Solar Panel Cost Guide in Houston, TX (Sep 2022)

  • Houston Solar Installation Cost: $14,405
  • 25-Year Savings: $22,743
  • Payback Period: 9.7 Years

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EcoWatch Local Advisors

By EcoWatch Local Advisors

Updated 9/16/2022

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Average Cost of Solar Panels in Houston

Here's how much it might cost to make the switch to solar in Houston.

While the national average of solar panels is $2.66 per watt, solar panels in Houston typically cost around $3. To cover the typical energy needs of the average home in Houston, most homeowners require a 7.7-kilowatt system. Using the figure above, a solar installation costs around $14,405, or $10,660 after the federal solar tax credit of 30% is applied.

The true price you pay can go higher or lower than the average in Houston based on a few factors, such as the brand of solar panels you choose and the solar contractor you hire. But, after you've paid the initial cost of installation, the return on investment for most homeowners is quite rewarding, with a net average savings of about $18,000 over 20 years on power bills.

To see your potential savings and connect with a local solar installer, click the button below.

Solar savings over time in Houston

Year Return on Investment
1 years $-12,919
3 years $-9,947
5 years $-6,975
7 years $-4,004
9 years $-1,032
11 years $1,940
13 years $4,912
15 years $7,884
17 years $10,855
19 years $13,827
21 years $16,799
23 years $19,771
25 years $22,743

Top Solar Installers in Houston

DIY solar panel installation is a way to cut costs, but it's an undertaking that can be a headache. Going with a solar panel installer can make swapping over to solar power much easier. Companies can also provide access to various kinds of the best solar panels and help you choose which one will be right for you.

If you'd like to switch to solar energy but still aren't sure which solar panel company to go with, here are our recommendations for providers in Houston:

Best National Provider

SunPower

★★★★★
5.0

  • Most efficient panels on the market
  • National coverage
  • Cradle to Cradle sustainability certification
  • Great warranty coverage
  • Expensive
  • Customer service varies by local dealer

Best Solar Financing

Blue Raven Solar

★★★★★
4.5

  • Industry-leading in-house financing
  • Competitive pricing
  • Excellent reputation
  • Doesn't offer solar batteries (coming 2022)

Best Regional Coverage

Momentum Solar

★★★★★
4.5

  • Great warranty coverage
  • Representatives are experts on local policies
  • Concierge service ensures steady communication
  • Slightly limited service offerings

See all of the solar companies in Houston

Factors that Affect Solar Panel Costs in Houston

Even though the average cost of solar panels in Houston is $14,405, your actual cost may differ. There are many factors that can have a significant impact on the cost of a residential solar panel installation. Below are some of the more crucial things to take into consideration.

Solar Equipment Size

System size is one of the largest factors that influences the overall cost of going solar. For that reason, it's crucial to accurately assess the size of the solar energy system needed for your home by figuring out your typical energy use. Some solar panel brands — like Maxeon from SunPower — cost more upfront but also tend to offer higher efficiency. In a city like Houston, where sunlight is abundant, efficiency can quickly pay off. In addition, 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

Many homeowners find the average cost of solar in Houston to be prohibitively costly, even if the investment pays off over time. Fortunately, nearly every solar installer in the area provides access to financing options. Solar loans drastically decrease upfront costs in most cases, but they also lead to paying more over time due to interest. It's wise to factor the interest you'll pay in your final cost estimate. If you can afford to pay a higher down payment, you can reduce your total costs and the amount of time it'll take to pay off the loan.

Solar Panel Installation Company

A final consideration when trying to estimate the cost of solar for your home or business in Houston is the company you choose to install your PV system. As with choosing a company to renovate your kitchen, for example, there's no shortage of solar installers that provide a range of services for different budgets. Larger national companies generally have lower costs, but some local companies compete with them by promoting sales and discounts. While the smaller companies might not have access to specific equipment options like Tesla Powerwall batteries or additional services like electric vehicle charger installation, they might be cheaper overall.

Solar Panel Cost Data by System Size

System size Cost per system watt Solar system cost 25-Year savings Payback period
6 kW $2.80 $11,750 $17,392 10.1 years
8 kW $2.74 $15,365 $23,491 9.9 years
10 kW $2.69 $18,830 $29,740 9.7 years
12 kW $2.64 $22,144 $36,140 9.5 years
14 kW $2.58 $25,308 $42,690 9.3 years
16 kW $2.53 $28,320 $49,392 9.1 years
18 kW $2.47 $31,182 $56,244 8.9 years
20 kW $2.42 $33,894 $63,246 8.7 years

Solar Incentives in Houston

Name Renewable Energy Systems Property Tax Exemption
Incentive Amount 100%
Website Visit here
More Info Click here

Name Texas Gas Service - Residential Energy Efficiency Rebate Program
Website Visit here
More Info Click here

Name Residential Renewable Energy Tax Credit
Website Visit here
More Info Click here

How to Save on Solar Panels

The company that does your solar system installation will affect the warranties and brands available to you, and it will also have an impact on your total cost. Since choosing a company can be a tough decision, we have some tips to help you, such as:

  • Contract: When looking through your solar installer's contract, ask questions about any terms you're not sure of and make sure you understand what happens in scenarios such as a system component breaking or if the company goes out of business.
  • Warranty: Companies typically offer different kinds of warranties that cover different things. A 25-year, all-inclusive warranty is the gold standard.
  • Solar Panel Brands: Not all solar companies offer the same brands of solar panels, so the brand and type of panel you want can play a considerable role in the company you choose.
  • Reputation: Make sure your solar company has a good reputation by confirming it has certifications and licenses, checking its work history and reading reviews by previous customers and solar experts like the EcoWatch team.

Best National Provider

SunPower

★★★★★
5.0

  • Most efficient panels on the market
  • National coverage
  • Cradle to Cradle sustainability certification
  • Great warranty coverage
  • Expensive
  • Customer service varies by local dealer

Best Solar Financing

Blue Raven Solar

★★★★★
4.5

  • Industry-leading in-house financing
  • Competitive pricing
  • Excellent reputation
  • Doesn't offer solar batteries (coming 2022)

Best Regional Coverage

Momentum Solar

★★★★★
4.5

  • Great warranty coverage
  • Representatives are experts on local policies
  • Concierge service ensures steady communication
  • Slightly limited service offerings

EcoWatch's Houston, TX Solar Cost FAQs

What is the average cost of installing solar panels in Houston?

The average cost of solar panels in Houston is about $13,450 for a 5-kW system and $26,900 for a 10-kW system before the ITC, but the actual 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 consume.

Should I lease or buy solar panels in Houston?

Leasing solar panels can be an option if you are unable to pay upfront or get 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 savings from going solar.

Is it worth going solar in Houston?

Whether or not solar panels are worth it depends on some different factors like how much you pay for electricity and how much direct sunlight your roof gets.

How often do you have to replace solar panels?

On average, solar panels can last about 25 to 30 years. Some even last up to 50 years, but their efficiency decreases by about 0.8% each year. You can choose to replace them sooner if you want to maintain a higher level of energy production.

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.

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