Solar panels Houston, TX:

Prices, incentives and best companies 2021

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 26% federal tax credit.

Guide to solar panels in Houston, TX (2021)

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
  • Anderson
  • Andrews
  • Angelina
  • Aransas
  • Archer
  • Armstrong
  • Atascosa
  • Austin
  • Bailey
  • Bandera
  • Bastrop
  • Baylor
  • Bee
  • Bell
  • Bexar
  • Blanco
  • Borden
  • Bosque
  • Bowie
  • Brazoria
  • Brazos
  • Brewster
  • Briscoe
  • Brooks
  • Brown
  • Burleson
  • Burnet
  • Caldwell
  • Calhoun
  • Callahan
  • Cameron
  • Camp
  • Carson
  • Cass
  • Castro
  • Chambers
  • Cherokee
  • Childress
  • Clay
  • Cochran
  • Coke
  • Coleman
  • Collin
  • Collingsworth
  • Colorado
  • Comal
  • Comanche
  • Concho
  • Cooke
  • Coryell
  • Cottle
  • Crane
  • Crockett
  • Crosby
  • Culberson
  • Dallam
  • Dallas
  • Dawson
  • De Witt
  • Deaf Smith
  • Delta
  • Denton
  • Dickens
  • Dimmit
  • Donley
  • Duval
  • Eastland
  • Ector
  • Edwards
  • El Paso
  • Ellis
  • Erath
  • Falls
  • Fannin
  • Fayette
  • Fisher
  • Floyd
  • Foard
  • Fort Bend
  • Franklin
  • Freestone
  • Frio
  • Gaines
  • Galveston
  • Garza
  • Gillespie
  • Glasscock
  • Goliad
  • Gonzales
  • Gray
  • Grayson
  • Gregg
  • Grimes
  • Guadalupe
  • Hale
  • Hall
  • Hamilton
  • Hansford
  • Hardeman
  • Hardin
  • Harris
  • Harrison
  • Hartley
  • Haskell
  • Hays
  • Hemphill
  • Henderson
  • Hidalgo
  • Hill
  • Hockley
  • Hood
  • Hopkins
  • Houston
  • Howard
  • Hudspeth
  • Hunt
  • Hutchinson
  • Irion
  • Jack
  • Jackson
  • Jasper
  • Jeff Davis
  • Jefferson
  • Jim Hogg
  • Jim Wells
  • Johnson
  • Jones
  • Karnes
  • Kaufman
  • Kendall
  • Kenedy
  • Kent
  • Kerr
  • Kimble
  • King
  • Kinney
  • Kleberg
  • Knox
  • La Salle
  • Lamar
  • Lamb
  • Lampasas
  • Lavaca
  • Lee
  • Leon
  • Liberty
  • Limestone
  • Lipscomb
  • Live Oak
  • Llano
  • Loving
  • Lubbock
  • Lynn
  • Madison
  • Marion
  • Martin
  • Mason
  • Matagorda
  • Maverick
  • McCulloch
  • McLennan
  • McMullen
  • Medina
  • Menard
  • Midland
  • Milam
  • Mills
  • Mitchell
  • Montague
  • Montgomery
  • Moore
  • Morris
  • Motley
  • Nacogdoches
  • Navarro
  • Newton
  • Nolan
  • Nueces
  • Ochiltree
  • Oldham
  • Orange
  • Palo Pinto
  • Panola
  • Parker
  • Parmer
  • Pecos
  • Polk
  • Potter
  • Presidio
  • Rains
  • Randall
  • Reagan
  • Real
  • Red River
  • Reeves
  • Refugio
  • Roberts
  • Robertson
  • Rockwall
  • Runnels
  • Rusk
  • Sabine
  • San Augustine
  • San Jacinto
  • San Patricio
  • San Saba
  • Schleicher
  • Scurry
  • Shackelford
  • Shelby
  • Sherman
  • Smith
  • Somervell
  • Starr
  • Stephens
  • Sterling
  • Stonewall
  • Sutton
  • Swisher
  • Tarrant
  • Taylor
  • Terrell
  • Terry
  • Throckmorton
  • Titus
  • Tom Green
  • Travis
  • Trinity
  • Tyler
  • Upshur
  • Upton
  • Uvalde
  • Val Verde
  • Van Zandt
  • Victoria
  • Walker
  • Waller
  • Ward
  • Washington
  • Webb
  • Wharton
  • Wheeler
  • Wichita
  • Wilbarger
  • Willacy
  • Williamson
  • Wilson
  • Winkler
  • Wise
  • Wood
  • Yoakum
  • Young
  • Zapata
  • Zavala
  • Utility provider: Texas-New Mexico Power Company
    Utility bill: $ 138

    Prices based on a 5.5kW system, after 26% 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 26% federal solar tax credit explained

    The federal solar tax credit is equal to 26% of the total cost of installing solar panels on your home. 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.

    Keep in mind that the federal solar tax credit is set to step down at the end of 2022, falling from 26% of costs to just 22%. So, the best time to go solar is now, so you can maximize your solar savings.

    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 2021 they also remain subsidized by the 26% 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: Utility incentive
    Type: Net Metering

    Showing 1 - 2 of 3

    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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