How Much Do Solar Panels Cost in 2024?

The solar industry in the United States is booming. This is particularly true in states such as Texas, which ranks second in terms of cumulative solar capacity. To date, more than 16,000 MW of solar capacity has been installed in the Lone Star State, with only California ahead with 38,000 MW.

If you are interested in installing solar panels on your property, it’s important to consider the cost. The good news is that solar panels cost has fallen by around 52% over the past 10 years, making it an attractive option for environmentally-minded homeowners. It’s also a great option if you are looking to reduce grid dependence and reduce your monthly utility bill.

In this blog post, your expert team at Chariot Energy will break down the average cost of solar panel installation in Texas. We will also highlight the factors that determine the cost and the average savings a household can expect by making the switch to this clean, renewable, and infinite energy source. Let’s get started.

How Much Do Solar Panels Cost?

As we will highlight further below, the average cost of solar panels depends on a number of factors. Therefore, it is not possible to give a catch-all answer to this question. However, we can look at the average cost to give you a good idea of the upfront cost.

The average cost of a 6 kW solar system in Texas is $11,647. Note that this is after applying the federal solar tax credit, which currently stands at 30%. A 4 kW solar system costs an average of $8,330, a 5 kW solar system costs an average of $9,972, and a 7 kW solar system costs an average of $13,480.

With the above solar system sizes, it’s also worth highlighting that the average cost per watt is lower with a larger system. For example, a 4 kW system has an average cost per watt of $2.98, while a 7 kW system has an average cost per watt of $2.79.

Let’s take a look at Travis County, home to the state capital Austin, to give a better example of solar panel cost. A household with an average utility bill of $105 is recommended to purchase a 5.7 kW system. After applying the federal solar tax credit, the average cost of this system would be between $10,680 and $13,053.

The payback period for this solar system is between 8.5 and 10.4 years. The net profit over 25 years, which refers to the savings minus the system cost, is estimated at between $20,000 and $24,400.

Factors That Determine Solar Panels Cost

As noted above, one of the main factors that determine the cost of solar panels is the size of the solar system. There are a number of considerations a homeowner should make when determining the most suitable solar system size for their home.

These include the size of the property, its location and sunlight hours, the number of occupants in the property, and its current and expected future energy consumption. A larger house with more occupants is likely to require a larger solar system compared to a small house with few occupants and little energy consumption.

Texas, on the whole, is an excellent state for solar energy. This is because of the sunny weather that is prevalent here. Austin, for example, has an average of more than 300 sunny days per year, highlighting the value of harnessing the sun as an energy source.

The result of this is that solar panels are more efficient in Texas than in many other states. A home in the northeast of the country, for example, would need a larger solar system to meet its energy needs compared to a home in Texas. It’s recommended that homeowners in Texas install their solar system in a south-facing direction for maximum efficiency.

We also recommend that you partner with an experienced and reputable solar installation company. That way, you can rest assured that your new solar system is good quality, installed correctly, and is backed up with a strong warranty. In Texas, your premier choice is always Chariot Energy.

Best of all, homeowners in Texas can save on their utility bills with or without solar panels, as we offer a range of 100% renewable energy plans.

Average Savings With Solar Panels

Again, this is another area where the answer will differ greatly from home to home, depending on the solar system they install. Across a number of cities in Texas, the estimated 25-year bill savings are: Arlington, $32,600; Austin, $32,700; Dallas, $38,900; El Paso, $38,700; Fort Worth, $34,200; Houston, $39,600; and San Antonio, $26,500.

It’s important to note that a solar system typically comes with a warranty of 25 years. However, this doesn’t mean that it will stop producing energy once it reaches this age. While a solar system’s ability to generate electricity will reduce each year, a properly-installed and maintained solar system can efficiently generate electricity for 40-plus years.

The bottom line is that the potential savings of solar systems is excellent and makes the upfront cost worth it in the medium to long run.

Making the Switch to Solar With Chariot Energy

As this blog post highlights, solar panels cost has fallen significantly in the past decade, making it an affordable option for most homeowners. Given the potential for cost savings by switching to solar energy, it is no surprise that so many Texan families are doing so.

If you are ready to save money by switching to solar energy, your premier choice for solar panel company is Chariot Energy. Click here to check out our energy plans and choose the option that is best for your family.