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:
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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
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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 2021
9.6kW
Solar panel cost calculator
Best 10 solar companies in Texas
163 solar companies in Texas provide pricing on SolarReviews. Here are the best rated companies near you.
4.87 131 Reviews
Latest review
Andrew E, 2 days ago
I recently Had a system installed by the crew at Solar Centex and I honestly couldn't be happier! I had some initial reservations like I'm sure alot of people do when it comes to going solar it's a huge investment. but the crew at Solar Centex not only met my expectations but exceeded them !!. from my initial email with sabrina who was there with me every step of the process..she answered any questions I had .. to trinidad who lead the crew who performed the installation of my system they showed up 30 minutes early!! I appreciated the punctuatality. all the way up to Scott the owner who came by to check in to make sure everything was running smoothly.. even after everything was completed sabrina stopped by to do a walk through and made sure that I understood exactly how the system worked and to answer any follow up questions I may have had . I couldn't have asked for a better experience I highly recommend Solar Centex to anyone who is interested in going solar . I'd like to Thank everyone from Solar Centex on a great experience from start to finish!!
Read more
Average cost (5kW system)
$13,000 ($2.60 per watt)
Latest review
Andrew E, 2 days ago
I recently Had a system installed by the crew at Solar Centex and I honestly couldn't be happier! I had some initial reservations like I'm sure alot of people do when it comes to going solar it's a huge investment. but the crew at Solar Centex not only met my expectations but exceeded them !!. from my initial email with sabrina who was there with me every step of the process..she answered any questions I had .. to trinidad who lead the crew who performed the installation of my system they showed up 30 minutes early!! I appreciated the punctuatality. all the way up to Scott the owner who came by to check in to make sure everything was running smoothly.. even after everything was completed sabrina stopped by to do a walk through and made sure that I understood exactly how the system worked and to answer any follow up questions I may have had . I couldn't have asked for a better experience I highly recommend Solar Centex to anyone who is interested in going solar . I'd like to Thank everyone from Solar Centex on a great experience from start to finish!!
4.85 156 Reviews
Latest review
Cami, over 1 month
I looked at about a dozen different solar panel providers and finally decided to go with American Sentry Solar. They were very responsive, have great ethos and did a great job with install. They went above and beyond by removing the old electrical wires (no longer connect or used) that a pervious contractor has just left. They were positive and also pretty quiet. I worked from home while they installed the solar panels and they didn't need to shut off the power. The panels have been great thus far and my bill has significantly decreased. We are actually exporting energy and can see in the app exactly what is happening in real time.
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Latest review
Cami, over 1 month
I looked at about a dozen different solar panel providers and finally decided to go with American Sentry Solar. They were very responsive, have great ethos and did a great job with install. They went above and beyond by removing the old electrical wires (no longer connect or used) that a pervious contractor has just left. They were positive and also pretty quiet. I worked from home while they installed the solar panels and they didn't need to shut off the power. The panels have been great thus far and my bill has significantly decreased. We are actually exporting energy and can see in the app exactly what is happening in real time.
4.82 168 Reviews
Latest review
Pohlman, over 1 month
The entire process of purchasing our solar array went smoothly Tony, our sales person made the configuration and selection process easy Jack scheduled the installation to fit our schedule Ramon and his installation team arrived an hour early and completed the task in under four hours. Panel placement was great. They even painted the conduit to match the house Brandon answered all my geek questions perfectly The system turns out power to match the quote and does it in even less than bright conditions I enjoy monitoring the system on the SunPower app All in all a pleasant experience
Read more
Average cost (5kW system)
$17,000 ($3.40 per watt)
Latest review
Pohlman, over 1 month
The entire process of purchasing our solar array went smoothly Tony, our sales person made the configuration and selection process easy Jack scheduled the installation to fit our schedule Ramon and his installation team arrived an hour early and completed the task in under four hours. Panel placement was great. They even painted the conduit to match the house Brandon answered all my geek questions perfectly The system turns out power to match the quote and does it in even less than bright conditions I enjoy monitoring the system on the SunPower app All in all a pleasant experience
4.74 339 Reviews
Latest review
Our review of Longhorn Solar, 2 weeks ago
Longhorn Solar sized & installed our Solar System 14 months ago. The system is producing per original objective. It is really gratifying that we have not had to pay an electric utility bill over the last several months having accumulated so many credits with our electric provider. We suffered hail damage on our roof during the first quarter of this year. Our panels, all mounted on the carport, were not damaged and continue to produce. Bottom line, we are very happy with the system Longhorn Solar installed for us.
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Average cost (5kW system)
$17,200 ($3.44 per watt)
Latest review
Our review of Longhorn Solar, 2 weeks ago
Longhorn Solar sized & installed our Solar System 14 months ago. The system is producing per original objective. It is really gratifying that we have not had to pay an electric utility bill over the last several months having accumulated so many credits with our electric provider. We suffered hail damage on our roof during the first quarter of this year. Our panels, all mounted on the carport, were not damaged and continue to produce. Bottom line, we are very happy with the system Longhorn Solar installed for us.
4.73 46 Reviews
Latest review
Happy Customer, 1 week ago
Solartime USA has been a great company to work with on our brand new roof solar array. The gentleman we spoke with in our first meeting (over the phone), was clearly very knowledgeable about all things solar. He gave us scientific, clear answers to our numerous questions. Unlike some other companies, none of his answers were equivocations or placations. He wasn’t just telling us what he thought we wanted to hear. He listened closely to our needs and what we wanted from solar power, and provided a wonderful panel layout. The company made adjustments to accommodate our requests (we wanted an outlet connected to the solar system for power outages, which moved the inverter panel into the garage instead of on the exterior wall), and the end result is exactly what we wanted. The install took less than one day and Solartime USA handled all the permits, HOA approval, setting up the meter swap with the electric company, and the inspection with the city. It couldn’t have been easier. Their customer service is terrific! All the people we have spoken to or worked with at Solartime USA have been great. Everyone is professional, knowledgeable, and friendly. We love the app that tracks the solar power generated by our roof panels. It is outstanding to know exactly how much power is generated in all types of weather. I highly recommend Solartime USA!
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Latest review
Happy Customer, 1 week ago
Solartime USA has been a great company to work with on our brand new roof solar array. The gentleman we spoke with in our first meeting (over the phone), was clearly very knowledgeable about all things solar. He gave us scientific, clear answers to our numerous questions. Unlike some other companies, none of his answers were equivocations or placations. He wasn’t just telling us what he thought we wanted to hear. He listened closely to our needs and what we wanted from solar power, and provided a wonderful panel layout. The company made adjustments to accommodate our requests (we wanted an outlet connected to the solar system for power outages, which moved the inverter panel into the garage instead of on the exterior wall), and the end result is exactly what we wanted. The install took less than one day and Solartime USA handled all the permits, HOA approval, setting up the meter swap with the electric company, and the inspection with the city. It couldn’t have been easier. Their customer service is terrific! All the people we have spoken to or worked with at Solartime USA have been great. Everyone is professional, knowledgeable, and friendly. We love the app that tracks the solar power generated by our roof panels. It is outstanding to know exactly how much power is generated in all types of weather. I highly recommend Solartime USA!
4.73 244 Reviews
Latest review
Wayne S, 6 days ago
After researching numerous solar companies in the Southern California area we found that SunLux by far best company to do business with. The solar panels SunLux installs are state-of-the-art with 25 year warranties. Every person you deal with at SunLux from sales to project managers to the installers are direct company employees who are extremely knowledgeable about every aspect of the solar systems that SunLux installs. SunLux provided one-stop-shopping, they handle everything from system design to city permitting and final city inspection to coordinating with the electric company who grants permission to operate. These were the determining factors in choosing SunLux from other solar companies.
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Average cost (5kW system)
$15,150 ($3.03 per watt)
Latest review
Wayne S, 6 days ago
After researching numerous solar companies in the Southern California area we found that SunLux by far best company to do business with. The solar panels SunLux installs are state-of-the-art with 25 year warranties. Every person you deal with at SunLux from sales to project managers to the installers are direct company employees who are extremely knowledgeable about every aspect of the solar systems that SunLux installs. SunLux provided one-stop-shopping, they handle everything from system design to city permitting and final city inspection to coordinating with the electric company who grants permission to operate. These were the determining factors in choosing SunLux from other solar companies.
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).
Read more
Average cost (5kW system)
$11,000 ($2.20 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).
4.64 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.
4.61 1,254 Reviews
Latest review
M&D, 2 days ago
A neighbor down the street had solar panels installed by BRS and was happy with the installation and results. Another friend has had solar panels for 10 years and is also pleased with the results. So we decided to go ahead and have panels installed. The permitting process is somewhat long but most of the delay was with the county/city permits.
Read more
Latest review
M&D, 2 days ago
A neighbor down the street had solar panels installed by BRS and was happy with the installation and results. Another friend has had solar panels for 10 years and is also pleased with the results. So we decided to go ahead and have panels installed. The permitting process is somewhat long but most of the delay was with the county/city permits.
4.61 79 Reviews
Latest review
Dalila, 2 weeks ago
Corey and the Circle L team are amazing! They were so helpful every step of the way. They answered all of my questions (and I had a lot), and were very patient. The panels look great on our roof. I’m super excited to start using them and saving money. I definitely recommend them for the solar panel process.
Read more
Latest review
Dalila, 2 weeks ago
Corey and the Circle L team are amazing! They were so helpful every step of the way. They answered all of my questions (and I had a lot), and were very patient. The panels look great on our roof. I’m super excited to start using them and saving money. I definitely recommend them for the solar panel process.
Solar guides for your Texas city
For more information about going solar near where you live, check out the following resources:
Useful links
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