Control Your Electricity Prices with Solar Panels in Houston

Take advantage of Sunnova’s solar plans in the city where it all started

Across Houston, homeowners are taking control of their energy bills and improving their grid resiliency. Today, they have more support than ever, thanks to citywide solar initiatives designed to boost residential installs and help Houston become carbon neutral by 2050.*

With sunshine blanketing the Bayou City more than 200 days a year, homeowners across the city are tapping into the power of sunshine. As electricity prices increase while the cost of solar in Texas has dropped 50 percent over the past decade,* rooftop solar makes more financial sense.



Where are Houston Electricity Prices Headed?

In addition to ample sunshine, Houston has plenty of humidity. The heat and humidity combo leave residents relying on AC during the summer — and now during springtime. As May brought hotter-than-normal temperatures, more people were cranking their AC earlier than normal, a move that is promising to cost residents more.

In fact, some Houston residents have seen their rates double in the past year. While energy prices have been historically lower than the national average, in late May, the cost of electricity in Houston reached 18 cents per kilowatt hour (kWh).*

Are these prices here to stay? It’s too early to tell. However, we do know that the escalating price of natural gas plays a crucial role in Texas energy prices. Roughly 44 percent of the electricity within ERCOT comes from natural gas.* Historically, as those prices continue to climb, so do electricity prices.

What about fixed-rate plans? In response to the volatility, some retail energy providers in Houston are pausing their fixed-term contracts to allow them to assess whether high wholesale electricity prices are here to stay. Others are offering cheaper rates for longer, 36-month plans, since costs and risk will be spread over a longer period. While fixed-rate plans provide more stability, if wholesale prices continue to spike throughout this year, the cost of retail plans will likely rise, experts say.*





Are Solar Panels Worth it in Houston, Texas?

You can’t control the volatility of natural gas prices or the cost of wholesale electricity, but you can lock in your energy costs with Houston solar panels. Depending on your financing option, you can opt for a fixed solar rate or an escalator. Either way, you’ll pay a set amount each month and won’t have to worry about unpredictable utility prices. And, as electricity demand grows, severe weather prevails and Texans face air quality issues, the more rooftops that have solar, the more we’ll all benefit.

For instance, if solar panels were placed on every available rooftop in Texas, the output could have replaced as much as 60% of the power lost in the 2021 freeze and reduced the overall grid strain.* And that’s accounting for the lower panel efficiency during cloudy winter weather.

Are solar panels worth it in Houston, Texas? Absolutely. Not only can you benefit financially, but you’re also helping the planet, strengthening your community and reducing your dependence on the grid — making solar in Houston an all-around win.

The Cost of Solar Panels in Houston, Texas

The cost of installing a solar system in Houston can vary by thousands from one home to the next.

Your final cost will depend on factors like:

  • Your electricity consumption
  • What equipment you choose (number of panels, inverter, etc.)
  • Cost of your electricity
  • Which solar financing option you select
  • Your utility’s net metering policy and buy-back rates
  • Any applicable federal and local incentives

Since deregulation, residents are free to choose from a number of retail electricity providers (REPs) serving the Houston area. Texas doesn’t have any statewide mandate in place for solar net metering, which works by crediting solar customers on their electricity bills for the excess energy their solar panels generate.

Instead, homeowners can take advantage of solar buyback programs that work similar to net metering (but are designed for Texas’ electricity market). Houston solar buyback rates vary by REP and can range from full retail rate to wholesale rates with seasonal limitations to nothing, so be sure to shop around.

If you finance your Houston solar system with a loan, you may also be able to take advantage of the solar investment tax credit (ITC).* This federal credit enables system owners to deduct 26% of their solar installation cost from you’re their federal taxes. In 2023, the credit falls to 22% before expiring at the end of the year, unless extended by Congress.





Why Choose Sunnova as Your Houston Solar Company?

With all the solar companies in Houston, why choose Sunnova? Founded a decade ago in the Bayou City, Sunnova has served more than 7,200 homeowners across Texas. When you go solar with Sunnova, we’ll connect you with the top Houston solar installers, and back each system with our 25-year system coverage.

Our mission is to provide you with a better energy service at a better price. We’re a proud pioneer of the transition to renewables and the shift to energy independence — right here in the Energy Capital of America.

Click here and learn how to make the Houston sunshine work for you.