Solar Incentives in Austin
Explore federal, state, and local utility incentives available for solar installations in Austin, Texas
Your Utility Company
Austin Energy (Austin Energy)
Average Rate: $0.11/kWh
Austin Energy is a municipal utility offering Value of Solar (VOS) tariff. Solar customers receive a credit rate (~$0.097/kWh in 2026) for excess generation, separate from their consumption rate. This is one of the best solar programs in Texas.
Federal Incentives
Federal Solar Investment Tax Credit (ITC) - EXPIRED
0%The 30% federal tax credit for customer-owned residential solar systems expired on December 31, 2025. Homeowners who purchased and installed systems by 12/31/2025 may still claim the credit on their 2025 tax return. For systems installed in 2026 and beyond, the residential ITC is no longer available for customer-owned systems.
Eligibility: EXPIRED as of January 1, 2026 for new customer-owned installations. Third-party owned systems (leases/PPAs) may still offer savings through commercial tax credits passed to customers.
Expires: December 31, 2025
Learn more →Solar Lease/PPA Savings (via Commercial ITC)
VariesWhile the residential solar tax credit expired 12/31/2025, third-party owned solar systems (leases and PPAs) can still benefit from commercial tax credits through 2027. These savings are typically passed to customers through lower lease payments or electricity rates.
Eligibility: Available for solar leases and Power Purchase Agreements (PPAs) where a third-party company owns the system and sells you the electricity.
Expires: December 31, 2027
Learn more →Texas State Incentives
Texas Property Tax Exemption for Solar
100%Texas offers a 100% property tax exemption on the added home value from solar panel installations. This means your property taxes won't increase due to your solar system, even though it adds value to your home. For a typical $25,000 system, this saves approximately $500-750 per year in property taxes.
Eligibility: All Texas property owners with solar energy devices installed on residential or commercial property. The exemption applies to the appraised value added by the solar installation.
Learn more →Austin Energy Incentives
Contact Austin Energy for available solar incentives in Austin.
How to Apply for Incentives
- ✓ Work with a certified solar installer who can help with applications
- ✓ Apply for incentives before or immediately after installation
- ✓ Keep all receipts and documentation for your solar system
- ✓ Check eligibility requirements carefully before purchasing
- ✓ Some incentives are first-come, first-served with limited funding
Next Steps
- ✓ Review solar costs in Austin
- ✓ Get quotes from local solar installers
- ✓ Calculate your potential savings with available incentives
- ✓ Verify incentive availability with your installer
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