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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 Bering Sea has seen recurring dead zones over the last 1.2 million years. Orbital Horizon / Copernicus Sentinel Data 2018 / Gallo Images / Getty Images

Dead zones occur when oxygen levels in the ocean fall so low that animals can no longer survive.

These zones have quadrupled in size around the world since the 1950s, but a new study published in Science Advances Wednesday found that they are not only a recent phenomenon.

Read More Show Less
EcoWatch Daily Newsletter
A humpback whale, one of the species affected by the Pacific marine heat wave, breaches in Kenai Fjords National Park in the Gulf of Alaska. Kaitlin Thoreson / National Park Service

By Hannah Thomasy

From 2014 to 2016, the Gulf of Alaska experienced the worst marine heat wave of the decade. From single-celled organisms to top predators, practically no level of the ecosystem was left unscathed. During the Pacific marine heat wave, tens of thousands of dead seabirds washed up on beaches, unusually low numbers of humpback whales arrived in their summer habitats, and toxic algal blooms spread along the West Coast of North America.

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.

Coastal Antarctica has seen has a curious phenomenon over the last few years. The green snow that hugs parts of its shores has started to spread farther inland. And it's all caused by the climate crisis.

Read More Show Less
Trending
A surfer rides on a bioluminescent wave at the San Clemente pier on April 30, 2020 in San Diego, California. Joe Scarnici / Getty Images

Beachgoers in California are enjoying a dazzling display of crashing bioluminescent waves in Southern California. The waves light up at night as they crash and froth in the shallow water, The Guardian reported.

Read More Show Less
Restoration practitioners in the Florida Keys place new mangrove saplings in the intertidal zone, where they will hopefully grow to stabilize the island's shores. Ian Wilson-Navarro

Mangroves are magic. Planting more of them could help restore the health of the planet's lands, seas and climate.

Read More Show Less

A dog named Sheba runs out of a duck pond in Prospect Park Sept. 2, 2007 in the Brooklyn borough of New York City.

Daniel Barry / Getty Images

The toxic algae blooms that have killed dogs in Texas, North Carolina and Georgia have been detected in three New York City parks. Parents and pet owners are being warned to keep their kids and dogs away from the infected water, which can be fatal when dogs lap it up, swallow it while swimming, or lick it off their own fur, as the New York Times reported.

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
Trending
CBS New York / Screenshot

Less than a week after the official start of summer, New Jersey's largest lake was shut down by state officials due to a harmful algae bloom. Now, well into the heart of summer, Lake Hopatcong remains closed. And, several other lakes that have seen their waters turn green due to a rise in cyanobacteria have also been shut down, including Budd Lake and parts of Greenwood Lake.

Read More Show Less
The Blue Nile river passes through the Grand Ethiopian Renaissance Dam in Ethiopia on December 26, 2019. EDUARDO SOTERAS / AFP / Getty Images

By Sonya Angelica Diehn

Dams are often touted as environmentally friendly. Although they do represent a renewable source of energy, a closer look reveals that they are far from green. DW lays out the biggest environmental problems of mega-dams.

Read More Show Less
Trending
CrackerClips / iStock / Getty Images Plus

If you're looking to cool off in the waters of Mississippi's Gulf Coast, think again.

Read More Show Less
jurgita.photography / Moment / Getty Images

By Grace Francese

Outbreaks of potentially toxic algae are fouling lakes, rivers and other bodies of water across the U.S. Nationally, news reports of algae outbreaks have been on the rise since 2010.

Read More Show Less
Algae blooms in Lake Erie. NASA

By Anne Schechinger

Over the Fourth of July holiday, many of us love to beat the heat in a favorite lake, pond or river. But this year, vacationers from coast to coast will have to look out for a potentially record-breaking number of algae blooms.

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.
The Bering Sea has seen recurring dead zones over the last 1.2 million years. Orbital Horizon / Copernicus Sentinel Data 2018 / Gallo Images / Getty Images

Dead zones occur when oxygen levels in the ocean fall so low that animals can no longer survive.

These zones have quadrupled in size around the world since the 1950s, but a new study published in Science Advances Wednesday found that they are not only a recent phenomenon.

Read More Show Less
EcoWatch Daily Newsletter
A humpback whale, one of the species affected by the Pacific marine heat wave, breaches in Kenai Fjords National Park in the Gulf of Alaska. Kaitlin Thoreson / National Park Service

By Hannah Thomasy

From 2014 to 2016, the Gulf of Alaska experienced the worst marine heat wave of the decade. From single-celled organisms to top predators, practically no level of the ecosystem was left unscathed. During the Pacific marine heat wave, tens of thousands of dead seabirds washed up on beaches, unusually low numbers of humpback whales arrived in their summer habitats, and toxic algal blooms spread along the West Coast of North America.

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.

Coastal Antarctica has seen has a curious phenomenon over the last few years. The green snow that hugs parts of its shores has started to spread farther inland. And it's all caused by the climate crisis.

Read More Show Less
Trending
A surfer rides on a bioluminescent wave at the San Clemente pier on April 30, 2020 in San Diego, California. Joe Scarnici / Getty Images

Beachgoers in California are enjoying a dazzling display of crashing bioluminescent waves in Southern California. The waves light up at night as they crash and froth in the shallow water, The Guardian reported.

Read More Show Less
Restoration practitioners in the Florida Keys place new mangrove saplings in the intertidal zone, where they will hopefully grow to stabilize the island's shores. Ian Wilson-Navarro

Mangroves are magic. Planting more of them could help restore the health of the planet's lands, seas and climate.

Read More Show Less

A dog named Sheba runs out of a duck pond in Prospect Park Sept. 2, 2007 in the Brooklyn borough of New York City.

Daniel Barry / Getty Images

The toxic algae blooms that have killed dogs in Texas, North Carolina and Georgia have been detected in three New York City parks. Parents and pet owners are being warned to keep their kids and dogs away from the infected water, which can be fatal when dogs lap it up, swallow it while swimming, or lick it off their own fur, as the New York Times reported.

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
Trending
CBS New York / Screenshot

Less than a week after the official start of summer, New Jersey's largest lake was shut down by state officials due to a harmful algae bloom. Now, well into the heart of summer, Lake Hopatcong remains closed. And, several other lakes that have seen their waters turn green due to a rise in cyanobacteria have also been shut down, including Budd Lake and parts of Greenwood Lake.

Read More Show Less
The Blue Nile river passes through the Grand Ethiopian Renaissance Dam in Ethiopia on December 26, 2019. EDUARDO SOTERAS / AFP / Getty Images