How much do solar panels cost in Texas? See prices, rebates & tax credits

With a population of 29 million, Texas is the second-most populous state in the country. And with ample amounts of sun, it has been one of the top 10 solar states since 2017. Today, Texas solar installations produce enough energy to power more than 935,000 homes.

The five largest cities in Texas each have more than 800,000 residents who increasingly see solar energy as a benefit. Prices have fallen by over 70% in the past 10 years, making the installation of PV systems more affordable.

How much do solar panels cost across the main cities in Texas?

The cost of installing a solar system is fairly similar across the five biggest cities in Texas - Houston, San Antonio, Dallas, Austin, and Fort Worth. A typical 6 kW system will cost around $16,000 before incentives. Once you apply the federal solar tax credit, the cost drops to about $11,200! 

The cost of solar in Texas compares well with the national average price of solar.  In the U.S, average residential solar systems 6 kilowatts in size have a starting price of about $17,000 before incentives. 

You can calculate the cost for your residential address using this online calculator.

What rebates and tax credits are available in different parts of Texas?

The rebates, credits, and incentives that enable homeowners to achieve a reduction in price vary between the cities. Here are some options you can apply for.

Federal and state incentives

The federal solar tax credit, sometimes called the investment tax credit (ITC), makes provision for you to qualify for a tax credit of 30% of the cost of a solar PV system. This covers labor costs as well as equipment. At the state level, the system you install could qualify for an exemption in property taxes. Homeowners in all major cities can take advantage of these incentives, and the 30% ITC or Residential Renewable Tax Credit is unaffected by state-level incentives homeowners are eligible to receive.

Austin

Statistics show Austin Energy currently supports almost 6,300 residential solar systems, as well as multiple commercial, municipal, and school projects. The City of Austin offers a residential solar rebate program, which requires homeowners to complete a solar education course followed by the installation of a qualifying solar photovoltaic (PV) system in their home. This earns you a $2,500 rebate, while the course helps you get the knowledge you need to make an informed decision, reduce your energy bills and improve the environment.

Houston

The average cost of a PV system in Houston in 2022 is $2.83 per watt. Based on the most common system size of 6 kW, this works out to $16,980 before incentives. In addition to the ITC, Reliant, TXU, Amigo Energy, and Green Mountain Power all provide net metering credits for any extra solar power generated and exported to the grid. 

Dallas

Dallas still has huge tracts of farmland, and one of the incentives available is a rebate of up to $1,000 for energy-efficient upgrades for members of the Farmers Electric Cooperative. The rebate is provided in the year of installation as long as the requirements are met.

Oncor also provides incentives through participating service providers in its area, which offset the initial cost of installing solar systems paired with batteries.

San Antonio

San Antonio residents who are CPS Energy customers used to be able to get a solar rebate through the utility. The program has since closed.

There may be solar incentives and rebates available for the other cities in Texas, so why not input your residential address and get a customized quote from an installer?

Which solar system is right for your home?

Choosing the right PV system for your situation depends on several factors, such as your household’s energy requirements, current energy bills, geographical location, and the weather. If you live in an area with frequent heavy rain or high winds, for example, you’ll need to select a system that's durable enough to withstand the conditions.

Once you have an idea of the panels you want, it’s important to find out the following:

• Efficiency rating, compared with the industry average of 18% to 22%

• Check the warranty available against the industry average of 10 to 25 years

• Compare the cost to the expected relative efficiency, to determine the value for money

Panels usually fall into premium, standard, or economy categories, and prices vary accordingly, as do durability, warranties, and manufacturing quality. Read the reviews available on different types of panels and request quotes from several solar installation companies. This allows you to source a range of recommendations, which will help you decide.

Where can Texans find a list of the best solar companies in their local area?

You can find the best-rated solar companies in Texas right here on SolarReviews. There you can read feedback from real customers, request a free online quote, or even write your own review.

Are the conditions ideal for solar in TX?

Texas is a sunny state with an average of 236.8 days of sunlight each year. For a solar installation to be effective, panels need to have non-shaded, unobstructed space on the ground, the roof, or mounted on a pole, during key sunlight hours of the day. Facing south is best, but east- and west-facing roofs capture more than 80% of the power a south-facing roof does, according to Texas Solar Energy Society.

What are the benefits of going solar in TX?

By going solar in Texas, you can enjoy lower energy bills, improved resale value of your home, increased energy independence, security with backup power during outages, and a reduced environmental footprint. What’s more, you’re protecting yourself against higher bills in the future, and since PV systems come with a 25-year warranty you can realistically expect an excellent return on your investment.

Are there any other solar options in TX?

Since Texas is an ideal location for making use of solar energy, there are multiple solar options you can consider. Solar water heaters, pool heaters, and solar generators all complement a solar PV system, working together to ensure you not only have energy independence but that you have a backup even for extended outages and poor weather events. And for residents who aren’t able to install solar on their roofs for any reason, community solar programs enable households to benefit by sharing solar-generated electricity among the members.

Is going solar worth it?

The solar rebates and incentives available to Texas residents can make a huge difference in the cost of your initial investment. They not only make going solar cheaper but provide reassurance that you’re doing the right thing. Click here to find out how much you can save by going solar. The combined cost and environmental benefits make it worth it to consider installing a solar system on your home.