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:
-
Learn what solar incentives are available to Texas homeowners
-
See what Texas solar incentives you qualify for based on your utility company and city
-
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
168 solar companies in Texas provide pricing on SolarReviews. Here are the best rated companies near you.
4.94 377 Reviews
Latest review
Charles Perone, 6 days ago
I got a new ac unit and solar package. Looks good and the ac keeps me cool so I’m happy it works.
Read more
Average cost (5kW system)
$17,000 ($3.40 per watt)
Latest review
Charles Perone, 6 days ago
I got a new ac unit and solar package. Looks good and the ac keeps me cool so I’m happy it works.
4.82 158 Reviews
Latest review
New Lady, over 1 month
Not able to see any difference yet. Looking forward to their promise.
Read more
Latest review
New Lady, over 1 month
Not able to see any difference yet. Looking forward to their promise.
4.75 262 Reviews
Latest review
Lawrence B, over 1 month
I narrowed down my search to 3 major Southern California solar companies and after review I chose Sunlux based on their partnership with LG and the quality product they use and their reputation .
Read more
Average cost (5kW system)
$15,150 ($3.03 per watt)
Latest review
Lawrence B, over 1 month
I narrowed down my search to 3 major Southern California solar companies and after review I chose Sunlux based on their partnership with LG and the quality product they use and their reputation .
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!
Read more
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, 2 weeks ago
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, 2 weeks ago
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
Mary Travis, 4 days ago
My system has been installed for over 3 months now and I have tried to contact someone at Freedom Solar to help explain how the system works - I have been assured it is working and I have paid my monthly bill - and my Mid-South electric bill is the same as before they system was installed. Very discerning that I can not speak to a person.
Read more
Average cost (5kW system)
$17,000 ($3.40 per watt)
Latest review
Mary Travis, 4 days ago
My system has been installed for over 3 months now and I have tried to contact someone at Freedom Solar to help explain how the system works - I have been assured it is working and I have paid my monthly bill - and my Mid-South electric bill is the same as before they system was installed. Very discerning that I can not speak to a person.
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 1,453 Reviews
Latest review
Igor, 3 days ago
I got my panels installed in 6 hours vs. 1.5 days since Blue Raven brought 2 crews and they finished by 3pm! The work quality is good, county inspection got passed in 1 minute! Very happy so far!
Read more
Latest review
Igor, 3 days ago
I got my panels installed in 6 hours vs. 1.5 days since Blue Raven brought 2 crews and they finished by 3pm! The work quality is good, county inspection got passed in 1 minute! Very happy so far!
4.63 26 Reviews
Latest review
Omar4438, over 1 month
From beginning to end I had great service. Centerpoint dragged their feet as expected but Rising Sun Solar did everything within their power to make sure eveything was taken care of. The owner came over to my house personally to ensure that my wife and I knew how the entire systems works and he also reassured me that they will continue giving us the best possible service even after after they've installed my solar panels and they're uup and running. This is a legit review from a customer in Magnolia TX btw.
Read more
Latest review
Omar4438, over 1 month
From beginning to end I had great service. Centerpoint dragged their feet as expected but Rising Sun Solar did everything within their power to make sure eveything was taken care of. The owner came over to my house personally to ensure that my wife and I knew how the entire systems works and he also reassured me that they will continue giving us the best possible service even after after they've installed my solar panels and they're uup and running. This is a legit review from a customer in Magnolia TX btw.
Solar guides for your Texas city
For more information about going solar near where you live, check out the following resources:
Useful links
Related solar news
Ana Almerini
June 30, 2021
Unreliable Texas power prompts residents to install solar-plus-battery-storage solutions
The Texas grid is built for profit, not reliability - leaving Texans on the brink of power outages for the second time in 2021.
Catherine Lane
February 18, 2021
How solar power could protect Texans from another ERCOT power outage
In light of recent events, we explore how Texans can protect themselves from future widespread power shut offs by installing solar panels and solar batteries.
Ben Zientara
January 26, 2021
The state of net metering in the United States in 2021
This annual report ranks the states for friendliness to home solar based on their net metering programs.
Catherine Lane
September 24, 2021
Complete review of SunPower solar panels: Are they really the best?
SunPower solar panels have an incredibly high price to match their superior specs. But are they worth it - especially if you're financing your system?
Jack Wisniewski
September 21, 2021
Is my roof good for solar? The 4 essentials installers consider and why
Prove whether your roof can accommodate solar by assessing your system size, roof space, roof material, and roof condition today.