at the national climate efforts of 75 states that have already submitted their updated "nationally determined contributions," or NDCs. The countries included in the report are responsible for about 30% of the world's global greenhouse gas emissions.

Read More Show Less
Trending
Biologists are studying the impact of climate change on the Nenets and their reindeer herds. Deutsche Welle

Biologist Egor Kirillin is on a special mission. Deep in the Siberian wilderness in the Russian Republic of Sakha, he waits on the Olenjok river until reindeer come thundering into the water.

Read More Show Less
Workers harvest asparagus in a field by the Niederaussem lignite coal power plant in Cologne, Germany. Greenhouse gas emissions from fossil fuel burning are reaching new highs. Henning Kaiser / picture alliance via Getty Images

By Stuart Braun

The UN Secretary-General Antonio Guterres addressed the dire threat of climate change Wednesday in a speech on the state of the planet delivered at Columbia University in New York.

Read More Show Less
A forest fire in Yakutsk in eastern Siberia on June 2, 2020. Yevgeny Sofroneyev / TASS via Getty Images

Once thought too frozen to burn, Siberia is now on fire and spewing carbon after enduring its warmest June ever, according to CNN.

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.
Airborne microplastics are turning up in remote regions of the world, including the remote Altai mountains in Siberia. Kirill Kukhmar / TASS / Getty Images

Scientists consider plastic pollution one of the "most pressing environmental and social issues of the 21st century," but so far, microplastic research has mostly focused on the impact on rivers and oceans.

Read More Show Less
EcoWatch Daily Newsletter
Only parts of the skeleton have so far been recovered from the Pechevalavato Lake in northern Russia.

By Kristie Pladson

Russian scientists are excavating the well-preserved skeleton of a woolly mammoth found in a lake in northern Siberia, The Associated Press reported Friday.

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.

An aerial picture shows a deforested area close to Sinop, Mato Grosso State, Brazil, taken on August 7, 2020. Florian Plaucheur / AFP / Getty Images

A new study published Wednesday found that the destruction of primary forest increased by 12% in 2020, impacting ecosystems that store vast amounts of carbon and shelter abundant biodiversity.

Read More Show Less
Trending
Khalaktyrsky beach in the eastern Russian city of Petropavlovsk-Kamchatskiy in 2018. Yuri Smityuk / TASS / Getty Images

By Charli Shield

Local authorities in the eastern Russian city of Petropavlovsk-Kamchatskiy have been warning people against visiting the nearby Khalaktyrsky beach, after surfers complained of partially losing their eyesight and experiencing headaches, fevers and nausea when venturing into the water.

Read More Show Less
Wetlands play a key role in regulating the planet's climate. sdbower / Getty Images

By Tim Schauenberg

Although wetlands cover less than 4% of the Earth's surface, 40% of all animal species live or reproduce in them. One-third of all organic matter on our planet is stored in places like the gigantic Pantanal wetland in western Brazil, the Sudd floodplain in southern Sudan or the Wasjugan Marsh in western Siberia.

Read More Show Less
A frozen Niagara Falls in Ontario, Canada is an example of the polar vortex influencing extreme weather. Seyit Aydogan / Anadolu Agency / Getty Images

By Zachary Lawrence and Amy Butler

At the start of February 2021, a major snowstorm hit the northeast United States, with some areas receiving well over two feet of snow. Just a few weeks earlier, Spain experienced a historic and deadly snowstorm and dangerously low temperatures. Northern Siberia is no stranger to cold, but in mid-January 2021, some Siberian cities reported temperatures below minus 70 F. Media headlines hint that the polar vortex has arrived, as if it were some sort of ice tornado that wreaks wintry havoc wherever it strikes.

Read More Show Less