The short answer

The average owner-occupied single-family home in Texas uses about 15,329 kWh a year, according to the federal Residential Energy Consumption Survey. Covering 85% of that in Dallas takes about 9.0 kW of panels. At $3.27 per watt, that's about $29,400. Prices homeowners actually paid run from about $3.00 to $3.80 per watt in the data below, and loans push them higher. There's no federal tax credit for home systems finished after 2025 and no state rebate, so for most Texans the price on the contract is the price.

What Texans pay per watt

Solar is priced per watt of panel capacity, so you can compare quotes for different system sizes. Here's the spread, from online quotes to what homeowners actually paid:

Before any rebate. Sources: Austin Energy (October 2025 presentation), CPS Energy, Lawrence Berkeley National Laboratory's 2025 data update, EnergySage.

Two things explain the spread. Online marketplace numbers are quotes from companies competing for your business, not what buyers paid after design changes and add-ons. And loans cost more: Berkeley Lab found the typical loan-financed system priced $1.20 per watt higher than a cash purchase in 2024, partly because loan fees get rolled into the price. On a 9 kW system, that's about $10,800. Our guide to paying for solar in Texas compares cash, loans and leases.

Cost by home size

How much power a home uses grows with its size. These are the federal survey's averages for owner-occupied single-family homes in Texas, with the system it takes to cover 85% of that use in Dallas:

Home sizeYearly use (kWh)System for 85%Cost at $3.27/W
Under 1,500 sq ft12,1037.1 kW$23,200
1,500 to 1,999 sq ft14,1668.3 kW$27,200
2,000 to 2,499 sq ft15,4659.1 kW$29,700
2,500 to 2,999 sq ft16,7029.8 kW$32,100
3,000 to 3,999 sq ft18,99311.2 kW$36,500
4,000 sq ft and up23,50613.8 kW$45,200

Yearly use: EIA Residential Energy Consumption Survey 2020, Texas owner-occupied single-family detached homes, weighted averages (sample of 653 homes; 50 to 161 per size group). Sun: PVWatts for a south-facing roof in Dallas, less 5%. Before any rebate.

So a 2,000 to 2,499 square foot house typically needs about 9 kW and costs about $29,700. These are averages; pools, electric heat, an EV or a big family can push a home's use well above its size group. Your own bill is the better guide.

Want the panel count for your own use and city? Our how many solar panels guide has a quick estimator.

Same home, different city

West Texas gets more sun, so the same home needs fewer panels there. Here's what a home using 15,329 kWh a year would need, and cost, in ten Texas cities:

System sized to 85% of 15,329 kWh a year, at $3.27 per watt. Sun: PVWatts for a south-facing roof in each city, less 5%.

The same house costs about $7,600 less to cover in El Paso than in Beaumont. What it saves depends far more on the utility, though. Our payback guide compares the same home across six Texas utilities.

What's in the price

The panels themselves are a small part of what you pay. Berkeley Lab's 2024 data shows soft costs and the rest of the hardware make up roughly 80% of a home system's price:

Sales, labor, permits, hookup, racking, wiring, financing fees, taxes, profit~80%
Panels and inverters~20%

That's why prices vary so much between companies selling similar equipment, and why per-watt quotes are worth comparing line by line. Our Texas solar laws guide covers the disclosures a Texas seller now has to give you.

Aluminum mounting rails and the first black solar panels being fitted on a charcoal shingle roof

Adding a battery

Berkeley Lab found that in 2024, home systems sold with a battery cost a median $1.70 per watt more (paid in cash) than solar alone. The typical home battery stored 13.5 kWh. On a 9 kW system, that difference comes to about $15,300. In Texas a battery makes the most sense if you want backup power during outages, or if your utility or plan pays little for the solar you send to the grid, so the battery can store it for evening use instead.

A white wall-mounted home battery beside an electrical panel in a clean Texas garage

What lowers the price

  • A utility rebate. Austin Energy pays $4,000 for eligible home systems. Oncor, CenterPoint and TNMP pay incentives through participating installers, which only help if they come off your price, and AEP Texas runs its SMART Source program. See our Texas incentives guide.
  • Paying cash, or comparing loan prices. The $1.20 per watt gap between cash and loan prices is the biggest lever most buyers control.
  • Sizing to your use. Many Texas utilities and plans pay less for the power you send out than for the power you buy, so panels beyond your own use add cost faster than savings.
  • Property tax. It doesn't lower the price, but Texas exempts the value solar adds to your home, so your tax bill doesn't rise. See our property tax guide.

What no longer applies: the 30% federal tax credit. The IRS says it doesn't cover home systems placed in service after December 31, 2025, so any Texas price or payback that subtracts 30% is out of date.

How it works

Your estimate in three steps

  1. Enter your billYour ZIP code, your utility and last month's bill.
  2. See your estimateA yearly savings range based on your utility's rates and the sun where you live.
  3. Choose what's nextAsk for a quote call if you want real pricing, or just keep the number.

See what solar could save you

It takes about a minute. You don't need a site visit, a commitment or a sales call to see your number.

Check my savings →

Common questions

How much do solar panels cost in Texas in 2026?

Austin Energy customers paid an average of $3.27 per watt in 2025, without batteries. At that price, a system covering 85% of the average Texas single-family home's use, about 9.0 kW in Dallas, costs about $29,400 before any rebate. CPS Energy reported $3.80 per watt in its area in 2023.

How much do solar panels cost for a 2,000 square foot house in Texas?

Texas single-family homes of 2,000 to 2,499 square feet average about 15,465 kWh a year in federal survey data. Covering 85% of that in Dallas takes about 9.1 kW, which costs about $29,700 at $3.27 per watt.

What is the cost per watt for solar in Texas?

It depends on the source. Austin Energy says its customers paid an average of $3.27 per watt in 2025. CPS Energy reported $3.80 in 2023. Online quotes on EnergySage averaged $2.25 in Texas in October 2026, but quotes aren't final prices.

Is there still a federal tax credit for solar in Texas?

Not for home systems finished after 2025. The IRS says the 30% residential clean energy credit doesn't apply to property placed in service after December 31, 2025.

How much does a solar battery add to the cost?

Berkeley Lab found home systems with a battery cost a median $1.70 per watt more than solar alone in 2024, paid in cash, with a typical battery of 13.5 kWh. On a 9 kW system that's about $15,300.

Why are solar loans more expensive?

Loan fees are often built into the system price. Berkeley Lab found the median loan-financed home system cost $4.70 per watt in 2024, against $3.50 for cash purchases.

Prices change and vary by company, roof and equipment. These figures are averages and estimates, not quotes. Sources: Austin Energy: solar programs presentation (October 20, 2025) · CPS Energy: residential solar · Lawrence Berkeley National Laboratory, U.S. Distributed Solar and Storage, 2025 data update · EnergySage: cost of solar panels in Texas · EIA Residential Energy Consumption Survey 2020 microdata · IRS FAQs on the 2025 changes to section 25D · PVWatts v8, National Laboratory of the Rockies (formerly NREL). Reviewed October 2026.

Next guideIs solar worth it in Texas? →