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#18 Solar ROI State

Solar Panel ROI in Texas (TX)

Texas averages 1,500 kWh per installed kW per year. At $13.8¢/kWh average utility rates, a 7 kW system produces a 25-year NPV of $10,835.

$12,740
System Cost (After Credits)
$10,835
25-Year NPV
9 years
Payback Period
$0.126/kWh
Solar LCOE

Solar Cost Breakdown in Texas

7 kW system (2.60/W)$18,200
Federal ITC (30%)-$5,460
Net Cost$12,740

Solar Production in Texas

Texas receives an average of 1,500 kWh of solar energy per installed kW per year, based on NREL PVWatts data for a south-facing system at 20° tilt. A 7 kW system produces approximately 10,500 kWh in year one, declining by 0.5% annually due to panel degradation.

At Texas's average residential rate of $13.8¢/kWh with 4% annual escalation, first-year savings are $1,449. The solar LCOE of $0.126/kWh is 9% below the current utility rate and stays fixed while utility rates continue to climb.

Net Metering in Texas

No statewide NEM — varies by retail provider. CPS Energy, Austin Energy offer buyback.

Solar by Utility in Texas

Solar FAQ for Texas

How much does solar cost in Texas?
A typical 7 kW residential solar system in Texas costs $18,200 before incentives. After the 30% federal ITC, the net cost drops to $12,740.
What is the solar payback period in Texas?
Based on the average TX utility rate of $13.8¢/kWh and local solar irradiance of 1,500 kWh/kW/year, a 7 kW system typically pays for itself in 9 years. The 25-year NPV is $10,835.
Does Texas have net metering?
No statewide NEM — varies by retail provider. CPS Energy, Austin Energy offer buyback.
What is the LCOE of solar in Texas?
The levelized cost of solar energy in Texas is approximately $0.126/kWh, compared to the current average utility rate of $13.8¢/kWh. Solar electricity costs 9% less than grid electricity at today's rates, and the gap widens as utility rates rise.
How much electricity does a solar panel produce in Texas?
Texas receives approximately 1,500 kWh of solar energy per installed kW per year. A 7 kW system produces about 10,500 kWh in its first year, enough to offset 100% of the average U.S. household's electricity consumption.

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Solar ROI in Similar States

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