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.
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.
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
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.
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 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 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.
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Prices based on a 9.6kW system, after 26% federal tax credit
173 solar companies in Texas provide pricing on SolarReviews. Here are the best rated companies near you.
4.87 139 Reviews
Brandy, over 1 month
Sabrina was professional and very helpful. Install is complete and panels look great! I highly recommend Solar Centex!!
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Average cost (5kW system)
$13,000 ($2.60 per watt)
Brandy, over 1 month
Sabrina was professional and very helpful. Install is complete and panels look great! I highly recommend Solar Centex!!
4.83 438 Reviews
Bill Hoefer , 1 week ago
I’m very pleased with the job EHs did for me. The installer were great, they got the job done in one day. My sales rep was with me every step of the way just how he said it would be at the time of signing the contract.
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Average cost (5kW system)
$17,000 ($3.40 per watt)
Bill Hoefer , 1 week ago
I’m very pleased with the job EHs did for me. The installer were great, they got the job done in one day. My sales rep was with me every step of the way just how he said it would be at the time of signing the contract.
4.83 39 Reviews
Dan Crawford, 5 days ago
The installation was quick and easy! There was a little hiccup in the back office but overall was very good!
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Dan Crawford, 5 days ago
The installation was quick and easy! There was a little hiccup in the back office but overall was very good!
4.82 167 Reviews
James and Myrtle Willis, over 1 month
My husband and I have debated over Solar for a while. When I saw an add for American Sentry Solar. Brad came to the house armed with all the answers to our questions. We did not want to rent panels, we wanted to purchase them. Brad was able to help us out with a new roof and critter guards as we have a ton of squirrels. The crews that came out to install the roof and solar panels were fantastic! They were respectful of my property and the clean up was beyond compare.
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James and Myrtle Willis, over 1 month
My husband and I have debated over Solar for a while. When I saw an add for American Sentry Solar. Brad came to the house armed with all the answers to our questions. We did not want to rent panels, we wanted to purchase them. Brad was able to help us out with a new roof and critter guards as we have a ton of squirrels. The crews that came out to install the roof and solar panels were fantastic! They were respectful of my property and the clean up was beyond compare.
4.76 58 Reviews
H. Wysocki, 2 weeks ago
Rudy and company did an amazing job. All the solar equipment was top of the line and they completed the work in a timely manner and all the equipment was installed in a very professional manner. Rudy promptly provided support whenever needed. When our local electrical utility technician arrived to replace our meter he commented on how well our equipment was installed. I would highly recommend Wright-Way Solar to friends and family.
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Average cost (5kW system)
$11,000 ($2.20 per watt)
H. Wysocki, 2 weeks ago
Rudy and company did an amazing job. All the solar equipment was top of the line and they completed the work in a timely manner and all the equipment was installed in a very professional manner. Rudy promptly provided support whenever needed. When our local electrical utility technician arrived to replace our meter he commented on how well our equipment was installed. I would highly recommend Wright-Way Solar to friends and family.
4.73 53 Reviews
Max M, over 1 month
I came across Solartime through EnergySage and went with them based on their pricing and professionalism. After they provided multiple proposals with various options and we discussed the pros/cons of each, I ended up deciding on an 8kW system using SMA Power Optimizers and REC 400W Alpha Pure Black panels. They were extremely helpful throughout the entire process; answering all of my various questions and proactively providing guidance on each next step of the process. The install itself was incredibly smooth, and I was generating power before I knew it. If I ever end up moving and needing another solar install in the area, I would absolutely contact Solartime first.
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Max M, over 1 month
I came across Solartime through EnergySage and went with them based on their pricing and professionalism. After they provided multiple proposals with various options and we discussed the pros/cons of each, I ended up deciding on an 8kW system using SMA Power Optimizers and REC 400W Alpha Pure Black panels. They were extremely helpful throughout the entire process; answering all of my various questions and proactively providing guidance on each next step of the process. The install itself was incredibly smooth, and I was generating power before I knew it. If I ever end up moving and needing another solar install in the area, I would absolutely contact Solartime first.
4.72 348 Reviews
Leo, over 1 month
Update: Installer corrected the problem by installing a new inverter, 26 days after reported.<br /><br />I paid a system in full with longhorn solar, the system did not last 1 year, a broken inverter.<br /><br />Longhorn keeps claiming chain supply issues while still getting new businesses, but not repairing mine.<br /><br />Their support system is basically none, one email contact that might or might not reply you in 3 days if you are lucky, and never gives a clear answer.<br /><br />I have a dead system, including a 16kw battery.<br /><br />Lesson learned, Look somewhere else, and force them to put a specific repair time window in your contracts.
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Average cost (5kW system)
$17,200 ($3.44 per watt)
Leo, over 1 month
Update: Installer corrected the problem by installing a new inverter, 26 days after reported.<br /><br />I paid a system in full with longhorn solar, the system did not last 1 year, a broken inverter.<br /><br />Longhorn keeps claiming chain supply issues while still getting new businesses, but not repairing mine.<br /><br />Their support system is basically none, one email contact that might or might not reply you in 3 days if you are lucky, and never gives a clear answer.<br /><br />I have a dead system, including a 16kw battery.<br /><br />Lesson learned, Look somewhere else, and force them to put a specific repair time window in your contracts.
4.69 313 Reviews
Mrs. H, 1 week ago
Our questions were answered and the install went well. We had frequent contact with the project manager, Alex, who was helpful with all of our questions and concerns.
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Average cost (5kW system)
$15,150 ($3.03 per watt)
Mrs. H, 1 week ago
Our questions were answered and the install went well. We had frequent contact with the project manager, Alex, who was helpful with all of our questions and concerns.
4.64 32 Reviews
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)
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 26 Reviews
Rico, over 1 month
Owning a solar seems too complicated but Victory solar made the process simple and clear. Lizzy Brown Kelly McCarty & Taylor Oliphat are all amazing the key for making this company good.
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Rico, over 1 month
Owning a solar seems too complicated but Victory solar made the process simple and clear. Lizzy Brown Kelly McCarty & Taylor Oliphat are all amazing the key for making this company good.
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