Texas has a ton of clean energy, but much of that is at the scale of giant solar farms. Despite that, household solar panels are simpler than ever to install in Texas with federal and local incentives easing the financial burden of the equipment cost. The biggest incentive, of course, is the federal solar tax credit, which enables homeowners to recoup 30% of the cost of clean energy additions.
Texas has some noteworthy state incentives as well. Although Texas doesn't have statewide net metering policies, some power companies enable you to send any excess electricity you've produced back to the grid, giving you credits to pull electricity from the grid when you need it most at no cost. Texas is huge, so many local programs exist in different places across the state -- speak to representatives from installers or local solar nonprofits to learn about incentives you can take advantage of.
Here are some of the best national solar panel installers operating out of Texas.
Best national solar panel companies in Texas
Texans have hundreds of options when selecting a solar panel installer. According to the Solar Energy Industries Association, almost 700 solar companies operate across Texas, including 261 installers and developers. These are CNET's expert picks for the best national solar panel companies operating out of Texas.
Palmetto Solar
Best overall
Solar panels are typically low maintenance equipment, but they're also unfamiliar. If you want to reap the benefits of solar but will have a bit more peace of mind if someone else is making sure it's working, Palmetto might be a good fit for you. Just remember to add the cost of Palmetto's monitoring service in to your payback period calculations.
NRG Clean Power
Best in California and Texas
NRG Clean Power brings one of the solar industry's most confident approaches to its work, offering a price match and 40-year warranty. NRG Clean Power is a solid bet as long as you live in Texas and California. NRG Clean Power does not offer leases or power purchase agreements, but it does provide solar panel cleaning and roofing services as well as a reliable equipment menu.
EnergyPal
Most flexible
EnergyPal is more than just a middleman. It'll handle your solar installation from beginning to end while also allowing you to benefit from its proprietary engine and competitive bidding process. The company offers a range of hardware for panels, batteries and inverters, has plentiful financing options and offers responsive customer service support.
Elevation
Whole home approach
Elevation's focus on your home's energy efficiency isn't the norm in the industry. If you're planning on addressing energy efficiency first, working with Elevation allows you to keep the whole process with one company. Elevation's solar equipment comes from well-established and well-regarded companies. Elevation's warranties on workmanship and weatherization could be a bit longer.
Tesla Solar
Most affordable
Tesla's solar branch seems to be the least loved of Elon Musk's ventures. Even Tesla's Solar Roof seems to get more love.
If price is the thing you won't budge on, consider Tesla. By all accounts, Tesla installs quality panels and makes the closest thing there is to a household name in solar storage: the Powerwall.
Where you might miss out is customer service. Discussion online seems to suggest Tesla's service is a bit of a gamble.
Momentum Solar
All in-house installers
Momentum installs in 11 states without using subcontractors. While using in-house installers doesn't guarantee a better experience, it does suggest you're likely to get a more uniform experience from Momentum. The fact that Momentum backs its installations with a 25-year workmanship warranty hints at a strong belief in its crews' ability. If Momentum is part of your search, consider the warranties against leaks that other companies offer. Momentum's is five years, which isn't the best.
Local solar panel companies in Texas
Here are a few solar companies that operate exclusively out of the state of Texas. In addition to these installers, it's important to do some of your own research about local solar companies or get referrals from people you know.
Founded in 2017 by a Marine veteran and a custom house builder, Texas Best Solar is one of the most highly rated Texas solar companies in the state. Texas Best Solar specializes in residential and commercial solar installations. The company aims to install American-made solar panels for every project, with its top pick being Mission Solar Energy panels. Texas Best Solar installs solar batteries as well. You can pay cash or finance your panels.
Solartime USA is a highly rated, family-owned solar company operating from Dallas. The company specializes in residential, commercial, RV and pool solar installations. It also installs a variety of inverters, batteries and generators. Solartime offers a free on-site consultation and inspection of the property. You can pay cash or finance your panels. If you choose to finance, there won't be an upfront cost.
Sunshine Renewable Solutions is another highly rated local installer option in Texas. Founded in 2017, Sunshine Renewable Solutions specializes in residential and commercial solar installations, along with a wide variety of inverters, batteries and EV chargers. The company offers a 10-year workmanship warranty, and the panel manufacturer will offer a 10- to 25-year product warranty and a 25-year panel performance warranty. You can pay cash or finance your solar panels.
Read more: Want something smaller than a whole-home solar system? See our picks for the best portable solar panels and solar generators.
Cost of solar panels in Texas
Here's a look at the average cash price for a typical solar panel system before factoring in tax credits and other incentives, according to data from FindEnergy.com. Your system might become more expensive if you choose to include solar batteries or additional equipment in your purchase.
Average cost of solar panels in Texas
| 5 | $3.05 | $15,250 | $10,675 |
| 5 | $3.58 | $17,900 | $12,530 |
This map visualizes the average total price, cost per watt and system size for solar panels throughout the United States, according to data from FindEnergy.com. The prices shown do not represent changes from tax credits or state solar incentives. If FindEnergy doesn't have solar data for a particular state, it appears grayed out on the map.
Texas solar panel incentives and rebates
Texans buying solar panels between 2022 and 2032 can qualify for a 30% federal tax credit called the Residential Clean Energy Credit. This solar tax credit, once called the Investment Tax Credit, could save you thousands of dollars on the initial cost of your solar panel system. Texas residents can apply for the Clean Energy Credit with IRS form 5695 using these instructions. Texas has a property tax exemption to protect you from a raise in property taxes when solar panels increase the value of your home.
Below are other opportunities to save in Texas with local and state solar incentives.
Texas solar incentives
| AEP Texas (Central and North) customers are eligible for solar incentives based on the maximum amount of energy produced ($/watt DC). Incentives apply only to solar systems installed by solar companies currently enrolled in the program. |
| Austin Energy customers can qualify for a $2,500 rebate by completing this solar education course and "installing a qualifying solar photovoltaic (PV) system." |
| El Paso Electric credits qualified solar owners for "the amount of renewable energy generated against the consumption received from EPE." The system size cannot be more than 10 megawatts. A base electricity bill of $30.25 will apply. |
| Customers earn electric bill credits for each kWh of excess energy produced through solar panels that meet GP&L requirements. |
| Customers can earn electricity bill credits when they "install and activate a quality solar energy system at your home with a rated capacity of less than 10kW." |
| Homeowners can sell excess energy back to GVEC. According to the interconnection agreement, "energy produced by the Installation may be purchased by GVEC at the then-current GVEC renewable energy rate." |
| Some electric providers in Texas offer net metering programs, which let you sell any excess solar energy generated by your system back to a utility company. Check with your electric provider to see if a net metering program is available in your area. |
| Solar owners who meet the Oncor requirements may qualify for energy bill credits. |
| Homeowners can claim a 30% federal tax credit for systems installed from 2022 to 2032. Apply through the IRS. |
| TXU customers "can offset up to 100% of your monthly energy charges" when enrolled in the Solar Buyback program. Renewable energy produced through solar or wind power is applicable. |
How solar-friendly is Texas?
CNET recently ranked states based on their residential solar policies: the laws and regulations affecting consumer-level solar panel installation and adoption. These policies play a major role in determining how accessible and affordable a solar panel system is to the average resident.
Each state was evaluated through a methodology and scored based on eight categories. The final score was converted to a letter grade.
Here's how Texas scored on CNET's solar policy test.
Texas
Grade: F
Incentives available:
- Utility-governed net billing -- solar buyback at the wholesale rate
- Solar panel systems fully exempt from property taxes
Strongest scoring categories:
You don't have to worry about paying property taxes on solar panel systems in Texas, which significantly eases the financial burden of the initial investment. Net billing at the wholesale rate isn't great, but it's better than nothing.
Categories to improve:
Some good first steps for solar friendly legislation in Texas would be bringing that net billing policy up to 1:1 net metering at the retail rate, helping residents pull out the same amount of electricity that they feed into the grid. A full sales tax exemption on solar equipment would be another good step to take before looking at other potential state incentives.
Solar financing options for Texas residents
Whether you're paying upfront or you're financing your solar panels through a loan, it's important to understand all of the options you have to secure financing for your solar panel installation. Here are the advantages (and disadvantages) of different solar financing options:
Cash: The best interest-free way to pay for solar panels. If you can put down enough cash to buy your solar panels up front, you take advantage of all the federal and local solar incentives with the shortest possible solar payback period. Solar panel installation is an expensive endeavor, and this option will be out of reach for many homeowners.
Solar loans: Available through many banks, credit unions and solar installers, a solar loan can be taken out to finance the purchase of your solar panels. Shop around at different financial institutions to make sure you're able to lock in the best interest rate for your personal situation.
Solar leases: Instead of buying the solar panel system, homeowners have the option to lease the equipment from the solar installation company. With this financing option, you won't own the solar panels, but you'll be able to reap the benefits of the system for a fixed monthly price.
Power purchase agreements: By entering into a power purchase agreement with a solar installer, you'll get free solar panel installation on your home -- but you won't own the solar panel system. You won't get any of the federal or local incentives, and you'll still pay for your electricity, but your bill is going to be lower than it was previously. Make sure to read the fine print before locking yourself into a PPA.
Home equity loans and HELOCs: Home equity loans and home equity lines of credit are different from normal loans in that they hold the equity of your paid-off home property as collateral. It might be easier to secure one of these loans, but it also ties the property up in a financial agreement that can complicate selling the house -- and if you skip out on payments, you're always at risk for foreclosure. Make sure that a home equity loan or HELOC is right for you before choosing to finance your solar panel system this way.
How to determine which solar company in Texas is best for me
The best installer for you is an installer who has experience working on the type of solar project that you're interested in. Make sure your solar installer has experience with the type of roof that you have, and the type of system you want installed, like grid-tied or completely off-grid.
Ben Delman, a communications director with Solar United Neighbors, advises homeowners to look for installers that are certified by the North American Board of Certified Energy Practitioners and have the proper licensing, bonding and certifications for their work. Reading up on some online reviews can help you get a better understanding of an installer's reputation. A few websites to start looking for reviews are Google, Yelp and Angie's List. Delman recommends homeowners look for solar companies that have at least 20 to 30 reviews. If you know someone who has solar panels on their home, ask them for installer recommendations too.
Aside from certifications and reviews, there are a few other things to look for in a solar installer. A good installer, Delman said, will be able to:
- Simply explain the project and work deadlines.
- Be transparent about their pricing and how solar financing works.
- Define difficult technical terms in an easy-to-understand manner.
- Provide good word-of-mouth references.
- Understand the local permit requirements and the process for system interconnection with the local electric company.
- Understand homeowners association restrictions and help you navigate and explain that process.
- Answer all of your questions, no matter how difficult they may be.
Never hesitate to ask for clarification on any project and pricing details. To get the best price possible, shop around and gather multiple quotes. Delman recommends comparing at least three quotes before settling on a solar installer.
Installation factors to keep in mind
None of us wants to invest thousands of dollars in home improvements unless we're sure it's the best decision for our circumstances. Homeowners considering solar panels should consider these questions before continuing their renewable energy journey.
- Do you own or rent your home? If you rent, you can inquire with your landlord about installing solar, although renters are often prohibited from making the types of changes to the property that solar panels entail. Renters may be eligible for community solar programs, such as Arcadia, instead. A community solar subscription can provide bill credits from energy produced by solar panels at an off-site location.
- What is the shape of your roof? Roofs needing repair may be subject to additional upkeep before solar panels can be applied. The size and slope of your roof can affect the placement of panels and how much electricity a solar system can create. Roofs with a slope between 15 and 40 degrees are most efficient, according to the Department of Energy. A reputable solar installer will determine if your roof requires maintenance before installation.
- Where is your home? Yes, solar panels can generate energy under cold and shady conditions. Solar efficiency is improved when direct sunlight is available for at least part of the day. Living in an area with a lot of tree cover can negatively affect the amount of energy generated by a solar array.
- Are there HOA or neighborhood rules in your community? Texas is among the states with solar rights laws, which means HOAs cannot ban solar panels. Neighborhood regulations may have rules around the placement or aesthetics of solar installations. Check your local bylaws to see what is allowed.
- Can you add solar panels to your home insurance? Check with your home insurance company to ensure you can add a solar system to your policy and notify them once the installation is completed.
Other ways to save on energy in Texas
Texas is unlike the rest of the United States in many ways, and its energy system is one of them. Texas has a fully deregulated energy market, meaning you have to choose which company supplies your electricity from the grid.
Having that choice means it's essential that you shop around for an energy plan. Read documents like a plan's Electricity Facts Label carefully. Keep an eye out for hidden fees, unexpected rate hikes and other red flags.
You can also save money on energy in Texas by taking steps to make your home more efficient. Ensure gaps around doors and windows are sealed, and consider switching to more energy-efficient appliances, like a heat pump.
Is going solar worth it in Texas?
Solar could be worth it in Texas. It all depends on what you want to get out of solar and how much you're willing to pay for solar panels. Texas has many solar incentives available, as well as plenty of national and local installer options. If you decide to go solar, make sure to shop around for at least three quotes to get the best price possible.
Texas also has excellent opportunities to harness the sun: The state was the second-largest producer of solar power in 2023, after California, according to the US Energy Information Administration.
How we evaluate solar companies
The companies we listed above as "the best" are curated from CNET's best solar companies list. Companies making the best list are scored on the equipment, warranties and customer service they offer. Then, we make sure these recommendations are available in your state. You can read a full breakdown of how we review solar companies here.
Companies listed under the local installers were chosen in a less rigorous way. We chose them because they offered something unique or notable to customers in the state, they seemed well-regarded by internet reviewers or because they were one of the few installers we could find information on in the state.
Whether we've completed a full review on a company or not, it's always a good idea to get multiple quotes from different installers before choosing a company.
Texas solar power FAQ
Does Texas subsidize solar panels?
No. Texas does not subsidize solar panels. The federal residential clean energy credit allows solar owners to claim a 30% tax credit. Plus, many rebates and incentives are available on the state and county levels to Texas residents. Net metering, which offsets your electricity bill by sending excess energy back to the power grid, is another way that solar panels in Texas earn a return on their investment.
What are the pros and cons of solar panels in Texas?
Overall, Texas is a great place to install residential solar panels because the state receives plenty of sunlight year-round. Texas solar rebates and incentives can offset the out-of-pocket cost and net metering benefits from Texas electricity providers can reduce electricity bills for qualified customers. On the other hand, Texas solar panels may not be a good choice if you already have a relatively low electric bill or if trees or buildings extremely shade your home. Additionally, if your roof needs replacement, that extra cost could extend the time it takes to see a return on your solar panel investment.
Does Tesla install solar panels in Texas?
Yes. Tesla installs solar in Texas. In Austin, Tesla has created a solar community where Tesla solar packages are available for purchase with the sale of new homes.
Can you get free solar panels in Texas?
Texas has a lot of different incentives for you to go solar, but none cover 100% of the cost. You might see companies marketing "free solar panels," but that often refers to leases or power purchase agreements, in which a company puts solar panels on your house and you just pay a monthly fee or a per-kilowatt-hour rate for the power. Those panels aren't free, they just have no upfront costs, and you should compare your potential costs and savings against other ways to go solar.
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