Cost of Solar Panels in Texas (2026)

How much do solar panels cost in Texas?

With professional installation, a typical 6-kilowatt residential solar panel system in Texas costs $13,148. That price drops to $8,989 after the full federal solar investment tax credit (ITC).

On the high end, Mandy in Round Rock spent $45,000 on a solar energy system, and Michael in Humble paid $75,000 to go solar.

The size of your solar panel system is a big factor in your overall solar costs. A typical Texas household needs a system with a capacity of 7.1 kW to offset enough energy costs to make solar viable. Depending on your household energy usage, you might need a smaller or larger system.

Average solar panel costs by system size in Texas

Note: The table above doesn’t include the cost of a solar storage battery, which sometimes costs as much as the panels ($7,000 to $18,000). Solar batteries are a must if you want real energy independence and essential if you go off-grid.

What about tariffs?

“Many homeowners are asking about cost, and tariffs are playing a big role in that conversation,” Eric Bramlett, a real estate agent in Austin, told us. Tariffs on imported solar products like panels, inverters and battery systems could run from 50% to over 100%. While the idea is to support U.S. manufacturing, Bramlett says it is causing delays and price increases.

“Even with the higher prices from tariffs, solar still makes sense for many homeowners,” Bramlett said. “You get more control over your energy, save on costs over time and increase your home’s appeal in the market.”

Are solar panels worth it in Texas?

Solar is worth considering in Texas if you like the idea of lowering your monthly utility bills, helping the environment and gaining more energy independence. Another significant benefit is the ability to produce your own electricity, which means you’re less exposed to sudden price hikes from providers.

Homeowners with solar panels typically save $20,000 to $90,000 over 25 years.

Edward Hirs, an energy economics expert at the University of Houston, said solar panels work out for most people, noting that hot climates tend to come with good sunlight, especially in the southern parts of the state. In Texas, solar panels usually pay for themselves within 8.67 years.

Of course, it's not worth it to go solar for every Texan. Some have told us about sales reps making false promises or frustrations with their electricity companies. Still, there’s a generally positive sentiment around solar energy potential in the state.

We suggest using the National Renewable Energy Laboratory's PVWatts Calculator to estimate how much electricity a solar panel can produce over a year on your house. Project Sunroof is a free solar savings estimator powered by Google Earth imagery.

Solar panel installation cost factors in Texas

The equipment is typically the largest portion of your overall total costs. In addition to the panels, solar arrays also contain inverters, which cost $1,000 to $3,000. Adding a monitoring system to track energy production costs anywhere from $80 to $400. Labor costs include planning, preparing and connecting your system to the grid. Local permits and fees are a small part of your overall costs.

Solar panels

Solar panel efficiency is a measure of how well a panel makes electricity. The more efficient the solar panels you buy are, the fewer panels you need. While more efficient panels cost a little more, you save by buying fewer panels.

In general, monocrystalline panels are considered the best bang for your buck. Cheaper solar panels are typically polycrystalline. The difference comes down to efficiency and materials: Monocrystalline panels are made from pure, single silicon crystals; various silicon fragments melted together are used to make polycrystalline panels.

Solar batteries

Expect to pay between $7,000 and $18,000 for solar batteries, though some cost $30,000 or more. Battery costs vary based on capacity, brand, lifespan and other features.

If you pair your solar setup with battery storage, you also have backup power when the grid goes down. “That kind of peace of mind is something you can’t always put a number on, but you can definitely feel it when a storm hits,” Bramlett said.

Reliable power backup is a huge benefit, according to Hirs, particularly in areas like Houston with regular or semiregular power outages. With solar panels and an energy storage battery, you can keep your lights on. You don’t have to worry about your food spoiling, having to stay in a hotel until the power comes back — or worse. “It’s your opportunity costs,” Hirs said. “It’s a much higher opportunity cost if you have Uncle Joe on life support equipment.”

» MORE: Solar energy pros and cons

Size of your system

The cost difference between an 8-kilowatt system and a 10-kilowatt system is thousands of dollars. To estimate what size system you need, first look up how many kilowatt-hours (kWh) you used last year on your electricity bill. Divide that number by 1,200 to estimate your required system size in kilowatts.

An 8-kW or 8.5-kW system is common in Texas, but plenty of households need a 10-kW system or larger. For instance, Jose in Plano has a 16.8-kW system (plus two Tesla Powerwalls), and Abdul in Mesquite has a 17.5-kW system, which should generate about double the average household’s energy needs.

» WATT’S THE DIFFERENCE? kW vs. kWh

Condition of your roof

Quality solar panels should last 25 to 30 years, so you need your roof to last just as long. Otherwise, you’ll have to pay to remove the panels, fix your roof and reinstall them again. If your roof needs replacing soon, it’s best to do that before installing solar panels.

ConsumerAffairs often hears from disgruntled solar customers who felt blindsided by expensive roof repairs needed after their solar panel installation was complete. This is a frustrating and expensive process you should avoid if you can. Get your roof inspected, fixed or replaced before you get a solar energy system.

How to save money on solar panels in Texas

There’s no way around it — solar panel installations are expensive. Here are some tips to maximize your savings on solar panels in Texas:

• Compare quotes: Get solar quotes from at least three or four different solar companies. This lets you compare different proposed equipment, pricing, financing terms and estimated energy production to find the best overall value. Don't just go with the cheapest option without vetting quality and services.
• Lower your electrical load: Before going solar, it’s smart to upgrade any old appliances. For example, replacing an old refrigerator with a more eco-friendly one reduces your electric load, which also helps lower your utility bill. If you use less electricity, you need fewer solar panels, making the whole system cheaper.
• Explore payment options: Affordable financing makes the upfront costs of solar more manageable. For instance, leases can let you start saving from day one with little or no money down.

What to know about the federal solar tax credit

The federal solar investment tax credit (ITC) is the best financial incentive for most homeowners. The ITC credits 30% of the system’s total cost — including equipment, labor and permits — toward what you owe on federal income taxes.

Don’t get confused: The ITC is not a rebate or a refund. It is a credit that goes toward what you owe on federal income taxes the year your system becomes operational. Any unused portion of the credit rolls over into future tax years.

For example, if you spend $10,000 installing a solar panel system, the ITC is worth $3,000. If you owe $15,000 in taxes, the credit reduces your debt to $12,000. The ITC only offsets your tax liability; you can't take advantage of it if you don’t owe taxes in the first place.

» EXPLORE: Solar incentives by state

How can I pay for solar panels in Texas?

Most homeowners pay to go solar with the help of a lease or loan. Power purchase agreements (PPAs) are similar to leases, but they're currently mostly used by utilities and commercial-scale projects in Texas.

• Loan: A solar loan works like any other type of home improvement loan. There’s an application and approval process, and you pay it back over time (with interest). In an ideal financing scenario, your system generates enough extra power to pay off the loan.
• Lease: Leasing solar panels is a great way to set up a system without the high upfront costs. A potential downside is that you’re not eligible for the same tax incentives.

» SOLAR PANELS: Lease vs. buy?

Compare solar installation companies in Texas

We compared ratings and reviews, equipment options, warranties, availability and other factors to pick the top solar companies in Texas.

FAQ

Bottom line

Residential solar panel system costs typically fall between $10,000 and $30,000 or higher, depending on factors like the system's size, local labor rates and available incentives. Texas homeowners with solar panels can typically save more than that in total avoided energy costs over the lifetime of a system.

The ConsumerAffairs Research Team has conducted extensive research to compare the costs of going solar in Texas and other states.

Solar costs vs. savings: Texas and nearby states