Key takeaways


elcome to the sun-soaked Texas, where solar systems are not just a trend but a sensible investment for the future. If you’ve found yourself lost in photovoltaics, this comprehensive guide is your one-stop shop. We aim to provide you with detailed insights into the diverse aspects of going solar in this state—from types, prices, and government incentives to local installation companies. So sit back, let the sun shine down, and find out how to harness the sun the smart way.

The Solar Industry in Texas: Current Situation

The Lone Star State boasts an impressive 18GW of installed solar power, ranking second nationally, but it doesn’t stop here. The state is expected to add more than 40GW within the next five years and become the country's top solar state. These aren’t just numbers; it's a statement that reflects the state's commitment to harnessing the power of the sun.

Powering more than 2 million homes using solar energy has had a radiant effect on the state economy, providing more than 11,250 jobs in the solar industry with more to come.

Photovoltaics in Texas: Is the State Good for Solar?

When considering going solar, location is a critical factor, and TX offers a unique set of geographical and climate-based advantages that make it an ideal choice for solar. One of the key variables in the efficiency of a photovoltaic (PV) system is the availability of sunlight. The state enjoys an average of 4.92 peak sun hours per day, which, when translated to solar energy, means more bang for your buck.

The Average Consumption of Energy

The average TX household uses about 1,176 kWh of electricity per month, higher than the national average of around 800 kWh. With the potential of solar energy, this high consumption can be offset, leading to more savings on electricity bills than in other states.

Factors Affecting Solar System Prices

Understanding the cost of solar panels in Texas involves more than just a single number. It's a spectrum, influenced by various factors including the type of modules you choose, labor, and additional expenses associated with permits and inspections.

Average Cost of PV Systems

In the Lone Star State, the average cost per watt for a solar installation is $2.69. This figure includes the solar panels, inverters, and other essential hardware, as well as the labor costs.

The Types of Solar Modules

Different types of solar panels come with different price tags. Monocrystalline modules, known for their high efficiency, are generally the most expensive. Polycrystalline modules are cheaper but also usually significantly less efficient and best for households with ample space. Thin-film units offer a wide range of prices and efficiencies, making them either extremely budget-friendly or very pricey depending on the model.

Interested in harnessing solar power for your household? Explore our guide on Small Solar Panels for Home to discover how small-scale solar installations can reduce your carbon footprint and energy costs.

Use your own personal savings calculation to shop and compare top providers

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Labor: Should You Save on Installation?

Texas Annual Solar installations 2013-2022
Texas Annual Solar installations 2013-2022

While you might not see a separate bill for labor, it's integrated into the overall price of the solar system installation. It's important to factor this in when considering your investment.

Some people with the proper expertise might consider a DIY installation, however, this comes with significant drawbacks: limited or voided warranties and no eligibility for renewable energy incentives, since both usually require the system to be installed by a certified professional.

Permits and Inspections

Local regulations may require you to obtain permits for your solar installation, adding to the initial expenses. Additionally, post-installation inspections are usually mandatory to ensure the system meets local and state codes. This is another cost that adds to the total investment.

Government and State Incentives: Lowering the Costs

Making the transition to solar energy is a significant investment, but it's one that comes with financial assistance at both the federal and state levels, as well as utility-specific credits to help offset the initial cost.

Investment Tax Credit

One of the most substantial incentives for solar adoption is the Federal Investment Tax Credit (ITC), which allows homeowners to deduct 30% of the cost of installing a solar energy system from their federal taxes. This significant discount is applicable in 2023 and can make a huge difference in the overall financial picture of your solar investment.

Property Tax Exemption and Increased Home Value

This exemption means that the added value of your solar system won't increase your property taxes, allowing you to enjoy the financial benefits of your system without a corresponding increase in taxation.

Utility Incentive: CPS Energy

If you're a CPS Energy customer, you can receive a $2,500 incentive for installing a solar system at home. Additionally, if you choose locally sourced solar modules for your installation, you're eligible for an extra $500 credit. This level of support can further reduce the price of solar panels for homes in Texas.

Use your own personal savings calculation to shop and compare top providers

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Solar Financing Options

If you’re not looking to purchase your system upfront, then there are various options that allow you to still benefit from solar energy. Below, we delve into three major types of financing options: Loans, Leases, and Power Purchase Agreements (PPA).

Loans for Solar Systems

The traditional way to finance a solar system is through a loan. You can opt for a solar-specific loan or go through a standard personal or home equity loan. The advantage of this option is the fact that you own the solar system outright and are entitled to all the incentives and tax credits. Loan terms and interest rates will vary, but they provide a way to spread out the initial cost over several years.

Solar Leasing

Leasing is another option for those interested in solar but reluctant to pay the full upfront cost. In a leasing arrangement, you agree to rent the solar system from a solar provider for a fixed monthly rate. The provider is responsible for solar panel installation, maintenance, and repairs, but you won't be eligible for federal or state incentives since you don't own the system.

Power Purchase Agreements (PPA)

A PPA is somewhat similar to leasing but with a different payment structure. Instead of a fixed monthly rate, you agree to purchase the power generated by the solar system at a predetermined per-kilowatt-hour rate which is usually lower than the local electricity rate. PPAs often come with no upfront cost, but like leasing, you won't be able to claim any tax credits or incentives.

ROI and Payback Period: Is Solar Worth it in 2024?

With larger investments, it's crucial to think long term. With PV systems two essential metrics can guide this perspective: Payback Period and Return on Investment (ROI). Understanding these can offer valuable insights into the profitability of your solar investment over time.

Payback Period

The Payback Period refers to the time it takes for your solar system to generate enough savings to cover the initial investment. This metric gives homeowners an idea of when they'll begin to reap the financial benefits of their investment. According to statistics, the average payback period for solar in TX is around 10.71 years. After this point, all the electricity your solar system generates is essentially free, enhancing the worth of your home and contributing to long-term savings.

Return on Investment (ROI)

ROI is another critical gauge of the profitability of your solar system. It calculates the percentage of profit made on an investment over a specific time frame. In the context of solar panels, the ROI is a measure of your long-term gains compared to the initial cost of installation.

For a 5kW solar system, the average price after the ITC of 30% is around $10,000. Given that the projected 25-year savings amount to approximately $31,000, the ROI would be over 200%. That means the system brings you more than three times the amount you invested into it.

Use your own personal savings calculation to shop and compare top providers

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Top Solar Installers in the Lone Star State

When considering the switch to solar energy in your home, besides incentives, one of the most pivotal steps is choosing the right installer. This decision not only influences the cost but also the efficiency and longevity of your solar setup. In the state, a few companies have built a reputation for their quality service and products.

Efficient Home Services

Efficient Home Services is known for its comprehensive approach to home energy solutions. They don't just focus on installing solar panels and batteries but also consider your overall home energy efficiency. They assist you in making your home more energy-efficient which could include suggestions when it comes to insulation, appliances and lighting. This holistic approach ensures that you get the most bang for your buck, lowering both your energy consumption and costs.


SunPower is a titan in the solar industry, boasting years of experience and a track record of installing high-efficiency solar modules. Their systems are technologically advanced and come with extensive warranties. The company also states that their PV modules won’t lose more than 8% of their performance over their lifetime – that is higher than the average degradation rates. Overall, it’s the best option for those who prioritize performance and have less space for the installation.

Solartime USA

Solartime USA is a family-owned local solar company with an A+ rating on BBB. The company specializes in offering customizable solutions to meet the unique needs of every home. They take the time to evaluate your specific energy consumption patterns and tailor your solar setup accordingly. They also offer excellent customer service, making the transition to solar as smooth as possible.

Frequently Asked Questions

Q: Can you get free PV modules in TX?

A: Unfortunately, there is no place in the US that provides PV modules free of charge, however you can get significant discounts that make photovoltaics significantly more affordable in TX.

Q: How many modules do I need in the state?

A: Your system size depends on your electricity usage. A typical TX household might need between 17 to 21 PV units, but it’s best to consider your energy consumption to get a more accurate estimate.

Q: Is it hard to sell a house with PV modules?

A: Quite the opposite. A house with a photovoltaic system in place has a higher value and is generally more attractive to potential buyers. In fact, according to Rocket Homes, such homes sell 13.3% faster than comparable houses with a regular electricity system.

Use your own personal savings calculation to shop and compare top providers

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Final Thoughts on Solar in TX

Investing in solar energy within the Lone Star State is far more than a simple green initiative; it's a smart financial strategy with long-term gains. The unique combination of abundant sunlight and favorable policies, including various financing options and tax incentives, amplifies the return on your investment. Careful research and planning can turn this renewable energy resource into a substantial contributor to your long-term financial well-being, offering not just energy independence but also significant monetary savings.


Key takeaways

Unlock Solar Savings in Texas: Your Ultimate Guide

Texas Solar Landscape:

  • Boasting 18GW installed solar power, Texas ranks 2nd nationally.
  • Expected to add 40GW in the next 5 years, aiming for the top spot.
  • Over 11,250 solar jobs boosting the state's economy.

Solar Viability in Texas:

  • With 4.92 peak sun hours/day, Texas offers ideal conditions.
  • Average household uses 1,176 kWh/month, higher than the national average.

Understanding Solar Costs:

  • Average cost per watt for solar installation in Texas: $2.69.
  • Types of modules impact costs – monocrystalline, polycrystalline, thin-film.

Financial Incentives:

  • Federal Investment Tax Credit (ITC): Deduct 30% of installation cost.
  • Property tax exemption ensures added solar value won't increase taxes.
  • Utility incentive from CPS Energy offers a $2,500 bonus.

Solar Financing Options:

  • Loans, Leases, and Power Purchase Agreements (PPA) cater to diverse needs.
  • Loans offer ownership benefits, while leases and PPAs suit those without upfront costs.

ROI and Payback Period:

  • Average payback period in Texas: 10.71 years.
  • ROI for a 5kW system exceeds 200%, making it a lucrative long-term investment.

Top Solar Installers:

  • Efficient Home Services focuses on holistic energy solutions.
  • SunPower, a solar industry giant, offers high-efficiency modules.
  • Solartime USA provides customized solutions with an excellent BBB rating.


  • No free PV modules, but Texas offers significant discounts.
  • System size varies, with an average household needing 17-21 PV units.
  • Homes with PV systems sell 13.3% faster than those without.

Conclusion: Investing in solar energy in Texas goes beyond environmental benefits; it's a strategic financial move. Abundant sunlight, favorable policies, and various incentives amplify the return on investment. Careful planning transforms solar energy into a substantial contributor to long-term financial well-being, offering energy independence and significant savings.

Sep 26, 2023
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