Solar Guide
In This Guide
Solar in Katy
Katy homeowners are turning to solar as Texas electricity prices jumped 28% from 2020 to 2024. With Texas ranking 7th for residential solar installations nationwide, local families are discovering how solar can cut monthly energy bills.
This guide covers everything about home solar panels in Katy. You’ll learn about costs, benefits, and what makes our sunny Texas climate perfect for solar energy.
Key Takeaways
- Katy’s excellent solar conditions generate 47.5 kWh daily in peak summer months, powering multiple homes efficiently.
- Texas offers strong solar incentives including 30% federal tax credits and property tax exemptions for installations.
- Average Katy homeowners save $78,000 over 25 years while protecting against rising electricity rates.
Solar Cost Calculator
Our solar cost calculator uses real installation data from Katy neighborhoods including Cinco Ranch, Grand Lakes, and Cross Creek Ranch. Get accurate pricing estimates based on actual local installations, not generic estimates.
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Katy Electricity Prices
Understanding electricity costs in Katy helps homeowners make informed decisions about their energy future and potential savings.
Texas electricity rates have steadily climbed from 12.1 cents per kWh in 2021 to 14.9 cents in 2024, representing a 23% increase over three years.
Solar panels generate electricity at a fixed cost, protecting homeowners from these rising utility rates while providing predictable monthly energy expenses.
Over 25 years, solar systems can shield families from decades of rate increases, potentially saving thousands while supporting clean energy independence.
Price of Energy: Texas vs National Average
Katy Area Utility Providers
Katy residents receive electricity from three main utility providers: Austin Energy at 13.0¢ per kWh, CPS Energy at 12.1¢ per kWh, and Entergy at 13.2¢ per kWh (2023 data).
These rates fall below both the Texas state average of 14.5¢ per kWh and national average of 16.0¢ per kWh, making Katy’s electricity costs relatively affordable compared to other regions.
Even with competitive utility rates, solar panels can provide long-term energy cost stability and protection against future rate increases while reducing your carbon footprint.
Katy Utilities Electricity Rates
Texas Solar Incentives
Katy homeowners can reduce solar installation costs through federal and state programs. These solar incentives in Texas help make clean energy more affordable.
Texas offers property tax exemptions, meaning your home’s value can increase from solar without higher taxes. Most local utilities also provide net metering programs that credit excess energy.
These programs change regularly, so research current offerings thoroughly. Acting promptly ensures you secure available incentives for your solar investment.
$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 system 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 1 deadline each year. The exemption can provide either partial or total relief from property taxes on the added value of your solar installation, depending on your local taxing authority’s policies.
It’s important to note that property tax in Texas is administered locally by counties and school districts, so the specific benefits and requirements may vary by location. Contact your local appraisal district to understand exactly how much you could save and to ensure you meet all local requirements for this valuable tax benefit.
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. Most Texas utilities offer export credits ranging from 3-8 cents per kilowatt-hour for excess solar energy, though some areas like Austin Energy provide higher rates around 10 cents per kWh. In deregulated areas served by companies like CenterPoint Energy, Oncor, and AEP Texas, Shell Energy’s Buyback Plan currently offers 7 cents per kWh (reduced from 15 cents in April 2024). Some utilities charge additional monthly fees for solar customers, typically ranging from $10-30 per month.
Most programs settle monthly, meaning excess credits don’t roll over to the next month or are forfeited at the end of each year in December. However, a few cooperatives like Grayson Collin Electric offer true net metering where credits can carry over year to year. Before installing solar, it’s essential to check with your specific utility company about their current rates, fees, and credit policies, as these can change and vary widely across Texas’ diverse energy market.
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 QuoteKaty 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.
Katy’s hot summers and mild winters create excellent solar conditions year-round, though humidity and occasional storms require proper system design for optimal performance.
Solar Production in Katy 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 Katy
We’ve mapped every solar installation across America to show you something exciting: your Katy neighbors are already embracing clean energy! Explore this interactive map to discover which communities have made the switch to solar.
Leasing Solar Panels
For Katy homeowners, Palmetto offers Power Purchase Agreements (PPAs) through CenterPoint Energy. With a PPA, you pay only for the electricity your solar panels generate at a fixed rate per kilowatt-hour, typically lower than your utility rate.
This arrangement eliminates upfront costs and maintenance responsibilities while providing immediate savings. Unlike purchasing panels outright, you avoid the large initial investment and let Palmetto handle all system monitoring, repairs, and warranties through our LightReach program.
PPAs offer predictable energy costs and protection from rising utility rates without the complexity of ownership. Compare your financing options to find the best fit for your situation and start saving from day one.
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 Katy. The city receives abundant sunshine year-round, with solar systems generating up to 47.5 kWh daily during peak summer months. This strong solar production, combined with Texas’ 30% federal tax credit and property tax exemptions, creates favorable conditions for solar investment.
Katy homeowners typically save $78,000 over 25 years while protecting against rising electricity rates. With Texas electricity costs increasing 28% since 2020, solar provides predictable energy expenses and long-term financial benefits for local families.
Katy doesn’t have traditional net metering, but offers net billing through CenterPoint Energy. Under CenterPoint’s service area, Shell Energy provides a buyback program that credits excess solar energy at 7 cents per kWh starting in April 2024.
Credits roll over monthly and help reduce future electric bills. While not full retail rate credit, this program still provides value for solar production beyond your home’s consumption, making solar financially beneficial for Katy residents.
Yes, solar panels increase home value in Katy, TX. Research from Zillow shows solar panels increase home value by 4.1% on average nationwide. For a typical Katy home valued at $300,000, this represents approximately $12,300 in added value.
Texas property tax exemptions make this benefit even more attractive. While your home’s value increases from solar installation, you won’t pay additional property taxes on that added value, maximizing your investment return in the competitive Katy real estate market.
Solar installation costs in Katy range from $14,179 to $25,057 after the 30% federal tax credit. A typical 10 kW system costs $19,107 after incentives, designed to offset 100% of average home electricity usage.
System size depends on your home’s energy consumption and roof space. Small homes (under 2,000 sq ft) typically need 7 kW systems, while larger homes (over 3,000 sq ft) may require 13 kW systems for complete energy independence.
Yes, solar is financially worth it in Katy. With Texas electricity rates rising 28% since 2020, solar provides protection against future rate increases while generating immediate savings. The average Katy homeowner saves $78,000 over 25 years with typical payback periods of 7-8 years.
Federal tax credits and Texas property tax exemptions reduce upfront costs significantly. Combined with Katy’s excellent solar conditions producing up to 47.5 kWh daily in summer, solar delivers strong long-term financial returns for local families.
We believe Palmetto Solar offers the best solar experience in Katy. As a national company with local focus, we’ve completed 3,810 installations across Texas since 2020, giving us deep expertise in local conditions and requirements.
We provide industry-leading financing options and work with trusted installation partners to ensure quality service from initial consultation through system activation. Our comprehensive approach includes design, permitting, installation, and ongoing support for Katy homeowners.