Are Solar Panels Worth It in Texas? The Texas-Sized Breakdown
With soaring electricity costs, more Texans are taking a serious look at solar power. Given that Texas enjoys over 200 sunny days a year, it’s no wonder the Lone Star State is second in the nation for solar installations. But is solar worth the investment for everyone? Let’s dive into the details and see if it’s a good fit for your home.
Solar Power in Texas: The Basics
Solar power has been around for a long time, but in the past few years, it’s truly become viable for residential use. In 2023 alone, it’s estimated that 4 million photovoltaic systems will be installed across the U.S., with Texas leading the charge. Texans can take full advantage of the abundant sunshine, and with the decreasing cost of technology, more homeowners are considering solar energy.
How Much Does Solar Cost in Texas?
Here’s where things get real: As of late 2022, the average cost of solar in Texas sits at around $2.75 per watt. That means if you’re installing a 5kW system, you’re looking at a total of $13,750. But don’t forget about the installation! When you factor in all costs, including labor and permitting, the average Texas homeowner is paying around $30,935 for solar panel installation. Fortunately, the 30% federal solar tax credit knocks that number down to about $21,654, making the initial investment much more manageable.
The Benefits of Solar Power in Texas
Money Savings
The average Texas home uses 1,132 kWh of electricity per month, which translates into an electric bill of about $132.59. Over the course of a year, that’s nearly $1,600. Solar panels can drastically reduce that bill. While you may not eliminate your electricity bill entirely (especially if you’re drawing from the grid at night or on cloudy days), most homeowners can cut their bill in half. Over a solar system’s 25-year lifespan, that adds up to around $21,350 in savings.
Tax Breaks and Incentives
Texas residents can cash in on the Investment Tax Credit (ITC), which slashes 30% off your solar installation costs. Solar systems installed in 2023 will still benefit from this incentive, but starting in 2024, the credit will drop to 23%. Unfortunately, Texas doesn’t offer statewide solar incentives, but several utility companies have solar rebate programs to ease the financial load.
Net Metering
With solar, you can become an energy producer! That means you can sell excess electricity back to the grid—known as net metering. While Texas doesn’t have a statewide net metering program, some power companies do offer their own. For example, Texas Best Solar Plans customers can take advantage of many solar buy-back programs, getting paid for the power they generate from their solar systems.
Protection From Power Outages
Solar panels can keep your home powered during blackouts, as long as you have a battery backup system installed. This can be especially helpful during Texas’ occasional power grid issues (remember the big freeze?). While it adds an extra cost, battery storage ensures you won’t be left in the dark when the grid goes down. Talk to your solar installer for more information about batteries and what would work best for your situation and set up.
Challenges of Solar Power in Texas
High Upfront Costs
While solar panels promise long-term savings, there’s no getting around the fact that the initial cost is steep—over $21,000 after tax credits for the average installation. Additionally, the payback period in Texas is about 13 years, meaning it’ll take that long for the savings on your electricity bills to equal the amount you spent on installation.
Moving Before the Payback Period Ends
Solar is a long-term investment. If you sell your home before the 13-year payback period is up, you may not fully recoup your costs. You could take the panels with you, but that can complicate the home sale process and result in additional expenses.
Beware of Bad Deals
Not all solar deals are created equal. Be wary of “free panels” and bad lease programs. Leasing might seem tempting due to the lower upfront cost, but it doesn’t allow you to take advantage of tax credits and won’t increase your home’s value. Power purchase agreements (PPAs) are another option but can also limit financial benefits in the long run.
Is Solar Worth It in Texas?
So, is solar worth it for every Texan? It depends.
If your home gets plenty of direct sunlight and you plan on staying in your home for the next 13 years, solar panels can lead to significant savings. Plus, you’ll be contributing to a cleaner, greener Texas by reducing your reliance on fossil fuels. However, if you plan on moving soon, have a heavily shaded roof, or can’t afford the upfront costs, solar may not be the best investment.
Solar Panel Longevity in Texas
Wondering how long your solar investment will last? Most solar panels come with a 25-year warranty, but with proper care, they can keep producing electricity for up to 30 years. Given Texas’ abundant sunshine, your panels will likely be working overtime to keep your home powered for decades to come.
Solar and Home Value
According to Zillow, solar panels can increase your home’s value by about 4%. For the average home in Texas (valued at just under $290,000), that’s an extra $12,000 added to your sale price. Not bad! Plus, Texas offers a property tax exemption for the value added by your solar system, which can save you even more.
Can Solar Panels Handle Texas Weather?
In a state known for its extreme weather, you might wonder how solar panels hold up. The good news is that solar panels are built tough. They can withstand the Texas heat, and they’re waterproof to handle rainstorms. However, installing surge protection can guard against lightning strikes, which can otherwise damage the system.
Solar Without the Huge Upfront Investment
Even if you’re not quite ready to install solar panels, you can still enjoy the benefits of renewable energy through Texas Best Solar Buy Back Plans. With our plans, you can support green energy, reduce your carbon footprint, and save on your electricity bills—without the hefty upfront investment of solar panels.
Can I Install My Solar Panels in Texas?
Thinking about doing a little DIY with your solar panel installation? Well, partner, hold your horses! While Texans are known for getting things done, this is one job best left to the pros. Not only is working with electricity on your roof a bit dangerous, but Texas requires permits for solar installations, and reputable companies usually handle all that red tape for you. Plus, a professional installer will ensure your panels are safely and properly fitted to harness all that Texas sunshine. Leave it to the experts, and sit back to enjoy the savings!
Conclusion
Solar power can be a fantastic investment for many Texans, offering long-term savings and environmental benefits. But like any big decision, it’s important to weigh the pros and cons. If you’re ready to take the plunge into solar or just want to explore renewable energy options, Texas Best Solar Plans is here to help you find the best Texas Solar Buy Back Plans that fit your needs. We’re dedicated to helping Texans harness the power of the sun—one home at a time.