Solar power in Austin, Texas
In recent years as the price of solar has fallen and electricity prices have soared it’s made more and more sense for Austin homeowners to install solar. Rebates and tax credits alongside a great net metering program has made solar more affordable and a better investment than ever before.
Which Austin utilities provide solar rebates?
Austin Energy and TXU both provide a solar rebate program, exact amounts are as follows.
|
Utility |
Rebate amount |
Max. Incentive |
|
Austin Energy |
$2,500 |
$2,500 |
|
TXU |
$2,000 - $5,000 |
$5,000 |
Solar systems installed in Austin Energy’s service area must be at least 3kW AC and systems installed as a TXU customer must use SunPower panels to receive a rebate.
Unfortunately PEC don’t offer any rebates for installing a solar system however, the recent decrease in the cost of solar has meant that such rebates aren’t necessary and should be seen more so as a bonus.
Am I eligible to receive net metering?
Unlike most states utilities in Texas aren’t required by law to provide net metering luckily, a lot of utilities still do. PEC and TXU both provide net metering to their solar customers and Austin energy credit energy sold to them at 9.7¢/kWh which is essentially retail rates.
What if I export more energy to the grid than I consume?
PEC will value excess solar generation after covering your usage for the month at $0.0465 per kWh. TXU will carry credit forward month to month still at retail value however, remaining credit at the end of the yearly billing cycle will not be compensated.
What other incentives are available to Austin solar customers?
Anyone in America with a federal tax liability can claim part of the cost of their solar system as a deduction to their federal income taxes under the federal solar tax credit.
How much do solar panels cost in Austin?
Solar systems in Austin take only 7-8 years to pay for themselves in utility savings. For a free and accurate estimate on the costs and savings of a solar system in Austin enter your zip code below.
Net Metering Broken Down
Your solar system will likely produce more energy than what can be used in your home, net metering allows for that excess energy to be sold to your utility and credited per kWh at the retail rate you pay for power.
Net metering allows the excess solar energy produced during the day to offset your usage at night to wipe out or greatly reduce your power bill.
The average cost of installing residential solar panels in Austin,
Texas in 2025 is
$2.52 per watt. The average system size
in the US is 6 kilowatts, which means the average price of a solar system
in Austin, TX
is $12,600.
(after claiming 26% tax credit and other rebates)
The 26% federal solar tax credit explained
If you have a federal income tax liability, 26% of the cost of your solar system can be claimed as a deduction to your taxes. This incentive is claimed when you do your taxes. In order to receive the tax credit quicker it's best to do your taxes as soon as possible after installation.
What if my tax liability is less than 26% of my systems costThere is the option to claim this incentive over several years if your tax liability is less than 26% of the system cost.
How much will solar panels on my home save me?
The answer to this question depends on your electricity usage. Generally speaking the greater your power usage the greater the potential savings from installing solar.
The average monthly usage in Texas is only 1168kWh per month however, you are most likely using a lot more than this since this average includes condos and small apartments.
The Austin solar panel savings calculator below will convert your monthly power spend into power usage (in kWh's) and then work out exactly how many solar panels you need to offset your usage, how much they will cost based on the prices of local solar companies and the amount you will save. Our Texas solar savings calculator can do this because it contains a database of the electric rates charged by Austin Energy, Bartlett Electric Coop Inc, Bluebonnet Electric Coop Inc, City of Bartlett, City of San Marcos, City of Georgetown, Oncor Electric Delivery (formerly TXU), Pedernales Electric Coop Inc, TXU Energy Retail Co LP, Reliant Energy Retail Services
How much can solar panels save you in Austin
What does the cost of a real solar system look like?
Facts about installing a 13.2kW solar system in Austin, TX
This system would offset 100% of your energy usage if your typical monthly bill is $214, however your situation may vary so try our Austin solar calculator to get a result tailored to you.
$20,616
Net cost of system
7 Years
Average payback time
17,958 kWh
Annual power production
5¢/kWh
Levelized cost of solar energy
25¢/kWh
If you don't get solar
Cash flow graph based on cash purchase of this 13.2kW system
Life-time savings on this system over the next 25 years
$84,486
(Prices shown after repayments of capital)
62
Solar companies in Austin, TX that provide pricing through the SolarEstimate marketplace.
Average total cost of solar panel installation in Austin
| System Size |
Cash purchase After 26% solar tax credit |
Financed purchase After 26% solar tax credit |
|---|---|---|
| 3kw | $5,972 | $6,450 |
| 4kw | $7,785 | $8,408 |
| 5kw | $9,546 | $10,310 |
| 6kw | $11,189 | $12,084 |
| 7kw | $12,795 | $13,818 |
| 8kw | $14,267 | $15,409 |
| 9kw | $15,718 | $16,975 |
| 10kw | $17,020 | $18,382 |
Find out what system size you need for your home
Going solar in Texas
Check out all of the ways energy providers of Texas can help you be more energy efficient and save money.
The following programs are available:
| Incentive Name | Eligibility | Type |
|---|---|---|
| Residential Renewable Energy Tax Credit | Federal | Personal Tax Credit |
| Renewable Energy Property Tax Incentive | State | Property Tax Incentive |
| Austin Energy - Residential Solar PV Rebate Program | Utility | Rebate Program |
| Oncor Electric Delivery - Solar Photovoltaic Standard Offer Program (Waitlist) | Utility | Rebate Program |
| City of San Marcos - Distributed Generation Rebate Program | Utility | Rebate Program |
| Austin Energy - Value of Solar Rate | Utility | Feed In Tarrif |
Find your local rebates and incentives
Please keep in mind that the best source of up-to-date information on incentives are the solar installers who specialize in your area.
