Solar panels Houston, TX:

Prices, incentives and best companies 2022

Avg Houston cost:

$8,560 - $10,463*

Avg 25 year savings:

$24,188 - $29,563

Avg payback period:

7.5 - 9.1 years

Estimate cost and savings based on your location and power usage

* Cost data based on quotes for fully-installed solar panel systems submitted on our platform. Prices are shown after applying the 30% federal tax credit.

Guide to solar panels in Houston, TX (2022)

Updated August 19, 2020

Houston is a great place to go solar. You’re probably using Reliant Energy as your utility. The combination of Reliant Energy's net metering plan and the high average electricity usage makes solar an excellent investment in Houston. 

The most significant incentive to install solar panels in Houston is the 26% federal tax credit. However, the tax credit is set to step down to 22% at the end of 2020. This means in order to maximize your savings potential, the best time to go solar in Houston is now. 

Another key incentive for going solar in Houston is Reliant Energy's full retail net metering program, which can save you a pretty penny. 

By entering your address into our solar panel calculator, you can see what other local incentives are available in your area. 

On this page:

Current cost of solar panels in Houston

Showing data for:

Harris
Change
Utility provider: Texas-New Mexico Power Company
Utility bill: $ 138

Prices based on a 5.5kW system, after 30% federal tax credit

Solar prices near you

Cost range of local prices

$8,560-$10,463

Net profit (savings less system cost)

$24,188-$29,563

Payback period

7.5-9.1 years

Recommended size for the selected utility bill

5.5kW

Solar panel cost calculator

Best 10 solar installers in Houston, TX

 

Houston solar panel cost & savings calculator

Current solar incentives and tax credits available in Houston, TX

Reliant Energy's Solar Buy-Back Program

Although there is no state-wide net metering policy in Texas, Reliant Energy still offers to purchase excess solar energy their customers produce.

What's even better is that Reliant purchases this power at the full retail rate of electricity. That means even bigger savings for you. 

The 30% federal solar tax credit explained

The most significant incentive to install solar panels for homes and and businesses is the federal tax credit. Right now, the federal tax credit is equal to 30% of the total cost to install a solar system. The amount of the tax credit is then deducted from your federal taxes. You can claim the credit over several years if the amount you owe in taxes is less than the amount of your tax credit. You can only take advantage of the federal tax credit if you pay federal income taxes. At the end of 2032, the amount of the tax credit will fall to 26%. Even though there is no rush to get the maximum tax credit value, you don’t want to wait when it comes to a financial investment like installing solar. The best time to go solar is now.

How much will solar panels on my home save me?

The answer to this question depends on your electricity usage. Generally speaking, the higher your power usage, the greater your potential savings are from installing solar.

The average monthly electricity usage in Texas is about 1,156 kWh per month. However, you are most likely using a lot more than this since this average includes small apartments and condos.

The Houston solar panel savings calculator uses our database of electric rates from local utilities to convert your monthly power bill into how much electricity your home uses. From there, the calculator can work out how many solar panels you need to offset your power usage, how much a solar system will cost based on prices of local solar companies, and the amount of money you will save on your electric bill.

Cost and savings for a 8.92 kW average-sized solar system in Houston

Cost per watt range

$2.55 - $3.11

Net cost of system

$18,181

Average payback

8.4 - 10.3 years

Annual power production

13,947 kWh

Levelized cost of solar energy

6¢ /kWh

If you don't get solar

24¢ /kWh

(forecast avg Texas electric rates over the next 25 years)

Average solar savings on this system over the next 25 years

$44,759

(Savings shown after repayments of capital)

Related topics:

Are solar panels worth it in Houston

Solar panels have fallen in price by more than 80% in the last ten years. In 2022 they also remain subsidized by the 30% federal tax credit and the net metering law making them an excellent investment. They offer a return well above the long term average return from both the share market and also property investment.

Another way to look at this question is the levelized amount you will pay for each kWh of power you will use over the next 25 years with and without solar panels. As you can see below the savings are significant.

Going solar in TX

Check out all of the ways energy providers of can help you be more energy efficient and save money.

Table 2: Available incentive programs
Eligibility: Federal incentive
Type: Personal Tax Credit
Eligibility: State incentive
Type: Property Tax Incentive

Note: Please keep in mind that the best source of up-to-date information on incentives are the solar installers who specialize in your area.

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