Texas Solar Panel Savings Calculator
Calculate how much you can save with solar panels in Texas. Based on 5.5 peak sun hours/day and 13.9¢/kWh average electricity rate.
5.5
Peak Sun Hours/Day
13.9¢
Avg Rate (¢/kWh)
9 yr
Avg Payback Period
3.5%
Solar Penetration
Calculate Your Texas Solar Savings
Average home: 6-10 kW
Your average monthly bill
South-facing is optimal
Annual Production
kWh/year
Annual Savings
per year
25-Year Savings
total estimated
Payback Period
break-even time
Monthly Savings
$84
System Cost (after ITC)
$19,200
CO2 Offset
4.0 tons/yr
Cumulative Savings vs System Cost
Texas Solar Panel Savings Overview
Texas receives an average of 5.5 peak sun hours per day, making it an excellent state for solar energy production. With electricity rates averaging 13.9¢ per kWh — below the national average — longer payback periods are typical but savings still add up over time. The typical Texas homeowner with a 6kW system can expect to save approximately $1,480 per year.
Solar Energy Production in Texas
A standard 6kW residential solar panel system in Texas produces approximately 9,636 kWh per year. This accounts for a system efficiency factor of 80%, which includes panel degradation, inverter losses, and temperature effects. With 5.5 peak sun hours, Texas ranks among the top states in the country for solar production potential.
Texas Electricity Rates and Solar Context
The average residential electricity rate in Texas is 13.9¢ per kWh according to EIA data. While this rate is below the national average, electricity costs are rising approximately 2-3% per year. Over a 25-year system lifetime, your cumulative savings will still be substantial. With utility rates increasing annually, your solar savings grow each year.
Texas Solar Incentive Programs
Property tax exemption. Some utility rebates (Austin Energy, CPS Energy). Federal residential solar credit ended for 2026 homeowner-owned systems placed in service after Dec. 31, 2025. No state income tax. For new 2026 homeowner-owned systems, do not assume the old federal 30% residential clean energy credit unless your project has documented eligibility under current IRS guidance. Texas does not currently have a statewide net metering mandate, which can affect the financial returns of solar installations. Some utilities offer voluntary solar buyback programs.
Net Metering in Texas
Texas currently lacks a comprehensive net metering policy. This means that excess solar energy exported to the grid may not be compensated at the full retail rate. However, many Texas homeowners still find solar financially attractive by sizing their systems to match their consumption patterns.
Best Cities for Solar in Texas
The best cities for solar panels in Texas include Houston, San Antonio, Dallas, Austin, Fort Worth. Solar production can vary by location within the state due to differences in cloud cover, local shading, and microclimates. Southern-facing roofs with minimal shading produce the most energy. Homeowners in Houston and San Antonio can typically expect production close to the state average of 5.5 peak sun hours per day.
How Texas Compares to Neighboring States
Compared to neighboring states, Texas (13.9¢/kWh, 5.5 sun hours) receives less solar radiation but has similar electricity rates. See how solar savings compare in New Mexico, Oklahoma, and Arkansas.
Methodology & Solar Energy Data Sources
How we calculate solar savings in Texas: Our solar cost, savings, and payback calculations integrate federal energy production data with state-specific incentive programs and utility rate information.
- Solar potential and production data from NREL PVWatts Calculator — the DOE's National Renewable Energy Laboratory solar energy production model for Texas.
- Electricity rates and utility data from EIA State Electricity Profiles — the definitive source for residential electricity prices by state.
- Federal residential clean energy credit information from the IRS Residential Clean Energy Credit (Form 5695) — current IRS guidance says the credit is not available for property placed in service after December 31, 2025.
- State incentive programs cross-referenced with DSIRE (Database of State Incentives for Renewables & Efficiency) — the NC Clean Energy Technology Center's authoritative incentive database.
- Carbon reduction calculations use EPA eGRID emission factors for the relevant Texas grid subregion — the official source for grid carbon intensity.
Authoritative solar and energy data sources:
- NREL PVWatts — Solar Production Model — DOE solar energy estimates by location
- EIA State Electricity Profiles — residential rates and utility data for Texas
- DSIRE — State Incentives Database — solar tax credits and rebates by state
- EPA eGRID — Grid Emission Factors — carbon intensity of Texas electricity grid
- DOE Solar Energy Technologies Office — federal solar research and cost data
- ENERGY STAR Certified Solar Inverters — efficiency standards for solar equipment
Solar Disclaimer: Savings estimates are projections based on average solar irradiance, utility rates, and incentive programs for Texas. Actual savings depend on roof orientation, shading, panel efficiency, installer pricing, and changes to net metering policies. Obtain quotes from 3+ certified installers for accurate costs. Incentive programs change frequently — verify current rates with DSIRE and your utility.
Reviewed by Brazora Monk · Last updated 2026 · NREL & EIA data current as of latest annual release
Frequently Asked Questions
How much do solar panels cost in Texas?
The average cost of a 6kW solar panel system in Texas is approximately $19,200 before documented state or utility incentives. For new 2026 homeowner-owned systems, this calculator does not subtract the old federal residential clean energy credit unless eligibility is documented. Property tax exemption. Some utility rebates (Austin Energy, CPS Energy). Federal residential solar credit ended for 2026 homeowner-owned systems placed in service after Dec. 31, 2025. No state income tax.
How much can I save with solar panels in Texas?
The average Texas homeowner saves approximately $1,480 per year with a 6kW solar system. Over 25 years, total savings can exceed $34,264, factoring in a 2.5% annual increase in electricity rates.
Does Texas have net metering?
Texas does not currently offer standard net metering. However, some utilities may offer alternative programs. Check with your local utility for current solar buyback options.
What is the solar payback period in Texas?
Based on the inputs above, the payback period for solar panels in Texas is approximately 19.1 years before any documented state or utility incentive. After that, your solar panels generate essentially free electricity for the remaining 15-20 years of their warranty life.