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Texas Solar Incentives 2026 — Property Tax Exemption & Utility Programs

Texas exempts the added home value of solar from property tax, and Oncor runs a residential solar program for systems installed with battery backup. There is no statewide net metering in the competitive market; export credit depends on your retail electric provider's buyback plan. LBNL's 2024 data show the lowest median installed price among states with data ($3.25/W).

2

Incentive categories

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Program entries

15.94¢

Avg rate / kWh

12.7 yrs

Simple solar payback

$39,493

25-yr net solar savings

Excellent

Solar potential

Solar Incentives in Texas

Tax ExemptionSolar

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.

Source: Texas Tax Code § 11.27Learn more
RebateSolar

Oncor Residential Solar Program

Varies by system size and orientation

Incentive paid through participating service providers for residential solar installed with energy storage backup, up to 15 kW-DC. Programs typically run February through November while funds last.

Eligibility: Homes with Oncor as the electric delivery provider; battery backup required.

Source: Oncor Electric DeliveryLearn more

Heat Pump Incentives in Texas

RebateHeat Pump
Expires: State launch and funding vary

Federal HEAR Framework (State Availability Varies)

Statutory household cap up to $14,000

Federal law sets measure and household caps, but consumers can use rebates only where the state or territory program is active and funded. A listed cap is not an available award.

Eligibility: Income, equipment, project, state-program, and funding rules apply; confirm availability with the administering state program before purchase.

Source: DOE / HEAR Act (IRA)Learn more

Get Free Solar Quotes for Your Home

Open the external EnergySage marketplace to request and compare itemized solar proposals.

External site (not affiliated)Review quote assumptionsCompare itemized bids

Your estimated 25-year savings: $39,493

We are not affiliated with EnergySage and receive no commission or referral fee. The button opens an external site; review its terms and privacy policy.

Solar Policy & Local Utilities in Texas

Net Metering

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

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 (15.94¢/kWh) extend payback to about 12.7 years in our planning model, but full property tax exemption and no state income tax make Texas economics favorable.

Nationally, EnergySage reports the average U.S. homeowner saves about $60,500 over 25 years by going solar, without the expired federal credit (page updated June 2026). Actual savings vary by state, electricity rate, export rules, 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 (about 12.7 years in our planning model). Battery storage adds value given ERCOT grid reliability concerns after Winter Storm Uri.

Solar Cost & Savings in Texas (8 kW System)

ItemAmount
Gross install cost$26,000
Net install cost$26,000
Annual energy savings$2,048
Simple payback period12.7 years
25-year net savings$39,493

The federal residential solar tax credit (Section 25D) is not available for expenditures after Dec 31, 2025 and is not included above. State and utility incentives may still apply and are listed separately.

* Planning example for an 8 kW system: $3.25/W installed (LBNL 2024 median for Texas), 5.5 peak sun hrs/day, one 20% system derate, 0.5%/yr panel degradation from year two, and 15.94¢/kWh escalating 2.5%/yr. It assumes all production offsets electricity at the retail rate; actual self-consumption and export credits vary by utility tariff. Tax credits require eligibility and sufficient tax liability.

Get Free Solar Quotes for Your Home

Open the external EnergySage marketplace to request and compare itemized solar proposals.

External site (not affiliated)Review quote assumptionsCompare itemized bids

Your estimated 25-year savings: $39,493

We are not affiliated with EnergySage and receive no commission or referral fee. The button opens an external site; review its terms and privacy policy.

How to Go Solar in Texas: Step-by-Step

  1. 1

    Check your electricity plan and rate

    Texas has a deregulated energy market. Compare your plan rate to the 15.94¢/kWh average on Power to Choose (powertochoose.org). Higher rate plans make solar more valuable.

  2. 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. 3

    Get quotes and compare

    Compare itemized quotes from several installers against LBNL's 2024 Texas median of about $3.25/W; prices vary widely by installer.

  4. 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. 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 (15.94¢/kWh) than coastal states, giving an 12.7-year modeled 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?

LBNL's Tracking the Sun data put the 2024 median installed price of host-owned residential systems in Texas at about $3.25/W, or $26,000 for an 8 kW system before any state or 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

Product examples are provided for comparison only. Confirm electrical compatibility, installer requirements, warranty terms, and any current utility incentive before purchase.

Calculate Your Texas Savings

The Solar ROI link preselects Texas's planning inputs, including the listed electricity rate (15.94¢/kWh). Other tools open with their own defaults; review every input before calculating.

Browse Other States

Data Sources & Methodology

Incentive data: DSIRE, U.S. DOE Home Energy Rebates, IRS residential credit guidance, and linked state program pages. Electricity rates: EIA Electric Power Monthly, Table 5.6.A (June 2026). Solar resource: NREL PVWatts reference with state-level planning inputs, not an address-specific API result. Installed price: LBNL Tracking the Sun (Residential systems installed in 2024), a median rather than a quote. The 2.5% annual rate change is a model assumption, not a forecast. Sources and methodology reviewed 2026-09-06. Always verify current amounts with the administering agency and utility.