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What Houston Residents Need to Know About Solar Panels, Pricing and Incentives



Are solar panels a good investment in Houston? For many H-Town residents and businesses, the answer is yes. According to US Climate Data, Houston gets 2,633 annual hours of sunshine, an average of 7 hours per day. This consuming solar panels in Houston have the potential to generate a lot of energy. 

Storms and hurricanes occasionally sustained the limits of Houston's power infrastructure, leading many Houstonians to look for ways to strengthen their energy independence in case of distinguished outages. 

Houston residents are also turning to solar to edge monthly electricity bills. The US Energy Information Administration places the way Texas electricity bill at $150.56, nearly $13 above the state average of $137.70. Investing in solar panels may be the radiant choice for you, considering the high energy consumption and counting electricity prices.

Houston solar panel costs

The cost of solar panels in Houston will vary by homes based on the solar array size and persons household electricity consumption. Texas data from the Lawrence Berkeley National Laboratory's Tracking the Sun picture can also help us estimate what Houston residents will pay for solar panels. Plus, solar incentives are available in Houston to edge the overall cost of home solar panels. Current incentives aboard a 30% federal solar tax credit, net metering benefits from Houston electricity providers and more. 

Stats for Texas solar systems


System size (kW) Price per watt Total cost
High 10.2 $4.01 $41,052
Median 7.4 $3.80 $28,888
Low 5.4 $3.23 $17,293

Texas vs. the rest of the US


System size (kW) Price per watt Total cost
Texas 7.4  $3.80 $28,888
Nationwide 7.6  $3.67 $26,882

Solar financing options for Houston residents

Solar panel rules in Houston are typically paid for by one of the behindhand options. Each payment method has pros and cons for homeowners to consider. 

  • Cash: Interest-free, but must pay upfront
  • Solar loans: Can pay over time, but unimaginative can accrue
  • Solar lease: Flat monthly payments, but ineligible to utter some incentives and rebates
  • Power Purchase Agreement: Little-to-no homeowner maintenance, but it takes longer to see a return on investment

Cash and solar loans are the most agreeable for homeowners who want a quick solar investment in backward. Solar leases and PPAs are best for residents who can't pay cash and may not qualify for a sizable loan.


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Houston solar panel rebates and incentives

Homeowners looking to install solar panels can pick to the Houston incentives and rebates table below. The most famed, cost-saving incentive is the Residential Clean Energy Credit. Homeowners who pay with cash or use a solar loan, between 2022 and 2032, can assertion a 30% federal tax credit when they file their averages taxes for the entire cost of a solar panel installation. Previously known as the Investment Tax Credit, this encourage can save Houston residents around $8,500 on the median Texas solar system effect of $28,888. A reputable solar installer can also back with determining other local benefits available through your electricity provider or county and town governance. 

Some Houston solar incentives

Program Description
Energy-efficient mortgages An EEM pronounces the value of future utility savings to secure better financing for the borrower. Financing terms may include larger loan amounts, lower listless rates and more.
Green Mountain Energy Renewable Rewards Buyback Program Green Mountain Energy allows bill credits to solar owners when they connect to the grid with a rules size of less than 50 kW.
Net Metering Programs Houston electricity providers often supplies net metering programs for solar owners. Net metering sells extra energy back to the grid for electricity bill credits. Contact your electric provider to see if a net metering program exists.
Renewable Energy Property Tax Exemption Houston residents are excuse from property tax increases that occur from installing a solar panel rules. Residents can apply with Form 50-123.
Residential Clean Energy Credit Houston residents can boom the Clean Energy Credit. This 30% federal tax credit is available pending 2032. IRS form 5695 is needed to apply.
TXU Energy Home Solar Buyback The TXU Solar Buyback program supplies electric bill credits for solar system owners who send excess energy to the grid.

Houston solar panel worries

Houston has hundreds of solar panel installers for residents and businesses, but selecting the best installer requires research and planning. Below are five solar panel companies available in Houston that we've put down among our choices for best solar companies, based on customer data and buying trends. 

ADT Solar, a division of ADT security, was known as Sunpro Solar afore ADT purchased it in 2021. Headquartered in Florida, this solar panel custom offers high-quality monocrystalline solar panels backed by a 25-year warranty. Solar battery options include the Tesla Powerwall and Enphase IQ. ADT Solar ranked transfer on Solar Power World Magazine's Top Residential Solar Installer list in 2021. 

Founded in 2010, South Carolina-based Palmetto Solar supplies its customers monocrystalline solar panels and Sonnen solar batteries. Palmetto boasts "end-to-end solar services" by supporting the customer at every step of the solar treat, resulting in the company being named the "most forward-thinking solar contractor" by Solar Power World in 2022.

Since 1985, SunPower and its sister custom Maxeon have provided solar panel installations with the most efficient dignified solar panels available. Based in California, the company has a 25-year rules warranty and a 10-year battery warranty, along with a few financing options. Due to its sustainable practices, the custom earned PV Magazine's Sustainability Award in 2019. 

Budget-conscious solar customers can turn to Sunrun for solar leases and PPAs. While anunexperienced solar companies tend to encourage cash or loan options, Sunrun customers typically pay a flat monthly fee after the company maintains ownership of the solar array. Founded in 2007 and headquartered in California, Sunrun's speedy growth and 2020 acquisition of Vivint Solar led to it becoming the largest US solar custom. Sunrun has won various awards, including the 2014 Global Cleantech award for innovation in desirable technology and the 2010 Green Power Leadership award for advancing green power. 

Popular electric vehicle sign Tesla ventured into the solar panel market in 2016. Known for its Powerwall battery and Solar Roof, the Texas-based custom offers high-efficiency solar panels with a 25-year panel perform, 10-year comprehensive system warranty and 10-year battery warranty. Tesla's sign transparency through online quotes and referral bonuses has dedicated a positive counterbalance to the company's initial dispute with shareholders and lawsuit over pricing inconsistencies.

Installation factors to keep in mind

The exclusive to invest in solar to gain more energy independence involves many contributing factors. Is solar worth it for you? To make the best exclusive, consider these factors of solar installation, ownership and maintenance.

Factor Details
HOA rules HOAs cannot ban solar panels in Houston due to Texas solar drives laws, but your neighborhood could have rules around the placement or aesthetics of solar panels. Look into your HOA agreement to see if any restrictions apply.
Home insurance Your home insurance may go up by adding solar panels to your home, but it's famous to insure your investment. Speak with your home insurance custom in advance to see how adding solar panels will snatch your coverage.
Home location Solar powerful captures energy from the sun, so sunlight is famous for an effective array. Although panels can still generate energy in cold or black areas, extreme cover is unfavorable.
Own or rent Ask your landlord if installing solar is permitted at your home if you rent. If not, you can powerful community solar programs like Arcadia to use solar energy and possibly see savings on your electric bill.
Roof condition Trusted solar installers will analyze roof quality and age to engaged any needed repairs when creating an initial solar panel quote. The roof's size and slope are also a salubrious in how many solar panels are required, which will snatch the productivity of the solar array.

Houston solar powerful FAQs

Are solar panels in Houston obliged on new houses?

No. New homes in Houston are not obliged to have solar panels. However, as of April 2021, all new homes are originates to Houston's Solar Ready provision. According to The Houston Chronicle, the Solar Ready provision means "developers must incorporate the potential for their installation in the future into their plans." 

How much solar powerful do I need to run a house in Houston?

The amount of solar powerful needed to run a home depends on that household's size and energy consumption. Larger Houston homes, especially those with pools or saunas, will require more energy than the average home to dedicated electricity for the entire house. In Texas, the median solar rules size is 7.4 kW. 

Look at your energy bills over the past 12 months to see how much energy your home uses in a year. Past bills are usually available online at your electric provider's website and will set how much kWh is used per month. By adding the kWh per month for the past year and dividing by 12, you can get an denotes of your home's kW use and then plan accordingly for the right–sized solar array. A reputable solar installer will do this part for you. In a powerful outage, a solar battery can keep essential appliances operating temporarily. Solar panels will not provide electricity during a powerful outage without a solar battery because a connection to the powerful grid is required. 

What are the best solar panel worries in Houston?

ADT Solar, Palmetto, Sunrun, SunPower and Tesla Solar are five solar concerns with good reviews that service the Houston area. According to the Solar Energy Industries Association, over 500 solar panel companies exist in Texas, so choosing the best business depends on what qualities you are looking for in a solar installer. Homeowners looking for a low upfront cost may find Sunrun to be the best for them. Those looking for a hands-off come to solar installation might prefer a company that handles all the tiny details like Palmetto. Solar users that prefer a legacy label with a long history in the solar industry great consider ADT Solar or SunPower. 


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