Texas Solar Incentives

Complete Guide to Texas Solar Incentives

The state of Texas offers different solar incentives to encourage homeowners and businesses to go solar. These incentives can help offset the cost of installation and make going solar more affordable. Here are the main solar incentives available in Texas.

Do you live in Texas? Find out what incentives you qualify for!

Federal Solar Investment Tax Credit (ITC)

The federal government offers a tax credit for residential and commercial solar installations. The tax credit is 26% of the cost of 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 through December 31, 2022.
*Note: The solar tax credit will be reduced from 26% to 22% at the start of 2023 and will be phased out in 2024.

Texas Solar Tax Exemptions

Texas offers a Property Tax Exemption for solar installations. This exemption applies to the value added to the property by the solar installation. The exemption is 100% for residential properties and 50% for commercial properties. This incentive is available through 2029. So, the owner of a home assessed at $300,000 who adds $15,000 worth of solar panels to the current value of $315,000 will still be taxed on $300,000.

In addition, Texas offers a Sales Tax Exemption for solar equipment. Solar panels are also exempt from Texas' 6.25% sales tax, which immediately makes them more affordable. This exemption applies to the purchase price of solar panels, inverters, mounting hardware, and batteries. This incentive is available through 2029.

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Texas Solar Renewable Energy Credits (REC)

Solar Renewable Energy Credits (RECs) allow residents to get paid for the excess energy your solar panels produce. Homeowners can earn clean energy bill credits to offset up to 100% of your energy charges on your electricity bill each month

Conclusion:

These are the main solar incentives available in Texas. The federal government offers a tax credit for residential and commercial solar installations, Texas provides a property tax exemption for solar installations, and Texas also offers a sales tax exemption for solar equipment. These incentives can help offset the cost of installation and make going solar more affordable.

You can learn more about the solar energy industry in Texas and Texas' State Solar Policy by visiting the Solar Energy Industries Association here.

Find Out How Much You Can Save With Solar

EcoGen America is dedicated to helping Texas residents save money by switching to solar energy. Contact our solar experts today to see how much you could save!

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What are Texas solar incentives?

The state of Texas offers different solar incentives to encourage homeowners and businesses to go solar. These incentives include both federal and state tax exemptions and Solar Renewable Energy Credits which are sellable. There are many programs available which is why it's always best to work with a state-licensed specialist like us to apply for programs that often make solar panel installations FREE!

Is it worth getting solar in Texas?

Texas has a friendly solar climate and great incentives that make getting solar panels well worth it for all homeowners.