Benefits of Solar Energy
Solar energy has several advantages that will enhance your home for years to come.
- Lower energy bills: Producing some or all of your own electricity will save you money on your electric bills long-term. Plus, some states provide net metering programs that enable you to sell your extra energy back to the grid, generating additional credits toward your energy bill.
- Better energy independence: Photovoltaic solar panel systems with battery storage systems work through power outages and emergencies, and you won't have to rely on your power company for your safety and well-being.
- Reduced carbon footprint: The sun is a highly abundant clean energy source, meaning you can reduce or eliminate your home's dependence on "traditional" sources.
What Solar Incentives Are Available to Houston Homeowners?
Texas' public agencies and power companies offer several solar incentives to help cut your solar system costs. Check out a breakdown of available solar programs where you live.
Incentive Type: Property Tax Incentive
Website: comptroller.texas.govIncentive Amount:
100%
Incentive Type: Rebate Program
Website: texasgasservice.comIncentive Amount:
Free Equipment Program: Free appliance installation and weatherization services
Home Improvement (includes attic insulation, duct sealing, duct insulation, duct replacement, high-efficiency gas furnace, and Wi-Fi thermostat: Up to $1000
Solar Water Heater With Natural Gas Backup: $750
Tankless or Super High-efficiency Water Heater: $650
Furnace: $675
Furnace Tune-Up: $40
Natural Gas Dryer with moisture sensor: $225
Natural Gas Dryer Stub: $300
Incentive Type: Personal Tax Credit
Website: ecowatch.comIncentive Amount:
30% federal tax credit for systems placed in service after 12/31/2021 and before 01/01/2033. Good for: solar water heat, solar photovoltaics, biomass, geothermal heat pumps, wind (small), fuel cells using renewable fuels.
How To Choose the Best Solar Company in Houston
The purchase price and effectiveness of solar panels often depend on the solar company that installed them. Make your choice based on the following key factors.
Licensing and Training
All solar installers in Texas must have a state electrical contractors' license from the Texas Department of Licensing and Regulation. The Texas State Board of Plumbing Examiners regulates plumbing regulations and licensing standards for solar thermal installers. You should also visit a company's website to learn about its private accreditations. Two of the most recognized are the Solar Heating Installer and PV Installation Professional certificates, granted by the North American Board of Certified Energy Practitioners (NABCEP). Some companies don't publish this information online, so you should also ask your estimator about them.
Cost of Solar Panels in Houston
Different solar panel types look and perform differently. Monocrystalline panels offer the best energy production but cost more than other options and generally have the highest quality. Polycrystalline panels provide a lower price point but produce less power. Thin-film panels work well for small projects like RVs and sheds, but they're not ideal for larger installations due to their low performance.
Additional accessories, such as battery storage and electric vehicle (EV) chargers, will increase your overall installation costs. However, they might make your solar system more efficient and convenient to use. Not every solar contractor offers these additional features, so look for a company that installs them if it's a priority for you.
Most Houston homeowners select solar systems rated for five kilowatts (kW) of electrical capacity. These systems cost about $16,650 to install, considering both materials and labor. You can find more specific solar cost information in the table.
| Solar Panel Cost | Average Cost |
|---|---|
| Solar Monocrystalline | $1,173 |
| Solar Polycrystalline | $915 |
| Thin-Film | $535 |
| Solar Battery | $750 |
| Solar Home EV Charger | $2,814 |
Financing Solar Energy in Houston
Solar companies use multiple different financing options to lower your costs and increase your savings. Though some providers offer unique payment plans, the most common are solar loans, solar leases, power purchase agreements (PPAs) and cash payments. Though it requires a large up-front payment, cash is the most cost-effective choice because it qualifies you for solar incentives and doesn't accrue interest. Solar loans are the next best option. As with a home or auto loan, you'll pay a monthly rate towards system ownership, including interest. You can still apply for money-saving solar incentives, and depending on your lender, you could put as little as $0 down. Solar leases involve paying a set monthly rate to use rooftop panels. A PPA (Power Purchase Agreement) permits you to pay a monthly rate based only on the energy you use, akin to an electric bill. We typically don’t recommend these two choices because you won't own the system and cannot use solar incentives. Look for companies that offer multiple payment plans to find the right fit for your wallet.
The table below lists the average payback periods for different capacities of solar systems in Houston.
The IRS allows you to claim a 26% federal solar tax credit on the full cost of the solar system, so long as you purchase it before 2032. Local governments and utilities might also offer their own incentives, rebates, and financing programs that could save you more money.
| Solar System Capacity | Estimated Payback period |
|---|---|
| 1 kW | 2.1 years |
| 2 kW | 4.2 years |
| 5 kW | 10.6 years |
| 10 kW | 21.2 years |
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Frequently Asked Questions About Solar in Houston
How much money could I save by going solar in Houston?
Is solar energy common in Houston?
Should I anticipate a boost in my property value after going solar?
How can I evaluate my site's solar suitability?
How many years does a common solar system last?
What's the average solar system size in Houston?
What are the signs I shouldn't use a particular solar company for my job?
- Pushy sales approach
- Dodging questions about training and credentials, references, warranties and cost
- "One-size-fits-all" approach
- Rushing through the site assessment
- No references or testimonials
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