Are Solar Panels Worth it in Texas?

Known for its southern hospitality, celebrated cowboy culture, and Tex-Mex cuisine, Texas is arguably one of the most coveted states in the U.S. to call home. 

In fact, plenty of people are making the move down south. According to the Census Bureau, more than 9 million people moved to Texas between 2000 and 2022. The Los Angeles Times even reported that more than 800,000 Californians have left the city for other states, including Texas, in 2022. 

Aside from year-round warm temperatures, sunny skies, and a never ending list of things to do and places to see, Texas is also among some of the best states for solar.

Why Solar is a Smart Choice for Texas Homeowners

If you’re considering going solar in Texas, now is the perfect time. As one of the country’s sunniest states, homeowners who invest in solar have great energy potential and can count on their systems running at high efficiency for years to come. 

Here are five of the biggest reasons to say ‘yes’ to solar. 

1. Annual electricity prices continue to rise

Historically, Texas has higher than average residential electricity costs when compared to the national average. Based on data from the EIA, Texas residents have seen electricity prices increase by 20% over the past five years. There are several factors contributing to this—inflation, increasing population, and weather conditions to name a few. 

Switching to solar energy means that you are more energy independent and therefore will rely on the local grid far less. The less you rely on the grid, the less you will be impacted by electricity price hikes. Considering that solar systems are designed to last up to 25 years (often longer), you’ll save thousands of dollars in the long run.

2. Solar yields a good ROI, with minimal upkeep 

Going solar might be a big investment up front, but it ultimately pays for itself. Many of our Texas customers are on their way to recouping their solar investment in as little as five years. 

A big reason for this is because we’re able to save them up to 50% off the total price compared to other companies in their area. For homeowners who don’t choose Monalee, they will still receive a return on their investment; it will just be a couple years more. 

Opting for high quality solar equipment usually means very little upkeep over time. Solar panels are built to be durable and withstand many different environmental factors such as rain, wind, and varying degrees of outdoor temperatures.

3. Solar-powered homes in Texas increase in value

Aside from offsetting your electricity bill and gaining energy independence, solar panels give a home a sleek and modern appearance, which is important for many buyers in today’s market. 

Studies show that homes with existing solar systems are an average of 4.1% more valuable than those without. When you consider that Texas is an in-demand state to live in, that small percent translates to thousands of dollars. 

Buyers are also more likely to pay above asking for a home that runs on solar because they know that their utility bills will be at 100% offset. Most buyers prefer to buy a home with an existing solar system so that they can immediately start saving on their utility bills. In fact, it can be tough to find a buyer who is willing to take over the lease of a solar system.

4. Comprehensive federal and state incentives

Texas homeowners are able to take advantage of several federal and state wide incentives for going solar. On a federal level, homeowners can receive a 30% tax credit on their installed PV systems. 

Other incentives for Texas homeowners include:

• Solar Energy System Property Tax Exemption: Texas homeowners who install a solar system will not be taxed on their home’s increase in value.
• TXU Energy Home Solar Buyback Plan: This plan allows Texas homeowners to sell excess energy produced from their solar system to the local grid and earn credits in return. 
• Buyback plans with some utility companies: In Texas, homeowners can offset their energy charges each month by being paid for the excess energy they produce and send to the local grid. In Texas, the buyback rate is based on the Texas wholesale rate and may fluctuate depending on the season. 

5. Flexible loans and payment plans are available

A solar loan operates similar to that of a car loan, except that it’s specifically tailored for financing solar installations. You borrow a certain amount to cover the upfront cost of the solar system and repay it over time with interest.

Various solar financing options are offered by solar providers and private lenders in Texas, with secured and unsecured loans being the main types. Opting for a solar loan, as opposed to a solar lease or power purchase agreement (PPA) makes you eligible for government tax credits and similar incentives, leading to even more savings.

At Monalee, we partner with both Mosaic and with GoodLeap to make solar more accessible to homeowners across the country. Both partners offer homeowners flexibility in how they pay for various sustainable products, from solar panels and battery storage to smart home devices and energy-efficient windows.

How much can solar save you in Texas in 2024?

The short answer? Quite a lot. Below is a graph of what the cost of a 10.9 kW system costs with Monalee vs. other solar companies. Over twenty years, homeowners can expect to save upwards of $50,000 dollars. The cost of not switching to solar energy over that same 20-year period is more than $70,000. 

Keep in mind that the average price of switching to solar in Texas is roughly 12% lower than the national average. This means that you’re saving money just by living in Texas. Once you factor in federal and state incentives, you’ll be able to shave a couple thousand dollars off your total investment.

The best way to predict what solar might cost for your home is to get a personalized quote on our website. Enter your home address and the amount that you pay on utilities each month. From there, our advanced machine learning will access your solar needs and even create an optimized solar design based on your roof layout. It does this all while taking into consideration any existing or potential roof obstacles that could impact solar production.  

In Conclusion

Texas homeowners have a lot to gain from switching to solar energy. Costs are lower than the national average and with Monalee, a return on investment can be achieved in as little as 5-7 years. From start to finish, most Monalee homeowners get their solar systems up and running in 50 days.