Texas has plenty of sunshine, making the state a great place for residents and businesses to save money and generate electricity from solar energy. Texas currently has the second largest solar capacity in the country behind California , according to Statista.
However, the Texas power grid sometimes results in permanent blackouts or extended power outages during hurricanes and other months of high energy demand. That's why more and more Texans are turning to solar power to increase their energy independence.
According to the latest data from the US Energy Information Administration, the average electricity bill in Texas is $150.56, making it one of the 10 states with the highest electricity rates. If you're looking for a way to cut those costs, consider solar panels.
Cost of solar panels in Texas
The cost of solar panels has fallen over the past two decades, and stronger incentives and rebates are available at the local, state and federal levels. Texas residents who install solar panels can enjoy the following benefits:
- 30% federal tax credit for solar panels
- Benefits of local grid metering that can lower your electricity bill
- Many companies and solar panel installers to choose from
The exact cost depends on your home's energy consumption and the size of the solar panels. Lawrence Berkeley National Laboratory's Solar Tracker Report publishes annual data to better understand the value of solar energy for Texans. The following data "is based on systems installed at the end of 2021 and is based on data from approximately 2.5 million systems."
Texas Solar System Statistics
| | Installation power (kW) | price per watt | total cost |
|---|---|---|---|
| I am returning to my homeland | 10.2: | $4.01 | $41,052 |
| medium | 7.4: | $3.80 | $28,888 |
| Short | 5.4: | $3.23 | $17,293 |
Texas vs. USA
| | Installation power (kW) | cost per watt | Installed fee |
|---|---|---|---|
| Texas | 7.4 kW | $3.80 | $28,888 |
| At the national level | 7.6 kW | $3.67 | $26,882 |
Solar financing options for Texas residents
Cash is an interest-free way to pay for solar panels in Texas. However, financing options are available that result in lower upfront costs. Solar loans are available from banks, credit unions and solar panel installers. Alternatively, solar leases and PPAs require homeowners to pay a fixed monthly fee. The downside is that you are not eligible for tax credits with this option because you do not own your system. For Texas residents, the average time to pay for the initial investment is six to ten years.
Disclosure of the advertiser . CNET's corporate partner, SaveOnEnergy, can help you find the right energy for your home. The SaveOnEnergy marketplace helps you find, compare, register and save the right energy for your home for free. If you are interested in solar energy, please answer a few questions to get an accurate quote from our solar energy consultants.
Incentives and rebates for solar panels in Texas
Texans who buy solar panels between 2022 and 2032 can get a 30 percent federal tax credit called the Clean Energy Home Credit. This solar tax credit, formerly known as the investment tax credit, can save you more than $8,500 compared to the average cost of a solar system of $28,888. Texas residents can apply for the Clean Energy Credit on IRS Form 5695 using these instructions.
Below are other ways to save money in Texas with local and state solar incentives.
Solar incentives in Texas
| the program | description |
|---|---|
| Texas AEP SMART Source Solar PV Program | AEP customers in Texas (Central and North) are eligible for solar incentives based on the maximum amount of energy produced (USD/WDC). Incentives apply only to solar systems installed by solar companies participating in the program. |
| Austin Energy Solar Rebate | Austin Energy customers can receive a $2,500 rebate if they complete this solar training course and "install an eligible photovoltaic (PV) system." |
| CPS Solar Grant Energy | CPS Energy customers can earn up to $2,500 per project for excess solar energy. |
| Electric Connection El Paso | El Paso Electric credits eligible solar panel owners "for the amount of renewable energy produced for consumption derived from EPE." The power of the system should not exceed 10 megawatts. The basic utility fee is $30.25. |
| Garland Power & Light energy conservation program | The customer receives a utility bill credit for each excess kWh of energy generated by GP&L-compliant solar panels. |
| Green Mountain Energy Renewable Rewards Program | Customers can get a loan to pay their electricity bills when they "install and activate a high-quality solar energy system of less than 50 kW on their home." |
| Guadalupe Valley Solar Simplicity Electric Company | Homeowners can sell excess GVEC energy. According to the Connection Agreement, "Energy generated by the Site may be purchased from GVEC at GVEC's then-current Renewable Energy Tariff." |
| measurement program | Texas offers a net metering program that allows you to sell excess solar energy produced by your system to utilities. Contact your electricity supplier to see if an electricity metering program is available in your area. |
| Oncor solar program for private households | Solar panel owners who meet Oncor's requirements are eligible for a credit to help pay their electric bills. |
| Clean Energy Home Loan | Homeowners can apply for a 30% federal credit for systems installed between 2022 and 2032. Apply through the IRS. |
| Purchase of Solar TXU Energy House | TXU customers can get "up to 100% of their monthly electricity bill back" when they sign up for the Solar Purchase program. You can use renewable energy generated by the sun or wind. |
A solar panel company in Texas
Texas residents have hundreds of options when it comes to choosing a solar panel installer. More than 500 solar companies operate in Texas, including several large solar farms that can power tens of thousands of homes, according to the Solar Energy Association.
We'll help you make your choice by narrowing down Texas solar panel installers to the most trusted solar companies based on customer feedback and buying trends.
Sunday
ADT Solar has been installing solar panels under the Sunpro Solar brand since 2007. ADT bought the company in 2021. ADT, a security company, has been around for nearly 150 years, which is why this established company now supports ADT Solar.
- Year of origin: 2007
- Location: Florida
- Module type for sale: monocrystalline module
- Battery options: Tesla Powerwall and Enphase IQ
- Financing options: cash purchase, solar loan
- Guarantee . 25 year contract including labor, manufacturer warranty, solar panel manufacturer Enphase and microinverter.
sunny palm
According to Wood McKenzie, Palmetto is one of the top 10 solar installation companies in the US. Palmetto manages the entire solar installation process, from design to approval, with long-term customer support.
- Year of origin: 2010
- Residence: South Carolina
- Module type for sale: monocrystalline module
- Drum Variation: Sun
- Financing options: cash purchase, solar loan, leasing or PPA
- Warranty of at least 12 years on products and 25 years on performance.
solar energy solar energy
SunPower is best known for its solar panels and batteries, which are manufactured by subsidiary Maxeon. Maxeon panels are some of the most efficient residential solar panels on the market. However, the higher quality comes at a higher price, as SunPower panels cost several hundred dollars more than the industry average.
- Year of birth: 1985
- Residence: California
- Module type for sale: monocrystalline module
- Battery Options: SunPower SunVault
- Financing options: cash purchase, solar loan or solar lease
- Warranty : 25-year system warranty; 10 year battery warranty
the way of the sun
Sunrun encourages solar leases and PPAs, which means customers pay less for installation. Sunrun retains ownership of the system, allowing homeowners to take advantage of solar rebates and incentives, including a 30 percent green energy credit. Sunrun is the largest solar company in the US, helped by the 2020 acquisition of the second largest solar company, Vivint Solar.
- Year of origin: 2007
- Residence: California
- Module type for sale: monocrystalline module
- Battery options: Tesla Powerwall or LG Chem.
- Financing options: cash purchase, solar loan, solar lease or PPA
- Guarantee . 25-year warranty with Sunrun lease; if the factory warranty is obtained
Tesla Sun
Tesla offers a variety of solar panels or solar roofs (also known as Tesla solar roofs) and Powerwall batteries. Tesla is one of the few solar panel companies that offers free online quotes without visiting a technician.
- Year of origin: 2006
- Residence: Texas
- Module type for sale: monocrystalline module
- Battery options: Tesla Powerwall and Powerwall Plus
- Financing options: cash purchase, solar loan
- Guarantee . 25-year panel life and 10-year full system warranty; 10 year battery warranty
Installation factors to consider
None of us are willing to invest thousands of dollars in home improvement unless we believe it is the best solution for our situation. Homeowners considering solar panels should ask themselves these questions before making the switch to renewable energy.
Are you renting out your home? If you rent an apartment, you can ask your landlord to install solar panels, although tenants often prohibit any changes to the property related to solar panels. Tenants may qualify for public solar programs like Arcadia. Community solar subscriptions can provide loans to pay for offsite solar power.
What shape is your roof? Roofs in need of repair may receive additional treatment before installing solar panels. The size and slope of your roof can affect the placement of the panels and the electricity generated by the solar panels. According to the Department of Energy, roofs with a slope of 15 to 40 degrees are the most efficient. A reputable solar installer will determine if your roof requires maintenance prior to installation.
- Where is your home? Yes , solar panels can generate power in cool, shady locations. However, solar efficiency is improved when direct sunlight is available for at least part of the day. Living in an area with a lot of trees can negatively affect the amount of energy produced by the solar system.
- Does your community have an HOA or environmental regulations? Texas is one of the few states with solar bill of rights laws, which means HOAs can't ban solar panels. However, environmental regulations may contain rules regarding the placement or appearance of solar panels. Check local regulations to see what is allowed.
- Can you add solar panels to your home insurance? Contact your insurance company to see if you can add a solar system to your policy and let them know when the installation is complete.
Questions about solar power in Texas?
Texas subsidizes solar panels.
No Texas subsidizes solar panels. The federal Clean Energy Credit allows solar panel owners to receive a 30% tax credit. In addition, many state and county discounts and incentives are available to Texas residents. Net metering, which offsets your electric bill by feeding excess energy back into the grid, is another way to get a return on your Texas solar investment.
What are the pros and cons of solar panels in Texas?
In general, Texas is a great place to install residential solar panels because the state gets a lot of sun year-round. Texas solar rebates and incentives can offset the cost of ownership, and Texas electric utility net benefits can lower utility bills for qualified customers. On the other hand, if you have a relatively low electricity bill, or if your home is heavily shaded by trees or buildings, Texas solar panels may not be the best choice. If your roof needs to be replaced, these additional costs can also increase the time it takes to pay for your own solar panel investment.
Is Tesla installing solar panels in Texas?
Yes, Tesla is installing solar panels in Texas. In Austin, Texas, Tesla has created a solar community where Tesla solar units are available for purchase when a new home is sold.
