Summary of Texas solar incentives 2022
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 2022
9.6kW
Solar panel cost calculator
Best 10 solar companies in Texas
174 solar companies in Texas provide pricing on SolarReviews. Here are the best rated companies near you.
4.90 413 Reviews
Latest review
Arlene Hamilton , 4 days ago
Im very happy with the service this company gave me. They were very profesional and I would really recommend it to anyone going Solar.
Read more
Average cost (5kW system)
$17,000 ($3.40 per watt)
Latest review
Arlene Hamilton , 4 days ago
Im very happy with the service this company gave me. They were very profesional and I would really recommend it to anyone going Solar.
4.87 138 Reviews
Latest review
Garry, over 1 month
Solar Centex has been excellent to work with. Great sales and service and help with everything we have needed! CAll them today!
Read more
Average cost (5kW system)
$13,000 ($2.60 per watt)
Latest review
Garry, over 1 month
Solar Centex has been excellent to work with. Great sales and service and help with everything we have needed! CAll them today!
4.82 165 Reviews
Latest review
Michael, 3 weeks ago
I am extremely pleased with American Sentry Solar. So far, the whole process of going solar has been great. I did shop around to check prices and reviews and found American Sentry Solar to be the one for us. They are local, do their own work and use top quality panels. Those qualities were all high on my list. Brad was great. He has been with us every step of the way. He has made the process straight forward and manageable. He answered all my questions and if he did not know the answer, he would find it and get back to me in a timely manner. He has made it a stress-free process and I hope he can do so until we are 100%. Casey and his roofing team and electricians did a great job as well. They came on time and worked in a professional manner. They all introduced themselves which was nice (unfortunately I am terrible at remembering names). They were courteous and took care of my property. Just a really great group. So, as you can see, I am pleased, and I hope this will continue for the life of my panels. I do plan on getting more panels in the future and I know American Sentry Solar will be there for me when the time comes.
Read more
Latest review
Michael, 3 weeks ago
I am extremely pleased with American Sentry Solar. So far, the whole process of going solar has been great. I did shop around to check prices and reviews and found American Sentry Solar to be the one for us. They are local, do their own work and use top quality panels. Those qualities were all high on my list. Brad was great. He has been with us every step of the way. He has made the process straight forward and manageable. He answered all my questions and if he did not know the answer, he would find it and get back to me in a timely manner. He has made it a stress-free process and I hope he can do so until we are 100%. Casey and his roofing team and electricians did a great job as well. They came on time and worked in a professional manner. They all introduced themselves which was nice (unfortunately I am terrible at remembering names). They were courteous and took care of my property. Just a really great group. So, as you can see, I am pleased, and I hope this will continue for the life of my panels. I do plan on getting more panels in the future and I know American Sentry Solar will be there for me when the time comes.
4.75 279 Reviews
Latest review
Brad Collins , 2 weeks ago
Just had initial consult with Sunlux and their representative Bill Young. Was low pressure, very informative and insightful. Would highly recommend at least touching base with this company before you make your decision on who to go with
Read more
Average cost (5kW system)
$15,150 ($3.03 per watt)
Latest review
Brad Collins , 2 weeks ago
Just had initial consult with Sunlux and their representative Bill Young. Was low pressure, very informative and insightful. Would highly recommend at least touching base with this company before you make your decision on who to go with
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!
4.74 183 Reviews
Latest review
AshM, 1 week ago
I worked with Zach Stirling, everything was communicated well and project was completed on time
Read more
Average cost (5kW system)
$17,000 ($3.40 per watt)
Latest review
AshM, 1 week ago
I worked with Zach Stirling, everything was communicated well and project was completed on time
4.72 51 Reviews
Latest review
EZ, 2 weeks ago
They did an excellent job from beginning to end, even during the turbulence of the pandemic. Already had the panels for about a year with no complaints. We'll see how they hold up long term, but the company has been checking up on me here and there post installation, which I greatly appreciate.
Read more
Latest review
EZ, 2 weeks ago
They did an excellent job from beginning to end, even during the turbulence of the pandemic. Already had the panels for about a year with no complaints. We'll see how they hold up long term, but the company has been checking up on me here and there post installation, which I greatly appreciate.
4.71 51 Reviews
Latest review
Diane Rowe, 3 weeks ago
After several months of research and talking with multiple solar installers, I chose Wright-Way. Not only are they local, but their excellent reputation and 5-year "bumper-to-bumper" warranty stands out above all the rest. <br /><br />Included in our install was a back-up generator, and a hybrid water heater for greater year-round energy savings. I did not know how I would feel about the hot water heater, but now that it is up & running, I am pleased to say that I love it! Rudy and his team went above and beyond to complete our full install in a timely, well-coordinated and highly professional manner. The crew was friendly, courteous and never seemed bothered by questions.<br /><br />Post-install, Rudy took his time to thoroughly explain the monitoring and care of the PV array and inverter, and the care and maintenance requirements of the generator and hot water heater. My husband and I feel very comfortable after the final walk through, and we have every confidence that should anything go wrong, Wright-Way will assist us in any way possible. <br /><br />Everyone that we have dealt with at Wright-Way, including the office staff, has been professional and courteous. I have never been left hanging for answers or assistance through the entire process. I highly recommend Wright-Way Solar Technologies. You will not regret choosing them for your solar energy needs.
Read more
Average cost (5kW system)
$11,000 ($2.20 per watt)
Latest review
Diane Rowe, 3 weeks ago
After several months of research and talking with multiple solar installers, I chose Wright-Way. Not only are they local, but their excellent reputation and 5-year "bumper-to-bumper" warranty stands out above all the rest. <br /><br />Included in our install was a back-up generator, and a hybrid water heater for greater year-round energy savings. I did not know how I would feel about the hot water heater, but now that it is up & running, I am pleased to say that I love it! Rudy and his team went above and beyond to complete our full install in a timely, well-coordinated and highly professional manner. The crew was friendly, courteous and never seemed bothered by questions.<br /><br />Post-install, Rudy took his time to thoroughly explain the monitoring and care of the PV array and inverter, and the care and maintenance requirements of the generator and hot water heater. My husband and I feel very comfortable after the final walk through, and we have every confidence that should anything go wrong, Wright-Way will assist us in any way possible. <br /><br />Everyone that we have dealt with at Wright-Way, including the office staff, has been professional and courteous. I have never been left hanging for answers or assistance through the entire process. I highly recommend Wright-Way Solar Technologies. You will not regret choosing them for your solar energy needs.
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.
4.63 1,562 Reviews
Latest review
Brady Hickman, 3 days ago
I initiated the initial consult with no expectations of being able to actually get solar installed. After talking with the representative and learning of other resources for funding, he got me pre-authorized for some grants on the spot! Blue Raven spearheaded nearly all the background paperwork, including the application to my HOA ARC committee for review. They handled the local permit process and even talked with our roof replacement company to ensure both parties knew the end result was the installation of solar panels upon roof completion. We had some hurdles with our HOA, and Blue Raven provided additional information and worked with me to resolve them. We are very excited to finally have solar on our home now. The final cost (we received a low interest loan for paying for the panels) is about 1/2 what we had been paying for electricity. Final cost: Solar panels installed, and our actual monthly bills were reduced by about $60.
Read more
Latest review
Brady Hickman, 3 days ago
I initiated the initial consult with no expectations of being able to actually get solar installed. After talking with the representative and learning of other resources for funding, he got me pre-authorized for some grants on the spot! Blue Raven spearheaded nearly all the background paperwork, including the application to my HOA ARC committee for review. They handled the local permit process and even talked with our roof replacement company to ensure both parties knew the end result was the installation of solar panels upon roof completion. We had some hurdles with our HOA, and Blue Raven provided additional information and worked with me to resolve them. We are very excited to finally have solar on our home now. The final cost (we received a low interest loan for paying for the panels) is about 1/2 what we had been paying for electricity. Final cost: Solar panels installed, and our actual monthly bills were reduced by about $60.
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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