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Absolutely, solar panels are a wise investment in Texas. With abundant sunshine and high electricity costs, they can dramatically cut your energy bills. Plus, with state incentives and rebates, you’ll see a faster return on investment while contributing to a greener future.
Texas receives one extra month of sunshine compared to the other states in the U.S. Cities such as Austin, Dallas, Fort Worth, and San Antonio receive between 220 and 230 sunny days in a year. An average-sized house in Texas consumes 1,210 kWh of electricity per month and pays $177 in bills. This is slightly higher than the national average of $121 per month. Texas also has the fifth-highest demand for electricity in the U.S., which makes a good case for opting for residential solar power.
Our article covers ways to know if solar panels are worth it in your area in Texas, their benefits, and points to consider while making the transition from conventional to renewable energy.
How to Determine If Solar Panels Are Worth It in Texas?
Even if Texas is one of the sunniest states in the U.S., you must have a reputed solar installation agency assess if it is the right option for you. You can save electricity bills only if your roof is aligned in the right direction and you use the right quality solar panels. Here are some points to consider –
Home’s Electricity Consumption
Texas ranks fifth in the U.S. for residences with high energy consumption. An average home consumes 1,132 kWh of electricity each month. Solar panels help you reduce your monthly energy bills, eventually pay off the initial investment, and eliminate expenses. However, if your monthly consumption is less than 500 kWh, investing in a solar panel may not be worth it.
Given the average electricity consumption across the state, most homes will benefit from solar panel installation by reducing their monthly bills.
Roof’s Exposure to the Sun
Not every roof is built in the right direction. If the roof does not get enough sunlight, installing a solar panel may not be worth it, even if you live in an area with high sun exposure. Texas witnesses up to 225 sunny days per year, and most houses receive direct sunlight. This makes it an excellent place to consider going solar. However, you should consult a professional solar installer for these factors –
- Examine any large trees, chimneys, or nearby buildings that project a shadow directly onto your roof.
- The direction of the roof. South and west-facing roofs receive maximum sun even in winter. North and East also do but are less effective.
- For the solar panel to be most effective in Texas, the ideal angle of the roof should be between 20 and 30 degrees. This depends on the latitude of the location and may not be the same for every house.
- There must be enough space on the roof to install a solar panel system big enough to offset your energy needs and be worth the investment. If you already have several sunlight openings, chimneys, or other elements on the roof, it may reduce the space for solar panels. In this case, your solar engineer may design a unique solution to make the installation feasible.
The Brand and Quality of Panels Provided by Solar Companies
The solar panel and inverter brand and build quality determine the system’s performance. Higher-quality systems would be comparatively expensive, but you would save more money on energy bills in the long run, and the system would pay for itself sooner.
The size of the solar panel determines its cost and the time it takes to offset the initial investment. Your solar engineer will recommend the right size to fit the roof perfectly and offset the total electricity bill. Lastly, monocrystalline solar panels cost more than their polycrystalline counterparts but produce more energy.
Climate in Texas
Climate has a significant impact on the electricity solar panels generate and determines if your investment is worth it. Texas is one of those states in the U.S. that receives the highest sunlight. Texas residents must consider solar panels with an extensive warranty to protect against any damage due to tornadoes, hailstorms, hurricanes, and thunderstorms. However, rain can keep your solar panels free of dust and debris that lower their performance.
While the performance of solar panels deteriorates during overcast days, the overall investment is still worth it because of 200+ sunny days with clear skies.
Benefits of Getting Solar Panels in Texas
An ideal geographic location and abundant sunlight are only one of the reasons to consider going solar in Texas. Here are several other benefits of solar panels that are too good to pass –
Save Money on Electricity Bills
Lowering your energy bills and even earning money after covering the initial cost are some of the main benefits of solar panels. With a 1,132-kWh average consumption, Texan households receive some of the highest electricity bills in the U.S. Texans pay an average of $177 per month ($2,124 per year). Once the solar panels have paid for themselves, homeowners can continue saving thousands of dollars during the system’s lifespan.
Solar panels eliminate your dependency on utility companies with rising energy bills and lock in the per-unit rates for the next 25+ years.
Protecting Your House from Power Outages
Since you don’t depend on conventional energy supply from utility companies, you are free of power outages. Solar energy systems provide a constant supply of electricity in your home and office, making power outages a thing of the past. During weather disruptions, you may witness a reduced supply but no outage unless the solar panel system or inverter system is damaged.
Rooftop solar power systems are more reliable compared to hydro and wind energy because the latter need vast open spaces and high volumes of water flow. With solar panels, you ensure a consistent supply when you need it.
Tax Credits, Rebates, and Other Solar Incentives in Texas
Federal Solar Tax Credit 2022, also called Investment Tax Credit (ITC), benefits Texans by allowing them to claim 30% of the installation cost after one year and lowering the price of solar from $36,570 to $25,599. This tax credit is open for both old and new homeowners in Texas.
Many Texas homes with solar panels are also entitled to tax exemptions up to the value of the solar system. This applies to both residential and commercial properties, new and old, and covers the cost of solar panel systems and installation.
Texas also offers net metering, a billing plan that incentivizes homeowners for the excess electricity they generate. They receive a credit on their utility bills, which they can use to pay future bills.
The state government also offers several incentives and rebates, including –
- A $2,500 rebate for every residential solar panel with a $500 premium for those that use local modules.
- An additional $0.60 off for each Watt commercial property consumed till the first 25 kW.
The Resale Value of Your Home Increases by Going Solar in Texas
If you are considering selling the property, solar panels directly increase the home value by 4.1%. In Texas, the average home value is $296,127 and a solar panel increases its value by $12,141. Areas such as Dallas, Houston, Fort Worth, and San Antonio may get you an even higher selling price.
However, this is applicable only if you buy the solar panels and pay upfront. It is not relevant to leased installations or power purchase agreements (PPAs). Lastly, solar panels do not offer property tax exemption, which goes up because of the installation.
What Should Texans Look Out for When Considering Solar?
Now that you have finalized the decision to go solar, here is a list of things to consider as you proceed with the installation –
Upfront Cost of Solar Panels and Additional Equipment
The initial cost of solar panel installation in Texas varies, with the average price of solar panels influenced by factors like the type of solar panel system you choose and whether you need roof replacement before installing solar panels. The upfront cost comprises procuring solar panels, batteries, and inverter and installation. The average cost of solar across Texas is $23,775 to $32,167, and it drops by 30% after you use the federal tax credit. You can keep it low by choosing a zero-down solar loan to pay for the equipment.
Net Metering Policy for Texas Solar Panels
The net metering policy depends on the utility company you choose. While every company offers a different plan, some offer none. By having net metering, you can drastically reduce the payback period for solar panels and increase the ROI.
Legal Aspects: Solar Power Rights in Texas
Every state has a different law for installing solar panels. In Texas, no law bans or limits its installation. The housing complexes and societies cannot restrict you either. This means, as a homeowner, you won’t be violating any law by going solar.
Roof Condition and Load-bearing Capacity: Inspection and Repairs
Before installation, an engineer will visit your site to inspect the roof and recommend any repairs or replacements, if necessary. Solar panel assembly is heavy, and you need a roof with structural integrity and load-bearing capacity to hold it.
Roof Shape and Surface Area
The roof shape and surface area determine if you can install enough solar panels to cover your energy needs and justify the expense in the long run. The survey engineer will check if the roof has enough space, orientation (to face the sun), and slope (to absorb enough sunlight) during the day. South or west-facing solar panels will maximize their utilization and pay-off capability.
Conclusion
Texas homeowners are placed in the right spot when it comes to weather conditions, sun exposure, and state and federal incentives and rebates. According to the Solar Energy Industries Association (SEIA), Texas is among the top states in the U.S. for solar panel installations.
To ensure solar is worth it for you, consulting with the best solar companies in Texas can help you assess the pros and cons of going solar and determine if panels will save you money in the long run. Consult a solar installation agency like Icon Power, which will arrange an engineer visit to inspect your property site, roof area, gradient, and space. Icon Power is one of the top solar installers in Texas. We will help you calculate the estimated solar payback period and return on solar investment.
FAQ
Yes, Texas is one of the top states for installing solar energy due to its 200+ sunny days and several state and federal incentives.
Based on research, solar panels in Texas increase your home value by 4.1% or $12,141.
The payback period depends on several factors, including the sun exposure of the roof, its direction, average monthly bills, and more. Most homeowners in Texas find that the solar panel system pays for itself between 9 and 15 years, after which they continue to save money for the remaining lifespan.
Yes, Texas offers a 30% Federal Tax Credit (ITC) and net metering (varies according to the utility provider).