Average Cost of Solar Panels in Texas
Have you ever considered installing solar panels on your home? The Lone Star State is one of the best areas in the country for solar panels, because we enjoy some of the strongest sunshine around. On average, Texas sees 234 sunny days a year, roughly 29 days more than the national average!
No wonder so many Texans are option for solar: according to the Solar Energy Industries Association, Texas ranks #2 in the nation for solar power with more than 75,000 installations and enough solar power to power 642,199 homes.
Generating solar energy is not just better for the environment, it’s also better for your wallet. As the price of electricity from the grid continues to rise, with solar panels you can generate your own power – reducing or eliminating your electricity bills. Since your solar panel system will last about 25 years, this can lead to big savings. You'll continue to save money while those without solar energy pay increasing fees for electric power.
How Much Do Solar Panels Cost in Texas?
According to Energy Sage, as of June 2024, the average solar panel system costs $2.36/W including installation in Texas. For a 5 kW installation, this comes out to about $11,816 before incentives, though prices range from $10,044 to $13,588. After the federal tax credit, the average price drops by 30%.
How Much Does it Cost to Install Solar Panels in Texas?
Thanks to new solar initiatives the cost to install solar panels is dropping nationally year over year, according to the Department of Energy.
However, it’s important to note that installation fees can vary substantially from region to region, and some factors such as installation labor costs are hard to predict. These can depend on considerations like the type and angle of your roof and whether new conduits are installed in your attic. Also note that these costs do not include the thousands of dollars you can save by utilizing solar incentives (learn more about these below!)
When you contact potential solar installation companies, they should provide a free consultation to gather all necessary information before preparing an accurate quote for you. For more on selecting the right solar panels, read our article on Choosing Solar Panels for Your Home.
If you want to learn more, we’re here to help! We’ll get you solar quotes to compare in minutes, and our services are on the house. Call 1-888-408-3369 to talk to one of our helpful solar experts.
How Many Solar Panels Will You Need?
Start by determining the average energy usage of your home: you can calculate this number by looking at old electricity bills. According to The U.S. Energy Information Administration, the average home in Texas uses 1,176 kWh a month or 14,112 kWh per year. Smaller homes can use significantly less energy: for example, a 1,000 square foot home can only require around 3,600 to 4,800 kWh per year.
Knowing how much energy you use is an important factor in determining how many solar panels will be necessary to power your home – although it’s good to remember that even if your total energy usage isn’t provided by solar panels, you can still significantly reduce your electricity bill with a solar array.
To determine how many solar panels you'll need for your home, you'll have to understand how much electricity you use. To give you a general idea, below are some examples of how much electricity will generate from differing solar panel systems sizes.
For homes around 1,000 square feet, a 3 kWh solar panel system will generate around 3,600 to 4,800 kWh per year.
For homes around 2,000-2,500 square feet, a 5 kWh solar system will produce roughly 6,000 to 8,000 kWh per year.
For homes greater than 5,000 square feet, a 10 kWh solar panel system can generate between 12,000 to 16,000 kWh per year.
Size and Layout of Your Roof
Residential solar installations require at least 500 square feet of adjacent space on your roof.
The perfect roof pitch (or angle) for installing solar panels is 30 degrees, but anywhere from 0 degrees (flat) to 45 degrees will work. If you do have a flat roof, then tilted racks will be used to mount your panels.
Also, note which direction on the compass your roof is facing: northward-facing roofs often lack direct sunlight and so are less desirable. Last but not least, consider the amount of shade that your roof gets from large trees or buildings: in order to maximize your investment, you want your solar panels to be exposed to at least five hours of sunlight every day. For more details on rooftop solar, check out our article What Is Rooftop Solar?
Federal and Texas Incentives for Solar Panels in Texas
There are great incentives for installing solar panels in Texas, which can include tax credits that reduce the amount of tax you owe; rebates that give you money back after your solar installation; and performance-based incentives that provide ongoing payments based on the amount of energy your solar system produces.
One of the most important solar incentives is the federal solar tax credit program, which started in 2016. In 2024, it is an incredibly valuable incentive because it saves you thousands of dollars in the form of a 30% tax credit, and there’s no limit to the amount you can claim.
Texas also offers a property tax exemption for the increase in property value that comes when you install solar panels on your home. In most cases, a Texas solar installation will add 4.25% to your home's value.
You may also see no increase in your property taxes after solar installations, despite a potential property value increase. Some state schemes even provide rewards based on solar system outputs.
See a full list of Texas Solar Incentives here.
Solar Buyback Plans
At Rhythm Energy, we're proud to offer Texans a solar buyback plan that can help you make money and save money. If you have already invested in solar panel installation, this plan is really a no-brainer.
Solar Panel Financing
The most economical way to pay for installation of your solar panels is by paying cash up front. This gives you the lowest overall cost, and maximizes your long-term return on investment. However, if you don’t have the cash on hand, financing options for solar installations in Texas are widely varied!
Take out a solar loan. A solar loan lets you buy the solar panel system outright, then make monthly payments on the loan. The average payback period for a solar loan is around 10 years.
Sign a solar lease. Also called a power purchase agreement (PPA), a solar lease lets you rent solar panels from a third-party company. Bear in mind that solar leases are not eligible for the federal tax credit.
Learn more about solar panel financing by reading the following blog articles:
What Are Some of the Best Texas Cities for Solar?
Below is a breakdown of some top cities in Texas and how many hours of sunshine each city sees per day:
Houston - 5.9 hours per day
Austin - 6.7 hours per day
Corpus Christi - 6.2 hours per day
Lubbock - 7.5 hours per day
Dallas Ft. Worth - 6.9 hours per day.
Benefits of Solar Panels in Texas
There are many reasons to invest in solar panels for your Texas home. Some of the biggest advantages include:
Solar panels help you lower energy costs. If you're looking for a way to reduce your monthly electricity bill, solar panels can help. According to a 2024 report from Save on Energy, Texas residents who install solar panels can save over $2,000 in energy costs annually.
Solar panels can help increase the value of your home. Installing solar panels is a great way to increase the resale value of your home. A study by Lawrence Berkeley National Library found that a solar system increases the value of a home by an average of $15,000.
Solar panels are a green source of electricity. Utilizing solar power reduces your carbon footprint by generating energy using the power of the sun.
Solar panels will help you avoid surprises in your electricity bills. Electricity prices may continue to rise, year after year. By investing in a solar energy system, you lock in the price you pay for electricity today, and so avoid future increases in electricity costs.
Solar panels have a great return on investment. The average American solar purchaser sees a 20% or more return on investment over the course of their decades-long lifetime.
For more reasons why to invest in solar power, read our article Why Go Solar.
FAQ
What are some of the benefits of installing solar panels in Texas?
Not only are solar panels a green and earth-friendly source of electricity, but solar panels can help you lower energy bills, up to $2,000 a year. They even help increase the value of your home, by an average of $15,000.
Is there financing available for solar panels on Texas homes?
Paying for solar panels out of pocket is the best way to maximize the return on your investment. But there are other options: you can take out a solar loan, which lets you make monthly payments on your panels (typically over the course of around 10 years) or you can sign a lease to rent panels from a solar company.
How big and at what pitch should my roof be for solar panels?
You need at least 500 square feet of adjacent space, and a roof angle between 0 and 45 degrees, although 30 degrees is ideal.
How many solar panels will I need to power my home?
Contact a potential solar installation company for a free consultation, gathering key information before giving you a quote. We’re happy to help you find the right contractor! Call us at 1-888-408-3369 to talk to one of our solar experts.
