Texas solar rebates and tax credits calculator

Solar incentive

Federal ITC 30% (tax credit)

State tax credit: No

Net metering (by utility)

Calculate for your home's location

There can be solar tax credits and incentives available at the federal, state and local levels. The calculator above will show you the value of all incentives your home is eligible for.

Summary of Texas solar incentives 2022

The past few years have taught Texans a valuable lesson about their electricity system:  it's not prepared to handle weather emergencies like record snow and cold, meaning you and your neighbors might get left without power, or with a huge electric 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 Oncor 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:

  1. Learn what solar incentives are available to Texas homeowners

  2. See what Texas solar incentives you qualify for based on your utility company and city

  3. 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

If you install your photovoltaic system before the end of 2032, the federal tax credit is 30% of the cost of your solar panel system. This is 30% 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 30% = $6,000.

The federal tax credit falls to 26% starting in 2033.

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 Reliant Energy, that will buy your extra solar output for a price lower than the retail rate of electricity.

But, not all REPs offer solar buyback programs. In fact, most don't, and the ones that do usually don't pay you full price for excess solar energy. This means you have to shop around and see if there are any REPs that service your area that also have some form of a solar buyback program. Luckily, we have a complete guide that lists all of the REPs in Texas that have solar plans, and what kind of solar savings those plans provide. 

Places with regulated utilities, like Austin, Brenham, or San Antonio, all offer some form of net metering for their residential customers. In some cases, they even offer solar rebates. 

Texas solar rebates

Texas lacks any statewide rebate program. Most folks in the state get to choose an electric company through the state's open energy marketplace, and not one of those companies wants to help finance your solar installation. However, those that live in Oncor's service area can receive a rebate of $2,500 when they install solar panels with a solar battery, no matter what retail electric provider they choose. 

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

Harris
Change

Showing data for:

Harris
Change
Utility provider: Bartlett Electric Coop Inc
Utility bill: $ 139

Prices based on a 9.6kW system, after 30% federal tax credit

Solar prices near you

Cost range of local prices

$13,974-$17,079

Payback period

6.1-7.4 years

Net profit (savings less system cost)

$40,189-$49,120

Average size system installed in TX in 2022

9.6kW

Solar panel cost calculator

Best 10 solar companies in Texas

180 solar companies in Texas provide pricing on SolarReviews. Here are the best rated companies near you.

Solar guides for your Texas city

For more information about going solar near where you live, check out the following resources:

Find local city information

 

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