Texas Solar & EV Incentives 2026 — Property Tax Exemptions & Utility Rebates
Texas offers a full property tax exemption on solar added home value plus a retail-rate net metering policy. Many utilities add their own rebates. The lone star state has become a major solar market with very competitive installation costs.
$19,000+
Max potential savings
4
Total incentives
12.9¢
Avg rate / kWh
9.5 yrs
Solar payback
$28,000
25-yr solar savings
1.2%
EV fleet share
Excellent ☀️☀️☀️
Solar potential
Solar Incentives in Texas
Solar Property Tax Exemption
100% of added value
Solar panel installations are fully exempt from the increased property tax assessment. No cap on system size.
Eligibility: All TX homeowners with solar.
AEP Texas Residential Solar Rebate
Up to $2,500
One-time rebate for installing rooftop solar for AEP Texas customers.
Eligibility: AEP Texas residential customers.
Battery Incentives in Texas
Oncor Home Battery Rebate
Up to $2,500
Rebate for qualifying home battery storage systems for Oncor customers.
Eligibility: Oncor electric customers in TX.
Heat Pump Incentives in Texas
HEAR Rebate (High Efficiency Electric Home Rebate)
Up to $14,000
Point-of-sale rebate up to $8,000 for heat pumps, $1,750 for HPWHs, $4,000 for panel upgrades. Income-based.
Eligibility: Households < 150% of Area Median Income. Program administered by state energy offices.
Get Free Solar Quotes for Your Home
Compare bids from pre-screened local installers through EnergySage — the nation's largest online solar marketplace.
Your estimated 25-year savings: $28,000
We may earn a referral commission through EnergySage, at no cost to you.
Solar Policy & Local Utilities in Texas
Net Metering
No statewide net meteringTexas has no statewide net-metering mandate because its retail electricity market is deregulated. Instead, individual retail providers and several municipal utilities offer optional solar buyback or 'value of solar' plans, so export credit varies significantly by provider.
Source: Public Utility Commission of Texas (PUCT) / DSIRE
Major Utilities
- Oncor (delivery)
- CenterPoint Energy (delivery)
- Austin Energy — Value of Solar tariff
- CPS Energy (San Antonio)
Texas Solar Facts
- Texas is among the fastest-growing solar markets and a national leader in total installed capacity. (SEIA)
- Texas runs its own grid (ERCOT); home battery interest rose sharply after Winter Storm Uri in February 2021. (ERCOT)
Last verified: 2026-06. Always confirm current terms with your utility or at DSIRE.
Is Solar Worth It in Texas?
Solar is a solid value in Texas, particularly when paired with battery storage. Lower electricity rates (12.9¢/kWh) extend payback to 9–11 years, but full property tax exemption and no state income tax make Texas economics favorable.
Nationally, EnergySage reports the average homeowner saves about $61,000 over 25 years by going solar — though actual savings vary by state, electricity rate, and system size.
Key Advantage
Texas offers full property tax exemption on solar added home value plus excellent sun (5.5 peak hours/day) that generates substantial annual production.
Watch Out For
With lower electricity rates than coastal states, payback periods are longer (9–11 years). Battery storage adds value given ERCOT grid reliability concerns after Winter Storm Uri.
Solar Cost & Savings in Texas (8 kW System)
| Item | Amount |
|---|---|
| Gross install cost | $21,200 |
| AEP Texas Residential Solar Rebate | −$2,500 |
| Net install cost | $21,200 |
| Annual energy savings | $1,657 |
| Simple payback period | 9.5 years |
| 25-year net savings | $28,000 |
The federal residential solar tax credit (Section 25D) expired Dec 31, 2025 and is not included above. State and utility incentives may still apply and are listed separately.
* Estimates based on 2.65/W avg install cost, 5.5 peak sun hrs/day, and 12.9¢/kWh rate with 2.5%/yr escalation. Individual results vary.
Get Free Solar Quotes for Your Home
Compare bids from pre-screened local installers through EnergySage — the nation's largest online solar marketplace.
Your estimated 25-year savings: $28,000
We may earn a referral commission through EnergySage, at no cost to you.
How to Go Solar in Texas: Step-by-Step
- 1
Check your electricity plan and rate
Texas has a deregulated energy market. Compare your plan rate to the 12.9¢/kWh average on Power to Choose (powertochoose.org). Higher rate plans make solar more valuable.
- 2
Assess your roof and sun exposure
South or west-facing roofs with minimal shading maximize production. Texas averages 5.5 peak sun hours/day statewide; El Paso reaches 6.5.
- 3
Get quotes and compare
Texas has a highly competitive installer market. Aim for $2.50–2.80/W. Use EnergySage or SECO's installer list.
- 4
Review property tax exemption paperwork
File for the 100% property tax exemption on your solar added home value with your county appraisal district. This is not automatic — you must apply.
- 5
Consider battery storage
Add a battery for grid independence and storm resilience. Note: The federal 25D ITC for batteries expired Dec 31, 2025. Check DSIRE.org for any remaining state battery incentives in Texas.
Frequently Asked Questions — Solar & Clean Energy in Texas
Is solar worth it in Texas in 2026?
Yes, especially with battery backup. Texas has excellent sun (5.5 peak hrs/day) but lower electricity rates (12.9¢/kWh) than coastal states, giving a 9–11 year payback. The full property tax exemption helps reduce net cost. Note: The federal 25D solar ITC expired Dec 31, 2025.
How much does solar cost in Texas in 2026?
Average install cost is $2.65/W in Texas. An 8 kW system costs ~$21,200 before any state/utility incentives. The federal 25D ITC expired Dec 31, 2025 — if installed in 2025, consult a tax professional. Texas has competitive installer markets due to rapid growth.
What solar incentives are available in Texas?
Texas homeowners can access: (1) Full property tax exemption on solar value added to home, (2) Some utility rebates (Oncor, AEP Texas, CPS Energy). Note: The federal 25D solar ITC expired Dec 31, 2025 — check DSIRE.org for current programs.
Should I add battery storage to solar in Texas?
Strongly recommended after Winter Storm Uri (2021). A 13.5 kWh Tesla Powerwall provides 1–2 days of essential loads. ERCOT's grid has improved but winter storm risk remains. Note: The federal 25D ITC for battery storage expired Dec 31, 2025.
Does Texas have net metering in 2026?
Texas net metering status: No statewide net metering. Texas has no statewide net-metering mandate because its retail electricity market is deregulated. Instead, individual retail providers and several municipal utilities offer optional solar buyback or 'value of solar' plans, so export credit varies significantly by provider. (Source: Public Utility Commission of Texas (PUCT) / DSIRE.)
Which utilities in Texas offer solar programs?
The main electric utilities in Texas are Oncor (delivery), CenterPoint Energy (delivery), Austin Energy, CPS Energy (San Antonio). Notable programs include Value of Solar tariff (Austin Energy). Confirm current offers with your utility and check DSIRE.org for Texas programs.
Recommended Products for Texas
Austin Energy 50% up to $1,200 · 2021 blackout = backup demand
Calculate Your Texas Savings
Use our free calculators with Texas's electricity rate (12.9¢/kWh) and gas prices ($1.22/therm) automatically applied.
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Data Sources & Methodology
Incentive data: DSIRE, U.S. DOE, IRS, and state energy offices. Electricity rates: EIA Electric Power Monthly (Feb 2026). Solar production: NREL PVWatts v8. Install costs: EnergySage National Market Report Q4 2025. Rate escalation: 2.5%/yr (20-yr EIA avg). Last updated February 2026. Always verify current amounts with the administering agency.