Texas Solar Panels: Pricing and Incentives


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Texas Solar Panels

Texas is a national leader in solar power generation, in part thanks to homeowners who install residential solar systems on their property. Residential solar installations have consistently increased year after year in Texas for the past decade.

There are many benefits to installing a solar system on your home, including the savings on your electricity bill and the positive environmental impact you can have. Keep reading to learn more about residential solar power in Texas.

Texas solar panel cost

One of the most important considerations when it comes to installing solar panels is the cost to the consumer. The cost of a system can depend on a variety of factors, including size, configuration, installation, and local costs.

The cost of a solar panel is measured by dollars per watt, with the average cost of a residential solar system being about $3 – $5 per watt, according to the Center for Sustainable Energy.

Based on these numbers, the average residential system will cost between $15,000 to $25,000. However, this is the cost before tax credits or rebates, which can help to mitigate the total costs.

Homeowners don’t have to pay for their solar systems upfront. There are also financing and leasing options available to help spread out the cost. The average payback period for a home solar system ranges from six to nine years.

Why choose Texas solar power?

There are several excellent reasons to invest in solar power, including reducing energy costs, establishing energy independence, and reducing the environmental footprint of your home.

Lower energy costs 

One of the biggest selling points of investing in solar power is that you can significantly reduce your monthly energy bills. When your home has solar panels, your home’s electricity will be powered by solar power. As a result, solar power can reduce your energy bill by as much as half. Over time, you should see a significant return on your investment with the money you save on electricity.

There are other financial benefits too. Installing a solar system can also increase the value of your home. A study by Lawrence Berkeley National Laboratory found that a solar system increases the resale value of a home by an average of $15,000. Depending on the cost of your system, that alone might be enough to make back your initial investment, not even factoring in the amount you saved on your electricity bills.

Establish energy independence 

By installing a solar system for your home, you can reduce or eliminate your dependence on the electricity grid. When your solar panels provide your home with electricity, you don’t have to worry about power outages. And during times of high demand on the grid, you won’t be subject to reduced electricity supply or higher energy rates. These benefits apply to both homeowners and business owners.

Go green

Another substantial benefit of solar energy — not only to homeowners but to society as a whole — is that it reduces your carbon footprint and helps to do a small part toward fighting climate change. Using the traditional electricity grid creates greenhouse gas emissions such as carbon dioxide. By switching to solar power, you are helping to reduce your home’s environmental footprint while also reducing your energy costs.

Texas solar panel incentives or rebates

The federal government and many state governments have taken steps to incentivize green energy infrastructure such as solar panels. These policies, including those in Texas, can help to reduce your cost as a homeowner and offset the upfront expense of investing in solar panels.

First, homeowners who install solar panels on their primary or secondary residence can claim a 22 percent tax credit for systems installed in 2021 and 2022. There’s no cap on the amount you can claim, so the larger your solar system, the more you can claim with the federal tax credit.

Keep in mind that this tax credit only applies if you’ve purchased or financed your solar system. It doesn’t apply to lease agreements. Check the federal tax credit guide to see if you qualify.

There are also state-specific incentives that homeowners and businesses can take advantage of, including those available in Texas. While the state of Texas doesn’t offer a solar rebate program, several utilities and local governments have implemented incentives:

  • Austin Energy: Austin homeowners are eligible for a $2,500 rebate if they install solar panels. You may also be eligible for additional financial incentives based on each kilowatt-hour (kWh) your panels generate.
  • CPS Energy: Customers of CPS Energy are eligible for up to $1.20/W for energy generated by their solar panels.
  • Guadalupe Valley Electric Cooperative: GVEC customers may be eligible for certain incentives. Contact the company to learn more.
  • City of Sunset Valley: Sunset Valley offers a rebate to local homeowners who install solar systems on their properties, up to $1.00/W.

Should I buy or lease my solar panels?

When it comes to installing solar panels on your property, there are a few different options. First, you can either outright buy or finance your system. But you also have the opportunity to lease. It can be tempting to lease as a way to reduce upfront costs and avoid potentially costly repairs.

But there are some drawbacks to leasing that homeowners should consider. First, when you make lease payments, there’s no way to recover that cost. You don’t have the option of reselling your system to get some of your money back. Additionally, it won’t permanently increase the value of your home. You must find homeowners willing to take on your lease payments, and you won’t see any of the extra money.

Another downside is that you aren’t eligible for the generous federal tax credits. At this time, the federal government’s 22 percent tax credit is only available to homeowners and businesses that have purchased or financed their systems. Overall, homeowners who buy their solar panels will see greater savings in the long run than those who lease.

Texas solar panel companies

There are many available solar panel companies in Texas that offer to bring solar energy to your home. Even better, many Texas solar installers can customize a solar panel system for your home to ensure it meets your energy needs. If you’re ready to invest in solar panels in Texas, make sure to research the installers in your area before signing a contract. In the meantime, SaveOnEnergy is here with guides and resources to help you navigate the solar industry.

The history of solar power in Texas

Texas is a national leader in renewable energy. Solar energy has grown rapidly in the state over the past several decades, and the state currently ranks second nationwide for solar power generation behind only California.

The majority of Texas’s solar power comes from power plants. There are a variety of plants already operating around the state and many more under construction or development. A smaller portion of the state’s solar power comes from either residential systems or commercial and industrial solar installations.

Texas began investing in solar energy in 1981 when the state created a Renewable Energy Systems Property Tax Exemption, allowing individuals and businesses to save money by having solar or wind-powered energy devices installed.

The state has set lofty goals for increasing its reliance on green energy and offers a variety of rebates to individuals and businesses who do their part.

Important solar installation factors to consider

There’s a lot to consider when it comes to installing a solar power system on your property. There’s no doubt that it’s a significant investment, and you want to do your due diligence upfront. Factors to consider include:

  • The condition and angle of your roof: According to the U.S. Department of Energy, solar panels perform best on south-facing roofs with a slope of 15 to 40 degrees. Solar may not be suitable for older roofs that will need to be replaced very soon.
  • The amount of sun your property gets: Solar panels may be more effective for some homes than others. First, some areas simply get more sun than others. They might be a great investment in a state like Texas, but not as great in the Pacific Northwest, where it rains often. You should also consider whether there are trees or other barriers blocking your roof from getting sun.
  • Your HOA or neighborhood rules: Depending on where you live, your HOA might either prohibit adding anything to your roof or require approval before you can install solar panels. Be sure to check your neighborhood guidelines before signing a solar contract.

Texas solar power FAQs

How much would solar cost in Texas?

The average residential solar system costs between $3 and $5 per watt, which comes to roughly $15,000 to $25,000 per system. Your costs may be even lower thanks to tax credits and rebates.

Is solar power a good investment in Texas?

A solar system on your property can be an excellent investment. First, if you live in an area that gets a lot of sunshine, you’re likely to save a considerable amount on your monthly energy bill and see a lower payback period. A solar system can also increase the value of your home, so you’ll see a return on your investment when you sell.

How much could I save by investing in solar?

If you live in an area where you get a lot of sunshine, you could reduce your electric bill by as much as 50 percent. Of course, there are a lot of factors that impact your electric bill, including how much energy your home consumes each month.

Where can I find a good solar panel installer in Texas? 

There are many great solar companies in Texas that can help you invest in solar energy. Before choosing a solar installer, be sure to read reviews of the company, ask for references, and research their company history. This will help ensure that you are making an informed choice. SaveOnEnergy can also give you a variety of tips and resources about the solar industry.

How does solar power help the environment?

Reducing your dependence on electricity also reduces greenhouse gas emissions. Because solar power doesn’t emit carbon dioxide and is a renewable resource, installing solar panels can reduce your home’s carbon footprint.

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