Switching to solar energy will save you thousands of dollars on your electricity in the long run. However, the upfront cost of solar installation still keeps some homeowners in Dallas County from going green.
Just how much does it cost to switch to a solar panel home in varLacationName, TX? In this guide, we’re going to go over all of the fees associated with going solar in Texas. We’ll also break down why the solar industry in Texas is outperforming other states.
Finally, we’ll discuss how to make solar systems more affordable so you can feel more confident about making the switch.
Solar Installation is Booming in Richardson, TX
Did you know that enough solar has been installed in Texas to power over one million homes? In fact, according to the Solar Energy Industries Association (SEIA), Texas ranked second in 2020 for overall solar installation.
The Lone Star State also ranks first for projected growth, which has driven the cost of solar down by 43% in the last five years. With the industry booming and prices falling, there’s never been a better time to get a solar installation in Dallas.
Homeowners aren’t the only demographic jumping on solar energy in Texas. FedEx installed one of the nation’s largest solar systems at their hub in Hutchins, Texas. The project has a two-megawatt capacity, which is enough to generate over 4,000 hours of energy a year.
What makes Texas such a good place for solar? It all comes down to peak sunlight hours. On average, Texas receives four and a half to six peak sunlight hours a day, which is when sunlight is at its strongest.
One peak sunlight hour shining on your solar panels produces 1,000 watts of energy per meter, which equals roughly 10.5 feet.
To get the most out of your solar panels in Richardson, TX, you need a professional solar installation team that will install your panels in the right spot to absorb the most sunlight during peak hours.
Solar Installation Costs in Texas
Even though switching to a solar panel home is a great option for Dallas homeowners, some are still wary of the initial cost of solar installation. Let’s break down the fees associated with installing solar panels on your roof to make it easier to understand.
First, the average out-of-pocket cost of a solar system in Texas ranges from $11,000 to $16,000. That amount covers both equipment and labor. Per watt, the average cost of a solar installation in Texas is between $2.32 and $3.14.
Your final cost will depend on the size of your home and how many solar panels you need, which is why you should always request a quote. The price tag also fluctuates depending on which type of solar panels you buy.
Types of Residential Solar Panels
The three common types of solar panels for residential installations are thin-film, polycrystalline, and monocrystalline.
Thin-film solar panels are a flexible material that can adhere directly to your roof. They are the most cost-effective solar panel option, with approximately 10% efficiency.
Polycrystalline solar panels, also called multi-crystalline, are the next step up in quality and price. They are made of silicon fragments that are melted together and cut into wafers. They have approximately 15% efficiency.
The premium solar panel option is monocrystalline panels. They are made of pure silicon and have a 19% or higher approximate efficiency. They are the most expensive solar panels on the market, but many homeowners prefer them due to their higher efficiency.
Next, let’s look at the tax credits and rebates available to make solar installation in Dallas more affordable.
Solar Installation Tax Credits in Richardson, TX
The United States government is making a big push towards renewable energy, and currently, you can receive a 26% tax credit on the overall cost of your solar installation. This credit is expected to drop over the next few years, and it’s scheduled to expire in 2024.
If you want to take advantage of the most savings, you should switch to solar now while the federal tax credit is still high. Some counties in Texas with municipal electric companies also offer rebate programs to make your solar installation more affordable.
Additionally, in Texas, homeowners are exempt from paying property taxes on the amount that their home value increases when they install solar panels. Did you know that your home’s value can increase by approximately 70% of the cost of your solar system?
That means if your whole system costs $15,000, the value of your home could increase by $10,500, and you would not have to pay property taxes on that amount.
When you factor in the tax credit, potential rebates, and tax exemptions, there are several ways to save money on your solar installation. Additionally, solar panels come with warranties for up to 25 years. If you maintain your solar panels properly, they can actually last up to 40 years.
Most Texas homeowners pay off their solar panels in 12 years, which leaves decades worth of savings.
Net Metering in Texas
Another way to save money on solar energy is through net metering. In Texas, there are no net metering laws; however, most municipal electric companies offer net metering programs.
What is net metering? Essentially, when your solar panels overproduce energy, you can sell the excess back to your local utility company. They pay you for them in credits, which you can cash in to pull back energy from the local grid.
This system is helpful to keep your home powered when the sun isn’t shining enough for your solar panels to produce the energy you need. Some net metering programs in Texas even offer rebates.
Is Solar Installation Worth it in Richardson, TX?
If the upfront costs of solar installation deterred you in the past, hopefully, you feel more confident about the long-term savings after learning about ways to make your solar system more affordable. Overall, you will save thousands of dollars on energy throughout the lifespan of your solar panels.
There’s never been a better time to switch to a solar panel home Richardson, TX. Make the right choice for the planet and your wallet today and request a free quote from Aztec Renewable Energy, Inc.