Solar Incentives in Texas (2026)
Texas homeowners pay an average of $0.13/kWh for electricity. With the right incentives, solar can offset a significant portion of that cost. Below are the 4 active programs available in Texasas of February 2026.
Federal ITC Update: The federal residential solar tax credit (Section 25D) expired December 31, 2025 per the One Big Beautiful Bill Act (Public Law 119-21). The commercial ITC (Section 48E) remains active at 30% for systems under 1 MW through 2032. State and utility programs listed below remain in effect.
Active Incentive Programs
| Program | Type | Authority | Amount | Description |
|---|---|---|---|---|
| Property Tax Exemption | Texas Comptroller of Public Accounts State | 100% of added home value from solar is exempt from property tax | Solar panels are exempt from increasing your property tax assessment. All residential solar installations in Texas. | |
| Net Metering | Various retail electric providers (TXU, Green Mountain, Reliant, etc.) Utility | TXU: 3.5-6¢/kWh. Green Mountain: 11-12.8¢/kWh. Rates vary by plan and provider. | Texas has no mandatory net metering, but many retail electric providers offer solar buyback plans that credit excess generation. Rates vary by provider and plan. Customers in deregulated ERCOT areas with grid-tied solar. Municipal utilities (Austin Energy, CPS Energy, etc.) have separate programs. | |
| Rebate | CPS Energy (San Antonio) Utility | Up to $3,600 rebate + $500 bonus for locally sourced panels | Rebate for CPS Energy customers installing solar PV systems. Additional $500 available for panels sourced from local manufacturers. CPS Energy residential customers in San Antonio service area. | |
Garland Power & Light EnergySaver Solar Rebate Expires: Sep 30, 2026 | Rebate | Garland Power & Light Utility | $0.0469/kWh utility bill credit | Utility bill credit for residential solar PV installations. System max 10kW-AC, 600V. Garland Power & Light residential customers. |
Data sourced from DSIRE, EnergySage, and state energy offices. Last verified February 2026. Verify all programs directly with the administering authority.
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Programs vary by utility and municipality within Texas. Enter your ZIP code to see exactly which incentives apply to your address.
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Open ROI CalculatorFrequently Asked Questions
Does Texas have a solar tax credit in 2026?
Texas does not currently have a state-level solar income tax credit, but there are other incentives available such as net metering, property tax exemptions, and utility rebates. The federal residential ITC (Section 25D) expired December 31, 2025.
What is the average electricity rate in Texas?
The average residential electricity rate in Texas is approximately $0.13/kWh as of 2026. Higher utility rates generally improve solar ROI.
Does Texas have net metering?
Yes. Texas has a net metering or net billing policy that credits solar owners for excess electricity exported to the grid. See the incentives table above for current rates and program details.
Is solar equipment exempt from sales tax in Texas?
Texas does not currently offer a statewide sales tax exemption for solar equipment.
Does going solar increase property taxes in Texas?
No. Texas offers a property tax exemption for solar energy systems, meaning the added home value from solar is not included in your property tax assessment.
Did the federal solar tax credit expire?
Yes. The federal residential solar tax credit (Section 25D) expired December 31, 2025 per the One Big Beautiful Bill Act (Public Law 119-21). The commercial ITC (Section 48E) remains active at 30% for systems under 1 MW through 2032.