Texas solar panels: The complete guide in 2025
Data updated May 20, 2025
Thinking about going solar? In Texas, you’ll need a 13.83 kW system to match the average electric bill. It’ll cost you around $20,507 after the federal tax credit.
Cost for an average system in Texas
| Out of pocket cost, cash | $29,295 |
| Federal tax credit (30%) | - $8,789 |
| Price post tax credit | $20,507 |
| 25-year savings | Payback period | Electricity offset |
|---|---|---|
| $86,663 | 6 Years | 99% |
As long as your federal tax bill is high enough, you can take advantage of the federal investment tax credit (ITC).
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Going solar in Texas
Texas produces more energy than any other U.S. state. While most of this energy comes from fossil fuels, the Lone Star State is also a leader in solar energy–second only to California.
With ample sun, it's no surprise that Texas is a great state for solar panels. But how much you can save with solar depends on your utility company: Some offer great incentives, while others don't offer any.
Here's what you need to know about getting solar panels in Texas.
Cost
How much do solar panels cost in Texas?
Solar panels will save you a lot of money over time, but the upfront costs aren't cheap. The average Texas homeowner needs a 13.83 kW solar panel system to cover their electricity needs, which comes out to $29,295 before incentives. Prices range from $24,901 to $33,689, but after the federal tax credit, that drops by 30%, and some utilities in Texas offer local incentives as well.
While this may sound high, it will usually pay off in Texas–especially if you add a battery. That's why over 99,000 Texas homeowners have used EnergySage to receive and compare quotes for solar installations. You can expect to earn back your initial solar investment through electricity savings in about 6.16 years, while most systems last at least 25 years. You'll often see this number referenced as your solar payback period.
Solar panel systems are expensive upfront purchases, but there are a few different financing options to make that initial cost more manageable.
Cash purchase: You pay for your entire system upfront. This provides the best long-term savings.
Solar loan: Enables you to maintain ownership of your system while owing little to no money upfront. When it comes to solar loans, subsidized clean energy loans through local incentive programs are usually your best bet. The next best options include a home equity loan or a personal loan—private solar loans typically come with higher interest rates or upfront fees.
Solar lease or power purchase agreement (PPA): A third-party company owns your system and either leases you the solar panels (solar lease) or allows you to purchase the electricity they generate (PPA). In general, these provide the lowest savings and garner the most negative press about solar. If you go this route, remember to read the fine print so you’re not trapped in a contract for longer than you intend.
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Incentives
What are the best solar rebates and incentives in Texas?
Incentives help bring solar's price tag down considerably in Texas. Here are the major ones to know about:
| Incentive | Average savings in Texas | Description |
|---|---|---|
Residential Clean Energy Tax Credit, formerly the federal investment tax credit (ITC) | $8,789 | Lowers your solar panel system's cost by 30% |
Local rebates | Up to $3,000 | Depending on your utility company, additional rebates may lower your system's cost. |
Texas solar property tax exemption | About 1.47% of your system's value, annually on average | If you use solar energy as a source of power, you won't need to pay tax on the value your solar panels add to your property. The average property tax in Texas is 1.81% |
Is net metering available in Texas?
If you live in a state with a net metering program, you can earn credits for the excess generation your solar panel system produces and delivers back to the grid. It’s essentially a solar buyback program that makes it so you owe little to nothing on your electric bills.
Utility companies in Texas aren't legally required to offer net metering or other solar buyback programs, but many of them do anyway. The details vary quite a lot between utilities and suppliers in Texas. If you don't have access to a good solar buyback program, adding a battery will help you get the most out of your solar panel system.
Equipment
Equipment quality
The more efficient a solar panel is, the more power per square foot. As of 2025, the most popular solar panels have a rated output of 450 watts. To get the most out of your solar energy system, choose panels with at least that much power output.
Your solar inverter setup is also important consideration—make sure it suits your roof’s layout.
And if you’re interested in a solar battery, it’s best to choose one that integrates with that inverter.
The best equipment tends to be more expensive, but it will often save you more money in the end. Premium equipment often has the best warranty terms, guaranteeing 25-40 years of coverage for repairs, replacements, and the lowest degradation rates (meaning they’ll maintain more of their power output for longer).
Companies
Who are the best solar installers in Texas?
We pre-screen all of the solar companies on EnergySage to ensure they'll provide you with a high-quality installation. We then rate them based on their results, reputation, and responsiveness. Here are the highest-rated EnergySage installers in Texas:
Ready to start looking for a solar installer?
Here are some of the most popular ones near you:
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resources
Top solar resources for Texas
- Texas Solar Loan Providers
Get a loan to finance your solar system. Review your options and learn about solar loan providers.
- Texas State Energy Conservation Office
Learn about TX solar programs from the state government.
- Texas Public Utilities Commission (PUC)
Read more about how utility companies work in TX.
- Texas Electricity Profile (EIA)
Learn about TX energy production and prices.
- TX State Solar Factsheet (SEIA)
See quick stats about how much solar energy has grown in TX.
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