Texas Solar Incentives 2026
Take advantage of federal, state, and local incentives to reduce your solar installation costs
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 →Utility Company Incentives
Austin Energy Solar Rebate
Austin Energy TerritoryAustin Energy offers rebates for residential solar installations. The current rebate is $2,500 for systems 6kW and larger. Smaller systems receive prorated amounts. Additional incentives available for battery storage.
Eligibility: Austin Energy residential customers installing new solar PV systems. Must use an Austin Energy approved solar contractor and meet all program requirements.
Learn more →CPS Energy Solar Rebate Program
CPS Energy TerritoryCPS Energy offers a solar rebate program for residential customers in San Antonio. Rebates up to $1,500 are available for qualifying solar installations when program funds are available.
Eligibility: CPS Energy residential customers installing new solar PV systems. Must apply before installation and use a CPS Energy registered contractor.
Learn more →Austin Energy Value of Solar Tariff
Austin Energy TerritoryAustin Energy's Value of Solar (VOS) tariff credits solar customers for all energy their system produces at the VOS rate (currently ~$0.097/kWh). This is separate from your consumption bill, providing predictable solar income for 10 years.
Eligibility: Austin Energy residential customers with new solar PV systems. Systems must be interconnected through Austin Energy's solar program.
Learn more →Retail Electric Provider Solar Buyback Programs
ERCOT Deregulated AreasIn deregulated areas of Texas (most of the state), your Retail Electric Provider (REP) determines solar compensation. Several REPs offer competitive solar buyback plans including Green Mountain Energy, Chariot Energy, Rhythm Energy, and TXU Energy. Rates range from wholesale (~$0.03-0.05/kWh) to retail rate (1:1 credits).
Eligibility: Customers in ERCOT deregulated areas with grid-connected solar systems. Must shop for and select a REP offering solar buyback.
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