Cost of Going Solar in Texas

Cost of Going Solar in Texas 2025

If you’re a typical Texas household wanting enough solar to cover your electricity usage, you’d likely need a system around 10 to 11 kilowatts (kW), depending on your consumption, local solar irradiance, roof orientation, etc. Based on recent data, installing such a system in Texas in 2025 will run you around $30,000 to $37,000 before incentives, with the net cost falling somewhere near $21,000 to $26,000 after the 30% federal solar tax credit.

These figures assume average installation conditions. They include the federal Investment Tax Credit (ITC) but do not include any additional state rebate (Texas does not have a broad state rebate program, but there are property tax exemptions, net metering, and utility/local incentives in some areas).

Because the 30% ITC is set to lapse (or be significantly reduced) at the end of 2025, once the credit expires, the gross cost of going solar in Texas will increase by about 30%, meaning the net cost (after whatever local incentives exist) will likewise be higher.

Solar Cost Basics

Understanding the full cost of going solar means breaking down the components that contribute to the final price tag. These are generally categorized into hardware costs and solar soft costs.

Hardware Costs

Hardware costs refer to the physical components of a solar energy system. These typically account for about 60% to 65% of the total solar installation cost.

  • Solar Panels: The most visible part of the system, panel prices vary by type; monocrystalline panels are more efficient and expensive than polycrystalline ones
  • Inverters: These convert DC electricity from panels into usable AC power. String inverters are more affordable, while microinverters offer better performance in shaded areas
  • Solar Batteries: Optional but increasingly popular, solar batteries store excess energy for use during outages or at night. The cost of solar batteries depends on capacity and chemistry
  • Racking Equipment: These mounts secure panels to rooftops or ground arrays. Costs vary based on roof type and installation complexity
  • Wiring and Electrical Components: Includes cables, junction boxes, and safety disconnects. Though less expensive individually, they are essential for system functionality

Solar Soft Costs

Soft costs are non-hardware expenses and typically make up 35% to 40% of the total solar panel cost.

  • Labor: Skilled technicians are needed to design, install, and maintain the system. Labor costs vary by region and installer experience
  • Permitting and Inspection Fees: Local governments require permits and inspections to ensure safety and code compliance
  • Marketing and Sales: Installers often spend on customer acquisition, which is reflected in the final price
  • Installer Margins: Profit margins and overhead costs also contribute to the solar cost.

How Much Do Solar Panels Cost in Texas in 2025?

In 2025, the average price per watt for solar panels in Texas is approximately $2.09 to $2.84, depending on system size and panel type. Monocrystalline panels, known for their high efficiency, tend to cost more than polycrystalline panels but offer better long-term performance.

For example:

  • A 6 kW system costs around $12,545 before incentives and $8,782 after the ITC
  • A 10 kW system may cost up to $20,909 before incentives and $14,636 after the ITC

Larger systems benefit from bulk pricing, reducing the cost per watt. However, the total cost of solar panels increases with system size, making it essential to match the installation to your household’s energy consumption. In addition to system size, these factors also determine how much you pay for solar panels:

  • Panel type & efficiency: Higher efficiency or premium brands cost more per watt
  • Roof type, orientation, shading: If your roof is difficult to access or steep, labor and mounting costs go up
  • Installer margins and local competition: More competition means better prices sometimes
  • Location and rates: Some counties or cities have higher permit/inspection fees

Average Cost of Solar Batteries in Texas

Solar batteries are a valuable addition for homeowners seeking energy independence or backup power. In Texas, the cost of solar batteries ranges from $7,000 to $18,000, depending on capacity, brand, and chemistry.

Key factors influencing solar battery cost:

  • Battery Type: Lithium-ion batteries (like Tesla Powerwall) are more expensive but offer longer lifespans and higher efficiency than lead-acid alternatives
  • Capacity: Measured in kilowatt-hours (kWh), higher-capacity batteries cost more but store more energy
  • Integration: Batteries that integrate seamlessly with solar systems may reduce installation complexity and cost

Homeowners interested in a solar battery bank or home battery storage should consider both upfront costs and long-term savings from reduced grid reliance.

How to Lower Solar Cost in Texas

There are several incentives and ways Texans can reduce the net solar power cost and avoid paying the full hardware + soft costs. Since the 30% federal tax credit (ITC) is set to lapse (or be reduced) after 2025, acting before then preserves this sizable benefit.

Some ways to lower the cost:

  • Federal Investment Tax Credit (ITC): Currently gives 30% off system cost (panels + inverters + installation). Must be installed by the end of 2025. After that, the credit decreases or disappears unless extended
  • Property Tax Exemption: Texas offers property tax exemptions for solar energy systems: adding solar doesn’t increase the assessed value of your home for property tax purposes in many jurisdictions
  • Net Metering/Utility Incentives: Utilities like Austin Energy and others offer net metering, so excess power sent to the grid reduces bills. Some utilities or municipalities may have rebates or performance-based incentives
  • Bulk purchase/group purchasing programs: If you coordinate with neighbors, installers may offer volume discounts
  • Choose efficient panel/inverter vendors that balance cost and performance. Sometimes, less premium panels with good warranties do the job
  • Reducing installation complexity: simpler roof layout, minimal shading, and easy access can reduce labor and mounting costs
  • Financing arrangements that include tax incentives built in, so your loan or lease payments incorporate the credit up front

There are various payment options. Each has pros and cons depending on your financial situation, how long you expect to stay in the home, and whether you want battery backup.

  • Cash purchase: Pay for the entire system up front.
    Pros: Maximum savings over system life; you capture full tax credit and incentives; no interest.
    Best if: You have the capital and plan to stay in your home for many years
  • Solar loan: Borrow funds to pay for the system (equipment + installation), then make payments over time.
    Pros: You still own the system and claim tax incentives; payments may nearly align with or be less than your previous electricity bills.
    Best if: You don’t have full cash but have good credit and can handle monthly payments
  • Solar lease or Power Purchase Agreement (PPA): You pay a monthly fee or pay per kWh generated, by a third party that owns the system.
    Pros: Low or zero upfront cost; minimal maintenance responsibility; risk shifted to the owner of the panels.
    Drawbacks: Many tax incentives go to panel owners, not you; long-term savings are less; buying out the system later can be expensive

Opt for the financing method that maximizes your benefits, taking into account tax credits (only available to owners), system lifespan, local energy rates, and projected electricity inflation.

How Much Money Can I Save by Going Solar in Texas?

On average, Texas homeowners save $52,762 over 25 years by switching to solar. Monthly savings depend on system size, electricity rates, and solar production.

Key factors influencing solar savings:

  • Electricity Usage: Higher usage means more potential savings.
  • Solar System Size: Larger systems offset more grid electricity.
  • Utility Rates: Rising rates increase the value of solar energy.
  • Net Metering: Credits for excess energy improve savings.

The payback period, the time it takes to recoup the cost of solar installation, is typically 6 to 8 years in Texas. After this, homeowners enjoy nearly two decades of free electricity, making solar a smart long-term investment.