Solar Guide
Solar in Pearland
Pearland 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 how solar panels for home use can provide stable, predictable energy costs.
This guide breaks down everything you need to know about solar installation in Pearland.
Key Takeaways
- Pearland receives excellent solar irradiance with systems producing 46 kWh daily in summer and 28 kWh in winter.
- Texas property tax exemptions prevent increases from solar installations, saving homeowners hundreds annually on taxes.
- Federal tax credits reduce costs by 30% with average Pearland homeowners saving $8,189 on solar installations.
Solar Cost Calculator
Our solar cost calculator uses real installation data from Pearland neighborhoods including Silverlake, Country Place, and Shadow Creek Ranch. Get personalized pricing based on actual local projects, not generic estimates.
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Cost
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Pearland Electricity Prices
Understanding electricity costs in Pearland helps homeowners make informed decisions about their energy future and monthly budgets.
Texas electricity rates have 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, helping homeowners avoid future rate increases while reducing their dependence on the traditional grid.
Over 25 years, solar systems can provide predictable energy costs, potentially saving thousands as utility rates continue their upward trend.
Price of Energy: Texas vs National Average
Pearland Area Utility Providers
Pearland residents receive electricity primarily from Entergy, which charged 13.2¢ per kWh in 2023—below both Texas’ 14.5¢ average and the national 16.0¢ average.
Entergy’s competitive rates reflect Texas’ diverse energy mix and deregulated market structure, helping keep costs lower than many other states nationwide.
Even with these favorable rates, solar installation can provide predictable energy costs and protection against future utility rate increases over time.
Pearland Utilities Electricity Rates
Texas Solar Incentives
Pearland residents can significantly reduce solar installation costs through various solar incentives in Texas available at state and federal levels.
These incentives include property tax exemptions that prevent increases from solar installations and net metering programs that credit you for excess energy production.
Understanding these programs helps homeowners make informed decisions about solar investment timing and potential savings opportunities.
$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 1st deadline. The exemption continues as long as you own the property and the solar system remains installed.
This exemption is administered locally by each county’s appraisal district, so specific requirements and processes may vary slightly by location. The Texas Comptroller provides guidelines to help local officials administer this exemption consistently across the state, ensuring homeowners can benefit from clean energy investments without facing higher property taxes.
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 year-to-year credit rollover. Before installing solar, contact your specific utility company to understand their current net metering or net billing policies, as rates and terms can change and vary significantly 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 QuotePearland 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.
Pearland’s humid subtropical climate and frequent cloud cover might seem challenging, but proper solar system design maximizes year-round production potential.
Solar Production in Pearland 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 Pearland
We’ve mapped every solar installation across America to show you something exciting: your Pearland neighbors are embracing clean energy! This interactive heatmap reveals which communities have made the switch to solar, helping you discover the growing solar movement in your area.
Leasing Solar Panels
Pearland residents have access to LightReach, Palmetto’s solar leasing program that provides Power Purchase Agreement (PPA) options through CenterPoint Energy. With a PPA, you pay for the actual electricity your panels generate at a fixed rate per kilowatt-hour, typically resulting in lower monthly costs during winter months and higher savings during peak summer production.
This arrangement eliminates the need for large upfront investments while providing immediate savings on your electricity bills. Unlike purchasing a system outright, leasing solar panels means Palmetto handles all maintenance, monitoring, and repairs throughout the agreement term, giving you peace of mind and predictable energy costs.
The key advantage over cash purchases is removing the financial barrier and maintenance responsibility while still accessing clean energy benefits. Your monthly PPA payments often cost less than your previous utility bills, creating immediate savings without the typical 7-8 year payback period required with purchased systems.
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 Pearland. The city receives strong solar irradiance year-round, with systems producing 46 kWh daily in summer and 28 kWh in winter, providing consistent energy generation.
With Texas electricity rates increasing 23% since 2021 and federal tax credits reducing installation costs by 30%, Pearland homeowners typically see 7-8 year payback periods and $78,000 in 25-year savings.
Pearland doesn’t have traditional net metering, but offers net billing through CenterPoint Energy. Under Shell Energy’s Buyback Plan, excess solar energy is credited at 7 cents per kWh, with credits rolling over monthly until December when they’re forfeited.
This system first powers your home directly at retail rates, then credits excess production. While not 1:1 net metering, it still provides meaningful savings for solar homeowners in Pearland.
Yes, solar panels typically increase home value in Pearland, TX. Research from Zillow shows that homes with solar panels sell for 4.1% more than comparable homes without solar systems.
Additionally, Texas offers a property tax exemption for solar installations, meaning the added value from your solar system won’t increase your property taxes. This combination of increased home value without higher tax burden makes solar an attractive investment for Pearland homeowners.
Solar costs in Pearland range from $14,179 to $25,057 after federal tax credits. A typical 10 kW system costs $27,296 before incentives, with the 30% federal tax credit reducing the final cost to $19,107.
System size depends on your home’s energy usage and roof space. Small homes (under 2,000 sq ft) typically need 7 kW systems, while larger homes (over 3,000 sq ft) require 13 kW systems for optimal energy offset.
Yes, solar is financially worth it in Pearland. With Texas electricity rates rising 23% since 2021, solar provides protection against future rate increases while generating immediate savings.
The typical Pearland homeowner saves $8,189 through federal tax credits and sees payback periods of 7-8 years. Over 25 years, systems generate approximately $78,000 in total savings, making solar a strong long-term investment.
Palmetto Solar is the leading solar company serving Pearland, TX. We’re a national company with local expertise, having completed 3,810 installations across Texas since 2020.
Our comprehensive approach includes industry-leading financing options, professional installation networks, and ongoing customer support. We handle everything from initial consultation through system activation, making solar accessible and straightforward for Pearland homeowners.