Texas Solar Incentives 2023

Complete Guide to Texas Solar Incentives

More and more Americans are going solar in Texas as families are seeing the how easy it is to power your home with solar and reduce your dependance on the electric company. However, many people are still "in the dark" when it comes to the Texas solar incentives and discounts available to help them save money on their investment.

Fortunately, the state of Texas offers several solar incentives to encourage home and business owners to go solar and save money on their utility bills.

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Is Solar Power Worth It In Texas?

Yes, solar panels work extremely well in Texas due to its sunny weather and typically clear visibility. In fact, Texas sees over 300+ sunny days per year which makes it an ideal location to power your home with the sun.

In addition to its great weather conditions for Texas solar panels, the Texas lawmakers and officials have done a great job at creating progressive solar incentives and programs to make solar more affordable. Texas was ranked #2 best place to go solar in the United States in the National Solar Rankings.

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The Cost of Solar Panels In Texas

So we can see that solar panels are indeed worth it in Texas, but only if they're affordable. So how much are solar panels in Texas? The good news is they are more affordable than other states as well. The cost of solar panels in Texas has reduced by over 50% in the last 10 years.

There are many factors to consider when looking a the total cost of a solar power system. The first things to consider is that Solar energy systems are a true investment. An investment in a home solar system will return 100% of its costs in an average of 10-13 years. But in Texas, solar owners have recouped their investment in less than 10 years in many situations. One way to increase your rate of return is selling the excess energy your solar panels produce via solar buyback programs.

The average cost of a solar energy system in Texas is between $10,000-$15,000 total investment. But there are many ways to reduce the upfront costs and increase the money you get back for your investment with Texas solar rebates and Texas solar panel incentives.

The Federal 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 and commercial 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.

Texas Solar Tax Exemptions

One of the top ways Texas incentives and discounts solar panels is through tax breaks. Solar panels are exempt from sales tax and increased property taxes.

Solar Property Tax Exemption is a huge benefit for solar owners. This allows for home and business owners to enjoy the benefits of increased property value with their new solar array, but not have to pay the additional taxes that would usually apply. So, the owner of a home assessed at $300,000 who adds $15,000 worth of solar panels, will now have a new property value of $315,000, but only pay taxes on the original $300,000. The exemption is 100% for residential properties and 50% for commercial properties, but is only available through 2029.

Solar Sales Tax Exemption is a quick savings right from the day you purchase your new solar power system. Sales Tax in Texas is 6.25%. So your instantly save more than 6% on the cost of your solar panels, which is a benefit that most states do not have. This exemption applies to the cost of your solar panels, solar inverters, mounting hardware, and solar batteries.

Texas Solar Renewable Energy Credits (REC)

Solar Renewable Energy Credits (RECs) allow residents to get paid for the excess energy produced from their renewable energy systems. Homeowners can earn these "clean energy credits" to help offset up to 100% of your energy charges on your electricity bill, every month.

This is a great way to increase your rate of return on Texas solar panels. To take advantage of this solar incentive, you will need to work with a professional solar company in Texas, such as EcoGen America, to help you find the best Texas solar buyback program for you.


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Enter your zip code to see if you qualify for solar incentives!

Do I Qualify?

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How To Power Your Home With Solar, For Less!

As you can see, there are many ways to save money on installing solar panels in Texas. With more than 300+ sunny days per year, Texas is an ideal place to harness the power of the sun and power your home with solar panels.

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 reduce the cost of solar panel installation and make going solar more affordable.

Find Out How Much You Can Save With A Texas Solar Energy System

Based out of Texas, EcoGen America is the trusted Texas solar provider and is dedicated to helping Texans save money on their switch to solar energy. Get started with a customized solar quote today, to see how much you could save.

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Does Texas have a solar rebate?

Yes, Texas does have solar rebates including the Federal Investment Tax Credit and Solar buyback programs, and more. Read more about Texas Solar Incentives. 

What are solar incentives for 2023 in Texas?

The state of Texas offers several solar incentives to encourage home and business owners to use renewable energy. Some of these incentives are the Federal Solar Tax Credit, Sales Tax exemption, Property tax exemption and more. Read more about Texas Solar Incentives

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.