Solar resource
Your solar production in San Antonio
5.3 avg peak sun hours/day
Monthly avg solar radiation (kWh/m²/day) — Austin, TX. Bars update to show estimated kWh production when you use the calculator above.
Utility rate
CPS Energy electricity rate
$0.13/kWh residential
- Utility
- CPS Energy
- Residential rate
- $0.13/kWh (blended)
CPS Energy uses a tiered residential rate structure. The effective all-in rate for a typical residential customer consuming 1,000–1,200 kWh/month is approximately $0.13/kWh after accounting for the customer charge, energy charges, and fuel adjustment clause. CPS Energy offers a Net Energy Metering (NEM) program for solar customers that credits exported energy at approximately the avoided cost rate ($0.04–0.06/kWh). The $0.13/kWh blended rate reflects avoided retail electricity purchases.
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Incentives
Available solar incentives in San Antonio, TX
Federal + state + utility
| Incentive | Type | Value | Scope |
|---|---|---|---|
| Federal Solar Investment Tax Credit (ITC) | Tax Credit | 30% of system cost | Federal |
| Texas Solar Property Tax Exemption | Exemption | 100% of added home value from solar | State |
| CPS Energy Solar Buyback (NEM) | Net Metering | Credit for exported solar energy at avoided cost rate | Utility |
Incentive amounts and eligibility rules change. Verify current terms with your installer and a tax professional before installation.
System cost
Cost breakdown (6 kW default)
- Gross system cost
- $16620
- Federal ITC (30%)
- −$4986
- Net system cost
- $11,634
- Installed cost per watt
- $2.77/W
Lawrence Berkeley National Laboratory Tracking the Sun 2024 — Texas median installed cost for systems 3–10 kW
Payback & long-term value
25-year outlook
- Annual savings (yr 1)
- $1,157
- Simple payback period
- 10.1 years
- 25-year net savings
- $17291
- Assumed annual rate increase
- 2.0%/year
25-year estimate uses flat electricity rate for conservative baseline. Accounting for 2.0% annual rate increases, lifetime savings increase substantially.
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How it works
How solar savings work in San Antonio
- Your panels capture sunlight Solar panels convert sunlight into DC electricity. San Antonio averages 5.30 peak sun hours per day — excellent production driven by South Texas's sunny climate and low latitude. San Antonio's position in the South Texas Plains gives it strong solar resource year-round, with peak production from April through September.
- An inverter converts DC to AC A solar inverter converts the DC power from your panels into the AC electricity your home uses. Modern string inverters and microinverters achieve 96–99% conversion efficiency. San Antonio's warm climate means inverters operate well year-round, with peak production during the long, sunny summer months.
- You use solar power instead of buying from CPS Energy Every kilowatt-hour (kWh) your system produces during daylight reduces what you buy from CPS Energy at approximately $0.13/kWh. A 6 kW system produces about 8,900 kWh/year in San Antonio — enough to significantly offset a typical home's electricity usage, particularly during the high-AC summer months when bills spike.
- Excess power flows back to CPS Energy's grid When your panels produce more than your home uses — common on sunny spring days and summer mornings — excess electricity flows to CPS Energy's grid. Under CPS Energy's Net Energy Metering (NEM) program, you receive a bill credit for exported energy at approximately the avoided cost rate ($0.04–0.06/kWh). Self-consuming solar power during peak hours maximizes savings.
- You claim the federal tax credit In the tax year your system is installed, you claim a 30% federal tax credit on the full installed cost. On a $16,620 system, that's $4,986 off your federal income taxes — reducing your net cost to $11,634. Texas has no state income tax, so there is no additional state solar tax credit, but the property tax exemption (§11.27) saves hundreds per year.
- Your savings grow over time As CPS Energy rates rise over time, your solar savings increase while your system cost stays fixed. Over 25 years, a 6 kW system in San Antonio nets roughly $17,300 after repaying the installation cost. San Antonio's excellent solar resource and lower installed cost compared to other Texas markets make it one of the stronger solar economics in the state.
FAQ
Common solar savings questions for San Antonio, TX
How much can I save with solar panels in San Antonio, TX?
A 6 kW system — typical for a San Antonio home — produces about 8,900 kWh/year and saves approximately $1,157/year at CPS Energy's effective rate of $0.13/kWh. After the 30% federal tax credit, the net system cost is around $11,634, with a payback period of about 10 years and 25-year net savings near $17,300. San Antonio's strong solar resource and high summer AC loads make solar particularly valuable from April through September.
How does CPS Energy's solar program work?
CPS Energy is San Antonio's municipal electric utility. They offer a Net Energy Metering (NEM) program for residential solar customers. When your system produces more electricity than your home uses, the excess flows to CPS Energy's grid and you receive a bill credit at an avoided cost rate (approximately $0.04–0.06/kWh). To participate, you must complete CPS Energy's interconnection application and pass an inspection. CPS Energy also has an Energy Efficiency Solar Rebate program — check their website for current availability and amounts.
Is there a state solar incentive in Texas for San Antonio residents?
Yes. Texas Tax Code §11.27 exempts 100% of the appraised value added to your home by a solar installation from property taxes. A typical 6 kW installation in San Antonio adds $15,000–$18,000 to home value, avoiding $225–$400/year in property taxes at Bexar County rates. Texas has no state income tax, so there is no state-level solar tax credit — the federal 30% ITC is the primary financial incentive.
How much does a solar system cost in San Antonio?
A 6 kW system in San Antonio costs approximately $16,620 before incentives ($2.77/watt installed, per Lawrence Berkeley Lab 2024 data for Texas). After the 30% federal Investment Tax Credit ($4,986), the net cost is about $11,634. San Antonio has a growing solar installer market — getting 3–4 quotes is recommended to find the best pricing.
Does San Antonio get enough sun for solar panels to be worth it?
Yes — San Antonio is an excellent solar city. San Antonio averages 5.30 peak sun hours per day, better than Austin (5.07) and significantly better than Houston (4.82). The city's South Texas location at latitude 29.4° N, lower humidity compared to the Gulf Coast, and abundant sunshine make it one of the better solar markets in Texas. High summer electricity bills from extended AC use also mean more kWh to offset, improving solar ROI.
How does San Antonio compare to other Texas cities for solar?
San Antonio ranks well among Texas cities for solar potential. It averages 5.30 peak sun hours/day — better than Austin (5.07) and Houston (4.82), though slightly less than Dallas (5.38). San Antonio's lower installed cost per watt ($2.77 vs. $2.85 for Austin/Dallas) and CPS Energy's municipal utility structure (more stable rates than the deregulated ERCOT market in Dallas) give it competitive solar economics.
How many solar panels do I need for my San Antonio home?
A typical San Antonio home using 1,000–1,200 kWh/month needs a 6–8 kW system (roughly 14–20 premium panels at 390–430 W each). A 6 kW system covers a substantial share of typical electricity consumption. Use the calculator above to enter your monthly bill and get a system size estimate tailored to your usage.
Sources
Data sources and freshness
- https://pvwatts.nrel.gov/
- https://openei.org/apps/USURDB/
- https://www.cpsenergy.com/en/my-home/use-less-energy/solar-energy.html
- https://statutes.capitol.texas.gov/Docs/TX/htm/TX.11.htm
- https://emp.lbl.gov/tracking-the-sun
- https://www.energy.gov/eere/solar/homeowners-guide-federal-tax-credit-solar-photovoltaics
- https://dsireusa.org/
- https://www.eia.gov/electricity/data/browser/
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Disclaimer: This calculator provides estimates for informational purposes only — not financial or investment advice. Solar savings depend on actual shading, roof orientation, energy usage patterns, rate changes, and equipment performance. Consult a licensed installer and a tax professional before making purchasing decisions. Verify incentive eligibility with official sources. Data last verified 2026-04-14.