Solar Incentives & Tax Credits in Texas (2026)
Texas residents can take advantage of multiple solar incentives to reduce the cost of going solar. With 4 state and local programs, homeowners can significantly lower their upfront investment and accelerate their payback period.
Available Incentives in Texas
Property Tax Exemption
ExemptionTexas exempts 100% of the added home value from solar panels from property taxes.
Value
100% exemption on added value
Eligibility
All residential solar installations
Sales Tax Exemption
ExemptionSolar energy equipment is exempt from state sales tax in Texas.
Value
6.25% state sales tax exemption
Eligibility
All solar equipment purchases
Utility Buyback Programs
ProgramMany Texas retail electricity providers offer solar buyback programs that credit you for excess generation.
Value
Varies by provider (some offer 1:1 credits)
Eligibility
Customers in deregulated areas (most of Texas)
Local Utility Rebates
RebateSome Texas utilities (CPS Energy, Austin Energy) offer rebates for solar installations.
Value
Up to $2,500 depending on utility
Eligibility
Customers of participating utilities
Net Metering in Texas
Texas does not have a statewide net metering mandate, but many retail electricity providers in the deregulated market offer solar buyback plans. Some providers offer 1:1 credits for exported solar energy.
Renewable Portfolio Standard (RPS)
Texas RPS Target
No mandatory solar carve-out (exceeded wind/solar voluntary targets)
A strong renewable portfolio standard signals long-term government support for solar energy, which often translates to continued incentives and favorable policies for homeowners.
Solar Incentive FAQs for Texas
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