How Much Do Solar Panels Cost in Texas?

Average Texas Solar Panel Costs

Cost of Solar Panels per Watt in Texas

In Texas, solar panels cost between $2.38 and $3.14 per watt, putting the average per-watt price at $2.76. So, for a typical 7 kW system, you can expect to pay around $19,500. Take a look at common solar panel system sizes and their installation costs.

Texas Solar Panel Costs by City

Where you live within the state impacts how much it costs to install solar panels in Texas. Urban areas tend to cost more than rural locations because the demand for service is greater in built-up locales. Additionally, premium locations and those with a higher cost of living also typically command higher prices for most services, including solar panel installation.

Dallas

The average cost to install solar in Dallas is $30,350, which is substantially higher than the national average price of solar panels, at $26,000. In Dallas, most homeowners pay between $23,000 and $37,700. The higher price tag is due, in part, to the fact that the cost of living in Dallas is 4% higher than the national average. 

Houston

In Houston, expect to pay between $16,900 and $51,650, with an average price tag of $34,300. The price is so high because, although the cost of living is 6% lower than the national average, utilities are 8% higher. Plus, it's a large, urban area where costs for services like solar installation are naturally higher.  

Austin

Installing solar costs an average of $18,300 in Austin, or somewhere between $11,100 and $25,450. This price is considerably lower than the national average despite the cost of living being around 1% higher than the median and Austin being a significant and populous city. This could be because utilities are 8% lower than average and transportation costs are 14% lower than average, helping to keep the cost of manufacturing and moving materials down.

San Antonio

San Antonio has an average price of $25,050 for solar panel installation, with most homeowners spending between $17,700 and $32,350. This is slightly lower than the national average, thanks, in part, to the 8% lower cost of living, which helps keep the prices of everything, including transportation and services, lower. 

El Paso

The average cost to install solar panels in El Paso is $23,550, with a typical price range of $19,700 to $27,400. Despite being a big, sprawling urban city, El Paso has a cost of living that's 10% lower than the national average, so it makes sense that the cost of services like solar installation would be less expensive than somewhere like Dallas. 

Texas Solar Panel Cost Factors

The type and brand of solar panels you choose can significantly impact cost, as can the type of roof you have, the cost of labor in your area, and the style of inverter you choose.

Cell Type

The cell type you want influences cost. Monocrystalline costs more but lasts longer and is more efficient. If you're installing on a budget, thin-film or monocrystalline are more economical choices.

Roof Pitch

How steep your roof is, or the pitch, impacts cost. Installing solar panels on a steeply pitched roof is more challenging and time-consuming and therefore costs more in labor. You'll also pay a premium for labor if the installers have to work above two stories, as the risk factor and time requirements increase.

Panel Brand

Which panel you choose affects cost. While all of the top brands produce great-quality products at varying price points, some are better for battery systems, while others offer optimum panel efficiency and others have more pleasing aesthetics. Which brand is best for your specific situation is something a solar installer can help you figure out.

Installation

In Texas, expect to pay $0.48 to $0.63 per watt for the labor to install solar panels, or an average of $0.55 per watt. In more tangible terms, that means that you'd pay between $3,360 and $4,410 in labor costs to install a typical 7 kW solar panel setup, or around $3,850. As a general rule of thumb, expect labor costs to make up around 20% of your project total. For a tiny, supplement 2 kW system, labor starts at around $960. At the other end of the scale, a 10 kW system would cost you up to $6,300 in labor charges.

Inverter Type

The inverter type affects the cost of your solar panel setup. It's responsible for turning the solar energy collected by the panels into usable electricity. There are several options available. 

Micro inverters cost between $150 and $215 each. If you choose micro inverters, you'll need one per panel. While this can quickly add up, they are more reliable than the string inverters. Micro inverters keep each panel working individually, so if one in the array goes down, the others keep working, as they have independent inverters. 

Homeowners often couple micro inverters with power optimizers, which cost between $125 and $150 each. Again, you'll need one per panel. These optimize the power generation across all the panels. If, for example, one panel's output drops, it develops a fault, or it's in the shade, the power optimizers ensure the remaining panels operate as efficiently as possible to make up for the shortfall. 

String inverters cost between $1,000 and $2,000 each, but you only require one string inverter per string of solar panels. The issue with string inverters is that if one panel in the string fails, they all do; they're all connected in a single string to just the single inverter. 

Battery-based inverters cost between $2,000 and $2,300 and are necessary if you have a battery storage system. While costly, they convert the solar energy into storable energy, ready to be used by your home whenever needed. You need one battery inverter per battery. 

Solar Incentives and Rebates in Texas

Residents of Texas have access to the federal solar investment tax credit of 22%. This is a big cost saving on its own. And, if you don't owe enough tax to use the whole credit, you can roll the remainder over to the following year to maximize your savings. 

Texas also has a property tax exemption for the increased home value attributable to solar installations. So, even though your home's value may increase by around 4% when you install solar panels, you won't see a commensurate increase in property tax. 

Note that some solar installers in Texas offer rebates and incentives, so check what's available before you sign a contract.

Is It Worth Getting Solar Panels in Texas?

Yes, it's worth getting solar panels in Texas. The state gets plenty of sun—around 204 days per year. And, because it has some of the highest energy costs in the country, homeowners have a good opportunity to save with solar energy. 

It takes around 13 years for the panels to pay for themselves. After which, you'll save a significant sum each year. If you pay for solar panel cleaning, you can keep them working at peak efficiency for many years, and potentially reach payback sooner. 

You can also reach payback faster if your panels produce excess energy. Many energy suppliers offer a buyback scheme where they'll pay you for the extra you produce and send back to the grid. Or you can send less back to the grid and set up a battery storage system. A solar battery storage system costs more, but you'll always have solar power, even on cloudy days or during a power outage.

You'll also see a property value increase of around 4% when you install solar. Installing solar panels reduces your home's carbon footprint and reliance on fossil fuels, plus makes it more attractive to potential buyers.