Houston, TX Solar Installation: 2026 Costs, Incentives & Savings
Solar Power in Houston
If you live in Houston, you know the sun rarely takes a day off. With Texas electricity prices climbing 28% from 2020 to 2024, more Houston homeowners are turning to solar installation to take control of their energy costs. And with all that year-round sunshine, it’s easy to see why.
This guide breaks down what solar panel installation looks like in Houston, from start to finish. You can also explore our guide to home solar panels to learn more.
Texas by the Numbers
7th Most residential solar in the United States
122 Households have installed solar panels
5.2 Avg peak sun hours per day
~$69k Houston average savings over 25 years
How Much Do Solar Panels Cost in Houston, TX?
See real solar installation costs for Houston, built from our actual local data. We’ve installed systems across neighborhoods like Katy, Sugar Land, The Woodlands, Pearland, and Cypress. Enter a few details below to get a clear, honest estimate based on what your neighbors have truly paid.
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 $158
Payback Period: Break-even point 11.2 years
25-Year Savings: $69,213
Palmetto Reviews
Palmetto is an excellent solar power source. I have had no issues with Palmetto. I am a Sr IT Professional and it is essential that you do a site survey for an annual average to get enough panels.
Customer Reviews
- Jeffrey P - Tomball, Texas: No issues with the approval and the solar installation was done quickly and on the day they said they would. Waiting on the inspector for final inspection, but the whole process has been smooth.
- John Cano - Roman Forest, Texas: Overall great experience with Palmetto right from first contact till the panels were activated. I was informed on every step in advance, pricing is great, and the install crew was amazing.
Key Takeaways
- Houston homes are ideal for solar with 5.2 peak sun hours a day, helping the average homeowner save around $69,000 over 25 years.
- Texas electricity prices rose 23% from 2021 to 2024, so generating your own solar power gives Houston homeowners more control over rising monthly bills.
- State and local incentives still help you save, including Texas property and sales tax exemptions, plus flexible options like leasing with no upfront cost.
Houston Electricity Prices
Texas electricity prices rose from 12.1 cents per kWh in 2021 to 14.9 cents in 2024—about a 23% increase. Solar installation lets Houston homeowners take control of these rising costs. Over time, that shift adds up.
Price of Energy: Texas vs National Average
| Year | Texas Price (cents/kWh) | US Average (cents/kWh) |
|---|---|---|
| 2021 | 12.1 | 13.7 |
| 2022 | 14.9 | 15.0 |
| 2023 | 14.5 | 15.0 |
| 2024 | 14.9 | 16.0 |
Houston Area Utility Providers
In Houston, most homes get their power from Entergy. In 2023, Entergy charged about 13.2¢ per kWh. That was lower than the Texas average of 14.5¢ and the national average of 16.0¢ per kWh.
Houston Utilities Electricity Rates
| Provider | Rate (cents/kWh) | Difference |
|---|---|---|
| Entergy | 13.20 | -17% |
| TX Average | 14.50 | -9% |
| US Average | 16.0 | — |
Texas Solar Incentives
Going solar in Houston costs less thanks to statewide and local solar incentives in Texas.
Incentive Breakdown
| Incentive | Type | Description |
|---|---|---|
| Texas Property Tax Exemption for Solar Energy Systems | Property Tax Exemption | 100% exemption on added home value from solar installation. |
| Texas Sales Tax Exemption for Solar Equipment | Sales Tax Exemption | Exemption on solar energy equipment purchased in Texas. |
| Tesla Virtual Power Plant (VPP) Program | Rebate | Earn a $10/month bill credit by enrolling in Tesla Electric’s VPP program. |
Houston Solar Irradiance
Understanding how seasons affect your solar system helps set realistic expectations for your investment.
Solar Production in Houston by Month
| System Size | Daylight Hours | Energy Production (kWh/day) |
|---|---|---|
| 5 kW | ||
| 7 kW | ||
| 10 kW |
What Can Your Solar System Power?
Summer Production (July)
- 45.2 kWh/day
Winter Production (December)
- 27.8 kWh/day
Annual Production
- 14,261 kWh/year.
Solar Panel Systems in Houston
We mapped solar installations across the country, right down to the neighborhood level. Explore this interactive map to see how many Houston homeowners have switched to solar.
Leasing Solar Panels
In Houston, homes served by CenterPoint Energy can go solar through a Power Purchase Agreement (PPA) with Palmetto’s LightReach program. With a PPA, you pay per kilowatt-hour.
Frequently Asked Questions
- Does Houston, TX have net metering? Houston does not have traditional one-to-one net metering. Instead, most homes served by CenterPoint Energy use net billing through a retail provider’s buyback plan.
- Do solar panels increase your home value in Houston, TX? Yes. In Houston, purchased or owned solar panel systems can increase your home’s value.
- How much does it cost to go solar in Houston, TX? With Palmetto’s LightReach lease, payments start around $114/mo with no upfront cost.
- How does leasing solar work? You make one simple monthly payment that covers everything without the upfront cost.
- Do solar panels require maintenance in Houston, TX? Solar panels are low maintenance. They typically need little more than occasional cleaning.