Summary of Texas solar incentives 2020
It's 2020, and your prospects for powering your home with solar energy in Texas are great! That's especially the case in cities like San Antonio and Austin, which have municipal utility companies with rebates and other incentives available.
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% in 2021. Unless new legislation is introduced in Washington D.C., this program will be gone in 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. Given that most folks outside of big cities have their choice of electric company through the state's open energy marketplace.
Those of you lucky enough to live in a place with a municipal electric company may have good options. For example, San Antonio's CPS Energy has good solar rebates. Here's a run-down of all the solar rebates we've found in the Lone Star state:
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 2020
9.6kW
Solar panel cost calculator
Best 10 solar companies in Texas
115 solar companies in Texas provide pricing on SolarReviews. Here are the best rated companies near you.
4.88 148 Reviews
Latest review
Richard, over 1 month
"First-rate customer care is key to making your business a success" TheGuardian. This was and is one of the most accurate statement about any company, and Jonathan Baldridge from Freedom Solar is just that. He is an exceptional consultant, highly professional and knowledgeable. Highly recommended.
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Average cost (5kW system)
$17,000 ($3.40 per watt)
Latest review
Richard, over 1 month
"First-rate customer care is key to making your business a success" TheGuardian. This was and is one of the most accurate statement about any company, and Jonathan Baldridge from Freedom Solar is just that. He is an exceptional consultant, highly professional and knowledgeable. Highly recommended.
4.88 125 Reviews
Latest review
Eric, over 1 month
What a simple and awesome experience from start to finish. From the first time they came to the house to talk about their product, the information provided was great and exactly what we were looking for to make our decision, no pressure and never once had a negative comment about the competition. Installation was smooth, the crew was always on time and checked in with us when they were done for the day and left our yard clean, like they were never there. We look forward to the savings and benefits in the future. Would recommend Solar CenTex to anyone looking to put solar on their home. Thanks Solar CenTex
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Average cost (5kW system)
$13,000 ($2.60 per watt)
Latest review
Eric, over 1 month
What a simple and awesome experience from start to finish. From the first time they came to the house to talk about their product, the information provided was great and exactly what we were looking for to make our decision, no pressure and never once had a negative comment about the competition. Installation was smooth, the crew was always on time and checked in with us when they were done for the day and left our yard clean, like they were never there. We look forward to the savings and benefits in the future. Would recommend Solar CenTex to anyone looking to put solar on their home. Thanks Solar CenTex
4.83 147 Reviews
Latest review
Hope Johnson, over 1 month
Tim Cammer, Jonathan D'Antonio, and the installation crew went above and beyond what was necessary to give us an excellent product at an exceptional value, with excellent customer service. The product is already paying for itself with no net loss to our family's budget. They were willing to travel an exceptionally long distance to our home in Yoakum with no complaints. Jonathan D'Antonio completed difficult negotiations with the City of Yoakum so that the city fees were minimal. The installation crews installed the panels safely with no hiccups, and Jonathan D'Antonio (the operations manager) personally inspected the installation before we turned it on. I highly recommend this company.
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Latest review
Hope Johnson, over 1 month
Tim Cammer, Jonathan D'Antonio, and the installation crew went above and beyond what was necessary to give us an excellent product at an exceptional value, with excellent customer service. The product is already paying for itself with no net loss to our family's budget. They were willing to travel an exceptionally long distance to our home in Yoakum with no complaints. Jonathan D'Antonio completed difficult negotiations with the City of Yoakum so that the city fees were minimal. The installation crews installed the panels safely with no hiccups, and Jonathan D'Antonio (the operations manager) personally inspected the installation before we turned it on. I highly recommend this company.
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
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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
4.77 37 Reviews
Latest review
Dman, 6 days ago
Quality work and excellent installation. The panels are much thinner than expected which makes them less noticeable. Already seeing a savings on electricity.
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Latest review
Dman, 6 days ago
Quality work and excellent installation. The panels are much thinner than expected which makes them less noticeable. Already seeing a savings on electricity.
4.75 327 Reviews
Latest review
Dan Carlson, 3 weeks ago
I spoke with a handful of solar companies before deciding on Longhorn. I worked with Bryan Kerr who was GREAT. He was super helpful, knowledgeable, and had great communication. We talked many times throughout the whole process, he always kept me informed and up to date on things. I would ask a question and he would be able to answer it in a simple straightforward way that was easy to understand. I chose Longhorn after they were recommended to me by my neighbor (now a few neighbors have chosen Longhorn). Longhorn prices were the best, much better than their competitors. Their app is great, it shows me all the panels and how much they are producing throughout the day so I can always see what's going on and how they're doing. And the team was great, they got all 23 of our panels finished in one single day. All in all, great experience, highly recommend. Longhorn is, as far as I know, the best solar company in the Austin / Pflugerville Texas area!
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Average cost (5kW system)
$17,200 ($3.44 per watt)
Latest review
Dan Carlson, 3 weeks ago
I spoke with a handful of solar companies before deciding on Longhorn. I worked with Bryan Kerr who was GREAT. He was super helpful, knowledgeable, and had great communication. We talked many times throughout the whole process, he always kept me informed and up to date on things. I would ask a question and he would be able to answer it in a simple straightforward way that was easy to understand. I chose Longhorn after they were recommended to me by my neighbor (now a few neighbors have chosen Longhorn). Longhorn prices were the best, much better than their competitors. Their app is great, it shows me all the panels and how much they are producing throughout the day so I can always see what's going on and how they're doing. And the team was great, they got all 23 of our panels finished in one single day. All in all, great experience, highly recommend. Longhorn is, as far as I know, the best solar company in the Austin / Pflugerville Texas area!
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).
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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).
4.67 23 Reviews
Latest review
Windfall, over 1 month
Excellent experience from beginning to end. Sales experience was informative, low pressure, and respectful. They respected my bid process and made a very competitive proposal. I opted for a Black on Black solar system for a cleaner appearance on my roof. They made several alterations to the system in design and installation to give us a very pure black on black look. The installation team worked very hard on hot Texas mid summer days to install the system. I am very happy with our decision to go with Sunshine Renewable Solutions.
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Latest review
Windfall, over 1 month
Excellent experience from beginning to end. Sales experience was informative, low pressure, and respectful. They respected my bid process and made a very competitive proposal. I opted for a Black on Black solar system for a cleaner appearance on my roof. They made several alterations to the system in design and installation to give us a very pure black on black look. The installation team worked very hard on hot Texas mid summer days to install the system. I am very happy with our decision to go with Sunshine Renewable Solutions.
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.
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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.
4.63 948 Reviews
Latest review
Brett Huebner, 2 days ago
From the very first encounter, Blue Raven is professional and diligent. They answered all my questions and quickly came up with a solution that covers all my power usage. They worked with my HOA for rapid approval. The installation team was fantastic, arrived exactly when they said and all work and electrical was done in 1 day. The team worked efficiently and complete professionals all day even walking me through the new functionality and steps at the end. This is the kind of service we should always get out of companies and not be surprised but it is. I highly recommend this team.
Read more
Latest review
Brett Huebner, 2 days ago
From the very first encounter, Blue Raven is professional and diligent. They answered all my questions and quickly came up with a solution that covers all my power usage. They worked with my HOA for rapid approval. The installation team was fantastic, arrived exactly when they said and all work and electrical was done in 1 day. The team worked efficiently and complete professionals all day even walking me through the new functionality and steps at the end. This is the kind of service we should always get out of companies and not be surprised but it is. I highly recommend this team.
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