Key Takeaways
| Key Point | Details |
|---|---|
| Average Cost Per Watt | $2.60 – $3.00 |
| Total Cost Before Tax Credits (5 – 10 kW System) | $13,000 – $30,000 |
| Total Cost After Tax Credits (5 – 10 kW System) | $9,100 – $21,000 |
Installing solar panels in Texas can significantly reduce your energy costs and increase your property value. Understanding the costs involved and available incentives can help you plan your solar panel installation effectively.
Average Cost of Solar Panels in Texas
The cost of solar panels in Texas varies based on the size of the system. Below is a breakdown of average costs by system size:
| System Size | Average Total Cost | Average Cost (After 30% Tax Credit) |
|---|---|---|
| 3kW | $7,800 – $9,000 | $5,500 – $6,300 |
| 4kW | $10,400 – $12,000 | $7,300 – $8,400 |
| 5kW | $13,000 – $15,000 | $9,100 – $10,500 |
| 6kW | $15,600 – $18,000 | $10,900 – $12,600 |
| 7kW | $18,200 – $21,000 | $12,700 – $14,700 |
| 8kW | $20,800 – $24,000 | $14,600 – $16,800 |
| 9kW | $23,400 – $27,000 | $16,400 – $18,900 |
| 10kW | $26,000 – $30,000 | $18,200 – $21,000 |
Cost Factors of Texas Solar Panel Installation
System Components
The total cost of a solar panel system includes several components, such as panels, inverters, mounts, and installation labor.
Tax Credits & Incentives
Texas offers several incentives and tax credits to reduce the cost of solar panel installation:
| Incentive Type | Description |
|---|---|
| Residential Clean Energy Credit (formerly Solar Investment Tax Credit or ITC) | A one-time 30% federal tax credit is available for homeowners who install solar systems between 2022 and 2032. The credit will reduce to 26% in 2033 and then to 22% in 2034. |
| Property and Sales Tax Exemptions | Homeowners are not taxed for an increase in the home’s value resulting from the solar installation. New solar system purchases are exempt from Texas’ 6.25% state sales tax. |
| Solar Power Purchase Agreement (SPPA) | The solar company pays for most or all the installation and ongoing maintenance. The homeowner is guaranteed a competitive fixed rate for the electricity produced. The solar company owns the equipment. |
| Solar Lease | Like SPPAs, the solar company owns, installs, and maintains the solar system. The homeowner pays a fixed monthly fee to use the energy generated from the panels. |
| Local Government & Electric Company Incentives | Incentives and rebates vary by location. |
| Net Metering / Solar Buyback Programs | Your solar panels connect to the public electricity grid. You receive credits for the excess energy your solar panels generate and send back to the grid. |
FAQs About Solar Panels in Texas
Are Solar Panels in Texas Worth It?
Yes, solar panels are worth it in Texas due to high electricity costs, abundant sunlight, and numerous state and federal incentives.
What is the Tax Credit for Solar Panels in Texas?
The federal Residential Clean Energy Credit provides a 30% tax credit for solar panel installations from 2022 to 2032, reducing to 26% in 2033 and 22% in 2034.
Can an HOA Deny Solar Panels in Texas?
No, under Texas law, homeowners associations (HOAs) cannot deny the installation of solar panels, ensuring that homeowners have the right to install solar energy systems.
How Long Do Solar Panels Last in Texas?
Solar panels typically last 25 to 30 years, with minimal degradation in efficiency over time.
Getting Estimates from Solar Installers in Texas
When seeking estimates for your solar panel installation, consider the following tips:
- Get Multiple Quotes: Compare prices and services from different contractors.
- Check References: Look for reviews and testimonials from previous clients.
- Verify Credentials: Ensure the contractor is licensed, insured, and experienced in solar panel installation.
- Ask About Customization: See if they offer custom solutions to meet your specific needs.
Questions to Ask a Texas-Licensed Solar Installer
- How long have you been in business?
- Can you provide references from similar projects?
- What services are included in your standard package?
- Do you offer any specialized solar designs?
- What are your rates for additional services?
- How do you handle unexpected issues or additional requests?
Cost of Solar Panels in Texas Summary
Installing solar panels in Texas can significantly reduce energy costs and increase property value. By understanding the costs, benefits, and available incentives, you can make an informed decision that meets your needs and budget.
For more information on solar panels and to explore other cost-related guides, visit our detailed articles on solar panel cost and home improvement cost.
