Solar Panel Cost Guide in Austin, TX (2025 Update)
- Austin Solar Installation Cost: $17,597
- 25-Year Savings: $21,885
- Payback Period: 12.2 Years
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Average Cost of Solar Panels in Austin
Find out how much it might cost to go solar in Austin.
The average cost of a solar panel system in Austin is 3 per watt.The average solar panel system size in Austin is around 7.5 kilowatts, meaning a cost of about $17,597 for a solar installation, or $25,164 before the 0 federal solar tax credit is applied.
These figures are just estimates, and your own solar costs will most likely vary based on the amount of energy your home requires and what company you go with.Many homeowners find installing a solar system is a rewarding investment. The average homeowner in Austin can save about $18,000 on their power bills over 20 years.
You can click the button below to get connected with a top solar installer in Austin that can help you get a more accurate cost estimate for your home.
Solar savings over time in Austin
| Year | Return on Investment |
|---|---|
| 1 years | $-16,211 |
| 3 years | $-13,437 |
| 5 years | $-10,663 |
| 7 years | $-7,889 |
| 9 years | $-5,116 |
| 11 years | $-2,342 |
| 13 years | $432 |
| 15 years | $3,206 |
| 17 years | $5,979 |
| 19 years | $8,753 |
| 21 years | $11,527 |
| 23 years | $14,300 |
| 25 years | $17,074 |
Top Solar Installers in Austin
Many homeowners decide to hire a solar panel company since trying to put up solar panels yourself can be hard. Solar warranties and repairs are typically included in the cost of installation when you opt for a solar contractor too, which can save you more money after your initial investment.
There are a number of licensed solar professionals that can take care of your solar installation project. Here are our suggestions:
See all of the solar companies in Austin
Factors that Affect Solar Panel Costs in Austin
There are several factors that can affect your solar system installation cost, such as the size of your system, the equipment you choose, your financing options and the specific company that performs the installation.
Solar Equipment
One of the most important factors to consider when it comes to the cost of installing solar panels is the size of the solar system, which is measured in kilowatts (kW). The more power your household uses, the larger your system will likely need to be. You can expect to pay about $3,330 per kilowatt in Austin.The type of solar equipment you choose can increase or decrease your cost by thousands or even tens of thousands of dollars. If you get the most efficient solar panel brands, you’ll end up paying more upfront than if you opted for the most affordable panels. However, more efficient panels could save you more over time on your energy bills. In addition, extra products, such as solar batteries, can bring your total well above the Austin average.
Solar Financing Terms
If paying for a solar system out of pocket is difficult, solar loans are a solid option because they cut back your upfront costs and let you pay for your system over five to seven years on average.When trying to figure out your overall cost, you should also calculate the interest you’ll pay if you opt for a solar loan. Also, paying a higher down payment can reduce the total interest paid over time.
Solar Panel Installation Company
Lastly, the company you choose to install your solar panels can impact your pricing. Austin’s solar companies all have different labor costs and add varying upcharges to equipment. Companies that only sell products with high efficiency and therefore a higher price point — like Maxeon solar panels from SunPower or Tesla Powerwall batteries — so choosing those installers will generally come at a higher cost. It’s best to do some research and go with the company that has the products, warranties and services you want and also fit into your budget.
Solar Panel Cost Data by System Size
| System size | Cost per system watt | Solar system cost | 25-Year savings | Payback period |
|---|---|---|---|---|
| 6 kW | $3.46 | $14,545 | $14,146 | 12.7 years |
| 8 kW | $3.40 | $19,021 | $19,234 | 12.4 years |
| 10 kW | $3.33 | $23,310 | $24,509 | 12.2 years |
| 12 kW | $3.26 | $27,413 | $29,970 | 11.9 years |
| 14 kW | $3.20 | $31,329 | $35,618 | 11.7 years |
| 16 kW | $3.13 | $35,058 | $41,452 | 11.5 years |
| 18 kW | $3.06 | $38,601 | $47,473 | 11.2 years |
| 20 kW | $3.00 | $41,958 | $53,680 | 11.0 years |
How to Save on Solar Panels
There are a large number of companies available in Austin, and some homeowners feel overwhelmed considering their options. Selecting the right company for you can be tough, so here are some tips to help you decide:
- Warranty: Warranties that provide coverage for replacement parts and repairs over a couple decades are the best you can get in the business, and offering such a warranty is one sign of a good company.
- Solar Panel Brands: Different companies have various brands and models of panels. If you know you want a specific brand, make sure the solar panel installer you’re considering has it.
- Reputation: The North American Board of Certified Energy Practitioners (NABCEP) is a respected certification organization for renewable energy professionals. If your solar panel installer is NABCEP-certified, it likely has a good reputation and is qualified to install your solar system. Another way you can research your installer’s reputation is by reading reviews.
- Contract: Even though reading through a contract can be tedious, it’s important to do it fully so you can make sure you understand how much the equipment and services will cost and how part repairs and replacements will be handled.
EcoWatch's Austin, TX Solar Cost FAQs
How much does it cost to install solar panels in Austin?
This is a difficult question to answer precisely, because the cost depends on a variety of factors. Generally speaking, it costs about $16,650 for a 5-kW system and $33,300 for a 10-kW system after the ITC is applied. It will cost more if you want additional solar equipment or higher quality panels, or if you have higher-than-average energy needs. On the other hand, you can spend less if you go with a smaller solar panel system or less expensive solar panels.
Should I lease or buy solar panels in Austin?
Leasing solar panels can be an option if you can’t afford to pay upfront or secure a solar loan, but since you don’t own the system, you don’t have access to many solar incentives. Also your home value won’t increase, so you’ll have less savings over time. If you can afford to buy a solar system upfront, then buying is the better option if you want the most bang for your buck from going solar.
How much can I save on power bills after installing solar panels?
It is possible to eradicate your electricity bills with solar panels, but for most homeowners in Austin, that will require at least a 10-kW system. Not all homes will have the roof space for that size system, so you’ll want to contact a local solar installer to see how many panels can fit on your roof.
What solar power system size is right for my home?
To figure out how many solar panels you need, you should find out how much energy your home requires 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.