5 Best Solar Companies in Houston of July 2023

Although you may decide solar panels are a worthwhile investment in Houston, finding the right installer may not be as easy. Here are a few factors to consider when choosing a solar company in the city.

• Cost and financing: The key metric when determining a solar system’s worth is the total savings you can achieve — and those savings partially depend on the cost of your system. Solar panels cost between $15,000 and $20,000 or more, on average. Consider quotes from several solar companies to ensure you get the most reasonable quote for the given equipment and warranties. Many installers offer multiple payment options if you cannot spend a large amount upfront, including solar loans, leases and power purchase agreements (PPA).
• Trustworthiness: A trustworthy solar installer will not only have the necessary permits and licenses, but also a trained installation crew. Choosing a trustworthy solar company guarantees a high-quality installation and reliable post-installation support. Look at its customer ratings and reviews on the Better Business Bureau (BBB) and Trustpilot to determine if you can trust a company for your installation.
• Available services: Many homeowners can maximize their energy efficiency by adding other services when going solar. For example, you may opt for energy-efficient lighting retrofits or HVAC upgrades. Or you may want to add accessories with your solar panels, such as electric vehicle (EV) chargers or solar battery storage. We recommend making a list of possible services you may need before exploring solar companies in your area. That way, you can find an installer to assist you with the solar installation process and additional upgrades.

The average cost of a solar power system in Texas is $2.51 per watt, lower than the national average of $2.85 per watt. Based on this figure, a 6 kilowatt (kW) system in Houston would cost around $15,060. The below table highlights pricing information and other details for our picks for Houston’s best solar companies.

*Pricing data is based on responses to our March 2023 solar survey of 1,000 homeowners with 10 kW solar systems. BBB ratings are accurate as of June 2023.

Houstonians planning to go solar have plenty of installers to choose from — over 600 companies operate in Texas. Homeowners looking for experience and reputation may prefer SunPower or ADT, while those interested in various payment plans might opt for Sunrun. Freedom Solar also offers high-quality equipment and service in Houston, and Elevation can provide whole-home energy-efficiency upgrades.

We recommend requesting free quotes from at least three installers before choosing a company that suits your needs.

The following are some of the main benefits of installing solar panels in Houston:

• Electricity bill savings: The main impact of a solar energy system is the change in the monthly electric bills. By generating virtually free energy from the sun, solar panels reduce your consumption of traditional grid energy, reducing monthly electricity costs. A typical home in Texas pays over $130 in monthly electricity bills. A solar power system can offset up to 100% of grid power consumption, nearly eliminating your power bill. Considering a solar system lasts 25 to 30 years, going solar can lead to thousands of dollars in savings over the decades.

• Protection against rising electricity costs: Like most other places, the price of grid electricity keeps steadily climbing in Texas. A recently proposed bill would pave the way for more frequent energy rate hikes in the state. Although a one-time rise may seem minor, the cumulative addition of power costs over many years can become staggering. By generating power from sunlight, solar panels can reduce monthly electricity expenses and protect you from rising power costs.

• Environmental impact: Solar panels use clean, renewable energy from the sun to generate power, unlike grid energy, which typically uses fossil fuels. Homeowners who switch to solar power can help reduce emissions by offsetting fossil fuel usage. Solar energy prevents substantial amounts of carbon dioxide and other harmful greenhouse gasses from entering the Earth’s atmosphere.
• Security against power outages: Few other states in the U.S. have experienced power outages as severe as Texas. And extreme weather events may continue to cause blackouts across the state. However, if you have a solar panel and battery backup system, you can keep the essential appliances in your home running even through a multi-day outage.

• Increased home value: Most home buyers are aware of the benefits of solar panels. According to Zillow, homes with solar panels sell for 4.1% more than those without solar. The increase in sale price depends on factors such as location, local real estate trends, home size and solar system age. However, most homeowners still see a premium equivalent to or higher than the cost of their rooftop solar systems. Considering the average home in Houston costs around $265,733, that’s an estimated increase of $10,630.

Houston does not offer any local solar incentives based on our research, but the statewide programs available in Texas can help you save on the cost of a solar power system. Below is a look at the available incentives for Houston residents.

Federal Incentives

The most beneficial solar incentive available to Houston residents is the federal solar tax credit, formally called the solar Investment Tax Credit (ITC). It offers homeowners a federal tax credit equivalent to 30% of their total solar system value. You can claim and apply the credit against your income tax burden for the year you install solar panels. If you cannot claim the full credit amount, you can roll over the remainder for up to five years. Considering a typical 5 kW system costs around $12,500 in Houston, homeowners could save about $3,750 with the federal tax credit.

Statewide Incentives

Below are the two main incentives available in the Lone Star State, both of which apply to Houston residents.

• Property tax exemption: Houston residents who install a solar panel system will not have to pay any additional property taxes due to increases in property value.
• Net metering: Although Texas does not have a statewide net metering mandate, some utility companies offer net metering or buy-back programs to their customers. Participating companies include Rhythm Energy, Green Mountain Energy, Reliant Energy and more. Traditional net metering allows you to send excess energy your panels produce back to the grid in exchange for billing credits. Exact program details may vary depending on your utility provider.

You can also check with your local municipality and utility company for additional solar incentives or rebates.

We closely evaluated seven crucial factors according to our solar panel installation company methodology to rank the best providers in the industry. Based on a 100-point scale, we came up with each provider’s score out of five stars. Here’s how we assessed each company:

• Cost and payment options (20 points): Companies that offer cash purchases and in-house loan financing earned full points in this category. Companies also receive bonus points if they offer solar panel leasing or power purchase agreements (PPAs).
• Services (20 points): Besides solar installations, companies offering backup battery and EV charger installations, energy efficiency audits and system monitoring earned the most points in this category. We also allotted points to companies that completed all their installations in-house (as opposed to contracting out installers).
• Reputation (20 points): We considered each company’s Google star rating, BBB customer review rating, BBB customer complaint response rate and NABCEP certification status to award each company its reputation score.
• Warranty (15 points): We verified that each company offers workmanship, product and performance warranties on all of its solar installs. Providers earned more points if their warranties were at or above the industry-standard length (10 years for workmanship and product warranties and 25 years for performance warranties).
• Customer Support (10 points): Solar companies that offered virtual consultations, a mobile app, 24/7 customer support and high customer satisfaction with backend support earned the most points in this category.
• Industry Experience (10 points): Providers with 10 or more years of experience in the solar installation industry earned a perfect score in this category.
• Sustainability (5 points): Companies with a detailed sustainability statement, ESG disclosures, end-of-life panel disposal programs and community partnerships earned all five points in this category.

Aniket Bhor is a solar engineer who has spent nearly a decade studying and working in the solar power sector in the European, Asian and North American markets. He is a climate enthusiast and avid cyclist, and he also loves to lose himself in books and cooking.

Tori Addison is an editor who has worked in the digital marketing industry for over five years. Her experience includes communications and marketing work in the nonprofit, governmental and academic sectors. A journalist by trade, she started her career covering politics and news in New York’s Hudson Valley. Her work included coverage of local and state budgets, federal financial regulations and health care legislation.