Texas is the second-most populous state in the country, with a population of 29 million people. With plenty of sunshine, it has been one of the top ten solar states since 2017. Texas solar installations now generate enough energy to power over 935,000 homes.
Each of Texas’ five largest cities has over 800,000 residents who increasingly see solar energy as a benefit. Prices have dropped by more than 70% in the last decade, making PV system installation more affordable.
How much do solar panels cost in Texas’ major cities?
The cost of installing a solar system is relatively consistent across Texas’ five largest cities:
- San Antonio
- Fort Worth.
Before incentives, a typical 6 kW system will cost around $16,000. When the federal solar tax credit is applied, the cost drops to around $11,200!
The cost of solar in Texas is competitive with the national average. In the United States, the average residential solar system of 6 kilowatts costs around $17,000 before incentives.
What types of rebates and tax credits are available in Texas?
The rebates, credits, and incentives available to homeowners to reduce their costs vary by city.
Here are some options for you to consider.
Federal and state tax breaks:
The federal solar tax credit, also known as the investment tax credit (ITC), allows you to receive a 30% tax credit on the cost of a solar PV system. This includes both labour and equipment costs. The system you install may be eligible for a property tax exemption at the state level.
These incentives are available to homeowners in all major cities, and the 26% ITC or Residential Renewable Tax Credit is unaffected by state-level incentives that homeowners may be eligible for.
According to Austin Energy statistics, the company currently supports nearly 6,300 residential solar systems, as well as numerous commercial, municipal, and school projects. The City of Austin has a residential solar rebate programme that requires homeowners to take a solar education course before installing a qualifying solar photovoltaic (PV) system in their home. This earns you a $2,500 rebate, and the course provides you with the knowledge you need to make an informed decision, lower your energy bills, and help the environment.
In 2022, the average cost of a PV system in Houston is $2.83 per watt. This works out to $16,980 before incentives based on the most common system size of 6 kW. Aside from the ITC, Reliant, TXU, Amigo Energy, and Green Mountain Power all offer net metering credits for any excess solar power generated and exported to the grid.
Dallas still has a lot of farmland, and one of the incentives is a $1,000 rebate for energy-efficient upgrades for Farmers Electric Cooperative members. As long as the requirements are met, the rebate is provided in the year of installation.
Oncor also offers incentives through participating service providers in its area, which help customers offset the initial cost.
San Antonio, Texas:
CPS Energy customers in San Antonio can take advantage of the utility’s solar rebate programme.
Residential projects can receive up to $2,500, with a $500 bonus for solar installations that use locally manufactured solar modules.
There are a number of similar incentives available for other cities in Texas, so you can enter your address and get a customised quote from an installer.
Which solar system is best for you?
The best PV system for your situation is determined by several factors, including your household’s energy needs, current energy bills, geographical location, and weather. If you live in an area prone to heavy rain or high winds, for example, you’ll need to choose a system that can withstand the elements.
Once you’ve decided on the panels you want, you should learn the following:
- Efficiency rating of 18% to 22%, compared to the industry average of 18% to 22%
- Compare the available warranty to the industry average of 10 to 25 years.
- To determine value for money, compare the cost to the expected relative efficiency.
Panels are typically classified as premium, standard, or economy, and prices, as well as durability, warranties, and manufacturing quality, vary accordingly. You can read the available reviews on various types of panels and request quotes from several solar installation companies. This allows you to get a variety of recommendations to help you decide.
Top three solar companies in Texas:
Choosing the best solar company can be a difficult task for homeowners. Residential solar is still a young industry, and not every company is legitimate.
To make this process easier for Texas homeowners, we’ve compiled a list of the top three best solar panel installation companies in Texas in 2022, taking customer reviews, warranties, and a variety of other factors into account.
Are the conditions in Texas favourable for solar?
Texas is a sunny state, with 236.8 days of sunshine on average per year. For a solar installation to be effective, panels must have non-shaded, unobstructed space on the ground, roof, or pole during key daylight hours. According to the Texas Solar Energy Society, facing south is best, but east and west-facing roofs capture more than 80% of the power that a south-facing roof does.
What are the advantages of going solar in Texas?
Lower energy bills, increased energy independence, security with backup power during outages, and a smaller environmental footprint are all benefits of going solar in Texas.
Furthermore, you are protecting yourself from future bill increases, and because PV systems come with a 25-year warranty, you can realistically expect an excellent return on your investment.
Is there another solar option in Texas?
Because Texas is an ideal location for utilising solar energy, there are numerous solar options to consider.
Solar water heaters, pool heaters, and solar generators all complement a solar PV system, ensuring not only energy independence but also a backup even during extended outages and bad weather. Residents who are unable to install solar on their roofs for whatever reason can benefit from community solar programmes, which allow households to benefit by sharing solar-generated electricity among members.
Is it worthwhile to go solar?
Solar rebates and incentives available to Texas residents can significantly reduce the cost of your initial investment. They not only make going solar more affordable, but they also provide assurance that you’re making the right decision.
Consider installing a solar system on your home for the cost savings and environmental benefits.
Important Key Points:
- A typical solar installation in Texas will cost around $16,000 before incentives or $11,200 after incentives.
- The federal solar tax credit and property tax exemption are among the state-wide incentives.
- Austin residents and Oncor and CPS Energy customers may be eligible for additional incentives to reduce the cost of going solar.
- Retail Electric Providers such as Reliant, TXU, and Green Mountain Power compensate system owners for excess solar power delivered to the grid.
Hopefully this article will be helpful in viewing costs, rebates, and tax credits of solar panels in Texas!