Texas solar rebates and tax credits calculator

Solar incentive

Federal ITC 26% (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 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:

  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

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:

Harris
Change
  • Anderson
  • Andrews
  • Angelina
  • Aransas
  • Archer
  • Armstrong
  • Atascosa
  • Austin
  • Bailey
  • Bandera
  • Bastrop
  • Baylor
  • Bee
  • Bell
  • Bexar
  • Blanco
  • Borden
  • Bosque
  • Bowie
  • Brazoria
  • Brazos
  • Brewster
  • Briscoe
  • Brooks
  • Brown
  • Burleson
  • Burnet
  • Caldwell
  • Calhoun
  • Callahan
  • Cameron
  • Camp
  • Carson
  • Cass
  • Castro
  • Chambers
  • Cherokee
  • Childress
  • Clay
  • Cochran
  • Coke
  • Coleman
  • Collin
  • Collingsworth
  • Colorado
  • Comal
  • Comanche
  • Concho
  • Cooke
  • Coryell
  • Cottle
  • Crane
  • Crockett
  • Crosby
  • Culberson
  • Dallam
  • Dallas
  • Dawson
  • De Witt
  • Deaf Smith
  • Delta
  • Denton
  • Dickens
  • Dimmit
  • Donley
  • Duval
  • Eastland
  • Ector
  • Edwards
  • El Paso
  • Ellis
  • Erath
  • Falls
  • Fannin
  • Fayette
  • Fisher
  • Floyd
  • Foard
  • Fort Bend
  • Franklin
  • Freestone
  • Frio
  • Gaines
  • Galveston
  • Garza
  • Gillespie
  • Glasscock
  • Goliad
  • Gonzales
  • Gray
  • Grayson
  • Gregg
  • Grimes
  • Guadalupe
  • Hale
  • Hall
  • Hamilton
  • Hansford
  • Hardeman
  • Hardin
  • Harris
  • Harrison
  • Hartley
  • Haskell
  • Hays
  • Hemphill
  • Henderson
  • Hidalgo
  • Hill
  • Hockley
  • Hood
  • Hopkins
  • Houston
  • Howard
  • Hudspeth
  • Hunt
  • Hutchinson
  • Irion
  • Jack
  • Jackson
  • Jasper
  • Jeff Davis
  • Jefferson
  • Jim Hogg
  • Jim Wells
  • Johnson
  • Jones
  • Karnes
  • Kaufman
  • Kendall
  • Kenedy
  • Kent
  • Kerr
  • Kimble
  • King
  • Kinney
  • Kleberg
  • Knox
  • La Salle
  • Lamar
  • Lamb
  • Lampasas
  • Lavaca
  • Lee
  • Leon
  • Liberty
  • Limestone
  • Lipscomb
  • Live Oak
  • Llano
  • Loving
  • Lubbock
  • Lynn
  • Madison
  • Marion
  • Martin
  • Mason
  • Matagorda
  • Maverick
  • McCulloch
  • McLennan
  • McMullen
  • Medina
  • Menard
  • Midland
  • Milam
  • Mills
  • Mitchell
  • Montague
  • Montgomery
  • Moore
  • Morris
  • Motley
  • Nacogdoches
  • Navarro
  • Newton
  • Nolan
  • Nueces
  • Ochiltree
  • Oldham
  • Orange
  • Palo Pinto
  • Panola
  • Parker
  • Parmer
  • Pecos
  • Polk
  • Potter
  • Presidio
  • Rains
  • Randall
  • Reagan
  • Real
  • Red River
  • Reeves
  • Refugio
  • Roberts
  • Robertson
  • Rockwall
  • Runnels
  • Rusk
  • Sabine
  • San Augustine
  • San Jacinto
  • San Patricio
  • San Saba
  • Schleicher
  • Scurry
  • Shackelford
  • Shelby
  • Sherman
  • Smith
  • Somervell
  • Starr
  • Stephens
  • Sterling
  • Stonewall
  • Sutton
  • Swisher
  • Tarrant
  • Taylor
  • Terrell
  • Terry
  • Throckmorton
  • Titus
  • Tom Green
  • Travis
  • Trinity
  • Tyler
  • Upshur
  • Upton
  • Uvalde
  • Val Verde
  • Van Zandt
  • Victoria
  • Walker
  • Waller
  • Ward
  • Washington
  • Webb
  • Wharton
  • Wheeler
  • Wichita
  • Wilbarger
  • Willacy
  • Williamson
  • Wilson
  • Winkler
  • Wise
  • Wood
  • Yoakum
  • Young
  • Zapata
  • Zavala
  • Utility provider: Bartlett Electric Coop Inc
    Utility bill: $ 139

    Prices based on a 9.6kW system, after 26% federal tax credit

    Solar prices near you

    Cost range of local prices

    $14,773-$18,055

    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

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    Solar guides for your Texas city

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

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