Cost of Solar Panels in Texas: Best Solar Companies, Cost and Installation


Solar is a complicated decision and OhmHome has compiled this guide to Texas solar with the cost of solar panels in Texas and advice on how to estimate cost and savings, navigate state and federal incentives, and find the best solar companies in Texas.

Solar Trends in Texas (Updated June 2017)

Cost of Solar Panels in Texas

The cost of solar has dropped significantly in recent years due to the increase in module supplies and other supply chain efficiency improvements. According to the U.S. Department of Energy’s Q4-16 Sunshot report, the median price of residential solar in major markets was $4.20 per watt with the lowest 20% at approximately $3.50 per watt. 

Solar Incentives in Texas

Texas Utility Solar Incentives

Depending your utility, you may be able to take advantage of utility rebate programs:

  • Austin Energy – Austin Energy currently offers $0.60 per watt of solar installed (or $600 per kW installed) and also has a Solar Tariff program that will pay solar home owners $0.109 per kW installed.
  • Oncor – Oncor currently offers $0.54 per watt of solar installed (or $538.79 per kW installed) and also offers $0.2519 per kWh of solar generated.
  • CPS Energy – CPS Energy offers up to $1.20 per watt of solar installed (or $1,200 per kW installed).
  • Others – Guadalupe Valley Electric Cooperative, Garland Power and Light and City of Sunset Valley also offer certain solar incentives.

Federal Solar Tax Incentives

The IRS offers a 30% tax credit for solar systems based on the cost after state rebates and credits (discussed above).  It is important to note that that federal tax credit only applies to purchased systems and you need sufficient tax liability to claim the credit.  The federal solar tax credit was set to expire in 2016, but was recently extended through 2019, at which point it will start to decrease to 10% by 2022.  The IRS form 5695, Residential Energy Credits can be found here.

Solar Financing in Texas

The number of solar financing options has expanded significantly in recent years to includes a number of low-interest rate loans, as well as power purchase agreements or solar leases. To learn more, refer to our lease or buy solar guide.

Our Major Texas City Solar Guides

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