How much do solar panels cost in Texas?

Installing residential solar panels can cost from $10,000 to $30,000 or more, although individual costs vary significantly.

On the high end, Mandy in Round Rock paid $45,000 for a system, Daniel in Richardson paid $68,000 and Michael in Humble paid $75,000.

Average solar panel cost by system size in Texas

Are solar panels worth it in Texas?

The majority of Texas solar customers we’ve talked to over the past two years would recommend it to a friend. Edward Hirs, an energy economics expert at the University of Houston, said solar panels work out for most people, noting that hot climates tend to come with good sunlight, especially in the South.

“It’s worth its weight in gold,” according to one solar customer, Cesar in Pflugerville, whose electric bill went down by $60 or $70. Another solar customer, Becca in Fort Worth, said she's saved “over $7,000” since going solar.

Others highlight the environmental benefits: “It seems that the effects of global warming are accelerated and extreme,” Ed in Flower Mound told us. “Everyone should do their part to reduce greenhouse gasses. Rooftop solar panels are our contribution to this effort.”

Of course, not every Texan who goes solar is completely satisfied. Some told us about sales reps making false promises, billing issues or frustrations with their electricity companies.

There’s an overarching positive sentiment in the state about the potential of solar energy, however. “In Texas, we get plenty of sun, so there's no reason not to take advantage of it,” Anthony in Center said.

“I've been very satisfied going solar,” Ted in San Antonio told us. “But if you don't go with the battery pack, it's a waste.” The state’s grid has faced challenges (like in early 2021, when winter storms caused widespread power outages). Solar panels with battery storage offer Texans a level of energy independence and resilience against such grid failures.

» MORE: Is it really worth it?

Do I need a solar backup battery in Texas?

A solar battery backup gives you an extra layer of insurance against grid vulnerabilities. It has many advantages, particularly in Texas, thanks to the state’s unique energy infrastructure.

Reliable power backup is a huge benefit, according to Hirs, particularly in areas like Houston with regular or semiregular power outages. With solar panels and an energy storage battery, you can keep your lights on. You don’t have to worry about your food spoiling, having to stay in a hotel until the power comes back — or worse. “It’s your opportunity costs,” Hirs said. “It’s a much higher opportunity costs if you have Uncle Joe on life support equipment.”

“I've been very satisfied going solar,” Ted in San Antonio told us. “But if you don't go with the battery pack, it's a waste.”

Keith in Baird also recommends getting a battery: “Today, a truck ran through the power line and it knocked all the electricity out. Ours just barely clicked,” he said. “The battery gives five hours, which is more than plenty. The techs fixed the power line before we ran out of electricity.”

Keith in Baird also recommends getting a battery: “Today, a truck ran through the power line and it knocked all the electricity out. Ours just barely clicked,” he said. “The battery gives five hours, which is more than plenty. The techs fixed the power line before we ran out of electricity.”

The downside is that batteries are expensive and not automatically included in your quote. ​​“The only thing I don't like is the battery is so expensive,” Haojun in Houston said. “Back in 2019, the backup battery was cheap. Right now, if I want to install two batteries, it will cost like $30,000 up. That's a lot.”

» COMPARE: Best solar batteries

Cost factors of going solar in Texas

How much you pay for your solar panels depends on a range of factors, including the quality of your panels and the size of your system.

Equipment costs

Residential solar equipment costs cover the price of the solar panels, inverters, mounting hardware and any additional components like batteries.

Think of it like buying a car: The main price is for the vehicle itself, but you pay extra for special features or accessories. The total cost depends on the size and quality of the equipment, and some brands or technologies are more expensive than others.

» LEARN: What is a solar array?

System size

An 8-kW or 8.5-kW system is common in Texas, but plenty of households need a 10-kW system or larger. For instance, Jose in Plano got a 16.8-kW system (plus two Tesla Powerwalls), and ​​Abdul in Mesquite got a 17.5-kW system, which should generate about double the average household’s energy needs.

How much you pay also depends on your panels’ wattage and efficiency. A 10-kW system typically requires between 20 and 40 panels. The more panels you get, the more expensive it is.

Installation company

Solar installation costs might include site assessment, system design and actual installation. Labor rates vary based on your location within Texas and the installer’s experience.

Solar panels are a long-term investment. If you ever have a problem with your system, like monitoring issues, you’ll want to resolve it quickly.

Paying more upfront to work with a reliable company is often worth it. For instance, Amanda in League City decided to go with a company that charged around $10,000 more because everything from sales to installation to maintenance was in-house.

» GUIDE: Solar panel installation guide

Condition of your roof

The installation might be more expensive if your roof requires significant modifications, is steep or has an irregular shape. Similarly, ground-mounted systems also vary in price depending on the complexity.

Solar panels typically last 25 years.

If you live in an older house, make sure your roof is stable enough to support solar panels. Quality solar panels should last 25 to 30 years, so you want your roof to last at least as long. We hear a lot of complaints from solar customers who have to pay to remove panels, fix their roofs and then reinstall the panels. It’s a frustrating and expensive process — avoid it if you can.

» BE SURE: Should you replace your roof before going solar?

How you pay

You can pay the full price upfront, but many people in Texas finance solar panels. A solar loan works like any other type of loan — there’s an application and approval process, and you pay it back over time.

If you finance your solar system, interest and fees add to the total cost over time. Victoria in Universal City was under the impression the total cost would be in the “high $40,000 range,” but “after all the financing fees, it ended up around $65,000.”

If you are considering a solar loan, lease or PPA (power purchase agreement), always ask:

• Is there a down payment?
• How much will I pay per month?
• When will monthly payments increase, and by how much?

Other cost factors

The upfront costs for solar panel installation are significant if you choose to pay upfront, but permitting and ongoing maintenance are relatively cheap.

• Local permits: Depending on your local municipality, there may be fees associated with permitting and inspections.
• Utility fees: In Texas, some utilities may charge a fee to connect your solar system to the grid. Additionally, some might buy back your excess power at low rates and lock you into contracts with high early termination fees. Luis in Forney and Wintur in Richmond both said it costs $295 to get out of solar contracts with Reliant Energy.
• Maintenance to ensure peak performance: Solar panel maintenance costs are generally low. Panel warranties generally cover the cost of repairing or replacing parts. However, homeowners should budget for a potential inverter replacement after 10 to 15 years, which can be expensive ($1,000 to $2,500 or more).

Solar panels costs by city

Where you live in Texas also influences your costs. Compare typical costs for a 5-kW solar panel system below.

Average cost for a 5-kW system

Solar incentives, tax credits and rebates in Texas

The federal solar investment tax credit (ITC) is the biggest factor in reducing the cost of going solar in Texas. If you install a residential solar panel system by the end of 2032, you can deduct 30% of the system's total cost — including equipment, labor and permits — from your federal taxes. The credit drops to 26% in 2033 and 22% in 2034.

The average ITC value in Texas is $9,280 in 2023.

Texas also has a 100% property tax exemption on any value solar panels add to your house. There are no statewide rebate programs, but you can find local and regional financial incentives throughout the state.

» EXPLORE: Texas solar incentives

Compare solar installation companies in Texas

Compare popular solar companies available in Texas below. Read our guide on finding the best solar companies for more.

» TIPS: Get the best solar quotes

Bottom line

Going solar in Texas is more expensive than the national average, but many solar energy customers we talked to in Texas are happy with their investments. They see significant savings on their electricity bills and enjoy more energy independence.

Solar costs: Texas vs. nearby states

» STILL NOT SURE? Solar energy pros and cons