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How Much Do Solar Panels Cost in Texas? (2023)

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A solar system and installation costs between $15,000-$20,000 on average in Texas Battery Lithium

How Much Do Solar Panels Cost in Texas? (2023)

Aniket Bhor is a solar engineer who has spent nearly a decade studying and working in the solar power sector in the European, Asian and North American markets. He is a climate enthusiast and avid cyclist, and he also loves to lose himself in books and cooking.

Tori Addison is an editor who has worked in the digital marketing industry for over five years. Her experience includes communications and marketing work in the nonprofit, governmental and academic sectors. A journalist by trade, she started her career covering politics and news in New York’s Hudson Valley. Her work included coverage of local and state budgets, federal financial regulations and health care legislation.

A typical 5 kilowatt (kW) solar panel system costs around $12,550 in Texas. The state ranks second for installed solar capacity nationwide thanks to its abundant sunshine and numerous solar-friendly policies

Texas also houses some of the best solar companies in the country, offering plenty of choices for homeowners exploring solar power. Read on to learn about the cost of solar panels in Texas, how to save with state incentives and rebates and if solar panels are worth it.

Get a quote from the top provider in Texas, Freedom Solar

The cost of going solar in Texas is about $2.51 per watt, slightly lower than the national average of $2.85 per watt and on par with the cost in Houston of $2.51 per watt. This means Texans can save more by going solar than some other U.S. residents. As for specific pricing, you can use our solar cost calculator to estimate the cost of solar for your home.

Below is an overview of solar panel pricing for different system sizes in Texas. We also listed the net price of each system after considering the federal solar tax credit.

The cost of solar panels varies based on several factors, including your installer, location, equipment quality and system size. Here is an overview of the key factors that can affect system pricing:

Besides saving on energy bills, solar panel owners can benefit from several solar incentives in Texas. Solar incentives and rebates can help lower the cost of a solar system or increase your overall energy savings. The most significant solar incentive in Texas is the solar Investment Tax Credit (ITC), which allows you to claim a tax credit worth 30% of your total system cost.

The state of Texas, local authorities and utility companies also offer incentives to make it easier for homeowners to go solar. Here is an overview of the state and local incentives available in Texas:

Texas is home to more than 600 solar companies, including some of our picks for the best solar installers nationwide. With so many options, Texans may find it difficult to select the right solar company. Based on factors such as services, pricing, warranties and reputation, we selected the following providers as the top solar companies in Texas.

For those located in Houston or Dallas, check out our top rated providers in your cities.

There are a number of factors that make solar worth it in Texas. First, the state receives an average of 2,800 sunlight hours per year, which is significantly higher than some other states. Texas also has attractive solar incentives to help you save on the cost of solar panels. Plus, solar panels offer higher electric bill savings as state power costs rise, totaling thousands of dollars over the 25-year lifetime of a system.

Solar also brings other benefits, like lowering your carbon footprint using clean energy generation, increasing the value of your home and offering protection against power outages. Therefore, it is no surprise that Texas already has enough solar panels to power more than 2 million homes.

Reputable solar companies in Texas will not offer you free solar panels. However, some companies may offer solar leases, wherein the customer pays monthly to rent panels from an installer. In a lease agreement, the homeowner does not own the system, so there is no upfront buying cost, and why some companies use the term “free solar panels.” But it is important to note that there are always costs associated with legitimate solar providers.

A 6 kW system costs $15,060 in Texas or $10,542 after you consider the federal solar tax credit. With those figures in mind, residents of Texas can enjoy a relatively short payback period of 6.6 years. Considering a typical system lasts 25 to 30 years, Texans can enjoy free energy for almost two decades after paying off their panels. The payback period for solar power in Texas is also lower than the national average of 8.5 years.

Payback periods can vary based on multiple factors like your system size and where you live. For instance, a system in Dallas may take longer to pay off than a similar system in Houston.

Many installers partner with lending agencies to offer flexible payment options to homeowners going solar. Homeowners unable to afford a large upfront purchase can benefit from solar loans in Texas. Customers can also choose a solar lease or power purchase agreement (PPA) to avoid upfront costs. But note that you cannot claim certain incentives like the federal solar tax credit if you lease a system.

Learn more about your home services options in our top reviews to see how you can keep your peace of mind.

We conducted in-depth research and analyzed several factors to determine our solar cost data, which is based on the following resources:

Aniket Bhor is a solar engineer who has spent nearly a decade studying and working in the solar power sector in the European, Asian and North American markets. He is a climate enthusiast and avid cyclist, and he also loves to lose himself in books and cooking.

Tori Addison is an editor who has worked in the digital marketing industry for over five years. Her experience includes communications and marketing work in the nonprofit, governmental and academic sectors. A journalist by trade, she started her career covering politics and news in New York’s Hudson Valley. Her work included coverage of local and state budgets, federal financial regulations and health care legislation.

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How Much Do Solar Panels Cost in Texas? (2023)

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