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Solar Installation Costs Texas

texas solar installation costs

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Are you thinking about switching to solar panels as a way to save money on your monthly energy bills in Texas? If so, you’re making a smart move that could stand to earn you a considerable amount of money over the life of your solar panel system.

But you’re probably wondering how much it costs to have solar panels installed in Texas. Let’s look at the statewide average so you can better budget your solar installation costs.

The Average Cost of Solar Installation in Texas

At present, the average solar panel cost in the state of Texas is about $2.74 per watt. Since we know that the average size of a solar panel system is 5 kilowatts (kW), you can expect the average solar installation cost in Texas to be between $11,645 and $15,755.

Moreover, the average gross price for solar panel installation in the state of Texas is approximately $13,700. Now, with that being said, you stand to save a significant amount on installation fees if you qualify for the 26% Federal Investment Tax Credit (ITC).

There are also other local and state solar incentives that you might be eligible for. If so, the net price that you end up paying for a solar panel system can be reduced by thousands of dollars.

You’ll want to check with your local officials to determine whether you’re eligible for government incentives. Like electric vehicles, the government realizes that the initial cost for going green is quite expensive.

However, it’s an effort to make the planet a safer and healthier place, so there are programs available that can help cover the costs of solar installation in Texas and other states.

Solar Rebates and Incentives in Texas

Texas homeowners in cities across the state can access substantial rebate programs, as well as special policies that can help offset the cost of solar panel installation and save them thousands of dollars in the long run.

Although Texas doesn’t have an official statewide solar rebate or solar tax credit program, there are many large and small utility companies and local governments that offer solar incentives to homeowners, such as:

Austin Energy

If you live in the city of Austin, you have access to a rebate worth $2,500. Not only that, but you’re also eligible for Austin Energy’s Value of Solar Tariff. This tariff pays you $0.097 for each kilowatt-hour (kWh) that your solar panels generate.

CPS Energy

As a CPS Energy customer, you could be eligible to receive as much as $1.20 per watt of solar panels that you have installed on your home’s roof. As with Austin Energy, this incentive’s value decreases as you install more solar panels.

If you’re considering going solar and you live in the CPS Energy service area, now is the time to make the switch.

Garland Power and Light, the City of Sunset Valley, and Guadalupe Valley Electric Cooperative all offer solar rebates for homeowners in their respective areas.

What’s more, solar panels have another financial benefit other than saving you money on your energy bills. When you have solar panels installed on your property, it can actually increase the value of your home.

Although higher-priced homes usually bring higher property taxes with them, Texas offers a renewable energy property tax exemption, allowing its residents to avoid paying extra taxes. And it’s all thanks to the added value that solar panels bring.

Texas Renewable Energy Offers

Texas Net Metering

While Texas doesn’t have its own statewide net-metering policy, there are many utility companies in the state, such as CPS Energy, El Paso Electric, the City of Brenham, and Green Mountain Energy, which have policies designed to credit solar energy system owners for the electricity that their panels create.

So if your utility company has a net metering policy, you’ll get credits on your electric bill for any extra electricity that your solar panels make. And when your panels aren’t making enough electricity to meet your usage, you can tap into those Texas net metering credits rather than buying electricity from the electric company.

Solar Rights Law

Do you live in a neighborhood that’s governed by a homeowners’ association (HOA) or property owners’ association? If so, you might be worried about HOA regulations keeping you from being able to make the switch to solar.

Fortunately, the state of Texas has its own solar rights law that keeps HOAs from interfering with or banning residents from installing solar energy systems on their properties.

As such, you can go solar without having to worry about any penalties or interference. Switching to solar in Texas is easier than ever, thanks to these laws.

Federal Solar Tax Credit

That’s right; you can take advantage of government incentives, too. Thanks to the Investment Tax Credit (ITC), residents can lower the cost of their PV solar energy systems by 26%.

You’ll want to keep in mind that this ITC only applies to people who pay for their PV system outright. You can do so either with a solar loan or cash purchase. You’ll also need to have a certain amount of income to qualify for this program.

Solar Equipment and Installation Fees

The solar industry is changing and coming out with new products all the time. As such, the type of equipment that was used in your installation can affect the total installation costs.

For example, there are currently three types of solar panels: polycrystalline, monocrystalline, and thin-film. They offer different efficiency and come at different prices.

There is several different types of equipment needed for solar panel installation, such as key lock systems, roof anchors, inverters, and much more. There are many different brands and models to choose from, too, which can also affect the total installation cost of your solar panel system. 

The quality of the solar panel installation company can also play a role in the total cost that you end up paying for solar panels in Texas.

Some installers are very successful, with their own electrician on staff. As you can imagine, you may end up paying more for their services. This is especially true compared to a traditional handyman with little experience in installing solar panels.

As with most services, the experience level and expertise of the installer will also affect the total cost.

Certain solar panel manufacturers charge more than others. If you want the best quality and performance, as well as a system that is reliable and trustworthy, you may end up spending more to get the best of the best.

Although you can sometimes find lesser-known companies that have great equipment, you’re typically going to want to stick with those that are well-known and have a track record for delivering quality components.

Yes, you will end up spending more on upfront costs, but you’re likely to have fewer issues. This will keep you from having to hire someone to perform maintenance on your solar panel system, thus saving you money in the long run.

If you want to install solar batteries, the costs for battery storage installation can also play a role in your total overall price. These batteries, along with their installation, have totally different costs. If you want to get solar batteries installed, you can expect to spend a bit more.

For many solar panel owners, solar batteries are well worth the extra cost. You can store unused energy and tap into it at a later date, such as when there’s a power outage.


Solar panels are an excellent way to go green and start saving money on your monthly energy bills. Although it can be expensive at the beginning, you’re going to see huge savings once you’re up and running.

You won’t see these savings at the very start of service. But after a few years, you can look forward to seeing significant savings on your installation.