solar rebates and incentives

Go solar with help from Texas solar panel incentives

They say that everything is bigger in Texas, and the benefits of solar are no exception. With some of the strongest sunshine in the country and lower-than-average solar costs, it’s no wonder that the Solar Energy Industries Association ranks Texas as a top 10 state for solar. Going solar is easier than ever thanks to some major solar incentives and rebates.

The best way to compare your solar options and save money at the same time is by registering on the EnergySage Marketplace. When you compare quotes for solar panels on EnergySage's competitive solar marketplace, you can expect to see prices up to 20% lower than working with a single solar company. Read our updated article on the cost of solar panels to compare solar costs across states and by panel brand.

What are the best Texas solar tax credits and rebates?

Homeowners in cities across Texas have access to significant rebate programs and special policies that can help them save thousands on the cost of installing a solar energy system on their roofs. These are just a few of them:

Texas solar rebate programs

While Texas doesn’t have a statewide solar tax credit or solar rebate program, many utilities (large and small) and local governments offer incentives to homeowners who want to go solar. Here are some examples:

  • Austin Energy: If you live in Austin, you can get a rebate of $2,500. Plus, you’re eligible for Austin Energy’s Value of Solar Tariff, which pays you $0.097 for every kilowatt-hour (kWh) your solar panels can generate.
  • CPS Energy: If you’re a CPS Energy customer, you can receive $2,500 for installing solar panels on your home's roof. You're also eligible for an extra $500 if you install locally-sourced solar panels.
  • Guadalupe Valley Electric Cooperative, and the City of Sunset Valley all also offer rebates for homeowners in their areas.

Renewable energy systems property tax exemption

Beyond saving you money on your electricity bills, solar has another financial benefit – it can increase the value of your home. While higher home values typically bring higher property taxes, Texas has a renewable energy property tax exemption so that residents of the Lone Star State don’t pay extra taxes as a result of the value that their solar panels add.

Texas renewable energy: solar offers top incentives for homeowners

Texas net metering

Although Texas doesn’t have a statewide net metering policy, many utilities in the state (including El Paso Electric, the City of Brenham, CPS Energy, and Green Mountain Energy) have policies that credit owners of solar energy systems for the electricity that their panels produce. If your utility has a net metering policy, you receive credits on your electric bill for all of the extra electricity your solar panels produce. When your panels aren’t producing enough electricity to meet your use (like at night or if it’s cloudy outside), you can draw on those Texas net metering credits instead of buying electricity from the utility.

Solar rights law

If you live in a neighborhood governed by a homeowners’ association (HOA), also known as a property owners’ association, you might be worried that HOA regulations will keep you from being able to go solar. Luckily, Texas has a solar rights law that prevents HOAs from banning solar energy systems on their properties, so you can go solar with confidence.

The federal solar tax credit

Don’t forget about federal solar incentives! With the investment tax credit (ITC), now referred to as the Residential Clean Energy Credit for residential systems, you can reduce the cost of your PV solar energy system by 30 percent. Keep in mind that the ITC applies only to those who buy their PV system outright (either with a cash purchase or a solar loan), and that you must have enough income for the tax credit to be meaningful (unless you’re a tax-exempt entity, in which case you might be eligible for a direct payment).

Is something missing or out of date? Contact us at marketing@energysage.com to get this page updated.
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