Solar panels in Texas: cost & savings
Texas averages 4.9 peak sun hours/day and $0.15/kWh electricity. Here's what solar looks like for a typical home.
Typical Texas home estimate
| Average electricity rate | $0.15/kWh |
| Peak sun hours (daily avg) | 4.9 |
| Recommended system size | 7.5 kW (~19 panels) |
| System cost (before incentives) | $22,645 |
| Estimated system cost | $22,645 |
| Estimated payback period | 12.1 years |
| 25-year net savings | $32,584 |
Incentives: No statewide net metering, but many utility buyback plans + local rebates (e.g. Austin Energy). Note: the federal residential solar tax credit was eliminated for new installations after December 31, 2025. Check your state's programs for available incentives. Statewide net metering is limited — check your specific utility.
How Texas compares to the rest of the US
Two numbers drive solar economics: your electricity rate and how much sun your roof gets. Here's where Texas stands against the national average.
| Electricity rate | $0.15/kWh (10% lower than the $0.17 US avg) |
| Daily peak sun hours | 4.9 (10% more than the 4.5 US avg) |
| Net metering | Limited / utility-specific |
Texas enjoys plenty of sun but relatively cheap electricity. The abundant sunshine means a smaller system can cover your usage, though the lower rates mean each kWh you save is worth a bit less — so the bigger your monthly bill, the better solar pencils out.
Calculate your own Texas savings
Adjust the numbers to match your actual electric bill:
Estimate your solar savings
Two quick inputs. We use your state's real electricity rate and sun hours.
Is solar worth it in Texas?
With Texas's electricity at $0.15/kWh and 4.9 daily sun hours, a typical solar system pays for itself in about 12.1 years and produces an estimated $32,584 in net savings over its 25-year life, based on 2026 pricing with no federal credit (eliminated Dec 31, 2025). The higher your bill and the more sun your roof gets, the faster the payback.
These figures are estimates. Get free quotes from local Texas installers to see real pricing for your roof.
Texas solar FAQ
How many solar panels do I need in Texas?
A typical Texas home needs roughly 19 standard 400-watt panels (about a 7.5 kW system) to offset its electricity use, given Texas's 4.9 daily peak sun hours. A higher bill or shadier roof pushes that number up.
Does Texas have net metering?
Texas doesn't have broad statewide retail-rate net metering, but many utilities run their own buyback or billing programs, so check your specific provider. No statewide net metering, but many utility buyback plans + local rebates (e.g. Austin Energy). Note: the federal residential solar tax credit was eliminated for new installations after December 31, 2025. Check your state's programs for available incentives.
What's the payback period for solar in Texas?
For a typical $135/month bill, the estimated payback is about 12.1 years, after which the power your panels produce is essentially free for the remaining ~13 years of the system's life.