Table of Contents
- How Much Do Solar Panels Cost in Texas?
- Solar Panel Costs in Texas by Size
- Texas Solar Panel Cost Breakdown: What Affects the Cost of Solar Panels?
- Are Solar Panels Worth It in Texas?
- Solar Panel Incentives in Texas
- How to Pay for Solar Panels in Texas
- Who Are the Top Solar Installers in Texas?
- Frequently Asked Questions (FAQs)
In the vast landscape of Texas, an 8-kilowatt (kW) solar panel system comes with a price tag of approximately $18,240. However, green energy is accompanied by various rebates and incentives designed to boost renewable energy adoption. With these incentives, the average cost of solar panels in the state is only $12,768.
Beyond immediate savings, investing in the best solar panels promises long-term benefits, from offsetting the high average cost of electricity in Texas to enhancing the value of your home.
Key Takeaways
- An 8 kW system costs $18,240 but you pay $12,768 after incentives.
- Solar panel system costs vary across major Texas cities, with Houston County at $2.24/W, San Antonio at $2.27/W, Dallas County at $2.24/W and Fort Worth at $2.23/W.
- Most Texan homeowners need an 8 kW solar system, which is larger than the national 6 kW average.
How Much Do Solar Panels Cost in Texas?
In Texas, the average cost of solar panels is $2.28 per watt (W), slightly below the national average of $2.75/W before incentives. Solar panel system costs including installation vary across cities: Houston County at $2.24/W, San Antonio at $2.27/W, Dallas County at $2.24/W and Fort Worth leading at $2.23/W.
This diverse pricing landscape reflects the unique economic factors influencing solar adoption in different state regions, providing homeowners with tailored options for sustainable energy solutions.
Solar Panel Costs in Texas by Size
Size is the most significant factor affecting solar panel costs in Texas. Generally, the bigger your solar panel system, the more you can expect to pay.
Solar Panel Costs Across Texas Cities
The solar panel expenses in major Texas cities can vary. Here, we will discuss the average costs for a 6 kW system and the post-solar tax credit prices in Houston, San Antonio, Dallas, Fort Worth, Arlington and Denton.
Texas Solar Panel Cost Breakdown: What Affects the Cost of Solar Panels?
In addition to the size of the solar panels, there are several other important cost factors, including the size of the system, type of solar panel and labor costs.
Solar System Size
The size of a solar panel system in Texas affects the cost, especially with the state using more electricity than the national average. Texas homes are often bigger than the national average, using around 1,176 kWh per month or 14,112 kWh per year. Most Texans need an 8 kW solar system, which is more than the national average of 6 kW. The average cost for an 8 kW system in Texas is $18,240.
Use LED lights and energy-efficient HVAC systems to reduce system size and cost, and be mindful of energy use. Adopting smart home tech and reducing overall energy consumption helps homeowners maximize their solar investment in Texas.
Panel Type
There are three main types of solar panels. The type you choose will affect your final costs.
- Monocrystalline solar panels: Monocrystalline panels are the most energy-efficient of all solar panel types, but they’re also the most expensive. They typically cost between $1 and $1.50 per watt, so a 6 kW system usually costs between $6,000 and $9,000, not including installation.
- Polycrystalline solar panels: These panels aren’t as energy efficient as monocrystalline panels, but they’re more affordable at $0.75 to $1 per watt, or $4,500 to $6,000 for a 6 kW system.
- Thin-film solar panels: Thin-film solar panels are typically the least energy-efficient, and since they require a lot of space to install, they’re most often used on industrial buildings. They cost about the same as polycrystalline solar panels, at $0.75 to $1.10 per watt, or $4,500 to $6,600 for a 6 kW system.
Solar Incentives
Solar incentives, including the Residential Clean Energy Credit and state-specific benefits, significantly reduce the overall costs of solar panel installations in Texas. These financial incentives, such as property tax exemptions and local rebates, make adopting solar energy an economically advantageous choice for residents, fostering sustainability and affordability.
Labor Costs
In addition to the cost of the panels, you’ll need to pay a pro to install them. Labor costs average around $0.55 per watt, or $3,300 for a 6 kW system. In general, labor usually amounts to around 20% to 25% of the total project cost.
Installation Company
Different solar companies charge different prices. Many of Texas’s best solar panel companies charge between $3 and $4 per watt. When that $1 difference is applied to thousands of watts, it can make a big impact on your final cost. Obtaining quotes from multiple professionals ensures you get the most cost-effective solution.
However, the decision should not solely hinge on price: Consider each installation company’s reputation, track record and customer feedback. By considering these factors, you can make an informed decision that not only fits your budget but also guarantees a high-quality and successful solar panel installation.
Permits
In many cases, you’ll need a permit to install solar panels. Many top solar companies will handle the permit process for you, while others might require you to get a permit before the installation. Permit prices vary quite a bit depending on the municipality.
Roof
Installing solar panels on roofs with a steep pitch is harder and more time-consuming than installations on flat roofs, so it typically costs more. Additionally, if your home has multiple stories or roofs, expect to pay more since it will take longer to complete the installation.
It’s worth noting that if your roof is 20 years or older, it’s advisable to consider a roofing replacement before the solar panel installation. The average cost for a roof replacement in Texas is around $7,500 for a 2,000-square-foot roof, ranging from as low as $3,750 for a 1,000-square-foot roof to as much as $11,250 for a 3,000-square-foot roof replacement.
Are Solar Panels Worth It in Texas?
Texas receives around 204 days of sunshine per year, which is plenty to generate significant solar energy. According to the Environmental Impact Assessment, the state has the highest energy usage in the country, but a lower than average cost of residential electricity of 14.71 cents per kWh. So, going solar can yield significant energy savings. Beyond savings, solar panels significantly boost home values.
Already powering 2,329,037 homes, Texas anticipates a 38,523 MW growth in solar power over the next five years, solidifying its leadership in solar expansion and reinforcing sustained home value appreciation. For Texas homeowners, the answer is clear: Yes, solar panels are worth it, not only do they deliver savings but also add lasting value to homes.
Cost of Electricity in Texas
According to the EIA, the average cost of electricity in Texas is 14.71 cents per kilowatt hour, which is an 18% increase from 2021. As the state grapples with rising energy needs, transitioning to solar power becomes not only an environmentally conscious choice but also a strategic financial decision.
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Solar Panel Incentives in Texas
While solar panels are an expensive investment, Texas residents benefit from several Texas solar incentives that can make solar panel systems more affordable.
Property Tax Exemption
Texas offers a property tax exemption for the added home value resulting from solar panel installations. Homeowners can benefit from reduced property taxes, making the transition to solar more economically attractive.
Residential Clean Energy Credit (before Federal Solar Investment Tax Credit)
The federal government offers a 30% tax credit on the total cost of a solar panel system. This credit can significantly reduce the upfront costs of installation.
Austin Energy Benefits
Residents in Austin can tap into additional local incentives provided by Austin Energy, which may include a rebate of $2,500, performance-based incentives and financing options.
Net Metering Benefits
Texas supports net metering, allowing homeowners to receive credits for excess electricity generated by their solar panels and fed back into the grid. This enables users to offset their future energy bills.
Property-Assessed Clean Energy (PACE) Program
The PACE program in Texas enables property owners to finance energy-efficient upgrades, including solar installations, through a voluntary assessment of their property taxes.
Texas doesn’t have a statewide solar tax credit or rebate program; however, some cities, like Austin and San Antonio, offer rebates and incentives. Be sure to look up incentives in your local municipality to potentially save more money.
How to Pay for Solar Panels in Texas
Many solar companies offer various financing options that can make solar panel installations more accessible. Typical solar financing options include leases, loans and power purchase agreements (PPAs).
PPA
With a PPA, customers pay for the electricity generated by the solar system at a predetermined rate. While they don’t own the system, they benefit from lower electricity costs without the upfront investment.
Lease
Leasing allows customers to rent the solar panel system. They pay a fixed monthly fee, often unaffected by the system’s energy production. Although they don’t own the system, leasing offers a low-commitment way to access solar energy.
Loan
Taking out a loan allows customers to own the solar system, making them eligible for the full federal tax credit. While loans incur interest, they provide long-term ownership and potential savings compared to leasing or PPAs.
Full-Purchase
Purchasing the entire solar system upfront requires a significant initial investment. However, it offers the best long-term returns, with ownership, access to tax credits and increased property value.
HELOC
A Home Equity Line of Credit (HELOC) allows homeowners to borrow against their home equity to fund solar installations. It’s a cost-effective financing option with lower interest rates compared to traditional loans.
Cash-Out Refinancing
Cash-out refinancing replaces the existing mortgage with a new loan that exceeds the current mortgage balance. The difference is paid out in cash, providing funds for solar installations. It may offer lower interest rates than traditional loans.
Best Solar Companies By State
Who Are the Top Solar Installers in Texas?
Texas is home to a selection of premier solar installation companies renowned for their expertise, top-tier service and dedication to sustainable energy solutions. Here’s a list of the top solar installers in Texas that have established themselves as a shining example of quality.
- SunPower: SunPower is ideal for those seeking cost-effective solar solutions with exceptional warranty coverage. The company has over 30 years of experience and offers high-efficiency solar panels and storage solutions, making the transition to solar energy seamless and hassle-free. Note that while SunPower made our 2024 ranking, the company announced in July 2024 that it would be ramping down residential sales past July.
- Blue Raven Solar: Blue Raven Solar, founded in 2015, focuses on customer satisfaction and financial flexibility. It offers no-penalty prepayment on loans, a 25-year manufacturer warranty on products and a BluePower Plus+ solar loan program, ensuring an exceptional financing experience.
- Green Home Systems: Green Home Systems (GHS) offers innovative solar roofing solutions and high-efficiency panels from leading manufacturers like Panasonic and LONGi. GHS also provides solar batteries and backup generators, making it a top choice for reliable and advanced solar installations in Texas.
- Elevation Solar: Elevation Solar stands out with its comprehensive Elevated Home service, evaluating home energy usage to design custom solar systems. Offering high-quality LG and Panasonic solar panels, smart home solutions and a 30-year warranty, Elevation Solar aims to optimize energy efficiency and savings.
- Momentum Solar: Momentum Solar operates in areas with robust incentives, offering premium monocrystalline panels and comprehensive 25-year warranties. The Momentum App keeps customers updated throughout the installation process, ensuring a smooth and informed experience.
- Longhorn Solar: Starting as a Christmas light company, Longhorn Solar launched its solar division in 2009. Known for efficient solar panel systems and a no-pressure sales approach, Longhorn Solar offers durable equipment backed by a 25-year warranty. Their local expertise ensures a smooth installation process for Texas homeowners.
- SunLux Energy: SunLux, despite being smaller, works with renowned brands and offers in-house installation services. Following a stringent five-step process, SunLux ensures ample support throughout the installation, with 25-year warranties for workmanship, equipment and performance.
Frequently Asked Questions (FAQs)
How long does it take to pay off solar panels in Texas?
It usually takes between six and nine years for solar panel installations in Texas to pay for themselves in monthly energy savings. With over 200 days of sunlight annually, the state’s favorable conditions contribute to this efficient solar payback period. Homeowners can expect significant monthly energy savings by harnessing solar power, making it a financially savvy and environmentally conscious investment in the long run.
Is the government paying Texas homeowners to go solar?
Texas does not currently have any statewide incentives for solar installations, but Texas residents can benefit from the 30% federal tax credit on solar energy systems.
Can solar power run an air conditioner?
Yes, solar power can run an air conditioner. However, for how long depends on the power requirements of your air conditioner and your solar system’s capacity. Air conditioners usually require a lot of energy, so if you’re worried about summer power outages, which is a realistic concern in Texas, make sure your system is big enough to run your specific AC unit for a significant period.