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
Showing data for:
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
172 solar companies in Texas provide pricing on SolarReviews. Here are the best rated companies near you.
4.92 387 Reviews
Latest review
James Taylor, 1 week ago
My sales rep Marcus was super nice and the install team was very professional and quick. My solar looks great on my home and we enjoy looking at our app to see how much energy we have produced.
Read more
Average cost (5kW system)
$17,000 ($3.40 per watt)
Latest review
James Taylor, 1 week ago
My sales rep Marcus was super nice and the install team was very professional and quick. My solar looks great on my home and we enjoy looking at our app to see how much energy we have produced.
4.86 133 Reviews
Latest review
Haskell & Mangawang Families, 4 weeks ago
When we decided to get a solar energy system, this company stood out for us as 1) it is local, 2) the majority of reviews hold Solar Centex in high regard, 3) it has NABCEP Board Certifications for PV Technical Sales AND for PV Installation Professional, 4) it has its own certified master electrician, and 5) some of its own people use the same components/systems that are put into customers' projects. While installation did take longer than expected due to Covid-related supply delays, we are very happy with how the final product looks and, more importantly, how well it is working. And having the option to add a pergola has been a great bonus for us. Sabrina and Chris have been wonderful with communicating with us about anything and everything pertaining to our project. All of our questions were answered promptly, any changes we or they needed were addressed and resolved to our satisfaction, and additional in-depth information regarding each component of our system was provided, as well. The guys who did the actual installation worked as efficiently as the weather permitted. We can't thank them enough for working so hard during a Texas summer. And they, too, were great about answering any questions we had or passing us along to someone who could answer better. Overall, we would definitely recommend this company to anyone who is considering adding a solar energy system.
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Average cost (5kW system)
$13,000 ($2.60 per watt)
Latest review
Haskell & Mangawang Families, 4 weeks ago
When we decided to get a solar energy system, this company stood out for us as 1) it is local, 2) the majority of reviews hold Solar Centex in high regard, 3) it has NABCEP Board Certifications for PV Technical Sales AND for PV Installation Professional, 4) it has its own certified master electrician, and 5) some of its own people use the same components/systems that are put into customers' projects. While installation did take longer than expected due to Covid-related supply delays, we are very happy with how the final product looks and, more importantly, how well it is working. And having the option to add a pergola has been a great bonus for us. Sabrina and Chris have been wonderful with communicating with us about anything and everything pertaining to our project. All of our questions were answered promptly, any changes we or they needed were addressed and resolved to our satisfaction, and additional in-depth information regarding each component of our system was provided, as well. The guys who did the actual installation worked as efficiently as the weather permitted. We can't thank them enough for working so hard during a Texas summer. And they, too, were great about answering any questions we had or passing us along to someone who could answer better. Overall, we would definitely recommend this company to anyone who is considering adding a solar energy system.
4.81 159 Reviews
Latest review
Dee Kauffman, 1 week ago
American Solar Sentry is a reliable company I can trust. They have been in business many years, have top ratings in the solar industry, and use quality materials. On average the cost of going solar is no different than the cost of my electric bill. Once the panels are paid off the return on investment will be fantastic. What I appreciate most is that American Sentry Solar handles all the details including permits, financing, and installation. Aside from the initial consultation, all I had to do was schedule the surveying/planning, installation, and final inspection. All went off without a hitch and in just over a month I had solar and an app on my phone where I could track how much energy my panels were producing compared to how much I was consuming. It's a very cool app and I feel good about using a clean, renewable energy source which is friendly to our increasingly precious environment.
Read more
Latest review
Dee Kauffman, 1 week ago
American Solar Sentry is a reliable company I can trust. They have been in business many years, have top ratings in the solar industry, and use quality materials. On average the cost of going solar is no different than the cost of my electric bill. Once the panels are paid off the return on investment will be fantastic. What I appreciate most is that American Sentry Solar handles all the details including permits, financing, and installation. Aside from the initial consultation, all I had to do was schedule the surveying/planning, installation, and final inspection. All went off without a hitch and in just over a month I had solar and an app on my phone where I could track how much energy my panels were producing compared to how much I was consuming. It's a very cool app and I feel good about using a clean, renewable energy source which is friendly to our increasingly precious environment.
4.75 264 Reviews
Latest review
sshoops, 6 days ago
Sunlux personnel kept me informed all the way through the process. Any issues with installation or scheduling were quickly and equitably reserved!
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Average cost (5kW system)
$15,150 ($3.03 per watt)
Latest review
sshoops, 6 days ago
Sunlux personnel kept me informed all the way through the process. Any issues with installation or scheduling were quickly and equitably reserved!
4.74 341 Reviews
Latest review
Dorlisa, over 1 month
I live in Jarrell and Longhorn solar just installed panels on my home. The process was quick and easy and the installation team was very proficient and friendly! Would highly recommend them!
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Average cost (5kW system)
$17,200 ($3.44 per watt)
Latest review
Dorlisa, over 1 month
I live in Jarrell and Longhorn solar just installed panels on my home. The process was quick and easy and the installation team was very proficient and friendly! Would highly recommend them!
4.74 49 Reviews
Latest review
Daniel O'Hara, over 1 month
I have confidence in Solartime and they’ve met every expectation. I like their corporate story and they don’t disappoint
Read more
Latest review
Daniel O'Hara, over 1 month
I have confidence in Solartime and they’ve met every expectation. I like their corporate story and they don’t disappoint
4.69 177 Reviews
Latest review
Great decision, over 1 month
My neighbor had solar panels installed, I spoke with him and he put me in touch with Spencer Sobolik. Spencer contacted me and reviewed options for our home. He was very professional, answered all my questions and put no pressure on me to make a quick decision. Once I decide to proceed, the Freedom Solar team made the process very easy, from financing to installation, everything was completed when they said it would be. I very pleased we choose Freedom Solar as your Solar company.
Read more
Average cost (5kW system)
$17,000 ($3.40 per watt)
Latest review
Great decision, over 1 month
My neighbor had solar panels installed, I spoke with him and he put me in touch with Spencer Sobolik. Spencer contacted me and reviewed options for our home. He was very professional, answered all my questions and put no pressure on me to make a quick decision. Once I decide to proceed, the Freedom Solar team made the process very easy, from financing to installation, everything was completed when they said it would be. I very pleased we choose Freedom Solar as your Solar company.
4.69 48 Reviews
Latest review
Aaron, over 1 month
From the beginning to the end I’ve never met a smarter group of not only electricians, but solar world knowledge. Whether your going off grid or just some solar to save energy cost don’t settle for anything less then this crew. it’s done right, best of equipment and clean work atmosphere.
Read more
Average cost (5kW system)
$11,000 ($2.20 per watt)
Latest review
Aaron, over 1 month
From the beginning to the end I’ve never met a smarter group of not only electricians, but solar world knowledge. Whether your going off grid or just some solar to save energy cost don’t settle for anything less then this crew. it’s done right, best of equipment and clean work atmosphere.
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.
4.64 1,488 Reviews
Latest review
Bradley Flynn, 1 day ago
My wife and I both enjoyed the process from our first contact through installation. Every question was answered with no pressure to proceed with a next step. The Blue Raven Team worked with us on where and how we wanted our panels located as well as the conduit. They followed through with precision.
Read more
Latest review
Bradley Flynn, 1 day ago
My wife and I both enjoyed the process from our first contact through installation. Every question was answered with no pressure to proceed with a next step. The Blue Raven Team worked with us on where and how we wanted our panels located as well as the conduit. They followed through with precision.
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