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Solar Panels in Houston, Texas

Houston receives 1394 kWh per kWp of solar panels per year — 8.5% below the US national average of 1,550 kWh/kWp. At Texas's electricity rate of 15.69¢/kWh, an 8 kW system saves roughly $1,750/year and pays back in 8.6 years.

Solar is well worth it in Houston. Note: The 30% federal solar tax credit (Section 25D) expired December 31, 2025. The numbers below reflect today's actual costs.

Annual yield:1394 kWh/kWp
Electricity rate:15.69¢/kWh
Payback:8.6 yrs
Location:29.76°N

Houston Solar at a Glance

Annual solar yield1394 kWh/kWp/yr
Optimal tilt angle23° south-facing
Avg. daily sun hours22.5 hrs/day
Electricity rate15.69¢ per kWh
8 kW system cost (2026)$22,400
Your net cost$22,400
Annual savings$1,750/yr
Payback period8.6 years

Last updated: April 11, 2026 · Sources: PVGIS v5.3, EIA

How Much Solar Power Does Houston Get Each Month?

Monthly solar yield (kWh per kWp installed) based on PVGIS satellite data for 29.76°N, 95.37°W.

96
93
121
127
136
132
126
132
115
128
103
86
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Best month: 135.6 kWh/kWp (May)Worst month: 85.6 kWh/kWp (Dec)Monthly avg: 116 kWh/kWp

Live Solar Forecast for Houston

Real-time generation estimate for an 8 kW system based on today's weather forecast. Data: forecast.solar.

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Is a Home Battery Worth It in Houston?

A battery stores excess midday solar for use at peak evening hours. At 15.69¢/kWh in Houston, here is the math for the two most popular options.

Tesla Powerwall 3
Capacity
13.5 kWh
Installed cost
$11,500
Annual savings
$618
Payback
18.6 yrs

10-year value: $6,180 · Based on 365 cycles/yr, 15.69¢/kWh, 80% usable capacity. Does not include backup value or utility TOU rate savings.

Generic LFP 10 kWh
Capacity
10 kWh
Installed cost
$8,000
Annual savings
$439
Payback
18.2 yrs

10-year value: $4,390 · Based on 350 cycles/yr, 15.69¢/kWh, 80% usable capacity. Does not include backup value or utility TOU rate savings.

Battery ROI improves significantly in states with Time-of-Use (TOU) rates where peak electricity can cost 2–3× the off-peak rate. California (PG&E, SCE, SDG&E), New York (ConEd), and Massachusetts (Eversource) have the strongest TOU incentives for battery storage.

What Are the 25-Year Solar Savings in Houston?

Based on 1394 kWh/kWp/yr yield, 15.69¢/kWh electricity rate, and a 2026 system cost of $2.80/W. Federal tax credit expired Dec 31, 2025 — not included.

System cost
$22,400
Installed, 8 kW
Federal ITC
Expired
Sec. 25D ended Dec 2025
Net investment
$22,400
Your actual cost
25-yr savings
$41,563
Est. lifetime benefit
Federal Solar Tax Credit Update: The 30% residential solar tax credit (Section 25D) expired on December 31, 2025 under the One Big Beautiful Bill. Cash and loan purchases no longer qualify for the federal credit. State and local incentives below may still apply — check with your installer.

What Solar Incentives Are Available in Houston, Texas?

The federal ITC expired in 2025. These state and utility incentives still apply in Texas.

Property Tax Exemption
Texas exempts the solar-added home value from property taxes. A $22,400 system won't raise your tax bill.
Net Metering
No statewide mandate. Choose a 'solar buyback' retail electricity plan. Rates vary 3–12¢/kWh.
Utility & Local Programs
100% property tax exemption on added value, choose solar buyback retail plan, no state income tax
Calculate Your Exact Savings
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Solar Panels in Houston: Frequently Asked Questions

How much do solar panels cost in Houston, Texas in 2026?
In Houston, a typical 8 kW solar system costs approximately $22,400 installed (at ~$2.80/W, the 2026 US average). The federal solar tax credit expired December 31, 2025, so that 30% rebate is no longer available for residential cash or loan purchases. Prices vary by installer, panel brand, and roof complexity.
Is solar worth it in Houston without the federal tax credit?
Houston generates 1394 kWh per kWp annually — 8.5% below the US average. At Texas's electricity rate of 15.69¢/kWh, an 8 kW system saves roughly $1,750/year and pays back in about 8.6 years — even without the expired federal credit. Solar is well worth it in Houston.
How much electricity do solar panels produce in Houston?
In Houston, each kW of solar panels produces approximately 1394 kWh per year. An 8 kW system generates about 11,152 kWh annually — enough to cover the average Texas household's electricity use. Peak production hits 135.6 kWh/kWp in May, with the lowest output of 85.6 kWh/kWp in Dec. Data source: PVGIS v5.3 satellite radiation model.
What solar incentives are available in Houston, Texas?
the expired federal tax credit (Section 25D) expired December 31, 2025 and is no longer available for residential buyers. Texas also exempts solar systems from property tax assessments. Net metering and local utility programs may provide additional savings.
How long is the solar payback period in Houston?
In Houston, the average payback period for an 8 kW solar system is approximately 8.6 years. This is based on 1394 kWh/kWp annual yield (PVGIS data), a 15.69¢/kWh electricity rate (EIA 2026 data), and an $22,400 installed cost. After payback, the system produces free electricity for 15–20 more years.

Environmental Impact & Home Value in Houston

An 8 kW solar system in Houston produces roughly 11,152 kWh/year. Here is what that means beyond your electricity bill.

🌿
CO₂ avoided per year
4.3 tonnes
4,305 kg · EPA grid avg 0.386 kg/kWh
🌳
Tree equivalent
197 trees
Trees needed to absorb same CO₂ annually
🏠
Home value boost
+$1,546
Avg +6.9% (Lawrence Berkeley Lab / Zillow data)
US homes powered
1
Avg US home uses 10,632 kWh/yr (EIA 2024)

How Many Solar Panels Do You Need in Houston?

The right system size depends on your annual electricity usage and how much of your bill you want to offset. In Houston, where annual solar yield is 1394 kWh per kWp, here is what different households typically need:

Annual usageSystem sizePanels (400 W)Est. costAnnual savings
6,000 kWh
Small home
4.4 kW11 panels$12,320$941/yr
10,800 kWh
Average home
7.8 kW20 panels$21,840$1,695/yr
15,000 kWh
Large home
10.8 kW27 panels$30,240$2,354/yr
20,000 kWh
Large + EV
14.4 kW36 panels$40,320$3,138/yr

Costs based on $2.80/W installed (2026 US average). Panel count assumes 400 W modules. Savings based on current 15.69¢/kWh rate. State incentives not included — see above for Texas credits.

HoustonSolar Resources & 2026 Incentives

Key information for homeowners in Houston going solar in 2026 — after the federal 30% tax credit expired December 31, 2025.

⚡ Federal Tax Credit Status (2026)

The 30% Section 25D residential solar credit expired December 31, 2025. An 8 kW system in Houston costs $22,400 after any applicable state credits. The commercial Section 48 credit (for businesses, landlords) was not affected.

IRS Residential Clean Energy Credit →
🔌 Net Metering in Texas

No statewide mandate. Choose a 'solar buyback' retail electricity plan. Rates vary 3–12¢/kWh.

DSIRE — Texas Incentive Database →
🏛️ Texas State Incentives

100% property tax exemption on added value, choose solar buyback retail plan, no state income tax

✓ Property tax exempt
📚 Authoritative Sources