Solar Guide
Solar in Abilene
Abilene homeowners are discovering that solar installation offers a smart path to energy independence and long-term savings. With Texas electricity prices increasing 28% from 2020 to 2024, many residents are exploring solar energy to reduce their monthly bills and take advantage of the area’s abundant sunshine.
Understanding your options is the first step toward making an informed decision about home solar panels. This guide covers everything you need to know about solar installation in Abilene.
Key Takeaways
- Abilene receives excellent solar irradiance year-round with minimal cloud cover, making it ideal for solar energy production.
- Texas electricity rates increased 28% from 2020-2024 while solar provides fixed energy costs for 25+ years.
- The federal tax credit covers 30% of installation costs plus Texas offers property tax exemptions for solar systems.
Solar Cost Calculator
Our solar cost calculator uses real installation data from Abilene neighborhoods like Wylie, Elmdale, and Sayles Boulevard. Get accurate pricing estimates based on actual local projects, not generic numbers from across the country.
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Abilene Electricity Prices
Understanding electricity costs in Abilene helps homeowners make informed decisions about their energy future and potential savings.
Texas electricity rates have steadily increased from 12.1 cents per kWh in 2021 to 14.9 cents in 2024, representing a 23% rise.
Solar panels generate electricity at a fixed cost, helping homeowners avoid future rate increases while reducing their monthly energy bills.
Over 25 years, solar systems can provide decades of predictable energy costs, protecting families from continued electricity price volatility.
Price of Energy: Texas vs National Average
Abilene Area Utility Providers
Abilene residents primarily receive electricity from Xcel Energy, which charged 14.7¢ per kWh in 2023. This rate sits below the national average of 16.0¢ per kWh but slightly above Texas’ state average of 14.50¢ per kWh.
Xcel Energy’s rates reflect the company’s diverse energy portfolio and infrastructure investments across Texas. While slightly higher than the state average, Abilene’s electricity costs remain competitive compared to many other regions nationwide.
Even with below-average electricity rates, solar installation can provide long-term value through energy independence and protection against future rate increases. Solar panels help stabilize monthly energy costs while reducing reliance on traditional utility sources.
Abilene Utilities Electricity Rates
Texas Solar Incentives
Abilene, TX homeowners can significantly reduce solar installation costs through available solar incentives in Texas and federal programs.
Texas offers property tax exemptions that prevent solar installations from increasing your home’s taxable value, providing ongoing annual savings for homeowners.
Net metering policies allow you to earn credits for excess energy your solar panels generate and send back to the grid.
$8,189
Average savings in Texas solar rebates
| Incentive | Type | Description | Source |
|---|---|---|---|
| Residential Clean Energy Credit | Federal tax credit | A federal tax credit worth 30% the cost of a solar panel system in the year it’s installed | Learn More |
| Property Tax Exemption | State tax exemption | No property tax increase from solar installations. Example: $20k system saves ~$400/year at 2% tax rate. | Learn More |
The Residential Clean Energy Credit lets people claim a tax credit worth 30% the cost of a solar panel system in the year it’s installed. The credit can only be used against taxes you owe or have already paid that year, but any excess credit can be rolled over to future years.
The credit is broadly available, though there are a few restrictions — you must own the panels and they must be on a house you live in — so be sure to consult a tax professional about your situation.
Texas offers a property tax exemption for solar and wind-powered energy devices, which means homeowners can exclude the added value of their solar installation from their property tax assessment. When you install solar panels on your home, they typically increase your property’s appraised value, but this exemption ensures you won’t pay additional property taxes on that increased value.
To qualify for this exemption, your solar energy system must be installed on property you own and use as your residence. You’ll need to apply for the exemption with your local county appraisal district using Form 50-123 before the May 1st deadline. The exemption continues as long as you own the property and the solar system remains installed. This benefit can result in significant long-term savings, as it protects you from paying higher property taxes that would normally result from your home’s increased value due to the solar installation.
Net metering in Texas varies significantly by utility company, with most areas offering net billing (export credit) rather than traditional 1:1 net metering. Under these programs, your solar panels first power your home directly, helping you avoid purchasing electricity at retail rates. Any excess energy your system produces is then sent to the grid, where you receive credits that reduce your monthly electric bill.
The financial benefits depend on your specific utility company and location. Export credit rates typically range from 3-8 cents per kWh for excess solar energy sent to the grid, though some utilities like Shell Energy offer 7 cents per kWh through their buyback program. A few utilities still offer true 1:1 net metering where excess production offsets consumption on an equal basis. Many utilities charge additional monthly fees ranging from $4.95 to $30 for solar customers, and most programs settle monthly rather than annually.
Most Texas utilities require you to install an approved solar system and complete an interconnection agreement before connecting to the grid. In deregulated areas, you may need to work with specific retail energy providers (REPs) to access solar programs. Important considerations include that excess credits typically expire each December without payout, and some utilities have minimum monthly bills or additional fees that can impact your savings. The specific terms, credit rates, and fees vary widely across Texas utilities, so it’s essential to understand your local utility’s particular program structure.
Ready to start saving with solar?
Speak with a Palmetto solar expert to find out exactly how much you can save with Texas incentives.
Get a Free QuoteAbilene Solar Irradiance
Solar panel production varies throughout the year based on daylight hours, weather patterns, and sun intensity. Understanding how seasons affect your solar system helps set realistic expectations for your investment.
Abilene’s sunny climate and minimal cloud cover create excellent solar conditions year-round. Despite occasional weather variations, proper system design maximizes energy production effectively.
Solar Production in Abilene by Month
What Can Your Solar System Power?
Summer Production (July)
In July, your 10 kW system could power:
- 3.6 average homes (15 kWh/day per home)
- or Run central AC for 18 hours AND power all other appliances
- or Fully charge 5.4 Tesla Model 3 electric vehicles
Winter Production (December)
In December, your 10 kW system could power:
- 2 average homes (15 kWh/day per home)
- or Keep your home heating system running for 15 hours
- or Fully charge 3 Tesla Model 3 electric vehicles
Annual Production
Over a year, your 10 kW system could:
- Offset 10 tons of carbon dioxide emissions
- or Equal the environmental benefit of planting 175 trees
- or Save approximately $4,234 in electricity costs
Want to know exactly how much solar can power your home?
Get a personalized solar analysis based on your actual home, energy usage, and roof characteristics.
Get My Custom EstimateSolar Installations in Abilene
We’ve mapped every solar installation across America to show you something exciting: your Abilene neighbors are already embracing clean energy! Click any hexagon to discover how many homes in that area have made the switch to solar.
Leasing Solar Panels
For Abilene homeowners, Palmetto offers solar leasing options that make clean energy accessible without the upfront investment. Based on your utility provider, LightReach leasing is available in your area, allowing you to start saving on electricity costs immediately.
With solar leasing, you pay a fixed monthly amount while Palmetto handles all system maintenance, monitoring, and repairs. This eliminates the need to manage equipment upkeep yourself or worry about unexpected maintenance costs that come with cash purchases.
Leasing provides predictable energy costs and immediate savings without the responsibility of system ownership, making it an attractive option for homeowners who want solar benefits without the long-term commitment of purchasing panels outright.
Go solar without the investment
With LightReach, there are no investment costs to recoup, loan payments to manage, or maintenance needs to take on. As soon as your panels are active, your solar savings are too!
Learn MoreFrequently Asked Questions
Yes, solar makes excellent sense in Abilene, TX. The city receives abundant sunshine year-round with minimal cloud cover, creating ideal conditions for solar energy production. With Texas electricity rates increasing 28% from 2020-2024, solar panels provide fixed energy costs and protection against future rate hikes.
Abilene homeowners can take advantage of the 30% federal tax credit plus Texas property tax exemptions for solar installations. The average solar system in Abilene pays for itself in approximately 7 years while providing over $88,000 in savings over 25 years, making it a smart long-term investment.
Abilene residents are served by Xcel Energy, which does not offer traditional 1:1 net metering. Instead, Xcel Energy provides a net billing program with two options for solar customers.
Option 1 offers no credit for excess solar energy sent to the grid but has no additional fees. Option 2 provides 1.4-2 cents per kWh for exported energy but includes a $20 monthly distributed generation fee. Most customers benefit more from Option 1 since the minimal export credits rarely offset the monthly fee.
Yes, solar panels typically increase home value in Abilene, TX. A Zillow study found that homes with solar panels sell for 4.1% more than comparable homes without solar systems.
In Abilene’s housing market, this could translate to thousands of dollars in added value. Additionally, Texas offers property tax exemptions for solar installations, meaning your home’s increased value won’t result in higher property taxes, providing both immediate and long-term financial benefits.
Solar costs in Abilene vary by system size and home energy needs. For a typical medium-sized home (2,000-3,000 sq ft), a 9.72 kW system costs approximately $27,296 before incentives.
After the 30% federal tax credit ($8,189), the final cost drops to around $19,107. Texas also offers property tax exemptions, preventing solar installations from increasing your taxable home value, providing additional long-term savings.
Yes, solar is financially worth it in Abilene, TX. With Texas electricity rates increasing 28% from 2020-2024, solar provides fixed energy costs and protection against future rate hikes.
The average Abilene solar system pays for itself in approximately 7 years through monthly savings, then provides over $88,000 in total savings over 25 years. Combined with the 30% federal tax credit and Texas property tax exemptions, solar offers strong long-term financial returns.
At Palmetto Solar, we’ve completed over 3,810 installations across Texas since 2020, bringing our national expertise to local communities like Abilene. Our comprehensive approach combines competitive financing options with a trusted network of certified installers.
We focus on making solar accessible through transparent pricing, quality equipment, and ongoing support throughout your solar journey. Our team handles everything from initial consultation to system monitoring, ensuring you get the most value from your investment.