TX incentive guide
Texas solar incentives in 2026
Last updated · every TX program below is verifiable against the sources at the foot of this page.
The most valuable solar incentive in Texas right now is Utility rebates plus a property tax exemption. Overall, the state's incentive stack rates as moderate compared with the rest of the country.
The federal credit is gone — start here
The 30% federal residential clean energy credit (Section 25D) ended for systems installed after December 31, 2025. If you are buying a system in Texas this year, there is no federal credit. That is a roughly $7,320 swing on an $24,400 system compared with 2025 pricing, and it is why state programs matter more now than they did a year ago.
What Texas offers at a glance
| Incentive | Available? | Details |
|---|---|---|
| State income tax credit | No | — |
| Rebate or performance payment | Yes | Austin Energy, CPS Energy and Oncor have offered rebates |
| SREC market | No | — |
| Sales tax exemption | No | — |
| Property tax exemption | Yes | The value solar adds to the home is excluded from property tax assessment. |
| Federal tax credit | No | Section 25D ended for systems installed after December 31, 2025. |
Reviewed September 2026. Incentive programs change frequently and several are funding-capped — verify current status with the administering agency or DSIRE before relying on any figure.
Texas solar tax credit
There is no Texas solar tax credit in 2026, and no federal one either — Section 25D ended for systems installed after December 31, 2025. What Texas does offer on the tax side is property tax exemption, covered below.
Texas solar rebates and grants
Austin Energy, CPS Energy and Oncor have offered rebates. Rebate and grant programs are funding-limited and have opened and closed mid-year before, so confirm the current round is open before counting on it.
Texas has no state tax credit, but a property tax exemption applies to the added home value, and utilities such as Austin Energy, CPS Energy, and Oncor have offered rebates.
Net metering and export rates in Texas
Texas has no statewide net metering. In deregulated areas, solar buyback plans from retail providers range from near-retail credits to nothing — plan choice is a major economic variable. Municipal utilities and co-ops (Austin Energy, CPS) run their own programs.
Compare this with net metering in every other state.
Export rules deserve to be read as an incentive. In a retail net metering state, every exported kilowatt-hour is worth the full retail rate; under net billing or avoided-cost compensation, the same kilowatt-hour can be worth a third of that. For a Texas home at an assumed $0.16/kWh, that difference compounds across a 25-year system life.
What this means for your numbers
A typical 8 kW system in Texas costs roughly $18,800–$24,400 installed before incentives, producing about 12,120 kWh a year and saving around $1,598 in year one — a simple payback near 12–15 years with no incentives applied. Anything in the table above shortens that.
Frequently asked questions
What are Texas solar tax credits worth in 2026?
Texas offers no residential solar income tax credit in 2026, and the 30% federal credit ended for systems installed after December 31, 2025. What remains on the tax side is property tax exemption, which lower cost indirectly rather than paying you back.
Does Texas have solar rebates?
Yes. Austin Energy, CPS Energy and Oncor have offered rebates. Rebate programs in TX are funding-limited and have historically opened and closed mid-year, so confirm the current round is still accepting applications before you count the money.
Is there a Texas solar property tax exemption?
Yes. Texas excludes the value solar adds to a home from property tax assessment, so a system that raises your home's value does not raise your annual tax bill.
What solar incentives are available in Texas in 2026?
Texas has no state tax credit, but a property tax exemption applies to the added home value, and utilities such as Austin Energy, CPS Energy, and Oncor have offered rebates. Because the federal Section 25D credit ended for systems installed after December 31, 2025, these state, local and utility programs are now the entire incentive picture for a purchased system.
Is there still a 30% federal solar tax credit in Texas?
No. The 30% federal residential clean energy credit (Section 25D) ended for systems installed after December 31, 2025 under the One Big Beautiful Bill Act. Any quote or website still applying 30% to a 2026 purchased installation is out of date. Leased and PPA systems can still benefit indirectly, because the third party that owns the system may claim the commercial 48E credit through 2027 and pass some of the value through in pricing.
Does Texas have net metering?
Texas has no statewide net metering. In deregulated areas, solar buyback plans from retail providers range from near-retail credits to nothing — plan choice is a major economic variable. Municipal utilities and co-ops (Austin Energy, CPS) run their own programs. Export rules are effectively an incentive — often the largest one — because they set what every kilowatt-hour you do not use on site is worth.
How much do incentives change the cost of solar in Texas?
Before incentives, a typical 8 kW system in Texas runs roughly $18,800–$24,400. Austin Energy, CPS Energy and Oncor have offered rebates — the value depends on current funding. See our full Texas cost breakdown for payback math.
Verify before you rely on any of this
Incentive programs open, close, deplete their funding and change their caps — often mid-year. This page is a starting point reviewed September 2026, not tax advice. Confirm with: