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Solar Power in Texas in 2023
Solar power is an excellent renewable energy option for Texans. Over the past decade, Texas solar power has dramatically increased in capacity. Learn more about the cost of going solar in Texas including available rebates, incentives, and finance programs in the sections below.
One thing the Lone Star State doesn’t lack is sunshine. The state receives a yearly average of 235 sunny days, far exceeding the national average of 205 sun-filled days.*Bestplaces.net, Climate in Texas (accessed 8/8/2021) https://www.bestplaces.net/climate/state/texas With so much sun, it’s no wonder that Texas is poised to become a nationwide leader in solar energy, with more than 40 gigawatts (GW) of capacity expected to be installed over the next 5 years.*SEIA, Texas Solar (November 2023) https://www.seia.org/state-solar-policy/texas-solar
How much solar energy does Texas produce?
As of Q2 2023, solar energy capacity in Texas was the second-highest in the nation, following close behind California.*SEIA.org, Texas Solar (accessed 11/2023) https://www.seia.org/state-solar-policy/texas-solar
The state currently has 18 GW of clean energy available, enough to power more than 2 million homes! 5.13% of electricity generation in Texas is produced by solar power. *SEIA.org, Texas Solar (accessed 11/2023) https://www.seia.org/state-solar-policy/texas-solar Thanks to government investments exceeding $11.2 billion and a desire to improve citizens’ access to clean energy, Texas is expected to add 40 GW of solar capacity by 2028.*SEIA.org, Texas Solar (accessed 11/2023) https://www.seia.org/state-solar-policy/texas-solar
What are the advantages of going solar in Texas?
Going solar in Texas may seem daunting to many property owners, but investment in clean energy offers many benefits. One of the best advantages of solar energy is local air quality improvement.
Texas generates more carbon dioxide gas than any other state due to its prominent oil industry. Solar panels, however, produce no greenhouse gases that contribute to air pollution, making them environmentally friendly energy sources. The more people who get solar panels for homes in Texas, the cleaner the air will be for future generations.
Residents can also receive savings on their monthly utility bills. According to the Solar Energy Industries Association (SEIA), the price of solar solutions in Texas dropped by 43% over the last ten years.*SEIA.org, Texas Solar (accessed 11/2023) https://www.seia.org/state-solar-policy/texas-solar With lower solar panel expenses and advancements in clean energy technologies, now is the best time for Texans to save on their electric bills.
Solar panels increase the resale price of your home, but they won’t increase your property taxes. Texas offers property tax exemptions to ensure that homeowners don’t have to pay additional taxes based on the increased resale value of their home.*DSIRE, Renewable Energy System Property Tax Exemption Solar (accessed 11/2023) https://programs.dsireusa.org/system/program/detail/173/renewable-energy-systems-property-tax-exemption
How much does solar cost in Texas?
The cost of going solar in Texas can vary due to a range of factors. The main cost factors are:
Quality of the solar panels
Condition and position of the roof
Solar panel installer
To help you understand the price of going solar in your area, we’ve analyzed SunPower price quotes as well as quotes gathered by third-party sources for thousands of homeowners across the country.
In Texas, we found that the cost of owning a 5 kW solar system ranges from $12,550 to $41,150, or, in other words, from $2.51 to $8.23 per watt, and that’s before considering the benefits of any available tax credits or incentives.
Homeowners who purchase their system as opposed to leasing it, can get a tax credit of up to 30% of the total cost of the solar installation.*Tax credits and incentives are subject to change. Visit dsireusa.org for detailed solar policy information.
Solar leasing in Texas
Leasing, on the other hand, is a modern solar financing option where a solar company sells 100% of the electricity output to a homeowner. The solar lease is priced at a discounted rate, compared to what you would pay your local utility for the same electricity, with the goal of providing monthly savings. Solar leases are available in Texas, though some municipal utilities like Austin Energy do not allow them within their service territories.
Solar rebates & incentives in Texas
Though the state government doesn’t offer a rebate program to encourage residents to go solar, some municipal electric companies, like Austin Energy, offer customers a rebate for solar panel installation. Residents can also claim the state’s solar property tax exemption. Solar systems boost property value, but the tax exemption exempts 100% of that increase from local taxation.*solarreviews.com, Summary of Texas solar incentives 2021 (accessed 8/8/2021) https://www.solarreviews.com/solar-incentives/texas
Net metering is another incentive to go solar. Texas doesn’t have a statewide policy governing net metering, but many utility companies in the state offer policies to their customers. With net metering, solar system owners who produce a surplus of clean energy can add their energy overflow to the local electric grid in exchange for credits on monthly utility bills.*The availability of net metering varies by location and is subject to change. Visit dsireusa.org for detailed solar policy information.
What’s the best way to go solar in Texas?
Going solar is a worthwhile investment, especially if you go about it the right way. Avoid making mistakes and get the best return on your investment by working with a reputable solar installer.
The location of your property, roof size, condition of the premises, and your budget all play a critical role in determining which solar solutions are best for your needs.
Go solar in Texas with SunPower
SunPower is a leading residential solar technology and energy services provider based in Austin, Texas. With nearly 40 years of dedicated solar experience, we're the only U.S.-based solar company that's been around longer than our 25-year warranty. If you're considering solar or energy storage for your home, make sure you talk to SunPower.
If you’re ready to get started, we’re happy to help. Click the Get Started button to request a free consultation with SunPower and we'll follow up with a quick call to schedule a time. You can also call us directly at (800) 786-7693.
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