Solar ROI Analysis:
Houston, Texas

Yes, solar is typically an excellent investment in Houston. With 5 peak sun hours daily—higher than the national average—and CenterPoint charging $0.142/kWh, most homeowners see payback periods of 7-10 years. After that, you're generating free electricity for another 15-20 years. The 30% federal tax credit through 2032 further improves the ROI.

Savings depend on your current electricity usage. A Houston home with a $180/month electric bill can typically save $40,000-$60,000 over 20 years. These savings account for CenterPoint's current rates, historical rate increases of 3% per year, and system degradation of 0.5% annually.

Texas doesn't have statewide solar rebates, but the federal Investment Tax Credit (ITC) provides a 30% credit on your total system cost through 2032. This means a $20,000 system costs effectively $14,000 after the tax credit. Some CenterPoint programs may offer additional incentives—we recommend checking their current offerings.

System size depends on your electricity consumption. For a typical Houston home paying $180/month, you'd need approximately 8-10kW of solar panels. Our calculator above provides a personalized estimate based on your actual monthly bill and CenterPoint's rates.

Modern solar panels are designed to withstand extreme temperatures and typically last 25-30 years. While Texas heat can slightly reduce efficiency on the hottest days, the abundant sunshine more than compensates. Most manufacturers offer 25-year production warranties, guaranteeing at least 80% output over that period.

Standard grid-tied solar systems shut off during outages for safety reasons (to protect utility workers). If backup power is important to you, consider adding a battery storage system like Tesla Powerwall or Enphase IQ. This allows you to store solar energy and maintain power during CenterPoint outages.

Texas is a deregulated market. While CenterPoint manages the grid and measures your export, they do not buy the power. Instead, you earn credits from your Retail Energy Provider (REP). Many REPs in Houston offer 'Solar Buyback Plans' (often 1:1) that credit you for excess energy. We recommend checking our updated guide on Best Solar Buyback Rates in Texas to compare the highest paying plans currently available.

Studies consistently show solar panels increase home values. According to Zillow, homes with solar sell for approximately 4.1% more on average. In Houston, where the median home value is $330,000, this could mean an additional $13,530 in resale value.