Texas solar panels: The complete guide in 2026
Data updated Dec 26, 2025
Interested in going solar? You'll need to install a 13.83 kW solar panel system to cover the average electric bill in Texas, which will cost you about $30,197.
Cost for an average system in Texas
| Cash price | $30,197 |
| 25-year savings | Payback period | Electricity offset |
|---|---|---|
| $81,077 | 9 Years | 94% |
Some states, towns, and utility companies offer incentives that can help lower the cost of solar.
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Going solar in Texas
Texas produces more energy than any other U.S. state. While most of this energy comes from fossil fuels, the Lone Star State is also a leader in solar energy–second only to California.
With ample sun, it's no surprise that Texas is a great state for solar panels. But how much you can save with solar depends on your utility company: Some offer great incentives, while others don't offer any.
Here's what you need to know about getting solar panels in Texas.
Cost
How much do solar panels cost in Texas?
Solar panels will save you a lot of money over time, but the upfront costs aren't cheap. The average Texas homeowner needs a 13.83 kW solar panel system to cover their electricity needs, which comes out to $30,197 before incentives. Prices range from $25,667 to $34,727, but Texas also has some great local incentives.
While this may sound high, it will pay off in Texas. That's why over 108,000 Texas homeowners have used EnergySage to receive and compare quotes for solar installations. You can expect to earn back your initial solar investment through electricity savings in about 8.54 years, while most systems last at least 25 years. You'll often see this number referenced as your solar payback period.
There are a few ways to finance your solar panel system so you don't have to provide all that money upfront.
Cash purchase: You'll own the system and pay for it up front. This provides the best long-term savings.
Solar lease or power purchase agreement (PPA): A third-party company owns your system and either leases you the solar panels (solar lease) or allows you to purchase the electricity they generate (PPA). These typically deliver immediate savings and can make a lot of sense if you’re looking to keep your capital flexible. Just make sure to choose an offering with low annual escalators to ensure it will continue to provide long-term savings.
Solar loan: This allows you to retain ownership of your system while owing little to no money upfront. Solar loans aren't all created equal. If you have access to subsidized clean energy loans through local incentive programs, that's usually your best bet. A home equity loan or a personal loan are often your next best options—private solar loans typically come with higher interest rates or upfront fees.
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Incentives
What are the best solar rebates and incentives in Texas?
Incentives help bring solar's price tag down considerably in Texas. Here are the major ones to know about:
| Incentive | Average savings in Texas | Description |
|---|---|---|
Local rebates | Up to $3,000 | Depending on your utility company, additional rebates may lower your system's cost. |
Texas solar property tax exemption | About 1.47% of your system's value, annually on average | If you use solar energy as a source of power, you won't need to pay tax on the value your solar panels add to your property. The average property tax in Texas is 1.81% |
Is net metering available in Texas?
If you live in a state with a net metering program, you can earn credits for the excess generation your solar panel system produces and delivers back to the grid. It’s essentially a solar buyback program that makes it so you owe little to nothing on your electric bills.
Utility companies in Texas aren't legally required to offer net metering or other solar buyback programs, but many of them do anyway. The details vary quite a lot between utilities and suppliers in Texas. If you don't have access to a good solar buyback program, adding a battery will help you get the most out of your solar panel system.
Equipment
Equipment quality
The more efficient a solar panel is, the more power per square foot. As of 2025, the most popular solar panels have a rated output of 450 watts. To get the most out of your solar energy system, choose panels with at least that much power output.
Your solar inverter setup is also important consideration—make sure it suits your roof’s layout.
And if you’re interested in a solar battery, it’s best to choose one that integrates with that inverter.
The best equipment tends to be more expensive, but it will often save you more money in the end. Premium equipment often has the best warranty terms, guaranteeing 25-40 years of coverage for repairs, replacements, and the lowest degradation rates (meaning they’ll maintain more of their power output for longer).
Companies
Who are the best solar installers in Texas?
We pre-screen all of the solar companies on EnergySage to ensure they'll provide you with a high-quality installation. We then rate them based on their results, reputation, and responsiveness. Here are the highest-rated EnergySage installers in Texas:
Ready to start looking for a solar installer?
Here are some of the most popular ones near you:
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resources
Top solar resources for Texas
- Texas Solar Loan Providers
Get a loan to finance your solar system. Review your options and learn about solar loan providers.
- Texas State Energy Conservation Office
Learn about TX solar programs from the state government.
- Texas Public Utilities Commission (PUC)
Read more about how utility companies work in TX.
- Texas Electricity Profile (EIA)
Learn about TX energy production and prices.
- TX State Solar Factsheet (SEIA)
See quick stats about how much solar energy has grown in TX.
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