Solar Panels in Texas

Solar Energy in Texas#

Texas is one of the top states for solar energy in the US, thanks to abundant sunshine and a rapidly growing solar market. With an average of 5.5 peak sun hours per day, the Lone Star State is ideal for residential solar installations.

Texas Solar Costs#

The average cost of solar panels in Texas is $2.65 per watt, which is below the national average. For a typical 8 kW system:

• Gross cost: $21,200
• After federal ITC (30%): $14,840
• Payback period: 8-10 years

Texas Solar Incentives#

While Texas doesn’t have a state-level solar tax credit, several incentives make solar attractive:

• Federal ITC: 30% federal tax credit
• Property tax exemption: Solar installations are exempt from property tax increases
• Local utility rebates: Austin Energy, CPS Energy, and other utilities offer rebates
• No sales tax on solar: Texas exempts solar equipment from sales tax

Net Metering in Texas#

Texas doesn’t have a statewide net metering mandate, but many utilities offer their own buyback programs. Austin Energy and other municipal utilities provide competitive rates for excess solar production.

Is Solar Worth It in Texas?#

With high electricity rates, abundant sunshine, and strong property tax exemptions, solar panels are a great investment for most Texas homeowners. Get a free quote to see your personalized savings.