Solar Incentives in Texas (2026)
The 30% federal Residential Clean Energy Credit expired on December 31, 2025, so homeowners who buy a system in Texas in 2026 no longer receive a federal tax credit. That makes Texas's state and utility incentives — and its net-metering rules — the main levers for lowering cost and shortening payback today.
Federal tax credit (ended for 2026 purchases)
The 30% federal credit (Section 25D) was repealed by the 2025 budget law and is no longer available for systems placed in service after December 31, 2025. If your system was installed and operating by the end of 2025, you can still claim the 30% credit on your 2025 return. The one remaining federal route in 2026 is a third-party-owned system: with a solar lease or PPA, the company that owns the panels can claim the separate business clean-energy credit (Section 48E, available through 2027) and may pass part of those savings to you through lower payments — though you won't own the system. Consult a tax professional for your situation.
Texas state & utility incentives
| Incentive | What it offers |
|---|---|
| Utility & co-op rebates | Austin Energy, CPS Energy, Oncor, and several co-ops offer upfront solar or battery rebates in their service areas. |
| Property tax exemption | Texas exempts the added home value from solar from property taxes. |
Texas has no state income tax and no statewide solar credit, and the 30% federal credit expired after 2025 — so local utility rebates and buyback plans now carry most of the savings (a lease/PPA can still capture a federal benefit via the installer).
Net metering in Texas
No statewide net metering — buyback varies by utility/retail provider. Some offer 1:1 plans; shop solar buyback plans carefully.
See solar panel costs near you
Compare local solar prices by city, then stack these Texas incentives on top.
Solar panel cost by city →Frequently asked questions
- What solar incentives are available in Texas?
- The 30% federal Residential Clean Energy Credit expired December 31, 2025, so homeowners who buy in 2026 no longer receive it. Texas still offers Utility & co-op rebates, Property tax exemption, plus net metering. A lease or PPA can still capture a federal benefit through the installer.
- Is there still a federal solar tax credit in 2026?
- Not for homeowners who buy a system — Section 25D expired at the end of 2025 under the 2025 budget law. The only remaining federal route is a third-party-owned system (lease or PPA), where the installer claims the business clean-energy credit (Section 48E, available through 2027) and may pass part of the savings to you.
- Does Texas have net metering?
- No statewide net metering — buyback varies by utility/retail provider. Some offer 1:1 plans; shop solar buyback plans carefully.
Incentive programs change often — verify current details on DSIRE and with your utility before deciding.