Breakdown of Solar Energy in Texas

Solar power is catching on all over the state. One of the hotbeds is Austin TX and this is why we are choosing it as the fifth city outlining the cost of solar power in different areas. The home we picked is in the Northern part of Austin, it is a single family home of about 1,400 square ft and a family of four live there. It’s the typical American family of two parents and two children, a brother and sister. There is a pool in the backyard and because the summers are long and the winters are short in Texas, that pool is used for nine months out of the year. Luckily the power in Texas is not as expensive as in other states, so this family of four uses quite a lot. 

It still is a pretty large home with lots of electricity being used, so the average monthly electric bill is $200. The pool gets a lot of heat from the sun, but in colder months, it does require a lot more energy to keep it comfortable. When we enter the address and monthly bill in the HahaSmart Price Checker tool, we find out that solar is affordable even in states where power is less expensive by the kWh. 
 

Cost, Permits and More

The site recommends a 10.7 KW solar panel system and it gives a breakdown of the cost of the system and all the permits needed. First, you will need the approval of the design and a permit to build the solar system. That engineering and permitting process would cost $798. Then if you add up all the equipment, the solar panels, the power inverters, the racking, the material needed to mount the panels, and other miscellaneous items come to about $12,570. If you add the sales tax of about $1,053 it brings the total to $13,624 in equipment and permitting. Sales tax in Texas is a little different. The state has a 6.25 percent tax, and local jurisdictions add some city tax too. In Austin, the combined rate is 8.25 percent tax. 
 

Bottom line 

Installation costs can vary, we compiled data from 2296 different installers and we can say the cost range is from about $8,048 to $11,803 to install the solar panels. If we average the two numbers we get $9,925 as an average installation cost. It is important to shop around for the best installer for your needs. Some of the less expensive ones are not necessarily the best ones.

On the other hand, many local installers are certified, they care about their work, and they are, many times, less expensive than national chains. We recommend that you talk to at least two different installers and find one that is the best for your situation. The total cost and the federal tax credit applied. 

If we add the grand total of $13,624 and $9,925 we get $23,549 before local, state, and federal tax incentive programs. Because programs differ in every state, we are only applying the 30 percent federal tax credit. After we factor in the tax credit, the net cost of buying and installing a residential solar panel system the Austin area is about $16,484. Again it is important to check local and state governments for incentives and help with the cost. For example, Austin Energy has some great programs for solar power that can really help homeowners out. For more solar details, click here.

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