TexasSolar Incentives 2026: Tax Credits, Rebates & Net Metering

Texas does not offer a state income tax credit specifically for residential solar. Most homeowners rely on the 30% federal Residential Clean Energy Credit as the primary up-front incentive.

Even without a state income credit, Texas's property tax exemption on solar equipment significantly reduce effective lifetime cost.

Texas does not have a statewide retail-rate net metering mandate. Most utilities offer some form of buyback program at avoided-cost rates, which typically value exported solar at 25-50% of the retail rate.

For TX homeowners, this often makes battery storage more attractive — keeping your generation onsite and consuming it directly avoids the unfavorable export rate. Top utilities: Oncor, CenterPoint, AEP Texas.

3 major utilities operate in Texas: Oncor, CenterPoint, AEP Texas. Specific rebate availability varies year to year and is typically distributed first-come, first-served until annual budget caps are reached.

Before scheduling any installation, verify current rebate status directly with your utility — programs open and close throughout the year. Most Texas installers will pull up-to-date rebate data during a site assessment.

Texas excludes the added value of a residential solar system from property tax assessments. A homeowner whose property gains $15,000 in assessed value from a solar install pays no additional property tax on that increase, saving roughly $250 to $400 annually depending on local mill rates.

Texas does not exempt solar equipment from sales tax, so installation invoices include standard sales tax on hardware components.

Compare Texas's solar incentive package side-by-side with adjacent states to see whether you live in a relatively high- or low-incentive market.