Texas solar incentives come from your utility, not from the state. There is no state rebate, and no state law that makes a utility pay you for extra solar power. Two companies decide your money: the one that delivers your power, and the one that sells it to you. Find the delivery company on your bill first. Then open its panel below to see only what applies to your home.
Recently changed: Austin Energy raised its rebate from $2,500 to $4,000 on July 1, 2026. Its bill credit rose to 12.89 cents per kWh on October 1, 2026. Oncor, AEP Texas and TNMP close their 2026 programs on November 30, 2026, or sooner if the money runs out.
Which company delivers power to your home?
In most of Texas, two companies are on your bill. One sells you electricity (for example TXU Energy or Reliant). The other owns the power lines. Look for the delivery charges on your bill: the name next to them is the one to open here.
OncorDallas, Fort Worth and much of north, central and west Texas.Amount set per project. Paid to your installer.
What you can get with Oncor
- Oncor solar incentiveSet per project
Oncor works out an amount for each home. It looks at the size, direction, tilt and location of the panels. The amount is never more than 50% of the project cost. It is paid to your installer.
- Size limit20 kW
The system may also not be larger than 75% of the most power your home used at one moment in the past year. A battery is optional. Homes that already have solar or a battery do not qualify.
- Money for 2026$1,774,000
First come, first served. Oncor takes projects until November 30, 2026 or until the money is gone. It does not publish how much is left.
Your bill credits
Oncor only delivers power. It does not pay you for the power you send to the grid.
The company that sells you electricity (your retail electric provider) pays you. The price is in its buyback plan: a plan that pays for the power you send out. See how buyback plans work.
Watch out: Oncor’s customer web page still says a battery is required and the limit is 15 kW. The 2026 program manual says otherwise, and the manual is the rule. Ask your installer for the amount Oncor approved, in writing.
Also for every Texas home: who pays for your extra power, the property tax exemption and battery payments.
CenterPoint EnergyHouston and the surrounding area.Typical system after the incentive: $21,229
What you can get with CenterPoint Energy
- CenterPoint solar incentive$1,243
$135 per kW of system size, counted up to 15 kW. That is $1,243 on a typical 9.21 kW system and at most $2,025. It is paid to your installer, who should show it as a credit on your invoice.
- Lower-income homesSame rate
CenterPoint’s page and fact sheet show one rate for every home. They list no higher rate for lower-income homes. If an installer offers you one, ask to see it in writing from CenterPoint.
- Money for 2026$1,000,000
CenterPoint does not publish how much is left. Only existing homes qualify, not new builds.
A typical CenterPoint home: price, incentive, what you pay
9.21 kW system, incentive passed on in full by the installer
Your bill credits
CenterPoint only delivers power. It does not pay you for the power you send to the grid.
The company that sells you electricity (your retail electric provider) pays you. The price is in its buyback plan: a plan that pays for the power you send out. See how buyback plans work.
Watch out: Your installer must be a CenterPoint project sponsor: a solar company enrolled in the program. A company that is not enrolled cannot get the incentive for you.
Also for every Texas home: who pays for your extra power, the property tax exemption and battery payments.
AEP TexasCorpus Christi, the Rio Grande Valley, Abilene and San Angelo areas.Typical system after the rebate: $19,722
What you can get with AEP Texas
- SMART Source solar rebate$2,750
A fixed amount by system size: $1,250 for 3 to 4.999 kW, $2,250 for 5 to 7.499 kW, and $2,750 for 7.5 to 30 kW. A typical 9.21 kW system is in the top group. The check goes to your installer.
- Battery installed with the solar$1,000
Added to the solar rebate. A battery on its own gets nothing. An EV charger installed with the solar adds $500. The most one home can get is $4,250.
- Money for 2026First come, first served
$503,206 for the Central division and $167,735 for the North division. Projects must be finished by November 30, 2026.
A typical AEP Texas home: price, rebate, what you pay
9.21 kW system, solar only, rebate passed on in full by the installer
Your bill credits
AEP Texas only delivers power. It does not pay you for the power you send to the grid.
The company that sells you electricity (your retail electric provider) pays you. The price is in its buyback plan: a plan that pays for the power you send out. See how buyback plans work.
Watch out: Your installer must apply before the install, and must be enrolled in SMART Source. The system must be at least 3 kW in size to get anything, and it may not make more power than your home uses in a year.
Also for every Texas home: who pays for your extra power, the property tax exemption and battery payments.
TNMP (Texas-New Mexico Power)Scattered areas, including parts of the Gulf Coast, north-central Texas and west Texas.Up to $2,750 for solar, if the money lasts
What you can get with TNMP (Texas-New Mexico Power)
- Solar+ incentive, solar only$2,750
A fixed amount by system size: $1,250 for 3 to 4.999 kW, $2,200 for 5 to 7.499 kW, and $2,750 for 7.5 to 30 kW. It is paid to your installer.
- Solar with a new battery$3,750
From $2,250 for the smallest systems to $3,750 for the largest. The battery must be new and installed with the solar.
- Money for 2026$100,000
This is the whole amount set aside for solar and EV charger projects. All work must be finished and reported by November 30, 2026.
Your bill credits
TNMP only delivers power. It does not pay you for the power you send to the grid.
The company that sells you electricity (your retail electric provider) pays you. The price is in its buyback plan: a plan that pays for the power you send out. See how buyback plans work.
Watch out: This program is new and small. TNMP’s customer page does not list solar yet, and the money can run out well before the deadline. Do not plan on it until your installer confirms that funds are reserved. Your contract must say that the installer receives a TNMP incentive.
Also for every Texas home: who pays for your extra power, the property tax exemption and battery payments.
Austin EnergyAustin and nearby. Serves about 4% of Texas homes.Typical system after the rebate: $18,472
What you can get with Austin Energy
- Austin Energy solar rebate$4,000
One check per home, mailed to you by the City of Austin after the system passes final inspection. The system must be at least 3 kW. An address that got this rebate since May 2018 cannot get it again.
- Battery rebate$500
Once per battery that you own, after it passes final inspection and you enroll it in Power Partner. The program may then use your battery up to 40 times a year.
- Yearly battery payment$75 per kW
Paid each year for the power your battery gave during those events. Austin Energy’s example is about $324 a year for one Tesla Powerwall. You must stay enrolled to the end of the year.
A typical Austin Energy home: price, rebate, what you pay
9.21 kW system, solar only
Your bill credits
Austin Energy does not use net metering. It measures all the power your panels make and credits every kWh (kilowatt-hour, the unit on your bill) at one rate. This is called the Value of Solar. You pay the normal rate for all the power your home uses.
Since October 1, 2026 the credit is 12.89 cents per kWh. Example: if your panels make 1,000 kWh in a month, the credit is about $129. Until September 30, 2026 it was 9.91 cents. The rate is reviewed during the city budget process.
Credits you do not use move to the next month. They only pay electric charges. You lose them if you close the account.
Watch out: If work starts before you have the Solar Rebate Confirmation Letter, you get no rebate. A PPA (a contract where a company owns the panels and sells you the power) is not allowed here. An equipment lease is. If you disconnect the system within 10 years, you may have to pay part of the rebate back.
Also for every Texas home: who pays for your extra power, the property tax exemption and battery payments.
CPS EnergySan Antonio area. Serves about 7% of Texas homes.No solar rebate. Bill credits only.
What you can get with CPS Energy
- Home solar rebateNone
CPS Energy offers no rebate for home solar now.
- Community solar (Big Sun)10 cents per kWh
No roof needed, so renters can join. You buy panels at a solar farm for $1,240 each. CPS credits your bill for what they make, for 20 years. The developer estimates about $115 a year per panel. You reserve with a refundable $100 deposit.
- My Battery Rewards$10 per event
A bill credit each time you run your own battery when CPS asks. CPS lists no yearly limit and no yearly total.
Your bill credits
Within each month, the power you send out cancels the power you buy, kWh for kWh.
If you send out more than you buy in a month, CPS credits the extra at 1.65 cents per kWh from October to May and 2.02 cents per kWh from June to September. Example: 100 extra kWh in a winter month earn $1.65. You must own the system, and it can be up to 25 kW.
Watch out: Extra power beyond your own monthly use earns very little. A system sized to your own use fits these rules best. The two rates come from a CPS billing notice, not a rate sheet, so ask CPS for the current rate before you sign.
Also for every Texas home: who pays for your extra power, the property tax exemption and battery payments.
a co-op, another city utility, El Paso Electric or Entergy TexasOne company delivers and sells your power. It sets its own solar rules.Rules differ by utility.
What you can get with a co-op, another city utility, El Paso Electric or Entergy Texas
- New Braunfels Utilities rebateUp to $3,000
$0.25 or $0.50 per watt, as a bill credit. The higher rate is for panels that face west at a set tilt. You must own the system and finish the utility’s online solar training first.
- San Marcos rebate$1 per watt, up to $2,500
From the city electric utility. You need the city’s approval before the install. It cannot be more than half of your cost. Funds are first come, first served, so ask the city if money is left.
- El Paso Electric battery pilot$250 per battery
For the first 500 homes that host a Base Power battery. Base Power owns the battery and you sign a 10-year agreement.
Your bill credits
Pedernales Electric Co-op credits each kWh you send out at 7.1921 cents. Credits you do not use end with the calendar year.
El Paso Electric nets your power within each month, but buys extra power only up to 10% of what your home used the year before. New solar homes also move to a rate with a $13.71 a month charge and a demand charge of $5.65 per kW. A demand charge is a fee for the most power you use at one moment.
Entergy Texas buys every kWh you send out at its avoided cost: the low price it would pay to get that power elsewhere. You pay the normal rate for power you take from the grid.
Other co-ops and city utilities set their own credit. Ask yours for the rate in writing.
Watch out: Do not use an Austin or Houston example for your home. Ask your utility two things before you choose a system size: what it credits for each kWh you send out, and what extra monthly charges solar homes pay.
Also for every Texas home: who pays for your extra power, the property tax exemption and battery payments.
Everything below applies across Texas.
Who pays for the solar power you send to the grid?
Texas has no statewide net metering. Net metering means each kWh you send out cancels one kWh you buy. Texas leaves the price of your extra power to the company that sells you electricity.
In areas where you can choose that company (the Oncor, CenterPoint, AEP Texas and TNMP areas, and Lubbock), state law says you sell your extra power to your retail electric provider: the company that sells you electricity. The rule is Section 39.916 of the Texas Utilities Code. The price is whatever your plan says. The Public Utility Commission of Texas says this price is usually lower than the price you pay for power.
The rate is printed on the plan’s Electricity Facts Label: the standard sheet that lists a plan’s prices. Here is how three large providers set it up.
- Austin Energy: a credit of 12.89 cents per kWh for all the power your panels make, since October 1, 2026.
- CPS Energy: kWh for kWh within the month. Extra power earns 1.65 cents per kWh to 2.02 cents per kWh.
- Co-ops, other city utilities, El Paso Electric and Entergy Texas: their own rates. Open the last panel above.
| Provider | How the credit works | Limit on credits | Where the rate is |
|---|---|---|---|
| TXU Energy | A credit for each kWh you send out. Three buyback plans. | Credits pay up to 100% of your energy charges. They do not pay base charges, delivery charges or taxes. Unused credits are saved in dollars, up to a plan limit. | Each plan’s Electricity Facts Label |
| Reliant | Solar Payback Plus pays the live wholesale price: the price that power trades at on the Texas grid, which changes through the day. Solar Payback Match pays a set credit. | No limit on Solar Payback Plus. But wholesale prices swing, and can be very low at midday when panels make the most. | Solar Payback Match: the Electricity Facts Label |
| Green Mountain Energy | A bill credit for extra power, on two Renewable Rewards plans. | The Essentials plan stops at your monthly usage. The Solar Credit plan has no limit. | Each plan’s Electricity Facts Label |
We do not print the rates. They differ by plan and by delivery area, and they change. Read the label on the day you sign.
Watch out: A buyback rate belongs to a plan, not to your home. When the plan term ends, the rate can change. Saved credits have no cash value at TXU Energy, and you lose them if you leave its buyback plans. Credits can take up to three billing cycles to start after you enroll.
Ask installers if they are enrolled with your utility
Enter your ZIP code to request quotes from installers in your area. Then ask each one a simple question: are you enrolled in my utility’s solar program this year?
- Your utility sets the rebateOncor, CenterPoint, AEP Texas, TNMP and Austin Energy each run their own program.
- Your plan sets the buybackIn most of Texas, your retail electric provider pays for the power you send out.
- Your details stay with matched installersWe only share them with the installers you are matched with.
Texas solar rebates side by side: amount, payee, deadline
Six programs matter for most homes. They are sorted by what a typical household gets.
| Program | What you get | Who gets paid | Funding and deadline | What you must do |
|---|---|---|---|---|
| Austin Energy rebate | $4,000 per home | You, by check after final inspection | Open under rules from July 1, 2026. No end date posted. | Take the online Solar Rebate Quiz. Use a participating contractor. Wait for the Solar Rebate Confirmation Letter before work starts. |
| AEP Texas SMART Source | $1,250 to $2,750 by size, plus $1,000 for a battery | Your installer | First come, first served. Projects finished by November 30, 2026. | Use an enrolled installer, who applies before the install. |
| TNMP Solar+ | $1,250 to $2,750; more with a new battery | Your installer | Only $100,000 for 2026. Work finished and reported by November 30, 2026. | Use an installer qualified for Solar+. Check that funds are reserved. |
| CenterPoint solar incentive | $135 per kW, up to 15 kW | Your installer, shown as a credit on your invoice | $1,000,000 for 2026. Funds left are not published. | Use a CenterPoint project sponsor. Existing homes only. |
| Oncor solar incentive | Set per project, at most 50% of project cost | Your installer | $1,774,000 for 2026. Until November 30, 2026 or until the money is gone. | Use an Oncor-approved provider. Sign the Host Customer Agreement. Wait for Oncor’s approval before work starts. |
| Property tax exemption | 100% of the value solar adds is not taxed | You, as a lower tax bill | Statewide. No cap and no end date. | File Form 50-123 with your county appraisal district: the county office that values your home for tax. |
The federal tax credit for home solar ended for systems finished after December 31, 2025. Texas has no state solar rebate.
Watch out: No Texas rebate is reserved for you until the utility approves your project. Every utility program here has a yearly budget, and none of them promises money to a project that comes in after the budget is spent.
Will solar panels raise your Texas property tax?
No, if you file the form. Texas exempts 100% of the value that a solar system adds to your home. The rule is Section 11.27 of the Texas Tax Code. It has no end date. It also covers a battery that is charged by your panels.
File Form 50-123 with your county appraisal district between January 1 and April 30 of the first tax year you want the exemption. After that it continues, unless the appraiser asks you to file again. If a company owns the system on your roof, that company files.
Sales tax is different. Texas has no sales tax exemption for home solar equipment. The state rate is 6.25%, and local taxes can add up to 2%.
Watch out: The exemption is not automatic. The form goes to the county appraisal district, not to the state. If you stop qualifying, you must tell the chief appraiser in writing before May 1.
Which Texas companies pay you for a home battery?
Several do. Most pay you to let them use your battery on days when the grid is short of power. Each program is open only to that company’s own customers.
Program | What it pays | Who can join | The catch |
|---|---|---|---|
Austin Energy Power Partner | $500 once, plus $75 per kW each year | Austin Energy customers who own an eligible battery, installed by a participating contractor | Up to 40 events a year. Leave before the year ends and you lose that year’s payment. |
AEP Texas SMART Source | $1,000 once | Homes on AEP Texas lines that install the battery with new solar | Paid to the installer. A battery without solar gets nothing. |
TNMP Solar+ | $2,250 to $3,750 for solar with a new battery | Homes on TNMP lines | Paid to the installer. Very small budget. |
Reliant Battery Perks | $50 bill credit for each month you take part | Reliant customers who own an Enphase, SolarEdge or LG battery | The credit is not cash. Leased batteries do not qualify. |
TXU Energy Battery Rewards | $150 every six months, as digital reward cards | TXU Energy customers with rooftop solar who own an Enphase battery | Not a bill credit. Leased batteries do not qualify. |
CoServ PeakTime Perks | $30 bill credit a month per battery | CoServ members with a Tesla Powerwall | Up to 125 events a year. Tesla batteries only. |
GVEC Peak-Time Payback | $75 per kW each year, plus $220 per kW to $515 per kW once | GVEC members with an eligible Enphase or Tesla battery | The top amount is only for a first Tesla Powerwall installed on or after April 1, 2026. GVEC can change amounts without notice. |
CPS Energy My Battery Rewards | $10 bill credit per event | CPS Energy customers who own a battery | No yearly total is listed. You power your own home from the battery; you do not sell power. |
Watch out: These payments are small next to the price of a battery. They also depend on you staying with that company. If you switch to another electricity company, a Reliant or TXU battery payment stops.
Texas programs you cannot count on right now
Some programs that show up in searches and sales pitches are paused, full or gone.
- A state solar rebate: there is none. The Public Utility Commission of Texas says the state offers no grants or rebates for solar.
- Texas Solar for All: paused until further notice. The federal government sent a letter ending the grant on August 7, 2025. There is nothing to apply for today.
- A CPS Energy home solar rebate: CPS Energy offers no rebate for home solar now.
- Austin Energy community solar: full. New customers go on a waiting list. It also costs most customers about $14 more a month than normal power, so it is not a saving.
- El Paso Electric and Pedernales community solar: both have waiting lists. Neither can say when a place opens.
- Entergy Texas battery rewards: the 2026 season closed on September 30, 2026, and the incentive is paid once a year after that date. It paid up to $325 a year for batteries enrolled by September 15. A battery enrolled now earns only if the program runs again next summer.
Watch out: If a salesperson lists one of these as money you will get, ask for the program’s own web page that says it is open.
You are unlikely to collect a Texas rebate if
- Your installer is not enrolled with your utility. Oncor, CenterPoint, AEP Texas, TNMP and Austin Energy only pay for work by installers in their program. No enrolled installer means no rebate.
- Work starts before the approval. Austin Energy pays nothing if the install starts before the Solar Rebate Confirmation Letter. Oncor must approve the project and reserve funds before construction.
- The year’s money is spent, or your project finishes late. Oncor, AEP Texas and TNMP stop on November 30, 2026 at the latest. TNMP has only $100,000 for the year.
- Your quote does not show the rebate. Four of the five utility programs pay the installer. If the rebate is not a line on your quote, you cannot see that it lowered your price.
- Your home or contract does not fit. Oncor excludes homes that already have solar or a battery. CenterPoint excludes new builds. Austin Energy does not allow PPAs. CPS Energy credits and New Braunfels rebates are only for systems you own.
The Texas paperwork, in the order it happens
- Find your delivery utility on your bill. It decides which rebate program, if any, applies to your home.You.
- Choose an installer that is enrolled in that program. Ask each installer to show it is enrolled for this year. Ask for the rebate as a line on the quote.You.
- Get the approval before any work starts. Austin Energy: take the Solar Rebate Quiz and wait for the Solar Rebate Confirmation Letter. Oncor: sign the Host Customer Agreement and wait for Oncor’s approval. AEP Texas, TNMP and CenterPoint: the installer applies in the program’s system.Your installer files. You sign.
- Send your plans to your homeowners association. Texas law (Section 202.010 of the Texas Property Code) says an association cannot ban solar panels. It can ask for approval first and set where panels go.You, if your home is in an association.
- Get the grid approval and the new meter. Your installer asks the delivery utility for interconnection approval: permission to connect the system to the grid. The utility sets up a meter that counts power in both directions.Your installer.
- Enroll in a buyback plan. Only in areas where you choose your electricity company. Set the start date to the day your system is allowed to run. Read the Electricity Facts Label first.You, with your retail electric provider.
- File Form 50-123. Send it to your county appraisal district between January 1 and April 30.You. The leasing company, if you lease.
Request Texas quotes, then check the rebate line
Your ZIP code starts a quote request with installers near you. Before you sign, check each quote against the list on this page: enrolled installer, approval before work starts, rebate shown in writing.
You answer a few questions about your home first and give your contact details last. EcoGen or its installer partners may then contact you.
- A quote request, nothing moreThe form asks for quotes from installers in your area. It does not apply for a rebate.
- Home questions firstYou answer a few questions about your home. Your name, email and phone come last.
- You decideQuotes are free. You are never obliged to sign.
More Texas solar guides
Texas solar incentive questions
Does Texas Have a Solar Tax Credit?
No. Texas has no state income tax, so there is no state tax credit. The federal credit for home solar ended for systems finished after December 31, 2025.
Does Texas Have Net Metering?
No, not as a state rule. In areas where you choose your electricity company, you sell extra power to your retail electric provider at the rate in your plan. Austin Energy credits all solar production at 12.89 cents per kWh since October 1, 2026. CPS Energy, co-ops and other utilities set their own rules.
How Much Is the Austin Energy Solar Rebate?
$4,000 per home since July 1, 2026. Before that it was $2,500. The check goes to you after final inspection. You must use a participating contractor and have the Solar Rebate Confirmation Letter before work starts.
Who Gets the Oncor, CenterPoint or AEP Texas Solar Rebate?
Your installer. These programs pay the solar company, not the homeowner. The company should take the amount off your price. Ask to see it as a line on your quote or invoice.
Do Solar Panels Increase Property Taxes in Texas?
Not if you file Form 50-123 with your county appraisal district. Texas exempts 100% of the value that solar adds to your home. The exemption is not automatic.
Is There a Free Solar Program in Texas?
Not one you can apply for today. Texas Solar for All, planned for lower-income homes, has been paused since August 7, 2025. The state itself offers no solar grants or rebates.
Sources (43)
- Public Utility Commission of Texas, Solar for electricity customers: puc.texas.gov
- Texas Utilities Code, Chapter 39 (Section 39.916): tcss.legis.texas.gov
- Texas Tax Code, Chapter 11 (Section 11.27): tcss.legis.texas.gov
- Texas Comptroller, Property tax exemptions (Form 50-123): comptroller.texas.gov
- Texas Comptroller, Sales and use tax: comptroller.texas.gov
- Texas Property Code, Chapter 202 (Section 202.010): tcss.legis.texas.gov
- Austin Energy, Solar for your home (rebate): austinenergy.com
- Austin Energy, Solar Residential Rebate Program Guidelines: austinenergy.com
- Austin Energy, Value of Solar rate: austinenergy.com
- City of Austin Electric Tariff, Fiscal Year 2026-2027: austinenergy.com
- Austin Energy, Power Partner Battery: austinenergy.com
- Austin Energy, Community Solar: austinenergy.com
- Oncor, Solar Photovoltaic 2026 Program Manual: oncor.com
- CenterPoint Energy, Residential solar program: centerpointenergy.com
- CenterPoint Houston, Revised 2025 Energy Efficiency Plan and Report (PUCT Project 57468): interchange.puc.texas.gov
- AEP Texas, SMART Source Program Guidebook 2026: aeptxsaves.com
- TNMP, 2026 Residential Standard Offer Program Manual (Solar+): tnmp.com
- CPS Energy, Solar Billing Facts: cpsenergy.com
- CPS Energy, Community solar: cpsenergy.com
- CPS Energy, My Battery Rewards: cpsenergy.com
- TXU Energy, Home solar buyback plans: txu.com
- TXU Energy, Battery Rewards: txu.com
- Reliant, Solar Payback plans: reliant.com
- Reliant, Battery Perks: reliant.com
- Green Mountain Energy, Renewable Rewards buyback program: greenmountainenergy.com
- Pedernales Electric Cooperative, Interconnection rates: mypec.com
- New Braunfels Utilities, Solar energy: nbutexas.com
- City of San Marcos, Energy rebate programs: sanmarcostx.gov
- El Paso Electric, Texas rooftop solar interconnection (Schedule No. 48): epelectric.com
- El Paso Electric, Battery pilot with Base Power: epelectric.com
- Entergy Texas, Residential tariffs (Schedule SQF): entergytexas.com
- Entergy Texas, Residential energy efficiency (battery program): entergytexas.com
- CoServ, PeakTime Perks Tesla battery program: coserv.com
- GVEC, Peak-Time Payback: gvec.org
- Texas Solar for All, program status: solarforalltexas.org
- IRS, Residential Clean Energy Credit: irs.gov
- Oncor, Residential solar program page: oncor.com
- CPS Energy, Rooftop solar for homes: cpsenergy.com
- El Paso Electric, Texas Rate Schedule No. 48: epelectric.com
- Base Power, El Paso Electric battery program page: basepowercompany.com
- U.S. Energy Information Administration, Form EIA-861 data: eia.gov
- EcoGen Solar Cost Index, Texas: ecogenamerica.com
- Texas Comptroller, Texas is open for small business (checked October 1, 2026): comptroller.texas.gov
