Solar Panel Cost in Texas (2022 Local Savings Guide)

Here’s a quick look at the estimated cost of solar in Texas:

  • Average Cost Per Watt: $2.69
  • Cost of Average System: $22,892*
  • Cost of Energy Without Solar: $52,285
  • Payback Period: 13 Years**
  • Lifetime Savings of Going Solar: $21,350

*Average system size is calculated using data from the Energy Information Administration. This price is after tax credit.
**Payback period is calculated assuming the system is purchased in cash.

Ecowatch Author Karsten Neumeister

By Karsten Neumeister, Solar Expert

Updated 9/18/2022

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  1. How Much Do Solar Panels Cost in Texas?
  2. Solar Financing
  3. Texas Solar Incentives
  4. FAQs: Solar Panel Texas Cost

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Find Cost Savings on Solar Panels in Texas

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 panel cost, 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.

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 $9,415 after the 30% 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 System Texas Solar Panel Cost Cost After Federal Tax Credit
5kW $13,450 $9,415
6kW $16,140 $11,298
7kW $18,830 $13,181
8kW $21,520 $15,064
9kW $24,210 $16,947
10kW $26,900 $18,830

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.

See also: Calculate the costs and savings you can get from installing solar panels

close-up of solar panel details

What Determines the Cost of Solar Panels in Texas?

The final cost of your solar panel system in Texas will primarily depend on the solar equipment, installer and financing option you choose. Net metering, solar rebate programs and the federal tax credit can also save you money, so make sure you take advantage of the many solar incentives in Texas.

Solar Equipment

Similar to any home improvement project, the quality of materials you choose will have a large impact on your final bill. 

The first consideration in choosing a solar panel is the level of power and efficiency that you’ll require to offset your home’s electricity use. The more efficient the model of panel you choose, the pricier your installation will become. 

Luckily for Texans, the state receives enough sunshine that homeowners don’t need the most powerful solar panels on the market to get the job done. Standard, more affordable panels are sufficient in most cases, meaning lower overall costs for the average Texan. 

One other consideration surrounding your equipment: Texas has experienced prolonged power outages due to extreme weather in the past. If your area is vulnerable to extreme weather or blackouts, it’s worth considering a solar backup battery as an investment in your home’s security. 

Solar batteries typically add $10,000 to a final estimate, but the cost of losing power under extreme conditions can be even scarier. 

Further, if you’re worried about weather-related damages, you may want to opt for a warranty with extensive coverage as well. The brands with the best warranties also tend to be the most expensive.

Solar Financing in Texas

Texas’ energy economy is decentralized, meaning there are no state-wide policies affecting cost. Rather, policies like net metering and solar rebates are left up to the jurisdiction of cities, counties and specific electricity providers. 

However, many energy companies still offer net metering to their customers, and all Texas residents are eligible for the federal solar credit. These can help reduce the expenses surrounding a solar installation. 

Check with your municipality or electricity provider to learn more about local rebates or financing programs available in your area. Solar rebates can lower the cost of purchasing your solar PV system by 10%-20%. 

Additionally, your county may offer Property Assessed Clean Energy lending (PACE) programs, which offer affordable, long-term financing options to property owners looking to upgrade the energy efficiency of their homes. Learn more about Texas PACE programs here.

Texas Solar Installation Company

The solar industry in Texas is rapidly growing, meaning you have plenty of options for solar panel installers across the state. Strong competition between solar companies means that you can shop around to get the best deal. Check out our best solar companies in Texas guide to see our top picks. 

Your choice of installer will have a large impact on your bottom line. Each company offers a different estimate based on the depth of its services, the quality of its equipment and its costs of operation. 

For example, national powerhouse SunPower installs state-of-the-art solar panels with industry-leading power and efficiency, backed by a fully comprehensive warranty and a nearly 40-year track record of dependability.   

The costs associated with hiring a local mom-and-pop shop to install some discount solar panels could be thousands of dollars less. That’s why we recommend consulting with at least two or three companies and getting a sense of the price points available to you and your budget.

Additional Considerations and Costs

When you decide to install solar on your home, you have to make sure all your bases are covered. Check out these additional considerations and costs that you should be aware of when going solar: 

  • Permits: Most areas of Texas require a permit from your local city in order to install solar panels on your home. Your solar contractor should help you with this process. Ensure you obtain the correct permits when installing or repairing your solar panels, or else you are at risk of being fined for code violations. 
  • Interconnection: Most solar installations in Texas will require the approval of your electricity provider. This is both for safety and for your enrollment in your local net metering program (if applicable). It’s common for utility companies to charge a small fee for this service. Expect it to range between $25-$500 at most. In most cases, it will be around $150. Your solar installer will handle the paperwork.
  • Warranties: Texas can experience severe weather, so a comprehensive warranty on your solar panel system may be a wise option. Consult with your solar provider to discuss its available brands and warranty options. The brands with the best warranties may cost more than your average panel.
  • HOAs: Under Texas Property Code Section 202.010, homeowner associations cannot forbid or restrict a property owner from installing solar panels. 
  • Environmental zoning: For residential solar installations in Texas, special zoning is not necessary. 

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 30% 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 30% through the end of 2032 and will drop to 26% in 2033 and 22% in 2034. It is set to expire at the end of 2034 unless congress extends it.

Net Metering Policies in Texas 

solar panels installed on a house roof 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.

The Best Solar Panel Brands Available in Texas

The brand of solar panel you choose for your home will have an impact on the power production, the size of the system you need and, of course, the price you pay to go solar.

The table below provides a quick comparison of relative prices for some of the best solar panel brands in Texas. These should help you figure out which brands are likely to fit into your budget.

Solar Panel Brand Average Cost Per Watt ($-$$$$$)
Canadian Solar $$
JA Solar $$
Mission Solar $$
Panasonic $$
Q Cells $$
REC $$$
Silfab $$$
SunPower $$$$$
Tesla $$
Trina Solar $$$

If you are ready to see how much solar panels will cost for your Texas home, select one of our recommended providers below to receive a free, no-obligation quote.

Read More About Going Solar

FAQs: Solar Panel Cost Texas

At EcoWatch, we’re happy to get questions about the process and costs of getting rooftop solar from Texas residents. Below are some of the questions we see most often, along with our responses. If you have specific questions that aren’t answered here, reach out to our team of solar experts at solar@ecowatch.com.

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Karsten Neumeister

Solar Expert

Karsten is a researcher, editor, writer and energy specialist focused on environmental, social and cultural development. Before joining EcoWatch, Karsten worked in the solar energy sector, studying energy policy, climate tech and environmental education. A lover of music and the outdoors, Karsten might be found rock climbing, canoeing or writing songs when away from the workplace.