What solar incentives are available in Texas?

Every Texas system qualifies for the 30% federal Residential Clean Energy Credit. On top of that, Texas offers Utility & co-op rebates, Property tax exemption.

How much is the federal solar tax credit in Texas?

The federal credit is 30% of the installed system cost. On a typical $21,000 Texas system that's about $6,300, bringing the net cost to roughly $14,700.

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Solar Incentives in Texas (2026)

By the HomeCostLens editorial team · Reviewed January 2026 · Source: DSIRE & state programs

~$14,700

Net cost of a typical $21,000 Texas solar system after the 30% federal tax credit (~$6,300) — before any state or utility incentives below.

Every solar system in Texas qualifies for the 30% federal Residential Clean Energy Credit, a dollar-for-dollar reduction in your federal taxes worth about $6,300 on a typical system. Texas layers additional state and utility incentives on top, and its net-metering rules determine how much your panels save once they're running.

Federal tax credit

The federal credit covers 30% of the total installed cost — panels, inverter, labor, permitting, and battery storage included — with no cap. It applies the year your system is placed in service and can carry forward if it exceeds your tax liability. (This is a tax credit, not a refund; consult a tax professional.)

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, so the 30% federal credit plus local utility rebates carry most of the savings.

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.

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Frequently asked questions

What solar incentives are available in Texas?: Every Texas system qualifies for the 30% federal Residential Clean Energy Credit. On top of that, Texas offers Utility & co-op rebates, Property tax exemption.
How much is the federal solar tax credit in Texas?: The federal credit is 30% of the installed system cost. On a typical $21,000 Texas system that's about $6,300, bringing the net cost to roughly $14,700.
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.