Solar in Texas continues to have one of the nation’s hottest markets as solar savings continue to improve. In this article, we will cover the recent solar growth in Texas, what incentives are available, and what kind of savings you can expect when you put solar on your roof.

The state added 227 megawatts of solar capacity in the third quarter of 2017, trailing only Nevada and North Carolina. That amount — enough to power 44,000 homes — was more than what Texas added in 2015, according to GTM Research and the Solar Energy Industries Association.

The solar incentives available in Texas have sparked much of the solar growth. In some cities such as Dallas, Austin, and San Antonio you have the best of both worlds in that there are upfront utility rebates, there is full 1 for 1 net metering and the 30% federal tax credit delivering a short payback period of 8 years or less for an investment in solar panels for your home.

“Texas ranks #13 in America for savings from installing solar panels on your home.”

Solar ROI

Below is an example of ROI when paying cash on a 7.65kW system in Texas.

There are two things you need to look at to determine the ROI for residential solar installation in Texas

  • The average cost of installing panels in the area.
  • The revenue generated by a solar panel installation.

The upfront cost is pretty straightforward when you hire Encōr Solar to install your solar panels. We create a custom quote for your home that takes into a account how you historically use your power and square footage of your home. We also quote what approvals and permits from your jurisdiction and utility company you need to move forward. As far as revenue produced goes, revenue is calculated by the amount of energy the solar panels produce each year, versus the cost that would have been paid to the utility company if the same level of power would have been purchased from the utility company.

Ultimately, the amount of solar energy that residential solar panels will produce is dependent on the weather. The more sunshine a locality gets, the higher the savings and ROI.


Texas Solar Facts


Texas average solar savings

Frequently Asked Questions:

How can I compare the cost of solar electricity to my current bill?

The higher your power bill, the more you can expect you can save per month. The biggest factor in pricing comes in how you purchase your panels. With a cash purchase, the average system in Texas breaks even in 8.3 years. Those that purchase with a loan experience savings from month one, in most cases, and typically average $40,000 savings over 25 years.

Can I take advantage of the solar Tax credit?

The ITC (federal solar investment tax credit) – Until the end of 2019, the government is providing a 30% personal income tax credit towards the purchase of residential solar panels. That means if you pay $30,000 for your solar system, you receive $10,000 back through the ITC. The tax incentive is only available to those you pay income tax.

How much of my electricity bill can be offset by solar?

Your home will continue to be attached to the grid through the net metering program. This means if your home ever needs more power it can pull through the grid as needed. Additionally, your panels with over-produce at peak times and spin your meter backward, crediting you the power you’ll use during the nighttime or stormy days. Depending on the size, usage, and direction of your roof panels, solar may or may not be able to offset 100% of your home. This leaves homeowners will a small power bill and solar bill. Homeowners will still see monthly and lifetime savings when power is split between the utility and solar.