Key takeaways


If you've lived in the Lone Star State for any period of time, the thought of tapping into its abundant sunshine for solar power has likely crossed your mind. In this easy-to-follow guide, we'll demystify the benefits, costs, and local incentives, making your shift toward a greener lifestyle a smooth process.

Texas Sunshine: A Renewable Goldmine?

Everything is bigger in Texas, and that holds true for its potential in renewables as well, even for a state known for its oil production. As the Texas economy thrives, it's no surprise that electricity demand has surged. In response to this growing need, solar has emerged as a reliable solution.

The state's geography and weather conditions are well-suited for solar, with an average of nearly 5 peak sun hours per day. So, not only does Texas have the will to harness the sun, but it also has the natural resources to do so efficiently.

Texas has already achieved notable progress with solar photovoltaic (PV) installations. According to the Solar Energy Industries Association (SEIA), the state has deployed PV systems capable of supplying electricity to more than 2.2 million homes, securing the second spot in national rankings.

But wait, there's more! Solar energy growth in Texas isn't showing any signs of slowing down. In fact, the state has set its sights on installing more than 4 gigawatts (GW) of new PV capacity over the next five years. With this ambitious goal and policies aimed at removing market barriers, Texas is positioning itself to become a leading force in photovoltaics nationwide.

But let's bring it down to earth a little. What does all this mean for you, the Texas homeowner? Here are just some of the benefits of embracing the sun’s power:

  • Financial Benefits: Looking at it from a financial angle, adopting solar resembles an investment rather than an expenditure. Thanks to the abundant sunlight in the state, a PV setup can recoup its costs faster than you might expect. Additionally, with a range of state incentives and policies, the shift may be more economical than you'd envision.
  • Environmental Benefits: Environmental sustainability is another significant perk. By tapping into renewable resources like the sun, you contribute to reducing greenhouse gas emissions and help combat climate change.
  • Energy Independence: There's also something to be said about energy independence. PV panels empower you to generate your own electricity, giving you more control over your electricity use and costs. No longer will you be solely dependent on the grid or subjected to the whims of fluctuating energy prices.
  • Increased Home Value: Houses equipped with PV panels are viewed as more energy efficient and prepared for the future, which increases their appeal to potential buyers. It's not only a matter of reducing your electricity expenses; it's also about improving your home's resale value.

Unpacking the Expenses

Now, let's talk about how much this green move is going to cost you. As of September 2023, getting into solar energy in Texas comes with an average price tag of $2.72 per watt. But what does this mean in terms of your energy needs?

A typical Texas home uses around 1,000 kilowatt-hours (kWh) a month. To meet this demand, you would need a PV system that can generate about 6.5 kilowatts (kW). Put it all together, and you're looking at an upfront gross cost of roughly $17,700. However, the actual amount you'll pay out of pocket can be significantly reduced, thanks to the federal investment tax credit (ITC) and various state and local incentives, which we'll explore later.

Now that you have a rough estimate of the costs involved, let's explore the factors that can either lighten your financial burden or increase it.

  • Panel Efficiency: The efficiency of PV panels relates to how well they can convert sunlight into electricity. While panels with higher efficiency may come with a higher initial cost, they have the potential to generate more electricity, leading to potential long-term savings.
  • Installation Factors: If your roof is shaded or isn't ideally positioned (typically facing south in the Northern Hemisphere), you may require more panels or specialized mounting systems, which could drive up the overall cost.
  • Labor and Equipment: Labor costs can vary based on your location within Texas. Additionally, the inclusion of additional equipment like inverters, responsible for converting the generated electricity into a usable form for your home, can contribute to the total cost.
  • Consumption: If your home's electricity usage exceeds the average, for example, due to an electric vehicle or a swimming pool, you'll need a larger solar system, which will naturally result in higher costs.

Additional Expenditures: Don't forget to consider expenses related to permits, inspections, and any necessary upgrades to your home's electrical system. These factors can also influence the total amount you'll need to invest.

Incentives Available for Texas Homeowners

From federal tax credits to local incentives, there are numerous ways to reduce the cost of installing PV panels for homeowners. Let's take a look at the key incentives every homeowner in the Lone Star State should be aware of.

Solar power in Utah is rapidly growing, fueled by abundant sunshine and favorable incentives. Residents and businesses are adopting solar to save on energy costs and reduce environmental impact.

Federal ITC: First on our list is the Federal Investment Tax Credit (ITC), which offers a significant benefit to those exploring solar power in Texas. This incentive allows you to subtract 30% of your total installation expenses from your federal income tax. To give you an idea, assuming the average installation cost for Texas is $17,700, with the ITC, you can bring it down to $12,390.

Net Metering: While net metering isn't a statewide requirement, several utility companies in the state offer it as an optional program. The core idea is this: if your solar panels generate more electricity than your home consumes, the surplus energy is sent back to the grid. You'll receive credits on your future bills or have them carried over to the next month. Remember that rates and terms may vary depending on your utility provider, so it's essential to keep abreast of the latest local policies.

Property Tax Exemption: Thanks to the Renewable Energy Systems Property Tax Exemption, your property taxes won't skyrocket when you install solar energy in Texas. In other words, you can enjoy the increased value of your home without any tax penalties.

Incentives at the Local Level: Even though Texas doesn’t offer statewide credits or rebates, many local governments and utility providers have created their own incentives. For instance, residents in Austin can receive a $2,500 rebate from Austin Energy, in addition to a Value of Solar Tariff that compensates you $0.097 for each kilowatt-hour (kWh) produced by your solar panels.

Similarly, if you're a customer of CPS, you might be eligible for a $2,500 rebate when you install rooftop solar panels. What's more, opting for panels sourced locally can net you an additional $500 rebate.

Solar power in Oregon is growing steadily, with the state's abundant sunlight and supportive policies driving increased adoption of solar energy systems.

Solar Power in the Lone Star State: Summary and Takeaways

If you've been thinking about tapping into solar energy in Texas, think no more—just go for it! The state gets plenty of sunshine, making it a prime spot for solar. You get the double win of saving on your bill and bumping up your home's resale value, all while doing your part for the planet. And if the cost is what's holding you back, remember, there are plenty of financial incentives, both federal and local, to help you out.


Key takeaways

Sep 28, 2023
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