Are Solar Panels Worth it in Texas?

If you’re looking into whether solar is a fit for your home, you might have a lot of questions. Do I have enough sunlight to warrant an installation? Am I financially ready for the upfront costs? Do I know enough about the installation process? How do I know which solar installer will help me make the most of a solar installation in Texas?

You’re likely also wondering whether solar energy can truly meet your energy needs or whether the panels’ appearance will blend well with your home’s style.

Let’s dive into the solar market in Texas, the dollars and cents behind a renewable investment, and what challenges you should be prepared for.

Texas Solar Market Overview

With over 260 sunny days a year, Texas boasts one of the highest solar potentials in the country. This makes it an ideal location to become one of the 5 million rooftops nationwide that have become a veritable solar bank.1

Texas has emerged as a leader in solar energy adoption, ranking third in the nation for residential rooftop solar installations. This represents a 646% growth from 2017 to 2022.Why have so many Texans adopted solar energy at such a rapid pace? Supportive legislation, for starters. This includes: 

  1. Property Tax Exemption for Solar Improvements: Homeowners can enjoy a property tax exemption on the added value of their solar energy systems, making solar investments more financially appealing.
  2. Net Metering Policies: Some utilities in Texas offer net metering, allowing homeowners with solar panels to sell excess energy back to the grid, further reducing energy costs.
  3. Rebates and Incentives: Various utilities offer rebates or incentives for installing solar energy systems, encouraging more people to convert to renewable energy sources. More on that below. 
  4. Solar Rights Law (HB362): This legislation protects a homeowner’s right to install solar energy systems, preventing homeowners’ associations from imposing unreasonable restrictions on solar installations.3

Economic Benefits of Going Solar in Texas

Solar energy benefits in Texas are many – and quite a few include financial perks.

Avoid Changing Energy Rates

Installing solar panels in Texas can be an effective strategy for homeowners to shield themselves from the volatility of changing energy rates. Texas is known for its deregulated energy market, which means that electricity prices can fluctuate significantly based on market conditions. Going solar means homeowners can generate their own electricity, thereby reducing their reliance on the grid and insulating themselves from unexpected price hikes. 

Save on Your Utility Bill

While the up-front investment can be substantial, many homeowners find that the long-term savings on their electricity bills outweigh these initial expenses. It’s crucial to perform a thorough cost-benefit analysis, considering factors such as the local energy prices, the system size required, and the expected lifespan of your solar PV system.

Save on Upfront Costs with Texas Solar Incentives

Coupled with Texas solar incentives such as state tax credits and rebates, homeowners can significantly reduce their upfront costs for solar installations in Texas. These include but are not limited to: 

  • American Electric Power: AEP serves many cities in Texas, including Corpus Christi, Abilene, McAllen, Harlingen, San Angelo, and others. AEP’s rebate program in 2024 is unchanged from 2023. The residential rebate is a fixed-tiered structure with a value of $1,500 for systems below 5 kW (with a minimum size of 3kW), $2,250 for systems that are at least 5 kW but less than 7.5 kW, and $3,000 for systems that are 7.5 kW or larger. 
  • Austin Energy: Currently offering a flat $2,500 post-installation rebate for those that go solar and net metering.
  • CPS Energy: Serves the San Antonio area and has an up-front solar rebate available for commercial projects. The commercial solar rebate remains at $0.60/watt up to $80,000.
  • Guadalupe Valley Electric Cooperative (GVEC): Offers a post-installation solar rebate of $0.75 per watt up to $3,000. GVEC also offers home energy efficiency rebates. 

Read more about regional Texas solar incentives in our comprehensive breakdown by area here

Environmental Impact of Texas Solar Panels

There’s a common misconception that one person changing habits or one home adding solar doesn’t make a difference. However, every individual action contributes to a larger movement towards sustainability. When a single household opts for solar energy, it sets an example for neighbors and friends, fostering a culture of environmental responsibility. This ripple effect can lead to increased awareness and adoption of renewable energy solutions across communities. 

Our kids get an instant STEM learning opportunity; the advanced energy monitoring that comes with many solar PV systems allows us to get intimately involved with our energy usage, inspiring us to make other lifestyle changes in our homes that collectively leave a positive impact on our planet. 

In the big picture, installing a rooftop solar PV system in Texas means you are part of conserving the resources of our shared planet, which includes:

  1. Reduction in Greenhouse Gas Emissions: Adopting solar means homeowners significantly decrease their use of fossil fuel-derived energy, leading to lower carbon emissions and a smaller overall carbon footprint.
  2. Lower Water Usage: Traditional energy production methods, particularly natural gas and coal, require substantial water for cooling and processing. Solar energy systems, conversely, utilize little to no water, contributing to water conservation.
  3. Air Quality Improvement: Solar energy mitigates air pollutants commonly associated with fossil fuels, such as sulfur dioxide and nitrogen oxides, and improves air quality and public health in residential areas.

Considerations For Going Solar

Solar panels are not a fit for everyone, and the following factors should be considered before taking next steps. 

Geographic Factors

Geographic factors influence the effectiveness of solar panels; areas with higher cloud cover or less sunlight may not be ideal for maximizing solar energy production. While there are mitigation measures that can be taken to an extent (tracking systems and panels built for low light environments), you should consult with your solar expert first. 

Is Your Roof Ready?

Texas has a diverse range of housing types and roofing structures, which can impact the feasibility of solar installations. Some homes may not have suitable roofs for solar panels due to age, orientation, or shading from trees or other buildings. 

Your rooftop orientation is also a significant factor in how efficient a solar PV system can be. South facing roofs are generally more efficient than north-facing roofs. The tilt is also important, with a tilt of 30–45 degrees being ideal. The good news? The National Renewable Energy Laboratory reports at least 82% of buildings in the US get enough sunlight to qualify as good candidates for some solar panels! 4 

Space Requirements

Solar panels require a good amount of surface area to generate enough energy to power your home effectively. While many folks opt for roof-mounted systems, those with limited roof space might want to look into ground-mounted options or larger setups that can fit more panels. If you’re aiming to make the most of solar energy around the clock – especially on those cloudy days – investing in battery storage is key and will also require additional space. 

Find a Texas Solar Installer 

The future of solar energy in Texas seems brighter than ever. The movement towards solar power isn’t just about saving money; it’s about creating a sustainable and resilient future for Texas and the planet.

Freedom Solar Power has been leading the solar revolution in Texas since 2007. Contact us for a free consultation today. 

Resources:

  1. https://www.seia.org/5M
  2. https://www.houstonpublicmedia.org/articles/news/energy-environment/2024/02/13/477309/texas-ranks-3rd-in-the-u-s-for-residential-solar-power-generation-new-report-says/
  3. https://www.gosolartexas.org/solar-rights-regulations
  4. https://iopscience.iop.org/article/10.1088/1748-9326/aaa554