Solar Energy in Texas
The investment return and savings that can be made by buying solar panels varies more by city and utility in Texas than in any other state in the country. This is largely due to the fact that Texas’s electric utilities are deregulated, making it possible for people in most cities to choose which retail electric provider they want to use. This causes a lot of variation in the types of solar incentives available for the people of Texas.
In some cities like Austin, Brenham, El Paso, and San Antonio, upfront utility rebates are abundant. 1-for-1 net metering programs offered by providers create a great environment for homeowners to install solar. These incentives, coupled with the 26% solar tax credit make it plausible to pay back the cost of the solar system installation in 8 years or less. What that means is that over the course of 8 years, you will have saved as much as you paid for the system.
In other cities, utilities and providers do not offer upfront rebates or 1-for-1 net metering. The payback for systems in these areas can take up to 15 years.
Texas Solar Power Facts
$2.58 watt
Average cost: 5kW solar power system.
Average Payback time
On average it takes 7 Years to pay back the system.
Average Lifetime Savings
On average, solar power can save you $84,486 over your lifetime.
5¢ kWh
This is the levelized cost of solar energy.
25¢ kWh
This is the levelized cost of energy without solar panels.
17,958 kWh
Annual power production of home solar panels.
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How much do solar panels cost in Texas?
Before 26% solar tax credit
Before 26% solar tax credit
Ave 15 year term, 2.5% price escalator
What are the pros and cons of installing solar panels in Texas?
An advantage of installing solar panels in Texas is that there is a high amount of radiant energy emitted from the sun, also known as solar irradiation. If you live in an area where net metering is offered, the high production of your system has the potential to save you a ton of money on your electric bill. Green Mountain Energy and Reliant Energy are two examples of retail electric providers that offer net metering programs. The state also offers a renewable energy system property tax exemption, so 100% of the appraised value of your solar system is exempt from your property taxes.
Some disadvantages of installing solar in Texas include the fact that there are no statewide residential incentive programs and that the state does not require every utility to offer net metering programs. Also, many electric providers and utilities do not offer incentives or rebates to their customers.
However, because you have the ability to choose your electric provider in Texas, you can always see if there is a provider in your area that does offer solar incentives.