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Texas Solar Information

Texas isn’t a bad state for solar. There’s always enough sunshine to cover your basic energy needs or at least to reduce your monthly electricity bill. The 26% Federal Solar Tax Credit as well as some local incentives will make your solar installation even more profitable.
  • #8
    Texas ranks #8 in the USA for savings from installing solar panels
  • 6634.49 kWh
    Annual AC energy output of a 4 kW solar system installed in Texas
  • 5.73 kWh
    Solar Radiation (kWh / m2 / day)
  • 11 ¢ /kWh
    The cost of electricity today in Coleman County Electric Coop Inc
  • 24 ¢ /kWh
    If you don't go solar. The forecast average utility price over the next 25 years

Texas Solar Facts

  • $1.30
    Average cost of a 4kw solar power system in 2019.
  • 3 years
    Average system payback period.
  • $51,476.60
    Average lifetime savings.
  • 4 ¢ /kWh
    Levelized cost of solar energy.
  • 4 kW
    Recommended system size.
  • Solar Power System Cost in Texas
  • $1.30 per watt
  • $4,774.25 total
  • 3 years

Texas has an incredible potential to become a leader in solar power production. The state has an abundance of open lands that are perfect for the generation of solar electricity. Texas also has more sun peak hours than the majority of the states in the country, about 5 hours a day, making it the ideal place to adopt solar. With so much sunlight throughout the year and such a diverse landscape, it is a perfect time to take advantage of solar.

Texas Solar Facts

  • Texas has almost 10,000 solar jobs and is the 3rd highest state for solar employment in the country.
  • There is enough solar installed in Texas to power over 360,000 homes.
  • Texas is expected to increase its solar installed capacity by 3 times in the next five years, making the state a nationwide leader in solar energy production.
  • The solar payback period in Texas ranges from 9 to 12 years.

The Cost of Solar Panels in Texas

In Texas, the average solar panel cost as of October 2019 is $2.90/W. If you are looking to install the 5kW solar panel system you will pay anywhere from $12,000 to $17,000, with the average market price for solar being about $15,000. This price can be decreased by thousands of dollars after deducting the Federal Investment Tax Credit, state incentives and other rebates.

Texas Solar Tax Credits

The Federal Investment Tax Credit – federal government program that rewards you for investing in solar energy. You get a 30% credit on your taxes in the following year after installing solar panels, including parts and labor.

Texas Solar State Credit – Texas does not have an income tax, so there are no tax credits to be collected.

Property Tax Exemption – the residents of Texas are 100% exempt from paying taxes on the increased property value due to solar power system installation.installation.

Texas’s Solar Incentives and Rebates

Net Metering Program – Net Metering requires utility companies to estimate the generation and consumption of electricity produced by your solar power system and to credit you for any excess of solar power. Texas does not have a statewide Net Metering program, however, many local utility companies do offer this program.

Texas Solar Power Rebates – Even though Texas does not have a statewide rebate program, many electric companies offer rebates to their customers. If you live in an area that is being served by one of these utilities, you might be eligible for some solar rebates.

  • AEP Texas Central Company: $600/kW, up to $6,000
  • AEP Texas North Company: $600/kW, up to $6,000
  • Austin Energy: $2,500 per installation greater than 3-kW
  • City of San Marcos: $1,000/kW, $2,500 max
  • City of Sunset Valley: $1,000/kW, $3,000 max
  • CoServ Electric Cooperative: $310/kW, $3,100 max
  • CPS Energy in San Antonio: $2,500 per project
  • Farmer's Electric Co-op: $2 per watt, up to $500 max
  • Oncor Electric Delivery: $538.53/kW + $0.2519/kWh in 1 year

Pros and Cons of Buying Solar Panels in Texas


  • +

    Relatively short payback period

    The solar payback period is a calculation that determines how much time it will take you to pay off your solar power system. To calculate payback time you need to know the net cost of the solar system and annual benefits that will come with solar. Contact us, and we will help you determine the point in time when your solar panels start making money for you.
  • +

    After the payback period, solar power is free

    Once you paid off your solar power system, the electricity it generates will come at no cost to you. In many cases, your solar investment will start earning money for you.
  • +

    Great savings on a monthly electric bill

    When you invest in a solar power system, you begin generating your own power, thus becoming less dependent on your municipal electric company and their inflated utility rates. The bigger the solar power system you install, the bigger savings you will see each month.
  • +

    Helping the environment since solar energy is clean, sustainable, and renewable

    Solar power is a renewable, sustainable, and clean source of energy. Unlike traditional fossil fuel, the generation of solar power does not contaminate our environment since it does not produce any harmful gases. Solar energy is available to us everywhere in the world and it is infinite, unlike fossil fuels resources that are very limited and will eventually run out.
  • +

    Support from the government and the state

    The prices of solar panel installation have reached the most affordable rates in years and still continue to go down. Furthermore, with the government support in the form of Federal Tax Solar Credit and Net Metering program available from the majority of utility companies in Texas, you can save significantly on the solar energy system.
  • +

    Very low maintenance

    All of the solar panels require only minimal maintenance, which consists of a light cleaning a few times a year. Since solar panels have no moving parts, there is no wear and tear with usage, and the chances of any breakage are extremely low. Plus, solar panels are completely silent when in operation.
  • +

    Excellent warranty protection

    Today all solar panels come with performance warranty and product guarantee. For the majority of solar panel brands, performance warranty guarantees optimal energy production for at least 25 years. Extended product warranties ensure repairs or exchange of any defective equipment for up to 25 years.
  • +

    Increase in the property value

    Lawrence Berkeley National Laboratory recently reported that installing solar panels would increase your property value. A few real estate organizations, like Zillow, also reported that homes with solar panels sell much faster and at higher prices compared to homes without solar energy systems.


  • -

    The possible high initial cost

    The main drawback of solar power systems is their cost. The initial installation of the PV system will include the cost of solar panels, battery, inverter, all the necessary accessories, mounting equipment, and the installation itself. That expense can be relatively high. Luckily, there are Federal solar tax credit and various state incentives that will bring the net cost down by thousands of dollars. Furthermore, with the technology moving forward, the prices are inevitable going down, making solar as affordable as never before.
  • -

    Must have a large, open area for installation

    All solar panels depend on sunlight to produce solar energy; thus, they have to be installed on open, large areas that are free from shade to work efficiently. Regrettably, some homeowners do not have that much space on the roof of their houses. The good news is that solar energy systems can also be mounted on the ground if they still have access to sunlight.
  • -

    Must be a property owner to install

    Unfortunately, if you are a renter, you might not be able to take advantage of solar power panels just yet. As of today, solar energy system installations are only available for homeowners with good credit and good income.

Is It Worth Going Solar in Texas?

When considering Texas’s solar energy advantages and disadvantages, it is obvious that solar is a great option here. With so much sunlight, Texas has the potential to become a leader in solar generation in the very near future. There is simply no reason not to become a part of the solar community and start making your own electricity in Texas today when the solar prices are lower than ever and you can still take advantage of the Federal Tax credit.

Tell us how much you are spending on electricity and we’ll calcalute how much you can save if you go solar
According to Coleman County Electric Coop Inc, we received the cost of kWH in your area and calculated energy consumption based on an average electricity bill for 3 months.
I am claiming the 26% Federal Tax Credit (ends 2020) i

When you install your solar system, 26% of your project expenses apply toward a credit to offset any taxes you owe that year. This federal tax credit is a major incentive to go solar, but it is being phased out by 2022.

Most people are eligible to claim this credit (you must owe federal taxes to be eligible).

System size

  • Mini
  • Small
  • Medium
  • Large
We recommended
3.66 kW medium system size
Provides up to 80% of electricity consumption
$1.3 per watt
Average system cost
  • image rec 3
    12 x 315 watt
    solar panels
  • +
  • image rec 3
    12 x 300 watt
  • +
  • image rec 3
    1 x 3 800 watt
$87.70/ month
Estimated savings on your average quarterly bill
  • $4,774.25
    Estimated system cost
    Excludes 26% Federal Tax Credit.
    This price does not include the installation cost.
  • 3 years
    Average system payback period
  • $51,476.60
    Estimated utility savings

Example of 4 kW system calculation in Minnesota for electricity bill $100

  • 11 ¢ /kWh
    The cost of electricity today in Coleman County Electric Coop Inc
  • 24 ¢ /kWh
    If you don't get solar. The forecast average utility price over the next 25 years
  • 4 ¢ /kWh
    levelized cost of solar energy

Relevant product for your system

Entry-level solar panels x 12
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Entry-level microinverter x 12
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Entry-level inverter x 1
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In stock
Canadian Solar 315W Solar Panel 120 cell CS3K-320MS Monocrystalline Black - A1 Solar Store
Cell number 120 cell
DC/Charger Volt Compatible 12v, 24v, 48v
Price per Watt $0.52
Rated Power Output 315 W
Voltage (VOC) 40.1V
Cell Type Monocrystalline
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LONGi 320W Solar Panel 120 cell LR6-60HPH Modules - A1 Solar Store
Cell number 120 cell
DC/Charger Volt Compatible 12v, 24v, 48v
Price per Watt $0.48
Rated Power Output 320 W
Voltage (VOC) 40.6 V
Cell Type Monocrystalline
In stock
Panasonic HIT 330W Solar Panel 96 cell VBHN330SA17 Monocrystalline Black - A1 Solar Store
Cell number 96 cell
DC/Charger Volt Compatible 12v, 24v, 48v
Price per Watt $1.03
Rated Power Output 330 W
Voltage (VOC) 69.7V
Cell Type Monocrystalline
In stock
Mission Solar 385W 72 cell Solar Panel MSE385SR9Sl P-type mono-crystalline silicon
Cell number 72 cell
DC/Charger Volt Compatible 12v, 24v, 48v
Price per Watt $0.7
Rated Power Output 385 W
Voltage (VOC) 48.53 V
Cell Type Monocrystalline