Going Solar in Texas? Don’t Miss These Money-Saving Incentives

Q: Does Texas have a state solar tax credit?

No, but the federal solar tax credit (30%) and property tax exemption provide major savings.

Q: How much do solar panels cost in Texas after incentives?

A typical 5kW system (~$15,000) may cost $10,500 after the federal tax credit , plus additional rebates.

Q: Can I get free solar panels in Texas?

While there are no truly "free" solar panels, leasing programs and PPAs offer $0-down options with monthly savings.

Switching to solar power in Texas isn’t just good for the environment—it’s also great for your wallet. Thanks to solar incentives in Texas, homeowners can save thousands on installation costs and reduce their energy bills for years to come. Whether you’re in Houston, Dallas, Austin, or San Antonio, there are Texas solar rebates, tax credits, and buyback programs that make going solar more affordable than ever.

In this guide, we’ll break down the best solar incentives in Texas, including federal and state programs, local utility rebates, and other money-saving opportunities.

1. Federal Solar Tax Credit (ITC)

One of the biggest incentives for Texas homeowners is the federal solar tax credit, also known as the Investment Tax Credit (ITC). Here’s how it works:

30% credit on your solar panel system cost (including installation)
Available for systems installed through 2032
Reduces your federal income tax liability

For example, if your solar system costs $20,000, you could get $6,000 back as a tax credit. This makes solar power much more affordable upfront.

2. Texas Solar Property Tax Exemption

Worried about higher property taxes after installing solar panels? Texas offers a solar property tax exemption, meaning:

No increased property taxes from your solar installation
Applies to 100% of the added home value from solar panels
Available statewide for residential and commercial properties

This ensures your energy savings aren’t wiped out by higher tax bills.

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3. Net Metering & Solar Buyback Programs

Many Texas utility companies offer net metering or solar buyback programs, allowing you to earn credits for excess energy your panels produce. Some top programs include:

Austin Energy: Full retail-rate credits for excess solar power
CPS Energy (San Antonio): Rebates + solar buyback options
Oncor: Compensation for surplus energy sent to the grid

These programs help maximize your savings by reducing or even eliminating your electric bill.

4. Local Solar Rebates in Texas

Several Texas cities and utilities offer solar rebates to further lower costs:

Austin Energy: Up to $2,500 rebate for solar installations
CPS Energy: $2,500 solar rebate for qualifying systems
Guadalupe Valley Electric Cooperative (GVEC): Rebates for members

These rebates can be stacked with the federal tax credit for even bigger savings.

5. Solar Financing & Low-Interest Loans

If you can’t pay for solar panels upfront, Texas has options:

Texas Solar Loan Programs: Low-interest financing for solar
PACE Financing: Lets you repay through property taxes
Leasing & Power Purchase Agreements (PPAs): $0-down options

These programs make solar accessible without a huge initial investment.

Is Going Solar in Texas Worth It?

With strong sunlight, high electricity rates, and generous solar incentives in Texas, the answer is yes. Here’s why:

✅ Lower energy bills – Solar panels can cut your electricity costs by 50-100%
✅ Increased home value – Homes with solar sell faster and for more money
✅ Energy independence – Protect yourself from rising utility rates
✅ Eco-friendly power – Reduce your carbon footprint

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Texas offers some of the best solar incentives in the country, from the 30% federal tax credit to local rebates and net metering. By taking advantage of these programs, you can slash your energy costs while contributing to a cleaner future.

Ready to go solar? Check with your local utility company, compare installers, and start saving today!