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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.
Trump exits from the stage after speaking at the Jupiter Inlet Lighthouse on Sept. 8, 2020 in Jupiter, Florida. Joe Raedle / Getty Images

President Trump told a crowd in Jupiter, Florida Tuesday that he is an environmental president, claiming that "it's true: number one since Teddy Roosevelt. Who would have thought Trump is the great environmentalist?" according to the White House transcript of the speech. He added, "And I am. I am. I believe strongly in it."

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EcoWatch Daily Newsletter
Joe Biden and Donald Trump at the final presidential debate at Belmont University on Oct. 22, 2020 in Nashville, Tennessee. Chip Somodevilla / Getty Images

By Brett Wilkins

A report published Tuesday by the eco-advocacy group Environment America urges President-elect Joe Biden to immediately restore critical environmental protections gutted by Trump administration regulatory rollbacks.

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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.

Crews battle the blazing remnants of the offshore oil rig Deepwater Horizon in the Gulf of Mexico on April 21, 2010 near New Orleans, Louisiana. U.S. Coast Guard / Getty Images

By Donald Boesch

Ten years ago, on April 20, 2010, the BP Deepwater Horizon oil rig exploded, killing 11 crew members and starting the largest ocean oil spill in history. Over the next three months, between 4 million and 5 million barrels of oil spewed into the Gulf of Mexico.

Read More Show Less
Trending
Bowhead whale populations are nearing pre-commercial whaling numbers in U.S. waters. CoreyFord / Getty Images

In good news that has scientists excited, bowhead whale populations are nearing pre-commercial whaling numbers in U.S. waters.

Read More Show Less
Landmark legislation aims to address the ocean impacts of human-caused global heating and reform federal ocean management. ToryYu1989 / PxHere / CC0

By Jessica Corbett

Leaders of climate and conservation groups on Tuesday welcomed House Democrats' introduction of landmark legislation that aims to address the ocean impacts of human-caused global heating and reform federal ocean management—recognizing that, as Rep. Raúl M. Grijalva put it, "a healthy ocean is key to fighting the climate crisis."

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President-elect Joe Biden has reportedly tapped Michael Regan, secretary of the North Carolina Department of Environmental Quality, to be EPA administrator. N.C. Department of Environmental Quality

By Andrea Germanos

President-elect Joe Biden will nominate Michael Regan, the top environmental official in North Carolina, to head the U.S. Environmental Protection Agency (EPA), according to multiple news reports Thursday.

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By Jeremy Deaton, video by Bart Vandever

The 2010 BP oil spill dumped more than 200 million gallons of crude oil into the Gulf of Mexico, where it killed billions of fish. Had things gone as planned, that oil would have fueled cars and trucks, worsening climate change, which is going to kill billions of fish — and that was the best-case scenario. In short, oil is bad for sea life.

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Trending
U.S. Secretary of Interior David Bernhardt (L) speaks as President Donald Trump (R) looks on during an East Room event on the environment July 7, 2019 at the White House in Washington, DC. Alex Wong / Getty Images

By Andrea Germanos

Interior Secretary David Bernhardt was condemned Monday for a proposed policy shift on offshore drilling panned as a "sweetheart giveaway" for a former client.

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A boat works to collect oil that has leaked from the Deepwater Horizon wellhead in the Gulf of Mexico on April 28, 2010 near New Orleans, Louisiana. Chris Graythen / Getty Images

By Andrea Germanos

Nearly 10 years after the BP Deepwater Horizon oil catastrophe began in the Gulf of Mexico, a leading ocean conservation group warned Tuesday that the threat of another similar disaster looms large and that the fossil fuel industry and U.S. government have learned practically nothing from the world's worst ever such disaster.

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Trending
President Donald Trump delivers the State of the Union address in the chamber of the U.S. House of Representatives on February 04, 2020 in Washington, DC. Mark Wilson / Getty Images

By Jan Ellen Spiegel

It wasn't so long ago that the issue of climate change was poised to play a huge – possibly even a decisive – role in the 2020 election, especially in the race for control of the U.S. Senate. Many people supporting Democratic candidates saw a possible Democratic majority as a hedge against a potential Trump re-election … a way to plug the firehose spray of more than 100 environmental regulation rollbacks and new anti-climate initiatives by the administration over its first term.

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Two weeks before the start of the Republican convention in late August, President Trump rolled back Barack Obama's last major environmental regulation, restricting methane leaks. Gage Skidmore / Wikimedia Commons / CC by 2.0

By Vernon Loeb, Marianne Lavelle and Stacy Feldman

In the middle of his 44th month in office, two weeks before the start of the Republican convention in late August, President Trump rolled back Barack Obama's last major environmental regulation, restricting methane leaks.

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Polar bears playing in Alaska's Arctic National Wildlife Refuge. Cheryl Strahl / Flickr / CC by 2.0

By Scott L. Montgomery

The Trump administration has announced that it is opening up the Arctic National Wildlife Refuge to oil and gas development – the latest twist in a decades-long battle over the fate of this remote area. Its timing is truly terrible.

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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.
Trump exits from the stage after speaking at the Jupiter Inlet Lighthouse on Sept. 8, 2020 in Jupiter, Florida. Joe Raedle / Getty Images

President Trump told a crowd in Jupiter, Florida Tuesday that he is an environmental president, claiming that "it's true: number one since Teddy Roosevelt. Who would have thought Trump is the great environmentalist?" according to the White House transcript of the speech. He added, "And I am. I am. I believe strongly in it."

Read More Show Less
EcoWatch Daily Newsletter
Joe Biden and Donald Trump at the final presidential debate at Belmont University on Oct. 22, 2020 in Nashville, Tennessee. Chip Somodevilla / Getty Images

By Brett Wilkins

A report published Tuesday by the eco-advocacy group Environment America urges President-elect Joe Biden to immediately restore critical environmental protections gutted by Trump administration regulatory rollbacks.

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.

Crews battle the blazing remnants of the offshore oil rig Deepwater Horizon in the Gulf of Mexico on April 21, 2010 near New Orleans, Louisiana. U.S. Coast Guard / Getty Images

By Donald Boesch

Ten years ago, on April 20, 2010, the BP Deepwater Horizon oil rig exploded, killing 11 crew members and starting the largest ocean oil spill in history. Over the next three months, between 4 million and 5 million barrels of oil spewed into the Gulf of Mexico.

Read More Show Less
Trending
Bowhead whale populations are nearing pre-commercial whaling numbers in U.S. waters. CoreyFord / Getty Images

In good news that has scientists excited, bowhead whale populations are nearing pre-commercial whaling numbers in U.S. waters.

Read More Show Less