Do Solar Panels Increase Home Value In Texas
Solar Panels

Do Solar Panels Increase Home Value In Texas


Do Solar Panels Increase Home Value In Texas: Moreover, solar panels can enhance a property’s overall appeal and marketability. As eco-consciousness becomes more ingrained in society, a growing number of homebuyers are actively seeking residences with renewable energy features. Having solar panels installed can differentiate a property in a crowded real estate market and position it as an environmentally responsible and forward-thinking investment. This boost in value is attributed to several key factors that appeal to potential homebuyers in Texas.

Texas, like many states, also offers various incentives and tax benefits to further encourage the adoption of solar energy. These incentives can significantly reduce the initial installation costs and further amplify the financial returns for homeowners. One of the most compelling factors driving the interest in solar panels is the potential increase in home value. Studies conducted by reputable institutions, such as the Lawrence Berkeley National Laboratory, have consistently found that solar panels positively impact property valuations. 

Firstly, solar panels offer substantial long-term cost savings on energy bills. With the ability to generate electricity and reduce or eliminate reliance on the grid, homeowners can experience significant reductions in monthly utility expenses.

Do Solar Panels Increase Home Value In Texas

How much does solar add to property value in Texas?

Yes, solar panels will raise your home’s property value. Although the added value can vary by location, the National Renewable Energy Laboratory (NREL) found that home value increases by $20 for every $1 saved on your utility bills.

Solar panels offer a myriad of advantages that appeal to both environmentally conscious individuals and savvy investors. By harnessing the sun’s energy, homeowners can significantly reduce their reliance on traditional fossil fuels and cut down on monthly utility bills, making solar an enticing long-term investment.

Data-Backed Value Boost

Research conducted by reputable institutions, including the Lawrence Berkeley National Laboratory and the U.S. Department of Energy, reveals compelling evidence that solar panels can boost property value in Texas. On average, solar installations can add anywhere from $10,000 to $20,000 or more to a home’s resale value, depending on various factors.

Location Matters

The location of a property plays a significant role in determining the value-added by solar panels. Areas with high electricity costs, such as cities with sweltering summers like Houston and Dallas, tend to experience a more substantial appreciation in property value due to solar installations’ energy-saving potential.

Size of the Solar Installation

The size of the solar installation is another crucial factor. Homeowners considering solar should assess their energy needs and install a system that maximizes their potential savings and investment return.

Do homes in Texas sell faster with solar?

South Texas Solar Systems analyses show that solar homes sell 20% faster than properties without solar panels as. Beyond the environmental benefits, solar-powered homes offer financial advantages, including reduced energy bills and potential government incentives. This combination of sustainability and cost savings can significantly enhance a property’s marketability.

The Appeal of Lower Energy Bills

One of the primary selling points of a solar-powered home is the promise of lower energy bills. In Texas, where scorching summers often lead to increased air conditioning costs, the allure of reduced energy expenses can be a compelling incentive for potential buyers.

Differentiation in the Market

In a competitive real estate market, homes with solar installations stand out from the crowd. The presence of solar panels can differentiate a property, giving it a unique selling point that may attract more interested buyers.

Eco-Conscious Buyers

The growing awareness of climate change and environmental issues has given rise to a new generation of eco-conscious homebuyers. For these individuals, a solar-powered home aligns with their values and aspirations for a more sustainable lifestyle.

Impact on Appraisals

The challenge of accurately appraising the added value of solar installations has been a concern in the real estate industry. However, as the adoption of solar energy becomes more widespread, appraisers are becoming better equipped to account for the value of solar systems, contributing to a smoother sales process.

Are solar panels worth it in Texas?

Yes, going solar helps you save money. By depending on solar energy, you reduce energy bills drastically since you generate your own electricity. You also save money after paying off the installation cost. Since you won’t be paying electricity bills then, you will keep the money you would have expended on electricity.

Texas boasts an enviable solar resource, receiving ample sunlight throughout the year. This sunny disposition provides an excellent foundation for generating solar energy, making solar panels an effective and reliable source of renewable power.

Substantial Cost Savings

With soaring summer temperatures and high electricity consumption for cooling, solar-powered homes can enjoy reduced energy bills, offsetting initial installation costs over time.

Return on Investment (ROI)

Though solar panels require an upfront investment, they offer an attractive ROI in Texas. As electricity rates rise and the system’s payback period decreases, homeowners can recoup their initial investment and start enjoying free electricity generated by the sun.

Government Incentives and Rebates

To further sweeten the deal, both the federal government and the state of Texas offer incentives and rebates to encourage solar adoption. Federal tax credits, state-level rebates, and net metering programs can significantly reduce the overall cost of going solar, bolstering the financial attractiveness of solar panels.

Environmental Impact

For environmentally-conscious individuals, solar panels provide an opportunity to reduce carbon emissions and contribute to a greener future. By choosing solar, homeowners can take an active role in mitigating climate change and supporting sustainable energy practices.

Does solar affect property taxes in Texas?

Luckily for Texans, solar panels are 100% exempt from property tax increases.

In Texas, homeowners who install solar panels can often benefit from property tax exemptions. The Texas Property Tax Code provides for a property tax exemption for renewable energy systems, including solar panels. Specifically, the exemption applies to the value added to the property due to the solar installation. This means that the increase in property value resulting from the solar panels’ presence may be exempt from property taxation.

Solar Exemption Criteria

To qualify for the solar property tax exemption, certain criteria must be met. The solar installation must be used primarily for generating renewable energy for the homeowner’s use, and it must be located on the homeowner’s property. Additionally, the exemption is typically limited to installations that are not for commercial purposes.

100% Exemption in Some Cases

In certain cases, homeowners in Texas may enjoy a 100% property tax exemption for their solar installations. If the solar system is considered a “residential energy-efficient property,” it may qualify for full exemption, effectively excluding the entire value of the solar installation from property taxation.

Limitations and Local Variations

It is essential to note that the specific details of property tax exemptions for solar installations may vary across different counties and municipalities in Texas. Some areas may impose limitations on the exemption amount or have varying eligibility criteria. Homeowners should consult their local taxing authority or a tax professional to determine the exact tax implications of going solar in their specific location.

Do Solar Panels Increase Home Value In Texas

How long do solar panels last in Texas?

25-30 years

Generally, the average solar panel can last up to 25-30 years. Even so, the solar panel may continue producing optimal amounts of energy after its 25-year mark.

Most reputable solar panel manufacturers offer warranties that cover the panels for a specific period, typically ranging from 20 to 25 years. These warranties guarantee that the panels will maintain a certain level of performance over the covered period. It is essential for homeowners to review the warranty details when selecting solar panels, as it can provide peace of mind and protection against any manufacturing defects or significant declines in performance.

Over time, solar panels experience a natural process known as “degradation,” where their efficiency gradually decreases. On average, most solar panels experience an annual efficiency loss of around 0.5% to 1%, meaning that after 25 years, they may still operate at around 80% to 87.5% of their original efficiency. This gradual decline is factored into the warranties offered by solar panel manufacturers.

After the initial 25 to 30-year lifespan, solar panels can still generate electricity, but their efficiency may be reduced. At this point, homeowners may have the option to replace or upgrade their solar panels with newer, more efficient models to continue benefiting from solar energy.

What is the average cost of solar panels in Texas?

The average cost of solar panels in Texas is $2.69 per watt, which is slightly higher than the U.S. average of $2.66 per watt. In Texas, the average solar system costs $30,935 before the federal solar tax credit.

Solar panel costs are commonly measured in dollars per watt (USD/W). This metric represents the price of the solar system per watt of electricity it can generate. In Texas, the average cost per watt for residential solar panels typically ranged from $2.50 to $3.50 USD/W before any incentives or rebates.

Average System Size

The size of a solar system is measured in kilowatts (kW) or megawatts (MW). For residential installations in Texas, the average system size is usually between 5 kW to 10 kW. Commercial and larger-scale installations can be significantly larger.

Total System Cost

Based on the average cost per watt and the average system size, the total cost of a residential solar system in Texas can range from $12,500 to $35,000 before incentives.

Government Incentives and Tax Credits

Homeowners in Texas can take advantage of various government incentives and tax credits to reduce the overall cost of solar panel installations. The Federal Investment Tax Credit (ITC) allows homeowners to claim a percentage of the system cost as a tax credit. As of my last update in September 2021, the ITC provided a 26% credit for qualifying solar installations. State-level incentives and rebates may also be available, further reducing the upfront costs.

Financing Options

Many solar companies offer financing options, such as solar loans or leases, to make solar installations more accessible and affordable. These financing options allow homeowners to spread out the cost of the solar system over time, making it easier to transition to renewable energy.

How many solar panels are needed to power a house in Texas?

Between 20-25 solar panels

The average house requires between 20-25 solar panels, depending on the home’s size, energy use, and local climate. Because solar panels can’t consistently generate electricity, it’s usually best to budget for 25% more generation and storage than you think you’ll need.

The first step in determining the number of solar panels needed is to assess the household’s energy consumption. An energy audit or consultation with a solar provider can also provide valuable insights into energy consumption patterns.

Solar Panel Efficiency

Solar panel efficiency is a crucial factor that affects the number of panels required. Higher efficiency panels generate more electricity for the same amount of sunlight compared to lower efficiency panels.

System Size

Solar panel systems are commonly measured in kilowatts (kW). The size of the system required depends on the energy consumption of the household. For example, a house with a monthly average energy consumption of 1,000 kWh may require a 5 kW solar panel system to meet its needs.

Solar Panel Capacity and Peak Sun Hours

Texas receives ample sunshine throughout the year, which is advantageous for solar energy production. In Texas, a standard solar panel with a capacity of around 300 watts can produce an average of 4 to 5 kilowatt-hours per day, depending on location and weather conditions. This production is based on an average of around 4 to 5 peak sun hours per day.

The “Right to Install Solar Energy Devices Act” protects Texan homeowners’ right to install solar panels. HOA can impose reasonable restrictions on solar installations but can’t outright deny them. Advocacy and neighbor support can sway HOA approval for solar initiatives.

In Texas, most local jurisdictions require building permits for solar panel installations. These permits ensure that the installation complies with local building codes and safety standards. It is essential to check with your local building department to determine the specific requirements for obtaining a permit and scheduling any necessary inspections.

Electrical Work

Solar panel installations involve electrical work, and in Texas, this work must adhere to the state’s electrical codes. The Texas Department of Licensing and Regulation oversees electrical licensing requirements. Homeowners who choose to install solar panels themselves should be familiar with electrical codes and safety protocols to ensure a safe and compliant installation.

Interconnection Agreement

Before installing solar panels, homeowners must establish an interconnection agreement with their utility company. The utility company will likely require certain documentation and specifications for the solar system as part of the interconnection process.

System Size and Regulations

In some cases, DIY solar installations may have size limitations. Some utility companies or local regulations may have specific requirements or restrictions on the size of residential solar systems. Be sure to research any limitations that may apply to your specific location.

Do Solar Panels Increase Home Value In Texas


Research conducted by reputable institutions consistently demonstrates the positive impact of solar panels on property valuations. Not only do solar-powered homes tend to sell faster, but they also command higher prices compared to non-solar homes.

However, it’s essential to acknowledge that the effectiveness of solar panels in increasing home value may vary depending on various factors. The location, size of the solar installation, and overall energy efficiency of the property can all influence the degree of impact on home value valuation. As the solar industry continues to evolve, technological advancements and further government support are likely to make solar panels an even more compelling investment for Texas homeowners. 

Texas homeowners considering solar panel installation, the evidence strongly suggests that you can expect a tangible increase in your property’s value. Embracing solar energy not only provides financial advantages but also aligns with the growing demand for sustainable living, positioning your home as an attractive and conscientious choice in the real estate market. Those who choose to install solar panels not only benefit from potential financial gains but also contribute to the state’s efforts in promoting clean energy and reducing carbon emissions.