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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.
A woman is seen collecting drinking water in Satkhira, Bangladesh on March 20, 2021. Kazi Salahuddin Razu / NurPhoto / Getty Images

By Sam Baker

What really makes this reporter's stomach churn thinking about climate change? Thawing permafrost. A scenario where it all melts, releasing copious amounts of CO2 and methane (it holds twice as much carbon as the atmosphere holds right now), and there's no going back.

Read More Show Less
EcoWatch Daily Newsletter
A hiker walks along winding channels carved by water on the surface of the melting Longyearbreen glacier during a summer heatwave on Svalbard archipelago on July 31, 2020 near Longyearbyen, Norway. Sean Gallup / Getty Images

By Kenny Stancil

Over the past five decades, the Arctic has warmed three times faster than the world as a whole, leading to rapid and widespread melting of ice and other far-reaching consequences that are important not only to local communities and ecosystems but to the fate of life on planet Earth.

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.

A University of Alberta researcher collects a soil sample from Arctic permafrost. University of Alberta

Can the past predict the future?

In the case of communities of microbes living in the Arctic permafrost, researchers at the University of Alberta think it might. The scientists discovered that the microbes and chemistry of Arctic soil changed dramatically following the end of the last Ice Age, and the same thing could happen again due to the climate crisis.

Read More Show Less
Trending
In "Weather," Jenny Offill tells the story of a librarian named Lizzie who prepares for a climate apocalypse. Andrew Merry / Getty Images

By Suzanne Cords

One day Lizzie, the first-person narrator of the novel, receives an old book as a gift, with a dedication wishing the reader to be among the survivors. Like the preppers who build bunkers and stockpile supplies in remote areas to be ready for the end of the world, Lizzie is convinced that the end of the world is definitely near in times of a threatening climate disaster.

Read More Show Less
A flooded house south of Dhaka, Bangladesh. A new climate study has found we could be locked in for nearly 10 feet of sea level rise by 2500 even if we stop emissions today. Yann Arthus-Bertrand / Getty Images Plus

A controversial new climate study has found that, even if greenhouse gas emissions were halted tomorrow, it might not be enough to stop temperatures from continuing to rise.

Read More Show Less
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
The rapid breakup of glaciers, ice caps and ice sheets have a cascading effect. anyaberkut / Getty Images

By Stuart Braun

The melting of the polar ice caps has often been portrayed as a tsunami-inducing Armageddon in popular culture. In the 2004 disaster movie The Day After Tomorrow, the warming Gulf Stream and North Atlantic currents cause rapid polar melting. The result is a massive wall of ocean water that swamps New York City and beyond, killing millions in the process. And like the recent polar vortex in the Northern Hemisphere, freezing air then rushes in from the poles to spark another ice age.

Read More Show Less
Trending
NOAA's Global Monitoring Laboratory on April 7, 2021. NOAA

Atmospheric methane levels surged in 2020, a new report from NOAA shows, accelerating an increasing trend, alarming scientists, and possibly auguring a vicious cycle of global heating.

Read More Show Less
Activists fight a peat fire in Siberia in September. ALEXANDER NEMENOV / AFP via Getty Images

The wildfires that ignited in the Arctic this year started earlier and emitted more carbon dioxide than ever before.

Read More Show Less
Trending
Islandic Horses walk around grazing and trampling over snow. A new study found that herds of horses, bison and reindeer could be used to fight off the melting of the permafrost in the Arctic. Susanne Stöckli / Pixabay

Arctic winters are meant to be frigid, but because of rising temperatures and climate change, they aren't cold enough. The permafrost, the thick subsurface layer of frozen soil that stores one of the world's largest natural reserves of carbon, is thawing. As it does, it releases potent greenhouse gases that accelerate climate change. European scientists have now found that resettling massive herds of large herbivores could combat this effect and save up to 80 percent of all permafrost soils around the globe until 2100.

Read More Show Less
Aerial view of the Smithsonian Tropical Research Institute in Gamboa, Panama, where a new soil study was held, on Sept. 11, 2019. LUIS ACOSTA / AFP via Getty Images

One of the concerns about a warming planet is the feedback loop that will emerge. That is, as the planet warms, it will melt permafrost, which will release trapped carbon and lead to more warming and more melting. Now, a new study has shown that the feedback loop won't only happen in the nether regions of the north and south, but in the tropics as well, according to a new paper in Nature.

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
EcoWatch is a community of experts publishing quality, science-based content on environmental issues, causes, and solutions for a healthier planet and life.
A woman is seen collecting drinking water in Satkhira, Bangladesh on March 20, 2021. Kazi Salahuddin Razu / NurPhoto / Getty Images

By Sam Baker

What really makes this reporter's stomach churn thinking about climate change? Thawing permafrost. A scenario where it all melts, releasing copious amounts of CO2 and methane (it holds twice as much carbon as the atmosphere holds right now), and there's no going back.

Read More Show Less
EcoWatch Daily Newsletter
A hiker walks along winding channels carved by water on the surface of the melting Longyearbreen glacier during a summer heatwave on Svalbard archipelago on July 31, 2020 near Longyearbyen, Norway. Sean Gallup / Getty Images

By Kenny Stancil

Over the past five decades, the Arctic has warmed three times faster than the world as a whole, leading to rapid and widespread melting of ice and other far-reaching consequences that are important not only to local communities and ecosystems but to the fate of life on planet Earth.

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.

A University of Alberta researcher collects a soil sample from Arctic permafrost. University of Alberta

Can the past predict the future?

In the case of communities of microbes living in the Arctic permafrost, researchers at the University of Alberta think it might. The scientists discovered that the microbes and chemistry of Arctic soil changed dramatically following the end of the last Ice Age, and the same thing could happen again due to the climate crisis.

Read More Show Less
Trending
In "Weather," Jenny Offill tells the story of a librarian named Lizzie who prepares for a climate apocalypse. Andrew Merry / Getty Images

By Suzanne Cords

One day Lizzie, the first-person narrator of the novel, receives an old book as a gift, with a dedication wishing the reader to be among the survivors. Like the preppers who build bunkers and stockpile supplies in remote areas to be ready for the end of the world, Lizzie is convinced that the end of the world is definitely near in times of a threatening climate disaster.

Read More Show Less
A flooded house south of Dhaka, Bangladesh. A new climate study has found we could be locked in for nearly 10 feet of sea level rise by 2500 even if we stop emissions today. Yann Arthus-Bertrand / Getty Images Plus

A controversial new climate study has found that, even if greenhouse gas emissions were halted tomorrow, it might not be enough to stop temperatures from continuing to rise.

Read More Show Less
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
The rapid breakup of glaciers, ice caps and ice sheets have a cascading effect. anyaberkut / Getty Images

By Stuart Braun

The melting of the polar ice caps has often been portrayed as a tsunami-inducing Armageddon in popular culture. In the 2004 disaster movie The Day After Tomorrow, the warming Gulf Stream and North Atlantic currents cause rapid polar melting. The result is a massive wall of ocean water that swamps New York City and beyond, killing millions in the process. And like the recent polar vortex in the Northern Hemisphere, freezing air then rushes in from the poles to spark another ice age.