## Solar Power in Austin If you’re considering solar installation in Austin, you’re in good company. Texas ranks 7th in the country for residential solar installations, and with Texas electricity prices climbing 28% from 2020 to 2024, many local homeowners are looking for a smarter, more affordable way to manage their energy costs. Whether you’re just starting to explore [home solar panels](/content/solar/solar-panels-for-home/index.html) or ready to make the switch, this guide breaks down everything you need to know about going solar in Austin—clearly and simply. ### [TEXAS](/content/local/texas/index.html) by the Numbers [7th](https://www.eia.gov/electricity/data/eia861/) Most residential solar in the United States [122](https://www.eia.gov/electricity/data/eia861/) Households have installed solar panels [5.4](/content/local/peak-sun-hours/index.html) Avg peak sun hours per day [~$72k](/content/local/texas/austin/#solar-cost-calculator/index.html) Austin average savings over 25 years ## How Much Do Solar Panels Cost in Austin, TX? See what solar really costs in Austin using our calculator, built from actual Palmetto installation data across the area. Whether you’re in Round Rock, Cedar Park, Pflugerville, or Georgetown, you’ll get local, firsthand numbers—not rough estimates. It’s a simple, honest way to understand your solar investment before making any decisions. **Lease** | **Cash Purchase** ---|--- Small Home Up to 2,000 sq ft | Medium Home 2,000-3,000 sq ft | Large Home Over 3,000 sq ft This system size is designed to offset approximately **100%** of the average electricity usage for a home of this size in Texas. ### Recommended System 8.91 kW **Your Monthly Payment** Estimated monthly cost with LightReach $114/mo As low as $114/mo ### Why Lease Solar? Following the 2025 Big Beautiful Bill, the federal 30% solar tax credit is no longer available for cash purchases. With a LightReach lease, Palmetto owns the system and still qualifies for the commercial ITC — passing those savings through to you via lower monthly payments. - No upfront investment - Palmetto handles all maintenance - 90% Production Guarantee - Comprehensive protection program included Cost Breakdown Your estimated investment **System Cost** $25,222 Price per Watt $2.83 Final Cost $25,222 **Savings** Your total financial benefit **Monthly Savings** Average utility bill reduction $165 **Payback Period** Break-even point 10.8 years **25-Year Savings** $72,120 [Get Your Personalized Quote](https://luminance.palmetto.com/home/buy-solar/step-1?utm_source=localorganic) Based on Palmetto Solar installations in Texas. Current electricity rate: 14.9¢/kWh. Assumes 100% credit of retail rate. ## Palmetto Reviews Great **service**, they have always responded quickly when I had questions or system problem. The system works great no complaints, I’m very happy with Palmetto and my **solar system**. Jimmy May San Antonio, Texas I have had nothing but a positive experience with Palmetto. Any questions I had or concerns were addressed quickly. As a customer it falls on me to research and verify information. My salesman, Josh, has been a major factor in why I proceeded with Palmetto. **Installation** was done in a day and the inspector assured me the crew had done an **excellent job**. I highly recommend Palmetto! Angela W Dallas, Texas Overall great experience with Palmetto right from 1st contact till the **panels are activated**. I was informed on each and every step in advance, pricing is great, **install crew was amazing**. During inspection one small issue was observed and crew came and fix it asap without need of further followups. Ashish Gupta Mckinney, Texas ## Key Takeaways - Austin homeowners can save around $72,000 over 25 years by going solar, thanks to abundant sunshine averaging 5.4 peak sun hours per day. - Texas electricity prices rose about 23% from 2021 to 2024, so solar helps Austin homeowners gain more predictable energy costs and lasting protection from rising rates. - Texas offers property and sales tax exemptions plus solar buyback plans, and LightReach leasing lets you go solar with no upfront cost. ## Austin Electricity Prices Electricity costs in Austin keep climbing. Understanding the trend can help you make smarter decisions about powering your home. Texas electricity prices rose from 12.1 cents per kWh in 2021 to 14.9 cents in 2024—about a 23% increase. Austin homeowners feel this steady climb on nearly every monthly bill. Solar offers a way to take control. By generating your own power under Austin’s abundant sunshine, you can rely less on the grid and reduce your exposure to rising utility rates. Over time, that adds up. As electricity prices continue trending upward, solar panels can deliver decades of predictable energy costs—giving Austin homeowners lasting value and peace of mind. ### Price of Energy: Texas vs National Average | Year | Texas Price | National Average | |------|-------------|------------------| | 2021 | 12.1¢ | 13.7¢ | | 2022 | 14.5¢ | 13.8¢ | | 2023 | 14.9¢ | 16.0¢ | | 2024 | - | - | [Source: US Bureau of Labor Statistics, Energy Information Administration, Form 861](https://www.eia.gov/electricity/data/eia861/) ### Austin Area Utility Providers In Austin, your electricity rates depend on your provider. Based on 2023 data, Austin Energy charged about 13.0¢ per kWh, Pedernales 11.7¢, and Bluebonnet 11.1¢—all below the 2023 state average of 14.5¢ and national average of 16.0¢. Why so low? These providers are locally owned—Austin Energy is city-run, while Bluebonnet and Pedernales are member-owned cooperatives. Without shareholders to pay, they can pass savings back to customers, keeping 2023 rates below Texas and national averages. ### Austin Utilities Electricity Rates | Utility | Rate | |---------------|----------| | Austin Energy | 13.00¢ | | Bluebonnet | 11.10¢ | | Pedernales | 11.70¢ | | TX Average | 14.50¢ | | US Average | 16.0¢ | [Source: US Energy Information Administration, 2023, Form 861, Table 6](https://www.eia.gov/electricity/sales_revenue_price/) ## Texas Solar Incentives Austin homeowners can tap into several [solar incentives in Texas](/content/local/texas/austin/#incentives-table/index.html) that help lower the cost of installing a solar energy system. These include statewide property and sales tax exemptions, local rebates from utilities like Sunset Valley and Oncor, solar buyback and net billing plans, and Tesla’s Virtual Power Plant program for battery owners. The federal residential tax credit has ended, but state and local incentives remain. With LightReach leasing, Palmetto handles the commercial ITC and passes savings along through lower monthly payments. | Incentive | Type | Description | Source | |-----------|------|-------------|--------| | Texas Property Tax Exemption for Solar Energy Systems | Property Tax Exemption | Austin homeowners receive a 100% property tax exemption on the added home value from a solar energy system installation, saving hundreds of dollars per year. | [Learn More](https://comptroller.texas.gov/taxes/property-tax/exemptions/) | | Texas Sales Tax Exemption for Solar Equipment | Sales Tax Exemption | Solar energy equipment purchased in Texas is exempt from the state sales tax, reducing the upfront cost of installation. | [Learn More](https://comptroller.texas.gov/taxes/sales/) | | Texas Solar Buyback & Net Billing Programs | Net Metering | Texas does not mandate statewide net metering, but solar homeowners in deregulated areas can choose a Retail Electric Provider (REP) offering a solar buyback plan to receive credits for excess energy exported to the grid. | [Learn More](https://www.powertochoose.org/) | ### Ready to start saving with solar? Speak with a Palmetto solar expert to find out exactly how much you can save with Texas incentives. ## Austin Solar Irradiance Solar panel production varies throughout the year based on daylight hours, weather patterns, and sun intensity. Understanding how seasons affect your solar system helps set realistic expectations for your investment. Austin enjoys plenty of sunshine year-round, with long summer days boosting production. Hot temperatures and occasional cloudy spells can affect output, but Austin’s abundant sun makes it excellent for solar. ### Solar Production in Austin by Month **System Size**: 5 kW, 7 kW, 10 kW **Daylight Hours** **Energy Production (kWh/day)** [Source: National Renewable Energy Laboratory (NREL) PVWatts data; Austin, TX](https://pvwatts.nrel.gov/) ### What Can Your Solar System Power? #### Summer Production (July) 48.7 kWh/day In July, your 10 kW system could power: - **3.2 average homes** (15 kWh/day per home) - or Run central AC for **16 hours** AND power all other appliances - or Fully charge **4.9 Tesla Model 3** electric vehicles #### Winter Production (December) 32 kWh/day In December, your 10 kW system could power: - **2.1 average homes** (15 kWh/day per home) - or Keep your home heating system running for **16 hours** - or Fully charge **3.2 Tesla Model 3** electric vehicles #### Annual Production 14,860 kWh/year Over a year, your 10 kW system could: - **Offset 10 tons** of carbon dioxide emissions - or Equal the environmental benefit of **planting 178 trees** ## Solar Panel Systems in Austin See how Austin is going solar. We mapped solar installations across the country, right down to the neighborhood. Explore this interactive map to discover how many of your neighbors have already made the switch. ## Leasing Solar Panels Solar financing in Austin depends on your utility. Austin Energy customers aren’t currently served by our LightReach program, but many nearby providers are. If your home is served by Pedernales Electric Co-op or Bluebonnet Electric Co-op, you may qualify for a [LightReach solar lease](/content/products/lightreach/index.html)—a simple way to go solar without paying upfront. With a lease, you pay a fixed monthly amount instead of buying the system in cash. Palmetto owns and maintains the panels, so you skip the large upfront cost and the responsibility of repairs, monitoring, and upkeep.