Texas electricity prices average $0.11/kWh, below the national average of $0.14/kWh. This may help explain why ___ has the second-lowest per capita residential energy consumption in the country.
Texas leads the nation in crude oil and natural gas production. It also leads the nation in wind-powered generation. Texas both produces and consumes more electricity than another state in the US.
Cost of a Solar Install
A graph of falling prices for a typical 10kW PV install in Texas from 2009-2018. Figures include design costs. Data from Berkeley Lab.
The average cost of a 10kW (equivalent to saving almost 200 trees a year) solar power system starts around $31,000 in Texas. Before any incentives, in the first year you’d save about $1,800, compared to if you had been paying the normal rates for the energy you used. These savings can continue for well over 25 years, improving with inflation.
Just How Much Can I Save With Solar in Texas?
This depends on may factors such as your system size, power output, and financing. Here are the main ways you can finance your home solar power system, and the kinds of returns you may expect to see:
Out-of-Pocket
From our example above, the homeowner purchased a 10kW system to offset their energy bill. Overhead cost was $31,000, with a significant proportion returned in the first year through incentives, rebates, and savings, then paying itself in full over 12 years.
Most solar power systems have a warranty lifetime of 25 years. In that time, between incentives and paying lower rates you could make a profit of around $40,000 - more than the up-front cost of the system!
Even with occasional maintenance or part replacement, that is a massive savings. Solar panel power output falls on average 0.8% per year, so with a little TLC and load management you can extend the life of your system well beyond the warranty’s expiration date, continuing to save indefinitely.
Solar Loan
Whether or not you can afford the up-front cost of the install, you may want to consider a Home Equity Line of Credit (HELOC). With equity in your home, or good credit, you may qualify for a 15-year solar HELOC with fixed rate of 4% or lower.
Starting with that same 10kW system costing $31,000 but with zero up-front cost, accounting for incentives, credits, rebates, and annual energy savings starting around $1,700, you could see a revenue surplus of about $7,000 at the end of the first year. Save that money though. Your loan payments will likely exceed your power savings by about $100/month for the 15-year term
Once the loan is paid off, you can expect to save about $1,700 a year. Over 25 years, with inflation and rising electricity costs, you could expect to make about $28,000.
