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Texas Solar Incentives, Tax Credits & Rebates

Updated May 1, 2024

Complete Guide to Texas Solar Incentives

The state of Texas offers some of most progressive solar incentives in the nation, helping more than 2.2 Million Texans power their home with solar panels. Read more about Texas solar incentives below, or enter your zip code the see exactly which solar incentives you qualify for!

Find out if you qualify for Texas savings programs!
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Solar Incentives Explained

Solar incentives are financial benefits offered by federal, state, or local governments and sometimes utility companies to encourage homeowners to adopt solar energy.

These incentives can include tax credits, which reduce the tax you owe; rebates, which give you money back after your solar installation; and performance-based incentives, which provide ongoing payments based on the amount of energy your solar system produces.

These incentives lower the overall cost of installing and using solar panels, making solar energy more accessible and affordable!

Find out if you qualify for Texas savings programs!
Do I Qualify?

Please enter a zip code

Texas Solar Tax Credit 

The largest and most popular of all the Texas solar incentives is The Federal Solar Investment Tax Credit or Solar ITC. Our federal government provides a 30% tax credit for residential solar installations. The tax credit is 30% of the cost of your solar equipment and installation, with no maximum limit. This is one of the biggest potential tax credits available to tax payers. This incentive is available for all Texas residents who invest in a solar energy system with authorized solar companies.

Property Tax Exemption

In Texas, a property tax exemption for solar panels means that homeowners won't see an increase in their property taxes despite the added value the solar system brings to their home. Essentially, while the value of the home increases due to the installation of solar panels, the taxable amount remains the same as before the installation.

This incentive makes solar energy more affordable, as it eliminates potential additional costs tied to increased property value. Homeowners can enjoy the financial and environmental benefits of solar power without the burden of higher property taxes.

Net Metering Explained

In Texas, net metering allows homeowners with solar panels to receive credit for the excess electricity their system generates. When the solar panels produce more electricity than the home uses, that excess energy is sent back to the grid. Utilities credit the homeowners for this excess energy, which can offset future electricity bills. This practice enhances the financial savings from using solar power, reducing or even eliminating electric bills during periods of low energy consumption.

Texas Solar Rebates

Texas solar rebates are financial incentives offered to homeowners and businesses to reduce the upfront costs of installing solar panels. These rebates directly lower the purchase price, making solar energy more affordable and accessible. As a result, many Texans can experience immediate savings and a quicker return on investment. Examples of these rebates include Austin Energy's Solar Rebate Program and CPS Energy's solar rebate, which offer per-watt incentives to decrease the initial costs of solar installation.

Free Solar Panel Installation

In Texas, homeowners can have solar panels installed with no upfront costs through options like Power Purchase Agreements (PPAs), solar leases, and other purchasing options.

This may seem to be good to be true, but if you are a resident of Texas, there is a good chance you qualify to have your solar panels installed for free. Meaning you can make the switch to solar with no upfront costs! Learn more about getting solar panels installed for free in Texas here, or enter your zip code below to see if you qualify!

Find out if you qualify for Texas savings programs!

Do I Qualify?

Please enter a zip code

Going Solar in Texas

Texas has many solar incentives that make switching to this green energy more accessible and affordable. From property tax exemptions that provide relief from added property value taxes, the favorable net metering policies that credit you for excess energy your panels produce, to generous rebates offered by utility companies that directly reduce the cost of installation - every corner of the Lone Star State shines bright with opportunities for savings.

Don’t let the sun set on your opportunity to save! Enter your zip code below to unveil which solar incentives are ready to light up your path to cleaner, more affordable energy!

Want to see how much you could save with solar?

Our team will guide you through the best options for your home.

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Author & Solar Energy Expert

James Kahle, a revered voice in the energy domain, enlightens homeowners about the benefits of solar. Catch James soaking up the sun while playing basketball or immersed in the pages of a book.

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