Solar panels installed on a residential home in Texas

Solar Panel Cost in Texas

Updated 2026 guide to solar panel prices, savings, and payback period in Texas.

Estimated Solar Savings

$2.60Cost Per Watt
$15,600Avg. System Cost
6Year Payback
$38,00025-Year Savings

Solar Panel System Costs in Texas

Below are estimated costs for different solar panel system sizes in Texas, including the 30% federal solar tax credit.

System SizeCost Before IncentivesFederal Tax Credit (30%)Net CostEst. Annual Production
4 kW$10,400-$3,120$7,2808,030 kWh
6 kWMost Popular$15,600-$4,680$10,92012,045 kWh
8 kW$20,800-$6,240$14,56016,060 kWh
10 kW$26,000-$7,800$18,20020,075 kWh
12 kW$31,200-$9,360$21,84024,090 kWh

What Affects Solar Panel Cost in Texas?

The average cost of solar panels in Texas is $260/watt before incentives. For a typical 6kW residential system, that means a total cost of about $15,600 before the federal tax credit.

After applying the 30% federal Investment Tax Credit (ITC), your net cost drops to approximately $10,920.Texas homeowners typically see a payback period of 6 years and save an estimated $38,000 over 25 years.

Texas solar costs have plummeted about 46% over the last decade. The state's massive, competitive solar market and strong sunshine deliver excellent value for homeowners.

Factors that affect your cost:

  • System size: Larger systems cost more but have a lower cost per watt
  • Equipment quality: Premium panels and inverters cost more but offer better efficiency
  • Roof complexity: Steep roofs, multiple levels, or shading can increase installation costs
  • Local labor rates: Installation costs vary by region within Texas
  • Incentives: State and local programs can significantly reduce your out-of-pocket cost
Beautiful home with solar panels in Texas demonstrating residential solar installation

Solar Incentives in Texas

Federal Solar Investment Tax Credit

30% Federal Tax Credit (ITC)

Texas homeowners can claim the 30% federal ITC. With no state income tax, some Texans use the credit against other federal tax obligations.

30%

State & Local Incentives

Property Tax Exemption

Property Tax

Texas exempts 100% of the added value from solar energy devices from property tax assessment.

100% property tax exemption on solar added value

CPS Energy Solar Rebate (San Antonio)

Rebate

CPS Energy in San Antonio offers rebates for residential solar installations.

$0.40-$0.60/W based on system size

Oncor Solar Buyback

Net Metering

Oncor and other Texas utilities offer solar buyback programs where excess energy is purchased at varying rates.

Varies by retail electricity provider

Austin Energy Value of Solar

Net Metering

Austin Energy offers a Value of Solar rate for residential solar customers.

Approximately $0.097/kWh for solar production

Net Metering

Texas does not have a statewide net metering mandate. However, many retail electricity providers in the deregulated market offer solar buyback plans at competitive rates.

Not Available

SRECs

Texas does not have an SREC market. The state's Renewable Portfolio Standard has been exceeded, and the deregulated market drives solar adoption through competition.

Not Available
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Top Solar Companies in Texas

Affordable Solar Roof & Air

4.9(721 reviews)

Years in Business: 14

Service Area: Houston

Phone: (800) 515-1254

Sunergy Solutions LLC

4.9(146 reviews)

Years in Business: 6

Service Area: Houston

Phone: (603) 289-1090

Green Power Energy

4.8(406 reviews)

Years in Business: 17

Service Area: Houston

Phone: (855) 525-1675

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Solar Panel Cost FAQ - Texas

The cost of solar panels in Texas typically ranges from $2.50 to $3.50 per watt before incentives. For a standard 6 kW residential system, homeowners in Texas can expect to pay between $15,000 and $21,000 before the federal tax credit. After applying the 30% federal Investment Tax Credit, the net cost drops to approximately $10,500-$14,700. Actual costs vary based on your specific roof, chosen equipment, and installer. We recommend getting at least three quotes from local Texas solar installers to find the best price.

The average solar payback period in Texas depends on local electricity rates, available incentives, and sun exposure. Most Texas homeowners see a payback period between 6 and 10 years. After the payback period, you essentially enjoy free electricity for the remaining 15-20+ years of your system's life. Higher local electricity rates and additional state incentives can shorten the payback period significantly. A qualified Texas solar installer can calculate your specific payback period based on your energy usage and roof characteristics.

Texas homeowners who install solar panels typically save between $20,000 and $50,000 over 25 years, depending on system size, electricity rates, and available incentives. These savings come from reduced or eliminated electricity bills, net metering credits, and any applicable SREC income. As electricity rates in Texas continue to rise (historically averaging 2-3% annually), your savings grow each year. The combination of the 30% federal tax credit and any Texas-specific incentives helps maximize your return on investment.

The right solar system size for your Texas home depends on your electricity consumption, roof space, and budget. The average Texas home uses approximately 10,000-11,000 kWh per year, which typically requires a 6-8 kW solar system. To determine your ideal size, review your annual electricity usage on recent utility bills. Factors like Texas's average peak sun hours, your roof orientation, and any shading will affect how many panels you need. A professional Texas solar installer will use satellite imagery and your usage data to recommend the optimal system size.

Yes, solar is generally worth the investment for Texas homeowners in 2025. With solar panel costs at historic lows, the 30% federal tax credit still available, and electricity rates continuing to rise, the financial case for solar in Texas is strong. Most Texas homeowners who go solar see positive returns within 6-10 years, followed by 15-20+ years of significant savings. Additionally, solar panels increase your home value, provide energy independence, and protect against future electricity rate increases. The best way to determine if solar is right for your Texas home is to get a free, customized quote from a qualified local installer.

Solar Panel Costs by City in Texas

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30%Federal Tax Credit
25+Year Savings
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