In the last decade, Texas has increased its solar incentives to help make renewable energy more accessible to its residents. These incentives can help to lower your solar installation costs by thousands—a big feat considering solar systems can cost $20,000 or more.

Our guide details Texas’ major solar incentives and provides tips for finding a leading solar energy provider.

Texas Solar Tax Credits and Rebates

Texas homeowners can qualify for several programs to save on up-front solar installation costs and ongoing electric bills. We’ve broken down the key programs below.

Solar Rebate Programs

Though Texas doesn’t provide statewide tax credits or rebates, many local governments offer programs. Local utility companies also offer rebates. Here are some examples:

  • Austin Energy Solar Photovoltaic (PV) Rebate: Austin Energy provides an educational course about solar systems to inform homeowners. Those who complete the course receive a $2,500 credit toward the purchase and installation of a qualifying solar system.
  • CPS Energy Solar Rebate: CPS Energy residential customers are eligible for a $2,500 credit toward the installation of a solar power system. Customers can get an additional $500 credit toward their solar panel installation if they opt for locally sourced panels.
  • Oncor Electric Delivery Residential Solar Program: Oncor doesn’t provide incentives to customers directly. Rather, it teams up with providers who install PV systems within its service area. If you choose to work with one of these installers, you’re eligible for a certain incentive amount that Oncor gives to the provider and the provider gives to you.
  • City of Sunset Valley PV Rebate Program: The City of Sunset Valley offers rebates for Texas homes with PV systems. This rebate can be stack on top of one from Austin Energy to maximize your savings.

More Resources:

The Solar Energy Industries Association (SEIA) provides general information about solar energy in Texas. The Database of State Incentives for Renewables and Efficiency  (DSIRE) also has a comprehensive database of all Texas’ solar rebate programs.

Solar Panel Property Tax Exemptions

Texas exempts homeowners from paying any property tax on their added home value from solar panels. Here’s some additional information about Texas taxes and this tax exemption:

  • Texas has no state property tax, so local governments assess and administer their own property taxes.
  • There are various partial and total solar exemptions available.
  • You have to apply to get a solar property tax exemption in most circumstances.

The tax exemption requirements are extensive, so conduct your own research before applying.

More Resources:

Your best resource is your local government, but the website for the Texas Comptroller of Public Accounts offers general information about solar property tax exemptions.

Solar Buyback Programs

Texas has a deregulated electricity market. This means that separate companies control each step of getting electricity from the power plant to your home.

With renewable energy buyback programs, customers in deregulated service areas can choose a retail electric provider to buy back their excess energy.

Selling this power back to the grid works differently in every city, town, or ZIP code. Check out the requirements for your service area.

More Resources:

Power To Choose helps you find buyback programs that you’re eligible for. Enter your ZIP code, and wait for the database to find the programs in your area.

Solar United Neighbors also offers a free analysis to customers in the Centerpoint or Oncor service areas to help find the best retail electric plan for your usage.

Net Metering Programs

In addition to Texas’ other programs, you may be able to participate in net metering. Sometimes called net energy metering, or NEM for short, this program credits solar owners for the unused energy their systems produce. Anytime your system isn’t producing enough energy for your needs, you can draw on those credits instead of paying for electricity.

There isn’t a statewide net metering program in Texas, but some local governments and electricity providers have them.

More Resources:

The DSIRE database also has an extensive list of Texas’ available net metering programs.

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Federal Solar Tax Credit

Texas homeowners can also take advantage of the Federal Solar Investment Tax Credit (ITC), which provides a tax reduction equal to 30% of your solar installation costs. This credit is applied during tax time to reduce or eliminate your federal tax liability. Any remaining credits can roll over to the tax period. The solar tax credit is limited to new customers who own their solar systems. This credit decreases to 26% in 2033 and lowers to 22% in 2034.

You can only qualify for the federal solar tax credit if you own your system outright. While cash purchase and solar loan fall into this category, solar lease and power purchase agreements (PPAs) don’t.

Our Conclusion

From Dallas to San Antonio, Texas has ample sunshine to make going solar worth it. If you’re ready to move forward with solar installation, these are the solar companies in Texas we recommend:

  • Momentum Solar: We like that Momentum Solar aims to make the transition to solar as easy as possible, including walking you through available incentive and financing options.
  • ADT Solar: ADT Solar provides extensive labor, panel, and inverter warranty coverage. It also offers a power production guarantee, which pays you in the event that your system doesn’t produce at its projected performance level.
  • Elevation: Elevation offers whole-home integration, making it ideal for customers who want electric vehicle chargers, backup batteries, and more. We also like that it has a proprietary monitoring app and 25-year warranty.

FAQ About Solar Incentives in Texas

Our Rating Methodology

The This Old House Reviews Team is committed to providing comprehensive and unbiased reviews to our readers. After over a thousand hours of research on solar companies, interviews with experts, and common customer needs, we’ve created a detailed rating system for solar providers based on six factors:

  • Solar equipment, installation, and services (25%)
  • Warranty and performance guarantees (25%)
  • Brand reputation and certifications (15%)
  • Financing options (15%)
  • Experience (10%)
  • Availability (10%)

Total scores are divided by 20 for a final 5-point rating scale.

To share feedback or ask a question about this article, send a note to our Reviews team at