Texas is the nation‘s second largest producer of solar energy, with over 18,000 megawatts of installed solar capacity as of 2021. This massive adoption is driven by excellent solar resources across the state as well as attractive economics. Homeowners in the Lone Star State stand to save thousands of dollars by harnessing the sun‘s rays for electricity.
In this comprehensive guide, we analyze everything you need to know about going solar in Texas – from upfront costs to long term bill savings. You‘ll learn solar basics like system sizing and payback timelines. We also provide actionable advice from the best panel brands to reputable local installers. Let‘s unlock the benefits shining down on rooftops across Texas.
Current State of Solar Energy in Texas
Texas ranks 2nd in the U.S. for installed solar capacity after California, with over 18,000 megawatts able to power around 3 million homes. This is enough to offset 23 million metric tons of carbon emissions per year. Solar contributed 5.4% of Texas‘ electricity mix in 2021.
The solar industry supports over 24,000 jobs in the Lone Star State. And there is ample room for further growth – Texas ranks 9th for rooftop solar potential.
Several factors make the state ideal for solar power generation:
- Abundant sun – Texas averages 5 sun hours per day, with cities like El Paso seeing 6.5 peak hours
- High energy consumption – Texans use 40% more electricity than the national average
- Large available roof space on homes and commercial buildings
- Supportive policies like net metering and federal tax credits
With such strong solar resources and electricity demand, adopting panels continues to pencil out for residential and business use cases.
Average Cost of Solar Panels in Texas
Solar panels in Texas currently cost around $2.77 per Watt on average when looking at material and installation expenses before incentives.
For a typical 6 kW residential system size, that equates to $16,620 upfront. Of course exact solar panel system costs depend on your specific home‘s needs. We‘ll show you how to properly size panels later.
Fortunately the 30% federal solar tax credit and additional Texas incentives can shrink the net out-of-pocket cost drastically.
Impact of Panel Types on Pricing
There are two main solar panel materials to choose from, which affect pricing:
Monocrystalline – Often the premium choice despite higher $/Watt pricing, thanks to efficiency ratings exceeding 20%. Since you need fewer panels for the same output, monocrystalline can make sense if roof space is limited.
Polycrystalline – The more affordable option, although marginally less efficient at 15-18% typically. For large available roof space, polycrystalline lets you maximize total system size for your budget.
Beyond panel types, focus on quality when comparing bids rather than chasing the absolute lowest prices. Reputable brands and full system warranties ensure your long term solar ROI.
How Much Solar Do You Need in Texas?
Sizing solar panels comes down to your home‘s electricity requirements and available sun at the install site. Texas homes use over 1,100 kWh monthly on average – among the highest nationwide.
To determine the right system size in kilowatts (kW), take your average daily usage and divide it by annual peak sun hours for your city using this Texas sunlight data.
As an example, let‘s assume the state-wide averages:
- Average Daily Usage: 37.7 kWh
- Peak Sun Hours: 4.92
Daily usage divided by peak sun hours gives us a recommended 7.7 kW system for typical Texas conditions.
For context, that would cost around $21,329 before accounting for tax credits and is sized to offset the vast majority of your electricity needs with net metering.
Always use your historical usage and precise sun data rather than rules-of-thumb. An experienced solar installer can assess on-site conditions and propose the optimally sized system.
Recommendations for the Best Texas Solar Installers
While Texas hosts over 240 solar companies, vetting installer expertise and reliability protects homeowners from issues down the line. We lean on ratings from EnergySage when evaluating top picks.
Highlights what separates the most qualified solar pros:
- Longevity and experience
- Use of premium equipment
- Attentive project management
- Robust warranties on workmanship
Based on these criteria, our top Texas solar installer recommendations are:
NRG Clean Power
In business for over 30 years and operating Texas offices since 2003, NRG brings scale as one of the country’s largest clean energy providers. Their expertise translates to thoughtful system design and component selection.
NRG exclusively utilizes high-grade panels from LG, Panasonic, Solaria, etc. All equipment comes with lifetime product and 25 year performance warranties, backed by their strong balance sheet.
Texas Solar Pros
A newer entrance at just 2 years old, Texas Solar Pros makes our list due to their 20+ years of founder experience. NABCEP certification and A+ BBB rating cement them as a trusted local partner.
Texas Solar Pros specialize in customized residential solar plans, using quality components eligible for all incentives. Their system warranties span 25 years to give comfort around long term performance.
Texas Electricity Bill Savings with Solar Panels
Texas homes use over 40% more electricity than the U.S. average given factors like house size and extreme weather driving HVAC costs. But how much can residential solar arrays reduce bills in the state?
- Using a 6 kW reference system at the $16,620 pre-incentive price plus average Texas electric rates, payback takes just over 9 years
- Beyond break-even, cumulative electricity savings add up to $24,940 in the conservative 20 year lifespan estimate
- Bumping estimated useful life to 25 years results in over $41,000 return on investment
Savings will ultimately depend on your system size, offering even higher potential value for larger solar arrays. And that‘s before considering incentives that accelerate payback timelines.
Solar Panel Rebates and Incentives in Texas
While historically Texas policymakers supported fossil fuel industries, solar financial incentives exist at both state and federal levels to drive affordability.
Federal Solar Tax Credit
The most impactful program remains the 26% federal investment tax credit, which was recently extended through 2032 before dropping incrementally each year. This effectively cuts around 25% off gross system costs after signing an installation agreement.
Property Tax Exemption
Texas offers a 100% homestead exemption for the added property value from solar improvements. Without this policy, higher assessed values would increase local property tax bills.
Solar Rights Law
The state passed solar rights legislation preventing overly restrictive regulations, homeowner associations, or obstacles like shadow casting buildings that limit solar production viability. This protects system investments.
Austin Energy Rebate
Austin residents receive $1,250 plus $0.85/Watt up to 50% of total costs through the local utility‘s solar incentive program. Similar municipal initiatives exist in other regions.
See a full overview of Texas solar incentives and rebates here.
Key Takeaways on Texas Solar Panels
- With America‘s #2 largest solar market full of potential and sun hours, Texas homeowners can benefit from electricity bill savings and energy independence through rooftop systems
- Carefully weigh panel types, expected production, and installer reputation when budgeting since Texans require larger systems on average
- Even before state incentives, the federal tax credit and accelerated payback make solar a wise investment
- Crunch the numbers for your location‘s conditions and power consumption using our guidance for optimal value
We simplify the variables surrounding solar panels in Texas so you can focus on joining the clean energy movement sweeping the state. Feel ready to explore quotes? Reach out to our recommended installers for next step advice.
Frequently Asked Texas Solar Questions
How long is the payback period for solar panels in Texas?
For a properly sized system, Texas homeowners can expect a 9 year payback period on average. This represents the time for electricity savings to offset system costs. Paybacks vary based on your specific usage, rates, and array size.
What solar panel brands does Texas use?
Top solar modules spotted across Texas installs include REC, Qcells, LONGi, Canadian Solar, and LG. Equipment selection depends on factors like panel types, temperature ratings, and installer preference. Focus more on product certifications and warranty terms rather than brands alone.
Can solar work with a lease or loan in Texas?
Yes, beyond buying solar panels outright, Texans can finance them over longer timeframes of 10-25 years. Solar loans provide fixed rates as low as 2.49% APR. Or solar leases exchange upfront system costs for ongoing electricity payments benefitting from solar savings built in.
What incentives exist beyond the federal solar tax credit?
Check locally, but Texas incentives include property tax exemptions for added home values under solar rights laws. Some municipalities like Austin Energy offer strong additional rebates. And with net metering, excess solar electricity earns bill credits.
