Texas Solar Panels Cost $10k-$19k in November, 2024

Solar panel pricing vs electricity costs in Texas

In Texas, the average household uses about 1,121 kilowatt-hours (kWh) of electricity per month. This results in an average electric bill of $164.58. These numbers include all types of homes, from small apartments to larger houses.

As of November 2024, Texans pay an average of 14.68 cents for each kWh of electricity they use.

To cover all their electricity needs, the average Texas household would need a 9kW solar system or larger. After applying the 30% federal tax credit, a 9kW system costs about $19,152.

Average solar panel costs by system size in Texas

Here's a breakdown of solar panel costs in Texas for different system sizes. Remember, larger systems cost more upfront but save you more on electricity and provide bigger tax credits.

Current solar incentives & rebates in Texas

The federal government offers a 30% tax credit to most people who install solar panels on their homes. This makes solar power more affordable across the country. In addition to this federal incentive, Texas has its own state and local programs to encourage solar power use.

Texas offers 53 different solar rebates and incentives through various utility companies and government agencies. These can help make solar panels even more affordable for Texas residents.

Is Texas good for solar?

Solar panels can be a great investment in Texas if you plan to stay in your home for more than 5 years. Here's why:

1. A typical 5kW solar system in Texas can save you about $28,858 over 20 years.
2. You can expect to break even on your investment in about 5 years.

This means that after 5 years, your solar panels will have paid for themselves, and you'll start saving money on your energy bills.

What not having solar panels in Texas will cost you

If you don't install solar panels or another backup energy system, you'll miss out on potential savings. You'll also remain completely dependent on your electric company for power. Recent events have shown that relying solely on the power grid can sometimes be risky.

In recent years, Texas residents have experienced about 2 power outages per year on average. These outages typically last about 3.5 hours each. However, major problems like damaged equipment, old power lines, or natural disasters can make outages last much longer.

Having a solar panel system, especially one with a backup battery, can help reduce the stress and inconvenience of power outages.

What does the cost of solar panels in Texas depend on?

How the Impacts of Power Outages Can Be Eased With Solar?

Power outages can be a significant inconvenience, especially in Texas where outages can occur due to various reasons such as weather events, infrastructure issues, or high demand. Here’s how solar panels can help ease the impacts of power outages:

Reduced Dependence on the Grid

Solar panels allow you to generate your own electricity, reducing your dependence on the grid. This means that even during power outages, you can still have some level of electricity supply if you have a solar panel system installed.

Backup Battery Systems

Combining your solar panel system with a backup battery, such as a Tesla Powerwall or other similar products, can provide continuous power during outages. These batteries store excess energy generated by your solar panels during the day, which can be used at night or during power outages.

Net Metering and Buyback Programs

Many Texas utilities offer net metering and buyback programs. These programs allow you to sell any excess energy your solar panels produce back to the grid. While this doesn’t directly help during an outage, it can offset your energy costs and make your overall energy bill more manageable, even when the grid is functioning normally.

Increased Reliability

By having a solar panel system, you can increase the reliability of your electricity supply. Even if the grid goes down, your solar system can continue to provide power, making it an excellent backup solution for critical appliances like refrigerators, medical equipment, and lighting.

Long-Term Savings

In addition to the immediate benefits during outages, solar panels can also save you money in the long run. By generating your own electricity, you reduce your reliance on utility companies and lower your energy bills over time.

Increase Property Value

Immediate Value Boost - Installing solar panels can significantly increase your home's market value. Multiple national studies have shown that homes with solar installations consistently sell for more than comparable homes without solar power.

Attractive to Modern Buyers - Today's homebuyers increasingly prioritize energy efficiency and sustainable features. Solar panels make your property more appealing to this growing market of environmentally conscious buyers, potentially leading to faster sales.

Long-Term Cost Benefits - The energy savings from solar panels directly translate into increased property value. Buyers understand that a home with solar panels means lower utility bills, making them willing to pay more upfront for these long-term savings.

Tax-Free Improvements - Texas offers special property tax exemptions for solar installations, meaning you can increase your home's value without raising your property taxes. This makes solar one of the few home improvements that adds value without increasing your tax burden.

Transferable Benefits - Most solar panel warranties and benefits transfer to new owners, making your home even more attractive to potential buyers. This added protection helps justify the higher resale value and gives buyers confidence in their investment.

Solar panel cost FAQs for Texas