What is the Cost of Solar Installation in Texas?
Solar energy is a popular source of renewable energy in Texas, with ample sunlight throughout the year. As a result, many homeowners in Texas are considering installing solar panels for their energy needs. However, one of the primary concerns that homeowners have is the cost of installing solar panels and a solar system. Here, we’ll explore the factors that affect the cost of solar installation in Texas, the average cost of solar installation in Texas, and the incentives available to reduce the cost of solar installation in your Texas home or business.
Why is Solar Energy Popular in Texas?
Texas is one of the top 10 solar states in the US and has ample amounts of sun, making it an ideal location for solar energy. According to Solar Reviews, Texas solar installations can power over 935,000 homes, making it a popular choice for homeowners looking to transition to renewable energy sources.
Factors Affecting Solar Installation Cost in Texas
The cost of solar panels in Texas depends on several factors such as the size of the system, the brand and quality of panels, the type of panel, the complexity of the roof, the installation company, and the cost of permitting and interconnection. As per EnergySage, a larger system may cost more, but the average per-unit price for solar decreases with increasing system size. A higher quality panel and a reputable installation company may also cost more. Permits and interconnection fees add a little to the total solar installation price.
Average solar panel cost by system size in Texas
| System Size | System Cost | System Cost (after ITC) |
| 3 kW | $8,160 | $6,038 |
| 4 kW | $10,880 | $8,051 |
| 5 kW | $13,600 | $10,064 |
| 6 kW | $16,320 | $12,077 |
| 7 kW | $19,040 | $14,090 |
| 8 kW | $21,760 | $16,102 |
| 9 kW | $24,480 | $18,115 |
| 10 kW | $27,200 | $20,128 |
Despite the initial cost of installation, solar panels offer long-term savings on electricity bills, and homeowners can also take advantage of incentives to reduce the cost of installing a solar system. Next, we’ll explore the average cost of solar installation in Texas and the incentives available to homeowners.
So, solar systems are an investment, but what kind of payback or ROI do they provide for Texas homeowners? Well, research suggests that the avg payback period for a solar system installation in Texas is approximately 11 years. And that the 20-year expected savings, adjusting for inflation are just over $24,000. These savings are when you compare electric rates with the expected utility rates over the same 20-year period.
Factors Affecting Solar Installation Cost
Several factors can affect the cost of solar installation in Texas. These include solar panel size, quality and type of the panels, the complexity of the roof (if they’re being installed on a roof), the company doing the installation, and the cost of permitting and interconnection fees.
Solar Panel Size
As mentioned earlier, the cost of solar panels in Texas decreases with increasing system size. Therefore, the larger the solar panel size, the more expensive the installation cost will be.
Brand and Quality of Panels
The brand and quality of solar panels can also affect the cost of installation. High-quality panels from reputable brands may be more expensive, but they often come with longer warranties and higher efficiency ratings, which can lead to more long-term savings.
Type of Panel
The type of solar panel can also affect the installation cost. There are several types of solar panels available, including monocrystalline, polycrystalline, and thin-film solar panels. Each type of panel has its own advantages and disadvantages, and the cost of installation can vary based on the type of panel selected.
Complexity of Roof
The complexity of the roof can also affect the installation cost. If the roof is steep or has multiple angles or levels, the installation may require additional labor and equipment, which can increase the cost of installation.
Installation Company
The installation company can also affect the cost of solar installation. It is essential to choose a reputable and experienced installation company to ensure that the installation is done correctly and efficiently.
Permits and Interconnection Fees
Finally, permits and interconnection fees can add a little to the total solar installation price. Homeowners must obtain the necessary permits and pay interconnection fees to connect the solar panel system to the grid.
Average Cost of Solar Installation in Texas
The cost of solar installation in Texas can vary based on several factors mentioned above. So, let’s look at the average cost of solar installation in Texas, before and after tax credits, and see how Texas compares to the national average.
Before and After Tax Credit
According to Ecowatch, the average cost of a solar system in Texas is $30,935 before the federal solar tax credit. However, after applying the 30% tax credit, Texans spend an average of $21,654, making it a more affordable option for homeowners. It is essential to note that this is the average cost, and the actual cost of installation can vary based on the factors discussed above.
National Average Cost Comparison
Texas residents pay just above the national average of $2.66 per watt, as per Ecowatch. However, the state’s electricity rates have increased by 30.7% from September 2021 to September 2022. Despite this, the cost of going solar in Texas has decreased by 53% in the last ten years, making it more accessible for Texas homeowners.
Rebate Programs Available
There are several rebate programs available to help reduce the cost of solar installation in Texas. According to Ecowatch, incentives such as net metering, solar rebate programs, and the federal tax credit can help reduce expenses. Homeowners can take advantage of these incentives to make solar system installation more affordable.
Incentives to Reduce Solar Installation Costs in Texas
As mentioned earlier, there are several incentives available to homeowners to reduce the cost of solar installation in Texas. These include the Federal Solar Tax Credit, property tax exemptions (in some areas), net metering, and other solar rebate programs.
Federal Solar Tax Credit
The federal solar tax credit, also known as the investment tax credit (ITC), is a tax credit that allows homeowners to deduct 26% of the cost of solar installation from their federal taxes. This tax credit applies to both residential and commercial solar installations and was set to be available until 2023, after which time the tax credit was set to decrease to 22%. However, the most recent changes to the rebates have moved the system rebates up to 30% until the year 2033. Of course, this can change, so it’s always good to double-check before you begin the process of installing a new system.
Property Tax Exemption
In Texas, solar panels are considered a property improvement and are therefore subject to property taxes. However, homeowners can apply for a property tax exemption, which allows them to exclude the added value of solar panels from their property taxes. This can lead to significant savings over the life of the solar panel system.
Net Metering
Net metering is a billing arrangement that allows homeowners with solar panels to receive credit for excess energy produced by their solar panel system. This means that homeowners can earn credits on their utility bills when they produce more energy than they use, which can offset the cost of electricity when they use more energy than they produce. According to SaveOnEnergy, net metering can help homeowners reduce their energy bills and increase their savings over time.
Solar Rebate Programs
In addition to the federal tax credit, there are several solar rebate programs available in Texas that can help reduce the cost of solar installation. For example, the Austin Energy Solar Rebate Program offers rebates for residential and commercial solar installations, and the CPS Energy Solar Rebate Program offers rebates for residential solar installations in San Antonio. Homeowners can take advantage of these rebate programs to make solar installation more affordable.
Other Considerations
It is essential to note that the incentives available to homeowners may vary based on the location and utility company. Homeowners should research the incentives available in their area and talk to their utility company to determine the best options for reducing the cost of solar installation.
Tips for Reducing Solar Installation Costs
While solar installation can be expensive, there are several ways to reduce the cost of installation. Things like having an energy audit completed for the property in question, using high-quality panels, choosing the right installation company, and making sure to choose the best payment options.
Conduct an Energy Audit
Before installing solar panels, it is essential to conduct an energy audit to determine the appropriate size of the solar panel system. Energy audits can identify areas where energy efficiency can be improved, reducing energy consumption and the size of the solar panel system required. This can help reduce the overall cost of solar installation.
Choose High-Quality Panels
While high-quality solar panels may be more expensive upfront, they often come with longer warranties and higher efficiency ratings, which can lead to more long-term savings. It is essential to choose high-quality panels from reputable brands to ensure that the solar panel system lasts for many years without requiring significant maintenance or repairs.
Choose the Right Payment Option
The payment option selected can also affect the cost of solar installation. Homeowners can choose to purchase the solar panel system outright, finance it with a loan or lease, or enter into a power purchase agreement (PPA). Each payment option has its own advantages and disadvantages, and homeowners should choose the option that best suits their financial situation. It’s important to mention that if you lease a system, you don’t get to take advantage of the primary FITC (Federal Investment Tax Credit)
Consider Community Solar
Community solar installations can be a good option for renters or homeowners who are unable to install solar panels on their property. Community solar installations allow multiple participants to share the benefits of a solar panel system, reducing the overall cost of installation, but like leasing, this can complicate the issue of receiving the ITC.
Take Advantage of Incentives
As discussed in the previous section, there are several incentives available to homeowners to reduce the cost of solar installation. Homeowners should take advantage of these incentives to make solar installation more affordable.
Choose the Right Installation Company
Finally, it is essential to choose the right installation company to ensure that the installation is done correctly and efficiently. Homeowners should choose a reputable and experienced installation company, like Amp Solar Squad, to ensure that the solar panel system is installed to the highest standards and that any issues are addressed promptly.
Summary of Solar Installation Cost in Texas
Solar installation can be an excellent investment for homeowners in Texas, offering long-term savings and environmental benefits. While the cost of solar installation can vary based on several factors, there are several ways to reduce the cost of installation, including taking advantage of incentives, choosing a reputable installation company, and selecting the appropriate payment option for your financial situation.
Homeowners should conduct an energy audit, choose high-quality panels, and consider community solar installations if they are unable to install solar panels on their property. By following these tips, homeowners can make solar installation more affordable and accessible.
Despite the upfront cost, solar system installation can provide significant long-term savings and reduce the carbon footprint of your home. With the incentives and programs available in Texas, solar installation is becoming more accessible for all homeowners. It is essential to do your research and choose the right installation company to ensure that your solar panel system is installed to the highest standards and that you receive the maximum benefits from your investment.
Frequently Asked Questions about Solar Installation Costs in Texas
How much does solar installation cost in Texas?
The cost of solar installation in Texas varies based on several factors, including the size of the system, brand and quality of panels, type of panel, complexity of the roof, installation company, and cost of permitting and interconnection. According to EnergySage, a larger system may cost more, but the average per-unit price for solar decreases with increasing system size. The cost of solar installation in Texas has decreased by 53% in the last 10 years, making it accessible for all homeowners.
What incentives are available to reduce solar installation costs in Texas?
Several incentives are available to homeowners in Texas to reduce the cost of solar installation, including the federal solar tax credit, property tax exemption, net metering, and solar rebate programs. Homeowners should research the incentives available in their area and talk to their utility company to determine the best options for reducing the cost of solar installation.
How can I choose the right installation company for my solar panel system?
Choosing the right installation company is essential to ensure that your solar panel system is installed to the highest standards and that any issues are addressed promptly. Homeowners should choose a reputable and experienced installation company, review their certifications and licenses, and read reviews from other customers before making a decision.
What payment options are available for solar installation in Texas?
Homeowners can choose to purchase the solar panel system outright, finance it with a loan or lease, or enter into a power purchase agreement (PPA). Each payment option has its own advantages and disadvantages, and homeowners should choose the option that best suits their financial situation. Amp Solar has two financing options available for your solar system purchase, so be sure to inquire about this in your initial discussion with us.
How much can I save by installing solar panels on my home in Texas?
The amount homeowners can save by installing solar panels on their homes in Texas varies based on several factors, including the size of the system, the amount of energy used, and the cost of electricity in the area. According to SaveOnEnergy, the average electricity bill for Texas residents in 2022 was $147. Homeowners who eliminate their energy bills entirely could save up to $24,000 over 20 years (dollar savings compared to avg utility rates and adjusted for inflation).
Choosing the Right Solar Panel System for Your Home in Texas
Choosing the right solar panel system for your home in Texas is an important decision that can impact the long-term savings and environmental benefits of solar installation. In this section, we will explore several factors to consider when choosing the right solar panel system for your home in Texas.
Determine Your Energy Needs
Before choosing a solar panel system, it is essential to determine your energy needs. Energy needs can vary based on several factors, including the size of your home, the number of occupants, and the amount of energy used. Understanding your energy needs can help you choose the appropriate size and type of solar panel system for your home.
Consider Your Roof Type and Orientation
The type and orientation of your roof can also impact the efficiency of your solar panel system. Solar panels work best when installed on a south-facing roof with little or no shading. If you have a flat roof or a roof that faces east or west, your solar panel system may require additional equipment or support structures to maximize efficiency.
Choose the Right Type of Solar Panel
There are several types of solar panels available, including monocrystalline, polycrystalline, and thin-film solar panels. Each type has its own advantages and disadvantages, and homeowners should choose the type that best suits their needs and budget. Monocrystalline solar panels are generally more efficient but more expensive, while polycrystalline solar panels are less expensive but less efficient.
Consider the Warranties and Certifications
When choosing a solar panel system, it is essential to consider the warranties and certifications offered by the manufacturer and installation company. Homeowners should choose a solar panel system with a long-term warranty and certifications from reputable organizations to ensure that the system lasts for many years and operates at peak efficiency.
Research the Installation Company
Finally, it is essential to research the installation company before choosing a solar panel system. At Amp Solar, we have installed hundreds of systems in Texas homes and businesses, as well as some solar system farm installation for local communities.
Homeowners should choose an installation company with a proven track record of success, certifications, and licenses, and positive customer reviews. The installation company should also provide a detailed estimate of the cost of installation and any incentives available to reduce the cost.
Ready to Invest in Solar Installation?
Solar installation in Texas can provide significant long-term savings and environmental benefits for homeowners. By following the tips and information discussed in this article, homeowners can make solar installation more accessible and affordable.
If you’re ready to invest in solar installation in Texas, it’s essential to research your options and choose a reputable installation company. With the incentives and programs available in Texas, solar installation is becoming more accessible for all homeowners.
Don’t forget to check out our other great content for more tips and information on solar installation and other energy-saving solutions.
Q & A
Q: Who determines the cost of solar installation?
A: The cost of solar installation is determined by several factors including the size of the system, brand and quality of panels, type of panel, complexity of the roof, installation company, and cost of permitting and interconnection.
Q: What incentives are available to reduce solar installation costs in Texas?
A: Homeowners in Texas can take advantage of several incentives such as the federal solar tax credit, property tax exemption, net metering, and solar rebate programs to reduce the cost of solar installation.
Q: How can I choose the right installation company for my solar panel system?
A: Homeowners should choose a reputable and experienced installation company, review their certifications and licenses, and read reviews from other customers before making a decision. Amp Solar has some of the most qualified installers in the state.
Q: Who should I speak to about the incentives for solar installation in Texas?
A: Homeowners should research the incentives available in their area and talk to their utility company to determine the best options for reducing the cost of solar installation.
Q: What payment options are available for solar installation?
A: Homeowners can choose to purchase the solar panel system outright, finance it with a loan or lease, or enter into a power purchase agreement (PPA). At Amp Solar, we offer financing from two different, highly reputable companies, making the entire process easier for businesses and homeowners in Texas.
Q: How much can I save by installing solar panels on my home in Texas?
A: The amount homeowners can save by installing solar panels on their homes in Texas varies based on several factors, including the size of the system, the amount of energy used, and the cost of electricity in the area.
