Solar Guide
Solar in San Antonio
San Antonio homeowners are turning to solar as Texas electricity prices have increased 28% from 2020 to 2024. With over 300 sunny days annually, the River City provides excellent conditions for solar installation.
Making the switch starts with understanding your options. Our home solar panels guide helps San Antonio residents explore solar solutions for their homes.
Key Takeaways
- San Antonio receives over 300 sunny days annually, creating ideal conditions for solar panel installation and energy production year-round.
- Texas electricity rates increased 28% from 2020-2024, making solar a smart investment for long-term energy cost protection.
- Federal tax credits and Texas property tax exemptions can save San Antonio homeowners thousands on their solar installation costs.
Solar Cost Calculator
Our solar cost calculator uses real installation data from San Antonio neighborhoods like Alamo Heights, Stone Oak, and Southtown. Get personalized pricing based on actual local projects, not estimates.
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Cost
Savings
San Antonio Electricity Prices
Understanding San Antonio’s electricity costs helps homeowners make informed decisions about solar panel installation for their homes.
Texas electricity rates have climbed from 12.1 cents per kWh in 2021 to 14.9 cents in 2024, representing a 23% increase for San Antonio residents.
Solar installation allows homeowners to generate their own electricity, reducing dependence on the grid and providing protection against these rising utility costs.
Over 25 years, solar panels can shield San Antonio families from future rate increases while contributing to a cleaner energy future for Texas.
Price of Energy: Texas vs National Average
San Antonio Area Utility Providers
San Antonio residents benefit from below-average electricity rates through two main utility providers. CPS Energy serves most of the city at 12.1¢ per kWh, while Pedernales Electric Cooperative charges 11.7¢ per kWh (2023 data).
These rates sit well below the 2023 national average of 16.0¢ and Texas state average of 14.5¢ per kWh. Both utilities benefit from diverse energy portfolios and efficient regional distribution systems.
Even with competitive utility rates, solar can provide long-term energy cost stability and protection against future rate increases while reducing your environmental impact in San Antonio’s sunny climate.
San Antonio Utilities Electricity Rates
Texas Solar Incentives
San Antonio homeowners can reduce solar costs through federal and state programs. Understanding available solar incentives in Texas helps maximize savings.
Texas offers property tax exemptions, preventing increased taxes from solar installations. Most utilities also provide net metering programs that credit excess energy production.
These incentives can change over time. Research current programs thoroughly and consider acting promptly to secure available benefits.
$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 system must be designed primarily to produce energy for on-site use at your residence. You’ll need to apply for the exemption with your local county appraisal district using Form 50-123, and the general deadline for filing is before May 1st each year. The exemption continues as long as you own the solar system and use it primarily for your home’s energy needs. This incentive makes solar more affordable by protecting you from higher property taxes that would otherwise 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. 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 major transmission companies (Oncor, CenterPoint, AEP Texas, TNMP), you’ll typically work with Shell Energy’s buyback program, which currently credits excess production at 7 cents per kWh. Some utilities charge additional monthly fees for solar customers, ranging from $4.95 to $30 per month, while others like Grayson Collin Electric Cooperative offer true 1:1 net metering with credits that roll over year to year.
Most Texas net metering programs settle monthly, meaning excess credits don’t roll over to the next month or are forfeited at the end of each December. However, some utilities allow monthly rollover with annual forfeiture, and a few offer year-round credit banking. Since Texas has a deregulated electricity market in many areas, you may need to work with specific retail energy providers to access solar buyback programs, so it’s important to verify your utility’s current policies and available options before installing your solar system.
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 QuoteSan Antonio 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.
San Antonio’s abundant sunshine and mild winters create excellent solar conditions year-round, despite occasional cloudy periods and summer heat affecting panel efficiency.
Solar Production in San Antonio 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 San Antonio
We’ve mapped every solar installation across America to show you something exciting: your San Antonio neighbors are embracing clean energy! Explore this interactive map to discover which communities have made the switch to solar power.
Leasing Solar Panels
San Antonio homeowners have limited financing options for solar installations compared to other Texas cities. CPS Energy, which serves most of San Antonio, currently prohibits third-party ownership (TPO) arrangements, meaning traditional solar leases and Power Purchase Agreements (PPAs) are not available.
However, purchasing solar panels outright offers distinct advantages over leasing arrangements. When you own your system, you benefit from the full 30% federal tax credit, Texas property tax exemptions, and complete control over your energy production. Unlike lease agreements that typically include monthly payments and maintenance restrictions, ownership means no ongoing fees and the ability to modify or upgrade your system as needed.
For San Antonio residents interested in solar financing options, Palmetto offers purchase programs and can help you explore available incentives. Learn more about buying versus leasing solar or discover our LightReach program for alternative solar solutions.
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 San Antonio. The city receives over 300 sunny days annually, creating ideal conditions for solar panel energy production throughout the year.
With Texas electricity rates increasing 28% from 2020-2024, solar provides long-term protection against rising utility costs while taking advantage of federal tax credits and Texas property tax exemptions that reduce installation expenses.
San Antonio has monthly net metering through CPS Energy, the city’s main utility provider. This means excess solar energy you produce is credited to your account at approximately 2 cents per kWh during summer months and 1.65 cents per kWh in winter.
Credits roll over month to month but are forfeited each December without payout. While not traditional 1:1 net metering, this system still provides value for solar homeowners in San Antonio.
Yes, solar panels increase home value in San Antonio. A Zillow study shows solar panels increase home value by 4.1% on average nationwide.
In San Antonio’s competitive real estate market, solar panels offer additional benefits beyond value increase. They provide energy cost savings and environmental appeal that attract buyers, while Texas property tax exemptions prevent higher taxes on the increased home value from solar installation.
Solar installation costs in San Antonio range from $14,179 to $25,057 after federal tax credits, depending on your home size and energy needs. A typical medium-sized home (2,000-3,000 sq ft) requires a 9.72 kW system costing approximately $19,107.
This includes equipment, installation, permits, and inspections. Federal tax credits reduce costs by 30%, while Texas property tax exemptions prevent higher taxes on your home’s increased value from solar installation.
Yes, solar is financially worth it in San Antonio. With over 300 sunny days annually and Texas electricity rates increasing 28% from 2020-2024, solar provides excellent returns on investment.
A typical San Antonio home saves approximately $182 monthly on electricity bills, with systems paying for themselves in 7.8 years. Over 25 years, homeowners can save around $79,000 while benefiting from federal tax credits and Texas property tax exemptions that reduce upfront costs.
We’re proud to serve San Antonio homeowners with quality solar installations. As a national company with local expertise, we’ve completed over 3,810 installations across Texas since 2020.
Our commitment to San Antonio includes competitive financing options and a trusted installation network. We focus on making solar accessible and reliable for every Texas family looking to reduce their energy costs and environmental impact.