Texas ranks #13 in America for savings from installing solar panels on your home

Solar power in Texas

Last fact checked on June 12, 2019 by Catherine Lane

The investment return and savings that can be made by buying solar panels varies more by city and utility in Texas than in any other state in the country. This is largely due to the fact that Texas’s electric utilities are deregulated, making it possible for people in most cities to choose which retail electric provider they want to use. This causes a lot of variation in the types of solar incentives available for the people of Texas.

In some cities like Austin, Brenham, El Paso, and San Antonio, upfront utility rebates are abundant. 1-for-1 net metering programs offered by providers create a great environment for homeowners to install solar. These incentives, coupled with the 30% solar tax credit make it plausible to pay back the cost of the solar system installation in 8 years or less. What that means is that over the course of 8 years, you will have saved as much as you paid for the system.

In other cities, utilities and providers do not offer upfront rebates or 1-for-1 net metering. The payback for systems in these areas can take up to 15 years.



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Solar power in Texas

Texas solar power facts


Average cost of a 5kw solar power system in 2020
Price shown before incentives

7 Years

Average payback time


Average lifetime savings
Price shown after repayments of capital


levelized cost of solar energy


If you don't get solar
The forecast average utility price over the next 25 years


Annual power production

Cash flow graph based on cash purchase of a 13.2kW system

This 13.2kW system would offset 100% of your energy usage if your typical monthly bill in Texas is $214, however your situation may vary so try our solar calculator to get a result tailored to you.

Solar companies in Texas that provide pricing through the Solar-Estimate marketplace


Best solar offers currently available in Texas

Solar calculator and quote comparison tool

Compare solar quotes from the top solar companies in Texas

How much do solar panels cost in Texas

$2.58 per watt

Cash purchased solar system
Before 26% solar tax credit

$2.87 per watt

Financed solar system
Before 26% solar tax credit

N/A cents/kWh

Av. 15 year term, 2.5% price escalator

What are the pros and cons of buying solar panels for your home in Texas

An advantage of installing solar panels in Texas is that there is a high amount of radiant energy emitted from the sun, also known as solar irradiation. If you live in an area where net metering is offered, the high production of your system has the potential to save you a ton of money on your electric bill. Green Mountain Energy and Reliant Energy are two examples of retail electric providers that offer net metering programs. The state also offers a renewable energy system property tax exemption, so 100% of the appraised value of your solar system is exempt from your property taxes.

SolarPowerRocks provides a great breakdown of solar incentives and policy for each state within the US.

Some disadvantages of installing solar in Texas include the fact that there are no statewide residential incentive programs and that the state does not require every utility to offer net metering programs. Also, many electric providers and utilities do not offer incentives or rebates to their customers.

However, because you have the ability to choose your electric provider in Texas, you can always see if there is a provider in your area that does offer solar incentives.

Enter your details to calculate the cost and savings you are likely to get from installing solar panels for your home.

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Best brands of solar panels

To find the best brands of solar panels you can use America's most trusted solar panel comparison and reviews website, SolarReviews.

However, reviews of solar panels can be a bit meaningless because most consumer owners have not had any issues and so while solar company reviews are very important when choosing solar installers they are of less use when choosing solar panels.

For more information to help you make an informed decision about this topic, I would recommend this article about buying solar panels.


Unlock live pricing on the best solar panel brands!


How much electricity will solar panels produce in Texas

Solar panels produce different amounts of energy in different locations.

Around the Austin area solar panels installed on a south facing 20 degree pitch roof will typically produce:

1,360kWh per year per 1kw of peak DC (direct current) capacity

For more information about how your location, roof direction and roof tilt affects solar power production use the solar panels calculator and enter your zipcode below.


See how much electricity your solar panels could produce

I want to buy a solar panel kit and install it myself

Texas Solar Calculator

Regardless of what you want to know about the economics of installing solar panels for your home or business in Texas we have a solar calculator that can show you exactly the information your require.



What you can find out about installing solar panels in Texas using our full monthly solar calculator

This solar calculator requires you to input your address, utility company, your average monthly power spend - It tells you:

If you want to see all of the above but also see live pricing, the three best solar deals available in your city and get binding quotes from each of these solar companies then use this Texas solar panels calculator. This calculator requires you to also input your name and contact details because most of our 200+ installer partners will only authorize the sharing of their live solar pricing where we have validated that you are a real homeowner with a home in their service area. We respect the privacy of your data and only share your contact details with the solar companies you ask us to get binding quotes from.


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Solar calculator

Going solar in Texas

Check out all of the ways energy providers of Texas can help you be more energy efficient and save money.

The following programs are available:
Find your local rebates and incentives

Your city may have further incentives to offer. Please keep in mind that the best source of up-to-date information on incentives are the solar installers who specialize in your area.