Solar Panel Cost Guide in Texas, MI (2023 Update)
- Texas Solar Installation Cost: $11,979
- 25-Year Savings: $20,583
- Payback Period: 9.2 Years
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Updated March 14, 2023
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Average Cost of Solar Panels in Texas
We break down average solar pricing in Texas.
In Texas, solar panels cost about 2.81 per watt on average. The average Texas homeowner needs a 6.1-kilowatt system, which would cost about $11,979 with the federal tax credit, or $17,130 before the 30% tax credit is applied.
These figures are only averages, and your own solar costs will most likely look different based on your specific situation and what company you want to go with. Many homeowners find going solar is a sound investment. The average homeowner in Texas can save about $20,000 on their power bills over 20 years.
To see your potential savings and connect with a local solar company, click the button below.
Solar savings over time in Texas
| Year | Return on Investment |
|---|---|
| 1 years | $-10,677 |
| 3 years | $-8,072 |
| 5 years | $-5,467 |
| 7 years | $-2,862 |
| 9 years | $-257 |
| 11 years | $2,348 |
| 13 years | $4,953 |
| 15 years | $7,558 |
| 17 years | $10,163 |
| 19 years | $12,768 |
| 21 years | $15,373 |
| 23 years | $17,978 |
| 25 years | $20,583 |
Top Solar Installers in Texas
Although it's possible to install solar panels yourself, it takes extra time and knowledge. For that reason, the majority of homeowners choose a solar panel installer. Also, companies with a good reputation that are more expensive upfront could actually save you money in the long term with their warranties, repair services and expert design.
Working with a professional solar installer can help your solar project go smoothly. Here are our recommendations:
Solar Veteran
Michigan Solar Solutions
- Great warranty coverage
- Outstanding customer service
- Offers products from leading manufacturers
- Slightly limited service offerings
- No leases or PPAs
Outstanding Local Installer
Strawberry Solar
- Outstanding customer service
- Representatives are experts on local policies
- Educational, no-pressure sales approach
- Limited warranty coverage
- No leases or PPAs
- Limited brands of solar equipment available
See all of the solar companies in Texas
Factors that Affect Solar Panel Costs in Texas
Cost is often one of the most important factors for homeowners wanting to invest in solar. There are a few primary factors that determine your overall cost in Texas: solar equipment and system size, financing options and the solar installation company you choose. We'll cover each of these briefly below.
Solar Equipment
Solar system size, which is measured in kilowatts, is one of the largest factors that affects the overall cost of installing solar panels. For that reason, it's a priority to accurately assess the size of the solar energy system needed for your home by figuring out your energy needs. Some solar panel brands — like Maxeon from SunPower — cost more upfront but also tend to offer better efficiency. In a city like Texas, where sunlight isn't as abundant, efficiency can quickly pay off. Plus, if you have a small roof or limited space for your panels, higher efficiency options will be a better option. Additional equipment like electric vehicle chargers and solar batteries will also increase the cost.
Solar Financing Terms
Solar panels can save you money on energy bills over many years, but they can also be a significant investment. That's why many Texas homeowners decide to finance their solar panel systems to offset upfront costs. It's a good idea to factor the interest you'll pay in your final cost estimate. If you can afford to pay a larger down payment, you can reduce your total costs and how long it'll take to pay off the loan.
Solar Panel Installation Company
The solar panel installer you pick will affect your total cost to go solar. Different companies will charge different amounts for the equipment and labor. Additionally, some companies in Texas know more about local solar incentives and can help you learn about additional rebates or tax exemptions. Though, they may charge more for walking you through the whole process. Even if they cost more upfront, they could end up saving you more money in the long run.
Solar Panel Cost Data by System Size
| System size | Cost per system watt | Solar system cost | 25-Year savings | Payback period |
|---|---|---|---|---|
| 6 kW | $2.92 | $12,274 | $19,787 | 9.6 years |
| 8 kW | $2.87 | $16,051 | $26,697 | 9.4 years |
| 10 kW | $2.81 | $19,670 | $33,765 | 9.2 years |
| 12 kW | $2.75 | $23,132 | $40,990 | 9.0 years |
| 14 kW | $2.70 | $26,436 | $48,373 | 8.8 years |
| 16 kW | $2.64 | $29,584 | $55,912 | 8.7 years |
| 18 kW | $2.59 | $32,574 | $63,610 | 8.5 years |
| 20 kW | $2.53 | $35,406 | $71,464 | 8.3 years |
How to Save on Solar Panels
Since the model of solar panels and the installation company you choose considerably impacts your costs and your system's durability and efficiency, it's important to pick the right ones for you. Here are some tips to keep in mind to help with your decision:
- Reputation: Your solar installer should have a good reputation as a company and have proven expertise in the field. A couple of ways to check this are to look for whether a company has technicians that hold a certification from the North American Board of Certified Energy Practitioners (NABCEP) and if it has good reviews from previous customers.
- Contract: Before you sign a contract with a solar company, make sure to read it through completely so you understand the terms. Also, ask questions if you're unsure about some of the terms, such as what to do if a component breaks or malfunctions and if there are any guarantees about energy production.
- Installation Process: Make sure you're on the same page with the installer with regard to how the installation process will go and what you need to do before your solar panels are installed, such as updating your electrical system or roof.
- Solar Panel Brands: Homeowners will have different preferences for panels depending on their roof configurations and energy needs. While there are many options for which type of solar panel you can get, not every company will have access to the exact one you may want or need, so be sure to ask for their list of options before making your decision.
Solar Veteran
Michigan Solar Solutions
- Great warranty coverage
- Outstanding customer service
- Offers products from leading manufacturers
- Slightly limited service offerings
- No leases or PPAs
Outstanding Local Installer
Strawberry Solar
- Outstanding customer service
- Representatives are experts on local policies
- Educational, no-pressure sales approach
- Limited warranty coverage
- No leases or PPAs
- Limited brands of solar equipment available
EcoWatch's Texas, MI Solar Cost FAQs
What is the average cost of installing solar panels in Texas?
The average cost of solar panels in Texas is about $14,050 for a 5-kW system and $28,100 for a 10-kW system before the ITC, but the real cost will depend on certain factors such as the model of solar panels you want, what size system you need and how much energy you use.
Should I lease or buy solar panels in Texas?
Leasing solar panels can be an appealing choice, as it usually comes with low or $0 upfront payments. The downside is that you won't be able to save as much. If you lease, you don't own the system, so you can't claim any incentives and your home value won't increase. Buying solar panels is a better option if you want to get the most savings.
Does Texas have a net metering program?
The majority of states have net metering programs of some kind. Through these, you can either receive compensation for the extra power your system generates or or receive credits to put toward future energy bills. Currently there are just three states that don't have any net metering laws: Alabama, Tennessee and South Dakota.
What solar power system size is right for my home?
To figure out what solar panel system size you need, you should find out how much energy your home needs and how much sunlight your home gets. For a general estimate, however, since each panel can generally produce about 250 to 400 watt-hours per hour, the average home will need 20 to 35 panels.
Our goal is to reach as many people as we can with sensible solutions like solar energy. Our team of full-time local researchers collects solar price and installation data for every city in America then compiles it to create these digestible city guides. If you want to read our solar expert's opinion on the top solar companies featured here, follow this link.
Company research was conducted by Melissa Smith and Karsten Neumeister. Local data analysis was conducted by James Savino. See something we missed or could do better? Email the editor.