What Is the Cost of Solar Panels in Texas?
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Reduced home energy costs and carbon emissions are powerful incentives for installing solar panels. The cost of solar panels in Texas ranges from approximately $11,140 to $15,640 with an average of $13,353.
Highlights
- Solar panels in Texas cost about $13,353 to install, but a typical range is $11,140 to $15,640.
- Several common factors that determine the cost of solar panel installation include the size of the system, the type of panels, the brand, the installation company, the cost of labor, and tax incentives, among others.
- Many homeowners opt for solar energy as their preferred source of power since a solar panel system can increase their home’s value, decrease energy costs, and reduce their carbon footprint.
- Any project involving electrical work that directly connects to the utility power source is best left to professionals who are familiar with installation and handling techniques that will ensure the safety of the workers and efficiency of the system.
Installing solar panels can be an effective method to avoid typically high energy bills that homeowners in the sunny state of Texas experience. Because of the abundant amount of sunshine and the wide variety of solar program incentives, Texas is one of the best states for those interested in solar panels for home installation. Depending on their location, homeowners can reach out to Dallas, Houston, or San Antonio solar companies for local solar estimates.
The cost of solar panels in Texas is about $13,353, though cheap solar panels may cost around $11,140 and larger systems can cost up to $15,640. However, the average price of solar panels can vary depending on a variety of factors, especially federal investment tax credits that can reduce the price by about 30 percent. Before starting a solar panel installation job, homeowners are encouraged to learn more about the factors that influence the cost of installing solar panels in Texas.
Factors in Calculating the Cost of Solar Panels in Texas
The average cost of solar panels in Texas is primarily determined by the size of the system, the type of panels, and the type of roof, as well as the angle and condition of the roof. Other factors that can influence the cost include the purchase method, incentive programs, tax credits, labor rate, permit costs, and the prices set by individual installation companies. Homeowners will want to weigh these factors carefully when putting together a budget for this job.
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System Size
The main cost factor for homeowners to consider when budgeting for a solar panel system is the size of the solar system. The size is typically determined by the total amount of kilowatt output per day. Knowing how much power a home uses each day will help homeowners estimate how many solar panels they need to power their house, and thus the size of the system. The more panels that are needed to complete the job, the higher the cost of the installation for the materials and labor.
To calculate the system size based on the number of panels needed, homeowners can divide the total kilowatt hour (kWh) usage for 1 year by an average production output ratio of 1.3. Then they can divide that number by an average of 320 watts (W), which is the average wattage output per solar panel. The average home in Texas uses about 1,132 kWh per month or about 13,584 per year.
Number of panels = system size / production ratio / panel wattage
This calculation provides the following information for Texas solar panel needs:
Number of panels: 13,584 kWh / 1.3 / 320 W = 32.65
This means that the typical household would need at least 33 solar panels to keep up with the demand for energy. Homeowners can work with a solar panel installation company to determine the size of system they need. They can then use the following average costs to budget for their system, though they’ll need to speak with a few solar professionals to receive accurate estimates for their property.
| System Size | Average Cost (Materials and Labor) |
| 3 kW | $7,863 to $8,160 |
| 4 kW | $10,485 to $10,880 |
| 5 kW | $13,106 to $13,600 |
| 6 kW | $15,727 to $16,320 |
| 7 kW | $18,348 to $19,040 |
| 8 kW | $20,969 to $21,760 |
| 9 kW | $23,590 to $24,480 |
| 10 kW | $26,211 to $27,200 |
Purchase Method
The way in which a homeowner purchases a solar panel system can also impact the overall cost of the project. An up-front purchase is the least expensive option available, but it may not be feasible for everyone. It’s more common for a homeowner to take out a loan or sign a lease to help pay for the solar panel components and cover the installation costs.
Another option is power purchase agreements (PPA) which may be an option in certain areas and circumstances. This type of financing allows customers to only pay for the actual electricity that the system generates using a predetermined rate, while ownership of the system belongs to a third party. Some homeowners may opt to cash-out refinance their mortgage for the purpose of freeing up investment funds for the solar system.
Panel Type, Brand, and Quality
As with other products, the type, brand, and quality can affect the price. Premium brands will cost more than less popular brands, even if the solar panels are essentially the same. For example, Tesla enthusiasts will find that a Tesla solar roof costs between $60,000 and $150,000—much higher than the average $13,353. And solar shingles cost between $35,000 and $75,000, though their thinner profile is appealing to many homeowners.
Since solar panel roof costs vary widely, homeowners are encouraged to research the best solar companies in Texas to get an idea of the brands and services available, such as SunPower and ADT Solar. However, even products from the same company or brand may differ in quality, so it’s important for homeowners to research the products before investing. Additionally, the cost can fluctuate based on the type of solar panel chosen; these include monocrystalline, polycrystalline, and thin-film.
- Monocrystalline solar panels are the most costly choice, though they are also the most energy efficient. For the materials alone, homeowners will spend between $6,000 and $9,000 for a 6 kW monocrystalline solar panel system.
- Polycrystalline solar panels are the most common option due to the energy efficiency and midrange price. While these panels are a step down in quality from monocrystalline solar panels, homeowners will only need to pay about $4,500 to $6,000 for a 6 kW polycrystalline solar panel system before installation.
- Thin-film solar panels are the least efficient choice and will require more solar panels than average. They are typically installed on industrial or commercial buildings due to the space requirements. The quantity required can offset the savings, so the average price ranges between $4,500 and $6,600 for a 6 kW thin-film solar system.
Roof Type, Angle, and Condition
Another factor for homeowners to consider when looking into solar panels is the roof. The type of roof, the angle of the slope, and the condition will all influence the final price. Simple roof structures that only have one level are relatively easy and safe for installers to work on, while roofs with multiple levels are more challenging for installers.
If a roof has a steep angle, then it will be more difficult for installers to safely secure the solar panels to the roof. Similarly, if a roof is in poor condition, then homeowners may need to budget for additional roof repair costs. The best roofing companies, such as Aspen Contracting and CMR Construction & Roofing, can help homeowners ensure their roof is in top condition to support solar panels.
Labor and Permits
The cost of labor can fluctuate depending on where a home is located. Generally, rural locations will have a lower cost of labor due to the lower demand for solar panel installation, while urban areas will have both a higher demand and a higher associated cost for labor. Additionally, the larger the solar system, the longer it will take the installers to complete the job, which means higher total labor hours. Homeowners in Texas usually pay about $3,300 in labor fees for a 6 kW system.
Also, a homeowner will need to obtain a permit before the solar panel system can be installed. In some cases, the installation company will take care of permit acquisition, although the homeowner will still be responsible for paying for the permit. It’s a good idea to check with the solar panel installation company to determine how this charge will appear on the estimate and final bill.
Installation Company
Texas has significant solar energy production, so it should come as no surprise that there are a wide range of solar panel installation companies for homeowners to choose from when planning this project. However, the cost of the job can fluctuate depending on the specific installation company.
“I recommend that homeowners look for an installation company that has been in business for a while and has a good reputation,” says Will White, a solar application specialist with more than 15 years of experience in the solar industry, currently with Fluke Corporation, which produces test and measurement instruments for solar equipment. “Installers with a long track record will be best equipped to handle even the most complex solar installations.”
Homeowners will want to speak with several local solar panel installation companies, then whittle down the list to about three or four reputable companies. At this point, they’ll want to research and get quotes from each company before making a final decision about which installation company is the best in terms of price, quality, and service.
| Company | Average Cost of an 8 kW System |
| ADT Solar | $20,000 to $25,000 |
| Blue Raven Solar | $20,000 to $22,500 |
| Elevation | $25,000 to $27,500 |
| Freedom Solar | $17,500 to $20,000 |
| Momentum Solar | $20,000 to $25,000 |
| SunPower | $24,000 to $36,000 |
| Sunrun Solar | $20,000 to $25,000 |
Solar Incentives and Tax Credits
Solar energy is a renewable energy source that can be an effective source of power in many areas of the country. In order to support solar panel installation projects, federal, state, and local governments offer a wide variety of incentive programs and tax credit opportunities.
“In Texas, incentives like tax credits and rebates are also available to homeowners who install solar,” explains White. Homeowners can research local incentive programs or speak with solar professionals about tax incentives. The following Texas solar incentives are available to qualifying homeowners:
- Property tax exemptions from the assessed value of a home solar system.
- Austin Energy’s Residential Solar Photovoltaic Rebate Program, which gives eligible homeowners a $2,500 rebate after the purchase of a solar system and completion of a solar education course.
- CPS Energy Rooftop Solar Rebate, which offers rebates of up to $0.60 per watt of installed capacity for small businesses, schools, and nonprofits.
- Oncor Electric Delivery Residential Solar Program provides rebates to eligible customers who install a solar system with a battery backup.
- Sunset Valley Solar Rebate Program is a first-come, first-serve option that can give eligible homeowners up to $3,000 at a rate of $1 per watt of installed capacity.
- Federal Solar Tax Credit will allow homeowners to reduce their income taxes owed by up to 30 percent of the solar system cost.
Additional Costs and Considerations
Beyond the primary cost factors for this project, there are several additional considerations for homeowners to keep in mind when planning out the budget, including energy audit costs, product warranties, and environmental zoning restrictions. Homeowners are advised to ask the solar panel company about warranties and zoning regulations before starting this project. Additionally, they can check with the local power providers to determine the requirements for connecting with and benefiting from a solar system.
Energy Audit
Solar panel systems can be connected directly to multiple batteries for personal energy storage and use, in addition to being connected back to the electric utility. By connecting the solar panel system to the local electric utility, a homeowner can sell electricity to the electric company and reduce the cost of their ongoing electric bills. During high-production months, some homeowners’ systems produce more power than they consume, resulting in a credit on their electric power bill. This is known as a net metering program.
Even if the electric utility does not offer a net metering program, a homeowner will still need to have the system audited by the power company to ensure that it is safely set up. Generally, the local utility company will charge a small fee that ranges from $25 to $500. Typically, the solar panel installation company will schedule the energy audit, although homeowners will want to clarify the responsibility for this part of the project before starting the job.
Warranties
A warranty is intended to protect the investment of the homeowner in case of unforeseen circumstances. For instance, Texas homeowners often experience severe weather systems that can cause extensive damage to their homes. A warranty may be able to cover the cost of replacement or repairs to a solar panel system after a severe storm has passed through the area.
However, it’s important to note that a warranty may come with an increased cost, so homeowners will want to speak with the installation company to determine the best product and warranty for their area. The account representative can provide the homeowner with information on warranty terms and coverage options.
Local Regulations
In some areas, changing the appearance of the yard or the exterior of the home requires approval from local homeowners associations (HOAs). However, solar systems aren’t subject to HOA approval since Texas property code forbids HOAs from restricting a property owner from installing solar panels.
Additionally, residential solar installations in Texas do not require special zoning, although the homeowner or the solar panel installation company will need to get a building permit from the local permit office first.
Benefits of Choosing Solar Panels in Texas
Installing a solar system is a costly investment, so before hiring a company to complete this job, homeowners can evaluate the benefits of a residential solar system. Having this information will make it easier to decide if solar panels are worth it in Texas. “[Homeowners will want]to assess the economic feasibility of solar, which differs based on various factors, including electricity bill savings (determined by local energy rates), local and federal incentive programs, projected system lifetime, and available financing options,” advises White. “Based on an analysis of these factors, homeowners can determine the payback period and return on investment.”
Decreased Energy Costs
One of the primary advantages of solar energy for homeowners is the reduced cost of energy bills. Solar panels absorb energy from the sun and convert it into usable electricity. The electricity that isn’t immediately used in the home can be stored in batteries for future use or sold back to the utility provider.
Using the energy generated by the solar panel system reduces the amount of power the homeowner needs to purchase from the local utility, leading to lower electric costs for the entire home. If the utility has a net metering program, the homeowner can sell any unused power back to the utility company for a reduced power bill.
Increased Energy Independence
Typically, a solar panel system does not put the entire home completely off-grid. While it is possible to install an off-grid system that is disconnected from the local electric utility and electric infrastructure, off-grid systems are costly due to the number and size of the batteries that are required to store the generated electricity.
“Homeowners who install solar-plus-battery systems get additional benefits,” explains White. “Batteries allow homeowners to store excess solar energy for later use, such as backup power during a grid outage. It may also amplify the ability to reduce costs.”
Instead, most solar panel systems remain connected to the local electric grid to consume power at night or during periods of lower solar energy production. During periods of high solar energy production, the home can rely on the solar panel system for power, reducing the dependence on the local utility system and minimizing the impact on the electric grid.
Reduced Carbon Footprint
Solar energy is a readily available renewable resource with limited impact on the environment, although it’s more suitable for homes in sunnier locations. Making the switch to solar energy helps homeowners reduce the carbon footprint of the household and also aids the local efforts to reduce greenhouse gas emissions.
Solar energy does not emit greenhouse gases and does not rely on coal or natural gas. However, old solar panels and used equipment can be difficult to recycle, and only about 10 percent of all solar panels are recycled at the end of their lifespan. Still, the greatest benefit is the reduced carbon footprint made possible by harnessing solar energy for everyday use.
“Off-grid houses are typically designed to use significantly less energy than the typical grid-connected house,” says White. “This strategy of energy efficiency allows for a smaller off-grid solar system. There is now solar inverter technology available that allows a homeowner to have an on-grid solar-plus-storage system that can switch to off-grid operations when there is a grid outage, thus being able to benefit from both net-metering and energy independence. In most cases, it isn’t financially viable to take a grid-connected house off-grid, but this may change over time as technology improves and costs come down.”
Increased Home Value
Homeowners who invest in a solar panel system enjoy an increase in the overall value of their home. For anyone trying to make upgrades prior to selling the home, having an existing solar panel system to generate energy and keep utility bills low is an effective way to improve the home’s value and make the property more appealing to prospective buyers.
The impact of this upgrade on the home value depends on the location of the home, the general popularity of solar panel systems in the area, and the associated cost to maintain the solar panel system.
Solar Panel Installation: DIY vs. Hiring a Professional
There is a wide variety of home improvement projects that an experienced DIYer can handle without needing to hire a crew of professional installers. However, solar panel installation is not one of these projects. Any work on a roof comes with inherent risks and the potential for future leaks if the job is done improperly.
Working on roofs is dangerous, especially without the proper training, supervision, and equipment. Additionally, the type of roof, the slope of the roof, and the condition of the roof need to be assessed in order to put together a plan for the job. Otherwise, even if the panels are installed correctly, they may not work as efficiently as possible, which can lead to energy loss.
“[Issues] may arise during installation, like inadequate structural integrity of the roof that would need reinforcement or problems with the electrical system that require upgrades,” explains White. “Reputable professional solar installers are best able to identify these issues before installation. [Additionally], installing solar can be dangerous, so best to leave it’s to the professionals. Professional solar installers are trained in OSHA safety requirements, ensuring they use equipment like fall protection when on the roof or electrical safety equipment when working on energized systems.”
Solar panel installation is not a job for an untrained person who is unfamiliar with best practices for ensuring the panels are installed optimally and without damaging the roof. Professional installers are experienced and know how to stay safe while working with electrical equipment on a roof. These trained professionals will also be able to inspect the roof, assess the best location for the placement of the solar panels, and install the solar panels in the most effective position for the home. Homeowners can ask one of the best solar panel cleaning services about ongoing maintenance plans to keep their panels working properly throughout the year.
How to Finance Solar Panels in Texas
There are many ways to pay for solar panels in Texas, which makes it easier for homeowners to hire an installation company and invest in this energy upgrade. Homeowners can consider the type of financing and payment methods available before deciding if a solar system is the right choice for their home.
Thinking about getting solar panels?
Talk to a pro. Get free, no-commitment project estimates from solar panel installation services near you.