How Much Solar Power Does Texas Generate? (Insiders' Guide)

December 2, 2022

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Solar power in Texas is a great investment for any property owner. Solar provides clean, renewable energy without producing fumes, emissions, or pollutants. In fact, solar panels have no moving parts and require no oils, chemicals, or fluids!

Additionally, solar panels lower your utility costs while increasing property values. Tax credits also make solar more affordable than ever! However, you might still be wondering about solar power for your Texas property. Check out some vital information about this option, and then contact a solar installer near you as needed for solar power in Texas.

What Percentage of Texas Power is Solar

According to the Electric Reliability Council of Texas (ERCOT), 4% of the energy generated in Texas comes from solar power. It was also projected by ERCOT that in 2022, 9% of power would come from solar. When the year is through, this will be better able to be calculated.

Solar power is becoming increasingly popular in Texas due to its potential to provide clean and renewable energy. As more residents and businesses switch to solar energy, this percentage is likely to continue increasing in the future. Additionally, since there are no fuel costs associated with solar energy, it helps reduce electricity bills for consumers and businesses alike. With the right incentives and policies in place, solar power could become a major source of energy production in Texas.

In addition to the rise of solar electric power in Texas, other renewable sources, including wind and hydropower, are also making a significant contribution to the state’s power grid. In 2021, wind energy accounted for 24% of Texas's total electricity generation, and hydropower contributed another 5% approximately. Combined, these renewable sources represented roughly one-third of the state’s total electricity generation in 2020.

Image taken from ERCOT

What percentage of homes in Texas have solar?

Solar power is growing in popularity all over the United States, and Texas is no exception. A recent study by the National Renewable Energy Laboratory (NREL) found that solar energy has the potential to provide up to 23% of the state's electricity by 2030. In 2016, only 0.5% of Texas homes had solar panels installed, but that number is expected to grow rapidly in the coming years as prices continue to drop and more people become aware of the benefits of solar power.

In addition, the state has several incentives in place to make going solar more affordable. These include a combination of tax credits and rebates from the state government and utility companies. With prices continuing to fall and incentives helping offset installation costs, it is likely that more people will take advantage of these opportunities over the next decade, making solar an even larger part of the state's energy grid.

Is Texas Good for Solar Power?

First, remember that solar panels work by absorbing sunlight; the more sunlight they absorb, the more energy they produce. Second, panels need unobstructed light to work properly, meaning no overhanging tree branches.

Texas enjoys more sunny days per year than most states in the country! For instance, Austin enjoys 228 sunny days per year versus the annual average of 205 days. Also, many Texas properties lack mature trees that would otherwise block panels from working effectively. Additionally, without much snowfall, those panels continue to work even through the state’s winter months.

Additionally, Texas electricity rates are among some of the most expensive in the country. Rolling blackouts and other interruptions also have property owners scrambling for energy solutions. In turn, property owners are investing in solar now more than ever before!

Is Solar Booming in Texas?

According to CNET, Texas has the second-greatest solar capacity in the country, just behind California. Along with the incentives listed above, this makes Texas an excellent state for solar investments. In fact, Texas generates some 12% of solar in the United States, also just behind California’s 31%.

Over the years, Texas went from fewer than 1,000 solar installations per year to over 6,000 installations in 2021. Also, the 2022 Inflation Reduction Act allows for a 30% installation cost tax credit through 2033. In turn, no doubt those numbers will only increase in the coming years as well as Texas's solar capacity also increases.

how much of texas power is solar

Is It Worth It to Go Solar in Texas?

The simple answer is yes, it’s worth it to go solar in just about any state in the U.S. First, note that solar panels are more affordable than ever. Second, that 30% federal tax credit makes it even more affordable to choose solar!

Additionally, solar panels produce clean energy without emissions, as said. They’re also very durable over the years, requiring little to no maintenance. In fact, they usually need nothing more than surface brushing on occasion to remove leaves and debris.

Also, solar panels protect roofs from damage due to harsh sun exposure and weather elements. Solar panel installation and recycling also create local jobs, stimulating the economy. Moreover, your solar installation can encourage others to choose renewable energy for their property.

Average Cost for Solar in Texas

Most homeowners can expect to pay between $10,000 and $26,000 for a solar panel installation. However, note that this is before rebates, credits, and other incentives. For instance, if eligible for a federal tax credit, you can claim 30% of those costs on your return. That’s a credit of $3,000 to $7,800 you could save!

However, with the state’s high electricity costs, you might expect to save some $25,000 on your energy bills over the life of solar ownership. Of course, these are just average numbers, and everyone’s costs and savings will vary. On the other hand, solar energy production is an excellent investment, even if you save just a few thousand dollars on your electric bills!

Disadvantages of Solar Installation

While solar is an excellent choice for most property owners, it’s not without disadvantages. First, installation costs are sometimes out of a homeowner’s reach. Second, roofers often need to remove your solar racking system before performing repairs. In turn, it’s often necessary to make those repairs before your solar installation.

Additionally, note that your savings from solar grow the longer you own those panels. As a result, they’re not always the best choice if you might put your home on the market sometime soon. Speak to a solar installer in Texas for more information about potential solar disadvantages for your property.

How Long Do Solar Panels Last in Texas?

Solar panels don’t tend to “seize up” or otherwise stop working. Instead, they begin to lose their efficiency and effectiveness over the years due to sun and weather exposure. Most panels lose efficiency at 0.5% to 1% annually. In other words, renewable energy panels typically work 5% to 10% less effectively every 10 years.

In turn, many property owners decide to replace their panels after 25 to 35 years or so. At that time, panels might be working at only 65% to 85% efficiency. However, it's not necessary to recycle the panels if there are still effective. Though, upgrading to new panels then means enjoying more solar power and lower utility costs. Also, property owners might donate their older panels to schools or other public facilities.

Solar panels in Texas won't experience the same wear and tear that panels in cold weather climates do. In cold weather climates, the panels are subjected to extreme weather conditions, such as snow and ice. This can cause the panels to break or become damaged. However, in Texas, the weather is much more mild, so the panels won't be subjected to these extreme conditions. This will help to prolong the life of the solar panels.

Alliance Solar is happy to provide this information about solar power in Texas to our readers. Hopefully, you found it useful in deciding on solar for your property. If you’re ready for expert, affordable installation, call our Texas solar panel contractors. We offer FREE price quotes and stand behind our work with a full guarantee of quality. Additionally, we’re happy to answer all your questions about green energy for your property. For more information or to schedule your no-cost, no-obligation appointment, call us right now!

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