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.

Texas credits exported solar at roughly ~25–50% of retail of the retail rate. See full Texasnet metering rates & rollover rules →

Solar installs in Texas average $2.65 per watt in 2026. A typical 8 kW system runs about $21,200 before incentives. After the 30% federal credit, the net cost drops to roughly $14,840 — the real number most TX homeowners pay.

Your price moves with system size, roof complexity, and equipment tier. Run the Texas savings calculator for a number matched to your actual electricity bill.

No — there is no government program handing out free solar in Texas. “Free solar” and “no-cost solar program” ads are leases or power purchase agreements (PPAs): a company owns the panels, claims the 30% federal credit for itself, and bills you for the power.

Buying your system — with the incentives in your name — almost always wins on lifetime savings. Read the full breakdown of “free solar” offers →

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.