Summary of Texas solar incentives 2021
Early 2021 taught Texans a terrible lesson about their electricity system: it's not prepared to handle weather emergencies like February's record snow and cold, meaning you and your neighbors might get left without power, or with a huge electic bill for the month. More renewable energy could help the state as a whole, but to help yourself if something like this happens again, you'll need some solar panels on your roof along with batteries to store the energy they make for use when the grid goes down.
Fortunately, for those who live in Encor service territory and Austin, there are some rebates available to help reduce the cost of going solar for you. Furthermore, most of the state's residents will be able to sign up for something like net metering, either from your local power company or one of the statewide retail electric providers (REPs) out there.
On this page, we cover all of the solar incentives, rebates and tax credits available for your Texas home solar installation. We suggest you use the Texas solar incentives calculator above as well. It allows you to drill down and show only the solar incentives that are applicable where you live.
On this page, you can:
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Learn what solar incentives are available to Texas homeowners
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See what Texas solar incentives you qualify for based on your utility company and city
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Find out how much these incentives and/or Texas solar tax credits will reduce your cost to go solar and add batteries
Federal solar investment tax credit
The federal solar investment tax credit will have the biggest impact on the cost you will face to go solar in Texas
This perk is commonly known as the ITC, short for “Investment Tax Credit”. If you install your photovoltaic system in 2020, the federal tax credit is 26% of the cost of your solar panel system. This is 26% off the entire cost of the system including equipment, labor and permitting.
Example: If your solar energy system costs $20,000, your federal solar tax credit would be $20,000 x 26% = $5,200.
The federal tax credit falls to 22% at the end of 2022.
Net energy metering in Texas
With net metering in some states, you get full retail rate credit for the amount of electricity you send back into the grid with your solar panels.
Net Metering requires your utility to monitor how much energy your solar power system produces and how much energy you actually consume, and make sure you get credit for the surplus.
Net metering in Texas is spotty. While there is no statewide net metering law here, in most populated places in the state, you can find either a municipal electric company that offers net metering, or a Retail Electric Provider (REP) like Green Mountain Energy, that will buy your extra solar output for retail price, or close to it.
So, whether you're looking to install solar panels in Houston or Dallas, you'll get net metering credits. Green Mountain Energy offers full retail-rate credit for excess solar energy, rolled over to your next month's bill.
Learn more: Green Mountain Energy Renewable Rewards Buyback Program
Furthermore, the cities of Austin, Brenham, and San Antonio (CPS Energy), all have some form of net metering available to residential solar power systems, and some of them even offer rebates, to boot.
Texas solar rebates
Texas lacks any statewide rebate program. Most folks in the state have their choice of electric company through the state's open energy marketplace, and not one of those companies want to help finance your solar installtion.
Those of you lucky enough to live in a place with a municipal electric company may have good options. For example, Austin Energy offers a $2,500 rebate for people who want to install solar panels, and all you have to do is take an online class and pass a quiz to get the money sent to your installer. Pretty sweet deal!
Texas solar property tax exemption
Texas lawmakers have come through with a solid solar property tax exemption. When you install that shiny new solar power system, the resulting increase in home value is exempt from 100% of the resulting property tax increase.
Solar panels will increase the value of your Texas home by roughly 70% of system costs. So while the value of your home will go up, your property taxes won’t.
Example: If your solar system costs $20,000, your estimated property value increase of $14,000 will be tax exempt.
Cost of solar panels in your part of Texas after all applicable solar incentives
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Prices based on a 9.6kW system, after 26% federal tax credit
Solar prices near you
Payback period
6.1-7.4 years
Net profit (savings less system cost)
$40,189-$49,120
Average size system installed in TX in 2021
9.6kW
Solar panel cost calculator
Best 10 solar companies in Texas
155 solar companies in Texas provide pricing on SolarReviews. Here are the best rated companies near you.
4.96 323 Reviews
Latest review
Frazilia Madeus, 3 days ago
I love my lg panels. The process was a bit long but ended with a great final result. Would recommend
Read more
Average cost (5kW system)
$17,000 ($3.40 per watt)
Latest review
Frazilia Madeus, 3 days ago
I love my lg panels. The process was a bit long but ended with a great final result. Would recommend
4.87 126 Reviews
Latest review
Marquetta Quinn, over 1 month
In early fall we had SOLAR CENTEX come out. Sabrina Arnold was amazing. She explained things in a way that my husband & I could understand. She also showed us how to track our energy usage on apps on our phone. so easy & cool. We had the installers out in October. the gentlemen were so polite & professional. really impressed by their workmanship. But here's the best part-- we love watching day by day the energy going back into the grid! Seriously doesn't get better than this. No electric bill at all! our bill shows a $35.00 credit! i really hope you give Solar Centex a call. It might be the best decision you ever do. Sincerely, Marquetta Quinn
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Average cost (5kW system)
$13,000 ($2.60 per watt)
Latest review
Marquetta Quinn, over 1 month
In early fall we had SOLAR CENTEX come out. Sabrina Arnold was amazing. She explained things in a way that my husband & I could understand. She also showed us how to track our energy usage on apps on our phone. so easy & cool. We had the installers out in October. the gentlemen were so polite & professional. really impressed by their workmanship. But here's the best part-- we love watching day by day the energy going back into the grid! Seriously doesn't get better than this. No electric bill at all! our bill shows a $35.00 credit! i really hope you give Solar Centex a call. It might be the best decision you ever do. Sincerely, Marquetta Quinn
4.84 117 Reviews
Latest review
Ben, 21 hours ago
NRG installed a new energy-efficient asphalt roof and a 30-panel 13 kWh system on our house, including a major sub-panel upgrade. The sales process was interactive and not hard-sell in any way. The design and permitting went fairly smoothly (Oakland is notoriously slow). Once we were ready to go, we were helped enormously by Leila, a very competent project manager on NRG's team. The roofers (subcontracted to Greentech) were efficient and easy to work with. Once they were done, we had a problem with a gutter overflowing, and it turned out they had not cleaned out the downspouts. They returned to fix this problem, so it all worked out. The panel installation also went well, although it took a few visits over a couple of weeks to complete the project. I was impressed that they painted all the conduit to blend in with the roof and the cedar shingles on our house. Only one minor SNAFU: a chip in one of our double pain windows had to be repaired, but they covered the cost with a gift card. Overall, we had a great experience with NRG and I would recommend them without hesitation. If you can, ask for Chris in Sales, Miguel for installation and electrical hookup, and Leila for excellent and personable project management.
Read more
Average cost (5kW system)
$12,750 ($2.55 per watt)
Latest review
Ben, 21 hours ago
NRG installed a new energy-efficient asphalt roof and a 30-panel 13 kWh system on our house, including a major sub-panel upgrade. The sales process was interactive and not hard-sell in any way. The design and permitting went fairly smoothly (Oakland is notoriously slow). Once we were ready to go, we were helped enormously by Leila, a very competent project manager on NRG's team. The roofers (subcontracted to Greentech) were efficient and easy to work with. Once they were done, we had a problem with a gutter overflowing, and it turned out they had not cleaned out the downspouts. They returned to fix this problem, so it all worked out. The panel installation also went well, although it took a few visits over a couple of weeks to complete the project. I was impressed that they painted all the conduit to blend in with the roof and the cedar shingles on our house. Only one minor SNAFU: a chip in one of our double pain windows had to be repaired, but they covered the cost with a gift card. Overall, we had a great experience with NRG and I would recommend them without hesitation. If you can, ask for Chris in Sales, Miguel for installation and electrical hookup, and Leila for excellent and personable project management.
4.84 150 Reviews
Latest review
Sackett, 1 day ago
Fast and efficient. Gave recommendations for changes to landscape to improve solar efficiency. Installation was quick and smooth. Only complaint was with CPS Energy and the time it took to get approval for installation of the system and final approval for connection to the grid.
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Latest review
Sackett, 1 day ago
Fast and efficient. Gave recommendations for changes to landscape to improve solar efficiency. Installation was quick and smooth. Only complaint was with CPS Energy and the time it took to get approval for installation of the system and final approval for connection to the grid.
4.82 226 Reviews
Latest review
Al L, over 1 month
I highly recommend Sunlux Solar. I contracted with Sunlux for 34 panels and a new roof a little over 3 months ago. I am extremely pleased with both my solar panel installation and my new roof. My salesperson (Chris) was very honest, informative and professional. There was no sales pressure at all. He explained the entire project in detail and satisfactorily answered all my questions. He was extremely patient with me when I called him numerous times with questions I had pertaining to my internet solar research I conducted as I was educating myself on solar. I got several quotes prior to choosing Sunlux. Although Sunlux was a little more expensive than others (not much), I chose Sunlux because of the professionalism Chris displayed and because they are a large professional company who is dedicated to customer service. I believe in "you get what you pay for" and I am extremely pleased with Sunlux, as I got much more than I paid for. I am very happy I chose them for my project. My project manager (Berlyn) was outstanding. She was constantly communicating with me by either phone, email or text. She kept me apprised of every step of the project and was always responsive to me whenever I called her. She always got back to me immediately. She was professional, polite, informative and defiantly dedicated to customer service. She always made sure I knew what was happening, kept me in the loop, and that I was pleased. It was a pleasure working with Berlyn. The project took a little over 3 months to complete, but that was due to permitting issues and not the fault of Sunlux. None the less, Berlyn was in constant contact with the building authorities and moved things right along. The installers were very professional, polite and defiantly demonstrated pride in their work. The installation was clean, seamless and it looks fantastic. All the electrical is hidden in my attic and out of sight (except for my inverter). My roofer was Troy Roofing who was subcontracted through Sulux. Although I am not a fan of subcontractors, Sunlux changed my opinion about subcontractors. They were in contact with the roofer the entire time and I never had to deal with the roofer directly. Troy Roofing did an exceptional job on my roof. The guys worked 3 hard long days in 100 degree weather. They demonstrated pride in their work and they did an excellent job. I highly recommend Troy Roofing. In summary, I am extremely pleased with Sunlux Solar and the outstanding job they did. They totally exceeded my expectations. I highly recommend them for your solar project. You will not regret it. I commend their staff Chris (my salesperson) for his professionalism and honestly. There were no surprises. Moreover, I commend Berlyn (my project manager) for commitment to customer service, her professionalism and her organizational skills. She was on top of my project every step of the way and she was a pleasure to work with. Al
Read more
Average cost (5kW system)
$15,150 ($3.03 per watt)
Latest review
Al L, over 1 month
I highly recommend Sunlux Solar. I contracted with Sunlux for 34 panels and a new roof a little over 3 months ago. I am extremely pleased with both my solar panel installation and my new roof. My salesperson (Chris) was very honest, informative and professional. There was no sales pressure at all. He explained the entire project in detail and satisfactorily answered all my questions. He was extremely patient with me when I called him numerous times with questions I had pertaining to my internet solar research I conducted as I was educating myself on solar. I got several quotes prior to choosing Sunlux. Although Sunlux was a little more expensive than others (not much), I chose Sunlux because of the professionalism Chris displayed and because they are a large professional company who is dedicated to customer service. I believe in "you get what you pay for" and I am extremely pleased with Sunlux, as I got much more than I paid for. I am very happy I chose them for my project. My project manager (Berlyn) was outstanding. She was constantly communicating with me by either phone, email or text. She kept me apprised of every step of the project and was always responsive to me whenever I called her. She always got back to me immediately. She was professional, polite, informative and defiantly dedicated to customer service. She always made sure I knew what was happening, kept me in the loop, and that I was pleased. It was a pleasure working with Berlyn. The project took a little over 3 months to complete, but that was due to permitting issues and not the fault of Sunlux. None the less, Berlyn was in constant contact with the building authorities and moved things right along. The installers were very professional, polite and defiantly demonstrated pride in their work. The installation was clean, seamless and it looks fantastic. All the electrical is hidden in my attic and out of sight (except for my inverter). My roofer was Troy Roofing who was subcontracted through Sulux. Although I am not a fan of subcontractors, Sunlux changed my opinion about subcontractors. They were in contact with the roofer the entire time and I never had to deal with the roofer directly. Troy Roofing did an exceptional job on my roof. The guys worked 3 hard long days in 100 degree weather. They demonstrated pride in their work and they did an excellent job. I highly recommend Troy Roofing. In summary, I am extremely pleased with Sunlux Solar and the outstanding job they did. They totally exceeded my expectations. I highly recommend them for your solar project. You will not regret it. I commend their staff Chris (my salesperson) for his professionalism and honestly. There were no surprises. Moreover, I commend Berlyn (my project manager) for commitment to customer service, her professionalism and her organizational skills. She was on top of my project every step of the way and she was a pleasure to work with. Al
4.82 163 Reviews
Latest review
Happy Customer, 2 weeks ago
I've personally had a great experience working on a solar solution with Freedom Solar in Austin, TX. James Govea made the process smooth, clear, and informative. Any and all questions I had were sufficiently answered and I'm now a happy owner of a fantastic solar system for our single family home. Couldn't recommend more! Also, I've read some comments about the solar production of their systems, and while I can only speak for our experience, we had their panels produce immediately (yes, same day), and while we still have overcast days which results in low production, the overall solar production of their panels is stellar.
Read more
Average cost (5kW system)
$17,000 ($3.40 per watt)
Latest review
Happy Customer, 2 weeks ago
I've personally had a great experience working on a solar solution with Freedom Solar in Austin, TX. James Govea made the process smooth, clear, and informative. Any and all questions I had were sufficiently answered and I'm now a happy owner of a fantastic solar system for our single family home. Couldn't recommend more! Also, I've read some comments about the solar production of their systems, and while I can only speak for our experience, we had their panels produce immediately (yes, same day), and while we still have overcast days which results in low production, the overall solar production of their panels is stellar.
4.75 336 Reviews
Latest review
Tony F, 1 month ago
So, when I decided to install solar for my home in San Antonio, I did some research and contacted about 10 different companies. All were recommended by CPS, the local energy company; all had very nice ratings. I considered one that offered panels made locally, because I wanted to shop local, but then discovered a shaky financial past. The others offered similar panels, and competitive prices. I discarded a company because their rep showed up at my house and didn't bring a mask. We met in the garage with the door rolled up (very warm in June). I downgraded another company whose rep crunched some numbers, then suggested I double the panels his formulas recommended. I went with Longhorn because their proposal was relatively easy to understand; we chatted via Zoom, and their rep sent me his presentation (only company that did that). This made it easier for me to review what was offered, to analyze the numbers. I really appreciated the Zoom meeting, as I am immuno compromised. Finally, the deal closer was the production guarantee. They calculated what the panels should produce in a year, and guaranteed to reimburse me if energy production didn't meet their proposal. The only "gotcha" was in activating the system. After a couple of weeks, I asked when the system would be initialized. I was told they were waiting for the city to schedule an inspection. A week later, I tried again, with the same response. So I called the city and explained my situation; they scheduled the inspection for the next afternoon. Can't figure why this happened, as the final payment was due when the city approved the system. But, the city came, blessed the panels, and I've been saving on electricity ever since.If you're looking for solar, these guys are worth a good look.
Read more
Average cost (5kW system)
$17,200 ($3.44 per watt)
Latest review
Tony F, 1 month ago
So, when I decided to install solar for my home in San Antonio, I did some research and contacted about 10 different companies. All were recommended by CPS, the local energy company; all had very nice ratings. I considered one that offered panels made locally, because I wanted to shop local, but then discovered a shaky financial past. The others offered similar panels, and competitive prices. I discarded a company because their rep showed up at my house and didn't bring a mask. We met in the garage with the door rolled up (very warm in June). I downgraded another company whose rep crunched some numbers, then suggested I double the panels his formulas recommended. I went with Longhorn because their proposal was relatively easy to understand; we chatted via Zoom, and their rep sent me his presentation (only company that did that). This made it easier for me to review what was offered, to analyze the numbers. I really appreciated the Zoom meeting, as I am immuno compromised. Finally, the deal closer was the production guarantee. They calculated what the panels should produce in a year, and guaranteed to reimburse me if energy production didn't meet their proposal. The only "gotcha" was in activating the system. After a couple of weeks, I asked when the system would be initialized. I was told they were waiting for the city to schedule an inspection. A week later, I tried again, with the same response. So I called the city and explained my situation; they scheduled the inspection for the next afternoon. Can't figure why this happened, as the final payment was due when the city approved the system. But, the city came, blessed the panels, and I've been saving on electricity ever since.If you're looking for solar, these guys are worth a good look.
4.73 46 Reviews
Latest review
Aaron, over 1 month
Yesterday was an exciting day for us! Why? We got our 1st NEGATIVE electric bill! We were told this would happen after 1 year but it’s been 6 months and last month wasn’t all that sunny all the time. It all started from a friend that told me to get solar. I gave him every excuse under the sun, but I let him get me a bid anyway because he was a friend I would do anything for. I got the bid for our ~13KW system. I laughed. I said thanks, but no thanks. Unfortunately, it did peak my curiosity and I went to one of those sites and asked for bids. I got 4 more bids from all over North East Texas companies. They all gave me similar bids for ~13KW systems for around the same price. I still wasn’t satisfied, so I tried one more local company because I truly believe in buying local small business whenever possible, even if it is a little more expensive. I found Wright Way. Not only did Rudy come to my house, but he answered probably 30 questions I had via phone or email promptly in a straight forward manner unlike the other sales pitches I had received. He came to my house not only to do an full assessment including roof line, tree coverage, attic insulation, and energy usage, but also came back when he delivered me two proposals. One of the proposals I sort of demanded based on my previous experiences, and another one that he had developed. He also proposed to me the same ~13KW system in line with everyone else which I specifically asked for because I was still ignorant and I had been told by over 6 “experts” that is what I needed. What really intrigued me, was that Rudy listened to me. Rudy only gave me that first proposal because I specifically asked for it. He also brought me what HE recommended for our situation, knowing that of course overall cost would be a deciding factor. I open it up, and I see ~7KW system. Again, I laughed… “Really Rudy?” Rudy knew the kind of person that I was, so he explained to me more about our home electricity and what actually consumes the electricity. He gave ME homework to do since I had been asking all of the wrong questions. After doing extensive research, and actually talking to 3 previous customers of his, we pulled the trigger. The cost was still an issue, but after doing extensive math, showing the savings in electricity usage each month would more than cover the loan payments, it was a no brainer and by this point, I trusted Rudy’s recommendation. Before install Rudy came over a 3rd time to check some specifics because what we were going to do was not only install solar strategically to maximize sun, but also replace the water heaters to the hybrid Rheem water heaters of which I had never heard. Installation was quick and the team was great. I would highly recommend them to anybody! (Original review truncated due to length limitations).
Read more
Average cost (5kW system)
$16,000 ($3.20 per watt)
Latest review
Aaron, over 1 month
Yesterday was an exciting day for us! Why? We got our 1st NEGATIVE electric bill! We were told this would happen after 1 year but it’s been 6 months and last month wasn’t all that sunny all the time. It all started from a friend that told me to get solar. I gave him every excuse under the sun, but I let him get me a bid anyway because he was a friend I would do anything for. I got the bid for our ~13KW system. I laughed. I said thanks, but no thanks. Unfortunately, it did peak my curiosity and I went to one of those sites and asked for bids. I got 4 more bids from all over North East Texas companies. They all gave me similar bids for ~13KW systems for around the same price. I still wasn’t satisfied, so I tried one more local company because I truly believe in buying local small business whenever possible, even if it is a little more expensive. I found Wright Way. Not only did Rudy come to my house, but he answered probably 30 questions I had via phone or email promptly in a straight forward manner unlike the other sales pitches I had received. He came to my house not only to do an full assessment including roof line, tree coverage, attic insulation, and energy usage, but also came back when he delivered me two proposals. One of the proposals I sort of demanded based on my previous experiences, and another one that he had developed. He also proposed to me the same ~13KW system in line with everyone else which I specifically asked for because I was still ignorant and I had been told by over 6 “experts” that is what I needed. What really intrigued me, was that Rudy listened to me. Rudy only gave me that first proposal because I specifically asked for it. He also brought me what HE recommended for our situation, knowing that of course overall cost would be a deciding factor. I open it up, and I see ~7KW system. Again, I laughed… “Really Rudy?” Rudy knew the kind of person that I was, so he explained to me more about our home electricity and what actually consumes the electricity. He gave ME homework to do since I had been asking all of the wrong questions. After doing extensive research, and actually talking to 3 previous customers of his, we pulled the trigger. The cost was still an issue, but after doing extensive math, showing the savings in electricity usage each month would more than cover the loan payments, it was a no brainer and by this point, I trusted Rudy’s recommendation. Before install Rudy came over a 3rd time to check some specifics because what we were going to do was not only install solar strategically to maximize sun, but also replace the water heaters to the hybrid Rheem water heaters of which I had never heard. Installation was quick and the team was great. I would highly recommend them to anybody! (Original review truncated due to length limitations).
4.73 43 Reviews
Latest review
Sean House, 1 week ago
From quote to delivery I was impressed with Solartime USA Inc as a company. They were upfront and very professional. I have already referred them to friends and family!
Read more
Latest review
Sean House, 1 week ago
From quote to delivery I was impressed with Solartime USA Inc as a company. They were upfront and very professional. I have already referred them to friends and family!
4.64 32 Reviews
Latest review
Anonymous, over 1 month
We turned on our solar system on October 30, 2018. Satisfied with Sheldon Wilkinson and Sara with all of their help from the get go. Sheldon answer all of our questions. He has taken the time to stop by to check on us. I'm very satisfied with our system. It is a positive investment. 100% Satisfied with Alba Energy.
Read more
Average cost (5kW system)
$17,450 ($3.49 per watt)
Latest review
Anonymous, over 1 month
We turned on our solar system on October 30, 2018. Satisfied with Sheldon Wilkinson and Sara with all of their help from the get go. Sheldon answer all of our questions. He has taken the time to stop by to check on us. I'm very satisfied with our system. It is a positive investment. 100% Satisfied with Alba Energy.
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For more information about going solar near where you live, check out the following resources:
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