Cost Of Solar Panels In Texas

Cost Of Solar Panels In Texas

How much do solar panels cost in Texas?

Installing residential solar panels can cost between $10,000 and $30,000 or even more, although individual costs vary widely.

In the end, Mandy of Round Rock paid $45,000 for a system, Daniel of Richardson paid $68,000 and Michael of Humble paid $75,000.

Average cost of solar panels by system size in Texas

5 kW 6 kW 7 kW 8 kW 9 kW 10 kW
Before federal tax credits 16810 dollars $20,175 23 540 dollars 26900 dollars $30,260 $33,625
After federal tax credits $11,767 $14,122 $16,478 18,830 dollars $21,182 23 538 dollars
Approximate dimensions of the roof. 1050 square meters 1200 square meters 1350 square meters 1500 square meters 1650 square meters 1800 square meters

Source: EcoWatch

Are Solar Panels Worth It in Texas?

Most of the Texas Solar customers we've talked to over the past few years would recommend him to a friend.

"It's worth a lot of gold," said Cesar of Pflugerville, whose electric bill has dropped by $60 to $70.

Lynda in Austin told us her electric bill was about $3, adding that “it was fantastic. It did exactly what we expected." Becca, in Fort Worth, has saved "over $7,000" since going solar.

Others point to the environmental benefits: "The effects of global warming seem to be accelerating and becoming more extreme," Ed said of Flower Mound. "Everyone must do their part to reduce greenhouse gases. Rooftop solar panels are our contribution to this effort."

Of course, not all Texans who choose solar power are completely satisfied. Some have told us about salespeople who have made false promises or are frustrated with their electric companies. Account problems and low reimbursement rates are the main obstacles.

However, there is a generally positive sentiment in the state about the potential of solar energy.

"Texas has a lot of sunshine, so there's no reason not to take advantage of it," Anthony told the Center.

"The only thing I don't like is that the batteries are so expensive," said Haojun of Houston. “In 2019, spare batteries were cheap. Right now, if I want to install two batteries, it will cost me about $30,000+. It is very."

MORE: Is it really worth it?

Do I need solar battery backup in Texas?

A solar battery backup gives you an extra layer of insurance against grid vulnerabilities. It also offers greater energy independence and potential savings. This has many advantages, especially in Texas, because of the state's unique energy infrastructure.

The state grid has faced challenges (such as in early 2021, when winter storms caused widespread power outages). Solar panels with battery storage offer Texans a level of energy independence and resiliency in the face of such grid outages.

"I'm very happy with the transition to solar," Ted told us in San Antonio. "But if you don't use the battery, it's a waste."

Keith also advises Baird to get a battery: “Today a truck ran over a power line and lost power. Ours just clicked,” he said. “The battery lasts five hours, which is more than enough, the technicians fixed the power line before we lost power.

"There are two reasons why I choose solar energy," Paul told Rowlett. "One is to reduce power costs. The second is to have a battery backup. Basically, I don't build any system without a battery backup."

The only drawback is that they are expensive and are not automatically included in the budget. "I thought the battery would come with it because I told them that's what I wanted it for," Bill said in San Marcos. "But after I sent the documents, I didn't get the battery."

» COMPARE: The best solar batteries

Texas Solar Cost Factors

The price you pay for your solar panels depends on several factors, including the quality of the panels and the size of your system.

equipment costs

Home solar kit costs cover the price of solar panels, inverters, mounting hardware and any extras like batteries.

Think of it like buying a car: the full price is for the vehicle itself, but you pay more for special features or accessories. The total cost depends on the size and quality of the equipment, and some brands or technologies are more expensive than others.

» LEARN: What is a solar panel?

system size

An 8 kW or 8.5 kW system is common in Texas, but many homes require a 10 kW or higher system. For example, Jose in Plano got a 16.8 kW system (plus two Tesla Powerwalls) and Abdul in Mesquite got a 17.5 kW system, which should generate about twice the power needs of an average home.

The amount you pay also depends on the power and efficiency of your panels. A 10 kW system typically requires between 20 and 40 panels. The more panels you get, the more it will cost you.

power supply to the panel The number of panels needed for 10 kW Area required for panels
100 watts 100 1800
200 watts fifty 900
250 watts 40 720
300 watts 3. 4 612
400 watts 25 525
500 watts twenty 560

installation company

Solar installation costs can include site assessment, system design and actual installation. Labor rates vary depending on your location in Texas and the experience of the installer.

Solar panels are a long-term investment. If you ever encounter a problem with your system, such as tracking issues, we recommend that you resolve it quickly.

It is often worth paying more to work with a reputable company. For example, Amanda from League City decided to go with a company that charged about $10,000 more because everything from sales to installation and maintenance was done in-house.

» GUIDE: Guide to installing solar panels

The condition of your roof

Installation can be more expensive if the roof requires major modifications, is pitched or has an irregular shape. Similarly, the price of flooring systems also varies depending on their complexity.

Solar panels typically last 25 years.

If you live in an older home, make sure the roof is strong enough to support the solar panels. Quality solar panels should last 25-30 years, so you want your roof to last at least that long. We hear a lot of complaints from solar customers that they have to pay to remove the panels, repair the roofs, and then reinstall the panels. It is a frustrating and expensive process; avoid it if you can.

» WARNING: Should you replace your roof before going solar?

How do you pay?

You can pay the full price up front, but many people in Texas finance solar panels. A solar loan works like any other type of loan: there's an application and approval process, and you'll pay it back over time.

If you're financing your solar system, interest and fees add to the total cost over time. Victoria at Universal City was under the impression that the total cost would be in the "$40,000" range, but "after all the fundraising expenses, it ended up being about $65,000."

When considering a solar loan, lease or PPA (power purchase agreement), always ask:

  • Is there an advance payment?
  • How much will I pay per month?
  • When will the monthly payments increase and how much?

Other cost factors

The initial cost of installing solar panels is significant if you decide to pay up front, but permits and ongoing maintenance are relatively inexpensive.

  • Local Permits: Depending on the local municipality, fees related to permits and inspections may apply.
  • Utility Fees - In Texas, some utility companies may charge a fee to connect the solar system to the grid. Also, some may buy your excess energy at low rates and force you into contracts with high early termination fees. Both Luis of Forney and Wintur of Richmond said it costs $295 to opt out of solar contracts with Reliant Energy.
  • Maintenance to ensure maximum performance: Maintenance costs for solar panels are generally low. Panel warranties generally cover the cost of repairing or replacing parts. However, homeowners should plan for possible inverter replacement after 10 to 15 years, which can be expensive ($1,000 to $2,500 or more).

Cost of solar panels by city

Where you live in Texas also affects your costs. Compare typical costs for a 5 kW solar panel system below.

Average cost for a 5 kW system

average total cost cost per watt
Saint Anthony $11,262 to $15,238 $2.65
dallas $11,432 to $15,468 $2.69
Houston $11,518 to $15,582 $2.71
Step $12,155 to $16,445 $2.86

Source: EnergíaSage

Solar Incentives, Tax Credits and Deductions in Texas

The federal Solar Investment Tax Credit (ITC) is the biggest driver of lowering solar energy costs in Texas. If you install a residential solar panel system by the end of 2032, you can deduct 30% of the total cost of the system, including equipment, labor and permits, from your federal taxes. The credit drops to 26% in 2033 and 22% in 2034.

The average value of the ITC in Texas is $9,280 in 2023.

Texas also enjoys a 100% property tax exemption for any value added to your home from solar panels. There are no statewide rebate programs, but local and regional financial incentives can be found throughout the state.

» Explore: Texas Solar Incentives

Compare solar installation companies in Texas

Compare the most popular solar companies available in Texas below. Read our guide to finding the best solar energy companies to learn more.

» TIP: Get the best sun phrases

Customize

Select the information you want to see for each brand. You must select at least one option.

Frequently asked questions

Can I get free solar panels in Texas?

You can lease or sign up for a PPA with little or no upfront cost. However, neither is completely free. Solar leases generally require a fixed monthly fee; APPs charge you per unit of electricity.

» FREE SOLAR PANELS: Are they really free?

How much can I save with solar panels?

When paying cash, the estimated average savings over 25 years from solar is $21,350 in Texas. It is often mistakenly believed that solar panels will always completely eliminate your monthly electricity bill, but this is not always the case.

The good news is that people who still have bills after going solar pay much less than before. According to EnergySage, you can expect to offset your electricity bill anywhere from 81% to 110%.

Virginia of Houston, for example, said her bills were $400 or $500, but she hadn't paid more than $50 a month since going solar. The only thing Lisa pays Venus for is to be on the grill, which costs $26.

What is the cost of solar energy in Texas?

According to the Solar Energy Industries Association, the cost of solar energy in Texas has dropped 54% in the past 10 years.

How does net trading work in Texas?

Unlike many states, Texas does not have a statewide net exchange. Its energy market is largely unregulated, so each company sets its own policies.

How do solar batteries work?

A backup battery allows solar power to be stored when it is abundant and used during peak hours. This allows you to avoid higher electricity rates and allows you to be less dependent on the Electric Reliability Council of Texas (ERCOT) grid.

When the solar panels do not produce enough electricity, such as at night or on cloudy days, the energy stored in the battery can be used, reducing the need to draw power from the grid. On particularly sunny days, solar energy systems can generate more electricity than a home can consume. Instead of sending it back to the grid, it stores it in the battery for future use.

Especially if you want to go off the grid, a large system is not worth it without a solar battery.

Will hail damage my solar panels?

CONCLUSION

Solar power in Texas costs more than the national average, but many solar customers we spoke to in Texas are happy with their investments. They achieve significant savings on their electricity bills and benefit from greater energy independence.

Solar Costs: Texas and Neighboring States

Typical system dimensions Initial cost* average cost per watt Value of ICT (30%) Recovery period ** Estimated net savings
TEXAS 8.5 kW $30,934 $2.69 9280 dollars 13 years 21350 dollars
Oklahoma 11 kW 8646 dollars $2.62 28 820 dollars 14 years 14190 dollars
New Mexico 7 kW 18760 dollars $2.68 5628 dollars 12 years old $15,413
Louisiana 12.5 kW $32,126 $2.57 9638 dollars 14 years 13646 dollars
Arkansas 11 kW $27,940 $2.54 8382 dollars 13 years $15,567

*Before ITC; ** In case of cash payment

« STILL NOT SURE? Advantages and disadvantages of solar energy


ConsumerAffairs authors rely primarily on government data, industry experts, and original research from other reputable publications to inform their work. Specific resources for this article include:
  1. EcoWatch, "Solar Panel Costs in Texas." Accessed 16 August 2023.
  2. Office of Energy Efficiency and Renewable Energy, "Homeowner's Guide to the Federal Solar Photovoltaic Tax Credit." Accessed 16 August 2023.
  3. EnergySage, “Texas Solar Panels: Pricing and Local Installation. Accessed 16 August 2023.
  4. Solar Energy Industries Association, solar state by state. Accessed 16 August 2023.
  5. Solar Energy Industry Association, Texas Solar. Accessed 16 August 2023.
  6. Database of Public Incentives for Efficiency and Renewable Energy (DSIRE), “Texas Solar Programs”. Accessed 16 August 2023.
  7. EnergySage, "Solar Companies in Austin, Texas." Accessed 17 August 2023.
  8. EnergySage, "Solar Companies in Dallas, Texas." Accessed 17 August 2023.
  9. EnergySage, "Solar Companies in El Paso, Texas." Accessed 17 August 2023.
  10. EnergySage, "Solar Companies in San Antonio, Texas." Accessed 17 August 2023.
  11. EnergySage, "Solar Companies in Houston, Texas." Accessed 17 August 2023.
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