Texas’s solar manufacturing sector is booming despite the state’s oil and gas reputation. With 10 panel manufacturers and over 600 solar companies, Texas ranks fourth nationally for solar jobs. Houston has become the industry’s epicenter, with several gigawatt-scale factories under construction. Federal tax credits and state incentives have attracted $21 billion in investment, creating 12,000 jobs. The contrast between Texas’s fossil fuel politics and its renewable energy growth reveals surprising economic realities.
As the sun beats down on the Lone Star State, Texas is rapidly becoming a powerhouse in solar manufacturing. The state now hosts 10 solar panel manufacturers as of 2024, with over 600 solar companies operating across Texas. This growth has placed Texas fourth in the nation for solar jobs.
The numbers tell an impressive story. Texas has installed nearly 35,000 megawatts of solar capacity, with projections showing this will triple in the coming years. The solar industry has already attracted $21 billion in total investment and provides over 12,000 jobs for Texans.
Texas solar’s explosive growth: $21 billion invested, 12,000 jobs created, and set to triple capacity in coming years.
Houston is emerging as the epicenter of this manufacturing boom. Four companies plan to begin panel assembly in the Houston area within a year. Sirius PV is outfitting a 250,000-square-foot factory with capacity to produce 2 gigawatts of panels annually. Meanwhile, Canadian Solar is building an even larger 5-gigawatt panel assembly factory in Mesquite. Elin Energy has also established a significant presence with its 1 GW production facility in Waller County near Houston.
Several factors drive this growth. The federal Investment Tax Credit and the Inflation Reduction Act‘s 10-year extension of tax credits make solar more attractive. Texas adds its own incentives, including no corporate income tax and sales tax exemptions for manufacturing equipment. The state provides additional support through franchise tax exemptions specifically designed for solar manufacturers. These incentives align with national trends where 30% tax credits for installation costs have significantly accelerated renewable energy adoption.
The industry isn’t without challenges. Interconnection backlogs, electrical equipment shortages, and labor issues create hurdles. In 2022, 9% of solar generation was curtailed due to infrastructure limitations. New tariff proposals also create uncertainty.
Despite these obstacles, the future looks bright. Texas ranks first in projected solar energy growth, with over 40,000 megawatts of added capacity expected in the next five years. The state now has nearly 100 solar manufacturers among its 532 solar companies.
This solar manufacturing boom benefits communities across Texas. San Antonio leads the state in solar capacity and ranks eighth nationally. With 210,000 Texas homes now powered by solar, the industry’s rapid growth shows no signs of slowing down.
