Are Solar Panels Worth It In Texas?

Are Solar Panels Worth It In Texas?

By Renogy marketing team
Renogy marketing team
renogys blog Mar 24th 2023

There has been a steady increase in people's interest in solar energy over the years. The industry has witnessed over a 160% rise in job opportunities across the United States.

And, of course, this job increase is necessary to handle more installation orders from homeowners with growing interests. Besides, the US government is taking drastic measures to increase solar panel usage, with an estimated four million photovoltaic (PV) units planned for installation in 2023.

Texas is one of the states at the forefront of the planned PV unit installations. Texas is a beautiful and sunny state in the US that enjoys more than average sunshine and a warm climate. 

The state also has attractive solar tax incentives for residents willing to explore solar energy production. 

However, with all the sun and incentives available for residents, "is solar worth it in Texas?" This blog post highlights the pros and cons of solar panels in Texas and provides vital information about solar systems. 

Keep reading to get informed.  

Table of contents:

How Much Do Solar Panels Cost In Texas?

The average cost of installing solar panels in Texas is around $2.69 per watt. This means a budget of $8,750 would afford you a 5-kW solar panel system.


However, this cost may slightly change upwards or downwards depending on a few factors. Factors like your location in Texas, the rebate programs available, and your local permits all contribute to how much you can get solar panels in Texas. 

You can also find average solar panel costs in How Much Does A Solar Panel Cost?

Pros and Cons of solar panel installations


Installing solar panels in your home can provide you with the following benefits:

Cost Reduction

Turning to solar energy for electricity supply helps you save money on electricity bills as it's far cheaper to generate power with solar panels. You can save as much as $2000 by embracing this power option. 

Renewable Energy Source

Solar energy is clean and renewable energy. Texas is becoming known for emitting so much carbon into the atmosphere via fossil fuels. However, every home that utilizes solar panels for power generation in Texas helps reduce carbon pollution, making the environment safer. 

No More Power Outages

Going through a power outage is not a pleasant experience. Using solar panels to generate electricity makes the power supply constant in your home or office, and power outages again become a part of your past.

There more benefits of solar energy we haven’t listed out but you can check this article 5 Benefits Of Solar Energy To The Environment And You for more.


But on a closer look, is solar worth it in Texas? Despite their attractive benefits, some problems are associated with solar panels in Texas.

That makes the renewable energy resource only appropriate for some homes. 

Some Homes May Not Qualify

Despite being one of the US states blessed with so much sunlight, some Texas regions don't get enough of it. 

Northern Texas is one region deprived of an adequate amount of sunlight. Hence, homes n these regions may only partially benefit from generating their power, unlike those in the southern parts of Texas. 

Also, homes that are not properly positioned won't meet the requirements for solar installation in Texas, preventing them from enjoying the full benefits of solar panels.

High Initial Cost

Over the years, there has been a remarkable reduction in the cost of acquiring solar panels in Texas. Installing solar panels in Texas costs between $11,000 and $ 15,000, which is still not affordable for most homes. 

Long Payback Period

It takes about twelve years for most homeowners and business owners to pay off the installation cost of their solar panels. Since this period seems like forever to most property owners, many property owners are discouraged and wonder if solar panels are worth it in Texas.

Maintenance Cost

Some people find solar panels quite expensive to inspect and maintain regularly. This cost ranges between $300 and $700 for a 2kW system comprising ten panels. That adds to the burden of occasional replacements.

Is Texas A Solar-Friendly State?

Yes, Texas is very conducive and efficient for solar energy generation.

The state is blessed with enough sunshine to produce all the electricity you require for your home or business needs. Also, several utility companies in Texas have local solar rebate offers for their customers, from which you can benefit. 

Rebates & tax credits in Texas 

1. Federal Tax Incentive

Under the 2022 federal solar tax credit, also known as Investment Tax Credit (ITC), homeowners who generate their power supply via solar panels can claim a 26% credit refund of their installation costs after one year. 

More incentives await those who plan to install their panels in 2023, as they can claim 23% of installation costs. Best of all, this incentive is open to old and new homeowners. Learn more in another blog Everything You Need To Know About Solar Tax Credit

2. Tax Exemptions on Property

Residents who have solar panels installed on their properties are entitled to tax exemptions to the tune of the assessed value of their solar systems. This tax exemption is available to residential and commercial property owners, not minding if their properties are new or old. The exemption covers the cost of the solar panels and installation. 

3. Net Metering

Net metering is a beneficial solar incentive offered by some states of the US, including Texas. Net metering is a billing plan offered by electricity providers to their utility customers. The billing plan allows customers who generate electricity using solar panels to receive compensation for their excess power. Such customers will receive a credit on their utility bills instead of a debit. With this incentive, deserving customers can pay for their future power consumption. 

4. Texas Local Solar Panel Rebates

Local governments offer several solar energy system incentives in Texas. They include: 

- A $2,500 rebate and its worth in solar tariff provided by Austin Energy 

- A rebate of $2,500 for every solar panel project on a residential property. It also includes a $500 premium for installations that use local modules. 

- $0.60 and $0.40 thereafter for every AC Watt consumed by commercial properties for the first 25kW. That is in addition to a $0.10 premium for projects that utilize local modules in their solar panel installations.

5. AEP Texas Incentive 

- For commercial properties, AEP incentives range from $0.25 to $0.50, depending on the amount of renewable energy produced.  

- Residential property owners can get up to $0.5 per Wdc for less than 3 kWdc of solar energy produced and between $1,500 and $3,000 for renewable energy production ranging from 4.999-30 kWdc. 

6. For solar panel users in Houston and Dallas, providers also offer rebates and buyback programs. That is possible because there's no regulated market in these cities, making it possible for consumers to make their preferred choice from numerous providers available. 

Does Going Solar Really Save Money?

Yes, going solar helps you save money. By depending on solar energy, you reduce energy bills drastically since you generate your own electricity.


You also save money after paying off the installation cost. Since you won't be paying electricity bills then, you will keep the money you would have expended on electricity. 

Are Solar Panels Worth It In Texas?


Yes! Solar is worth it in Texas. As highlighted earlier, installing solar offers you several benefits. While you save money in thousands of dollars every year with a solar panel system, you also have the freedom to determine how you produce your energy. 

Plus, you don't pollute the environment with carbon emissions because you now leverage renewable energy. And you increase your property's value while you also enjoy a lot of rebates, reducing your overall solar system installation cost. 

Interestingly, your primary resource, which is sunlight, is not farfetched and abundantly available.  

Do Solar Panels Increase Home Value In Texas?

Yes, the value of your home increases in Texas when you install a solar system. People buying new homes prefer to go for homes with solar panels. Real estate studies show that homes with solar panels have 10% more value than those that don't have them. 

How Long Does It Take For Solar Panels To Pay For Themselves In Texas?

In Texas, it takes an average of twelve years for property owners to pay back their solar panel costs. They can start enjoying profits from their investments afterward.

Things to Consider When Installing Solar Panels in Texas

It would help if you considered the following before installing solar panels in Texas: 

1. Solar Rights Law in Texas: there's no law banning solar installations in Texas. That means you won't be breaking any law if you do. 

2. Your Roof Condition: inspect to see if your roof needs repairs or replacement before installing solar panels on it. 

3. Your Roof Shape: check with your solar panel installer to see if the shape of your roof is appropriate for solar panel installation. Also, check if your roof surface has enough room to hold the panels.  

4. The Direction of Your Roof Slope: Most professional solar installers prefer installing on roofs facing south as that will maximize the sunlight needed for energy production. So be sure your roof meets that specification before investing in solar installation. 

5. How Much Weight Your Roof Can Handle: Be sure your roof is strong enough to bear the weight of the solar panels before proceeding with the installation. 

6. Available Solar Company: You must contact only reputable, professional firms to install your solar panels. That's the only way you can get value for your installation costs. 

Are solar panels worth it in Texas?

Yes, but only when you install them properly. And the only way to install your solar panel properly is to choose the best product for your solar installation.

Renogy has long been a reputable retailer that focused on RV solar products. Now we are spreading our tentacles from RV solar products to home solar services, empowering more people to go solar with our premium quality products. For home-used solar, we have large solar panels like 320-Watt, 450-Watt, and 550-Watt solar panels, as well as smart home energy storage solutions such as the Lycan 5000 power box, a household power bank with a capacity of 4.8kWh. 

Choose Renogy for your solar needs in Texas today.

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How Does The Solar Tax Credit Work?