Solar Power For Home Cost In Texas

by | Apr 2, 2024 | Renewable Energy, Solar

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In recent years, the usage of solar power for homes in Texas has increased dramatically, owing to a convergence of factors such as environmental awareness, technology breakthroughs, and financial incentives. Let’s dive into solar power for home cost in Texas in 2024.

Solar Power For Home Cost In Texas

Solar power for home cost depends on the size of your system

It may appear intuitive, but solar power is more considerable for home-cost installations, which are more expensive. In Texas, a 5 kW system costs about $11,900; however, doubling the system size practically doubles the price, so a 10 kW system will cost nearly twice as much. The higher the price, however, the more you’ll receive as a credit against your federal tax bill.

Average solar cost by system size in Texas

System Size System Cost System Cost (after ITC)
3kW $7,140 $4,998
4kW $9,520 $6,664
5kW $11,900 $8,330
6kW $14,280 $9,996
7kW $16,660 $11,662
8kW $19,040 $13,328
9kW $21,419 $14,994
10kW $23,799 $16,660

Are solar panels worthwhile in Texas?

Solar panels are beneficial in most places, including Texas. If you pay for your system in cash, a 5 kW system in Texas will save you around $38,808 in electricity expenditures over 20 years. This estimate is computed using actual solar quote data from Marketplace. It considers your system’s cost, the federal tax credit, and inflation rates.

If you can’t afford to pay $11,900 in cash for solar, don’t worry. Alternatively, you can finance your system with a loan. Some companies even offer no-down-payment loans, allowing you to start saving immediately if your loan payments exceed your existing electric expenses.

What factors affect the solar power for home cost in Texas?

The numbers shown are averages. The price you’ll pay for solar depends on numerous things specific to you and your home:

  1. System size: The larger your solar panel installation, the more solar power for home cost it will be. A Costco-like relationship exists between system size and pricing, with larger systems having a lower average $/W. It is worth spending more for a system that will cover your entire electric cost; otherwise, you will miss out on substantial long-term savings.
  2. Equipment’s make and model: Higher-quality equipment may cost more initially, but it may save you more money in the long term.
  3. Solar panel type: Monocrystalline panels produce more energy but are significantly more expensive than polycrystalline or thin-film panels, commonly used in DIY projects.
  4. Your home: The solar power for home cost installation includes more than simply the equipment. Your solar contractor may also charge for the trouble in the installation, so if you have a complex roof or need to replace an electrical panel, your system may be more expensive.
  5. Your installer: Solar companies charge varying labour rates. You can spend extra for a more respected firm with better reviews, comprehensive warranty coverage, and quicker installation wait times.
  6. Permitting and interconnection: Paying for permits and charging for your grid connections will add a small amount to the total cost of your solar installation.

How can you save money on solar panels in Texas?

Solar energy is a significant investment, but you can reduce the cost by shopping wisely.

  • Make use of federal and local solar subsidies

If your federal tax bill is large enough, you can claim the federal tax credit in Texas. This incentive lets you deduct 30% of your solar installation and equipment expenses from your federal tax bill. If the amount exceeds your tax obligation, you can carry over the excess credit to the following year. Many states also provide excellent local incentives and refunds.

  • Request quotations from various installers

Comparing numerous solar rates might help you save money through competition and transparency. Each additional solar quote you receive will assist you in determining the best solar panel system for the best price.

Conclusively, in Texas, the average solar power for home cost $2.38 per watt, including installation, as of April 2024. A 5 kW installation comes to around $11,900 before incentives, with prices ranging from $10,115 to $13,685. Following the federal tax credit, the average price decreases by 30%.

Also Read: Best Practices For Mounting Solar Panel on Roof

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