Texas Solar Incentives and Rebates

Texas is one of the leading states in the US for solar energy production, thanks in part to the various incentives and rebates available to residents and businesses. These incentives and rebates make it more affordable for individuals and companies to invest in solar energy, which in turn helps to increase the amount of renewable energy being produced in the state.


The Federal Investment Tax Credit in Texas

One of the most significant incentives available to Texas residents is the Federal Investment Tax Credit (ITC). The ITC is a federal tax credit that allows individuals and businesses to deduct 22% of the cost of their solar installation from their federal taxes. This can be a significant savings for those who are looking to invest in solar energy.


The State Tax Credit in Texas

It’s important to note that there is no State Tax Credit in Texas for Solar Energy. However, the state does offer a variety of other incentives and rebates to encourage the adoption of solar energy. For more information on tax credits and incentives in Texas, you can refer to this link: https://comptroller.texas.gov/economy/fiscal-notes/2018/april/solar.php


State-Wide Solar Initiatives in Texas

Texas has a variety of state-wide solar initiatives that are designed to encourage the adoption of solar energy throughout the state. These initiatives include:


Texas Solar Rights: Texas has a law called the “Texas Solar Rights Law” which ensures that homeowners and businesses have the right to generate electricity from solar energy on their own property. This law helps to protect the rights of property owners and makes it easier for them to install solar panels without fear of interference from their homeowners’ association or local government.


Local Incentives

In addition to the state-wide initiatives, there are also a number of local incentives available to residents of Texas. These incentives vary depending on the area and the utility provider, but they can provide significant savings for those who are looking to install solar panels. Some of the local incentives include:


Oncor Electric Delivery Residential Solar Program: This is Oncor’s rebate program for new, grid-connected solar installations. The rebate amount varies based on eligibility, but it can be as much as $2,000 per system.


CPS Solar PV Rebate Program: This is a solar rebate from CPS for newly installed solar arrays. The rebate amount also varies but averages around $2,000 per system.


City of San Marcos Distributed Generation Rebate Program: This is a rebate for residents of San Marcos, TX. It provides up to $1 back per watt installed up to $2,500 per solar project.


Austin Energy Residential Solar PV Rebate Program: This rebate is for up to $2,500 per project for Austin Energy customers who install grid-connected systems.


Austin Energy Value of Solar Program: This incentive from Austin Energy is similar to Solar Renewable Energy Certificates (SRECs). It credits customers for the energy their solar panels produce and also for the energy they save by reducing their reliance on the grid.


Garland Power & Light EnergySaver Solar Rebate Program: This perk from Garland Power & Light is also similar to SRECs. Credits up to $0.0469 for every kWh of energy.


Denton Municipal Electric (DME) Residential GreenSense Energy Efficiency Rebate Program: This is a great solar rebate from DME that provides cash back amounts between $0.40 and $1.50 per watt up to $30,000.


CenterPoint Energy Residential and Hard-to-Reach Energy Efficiency Program: This is a rebate program for CenterPoint Energy customers. The credit amount is $0.04/kWh produced, which can add up to hundreds of dollars over time.


CPS Residential Energy Efficiency Rebate Program: This rebate program from CPS provides up to $2,500 or 50% of your system total — whichever is lower — as an upfront rebate.


City of Plano Smart Energy Loan Program: This is an affordable and accessible loan program afforded to residents of Plano, TX. It provides financing up to $25,000 with low APRs and down payment requirements.


AEP Texas North and Central Companies SMART Source Solar PV Rebate Program: This incentive provides up to $3,000 back for grid-tied solar arrays, depending on the size of your system and remaining funds. Some restrictions apply, like the requirement for system warranties.


City of Sunset Valley PV Rebate Program: Finally, residents of Sunset Valley can get up to $1.00 per watt installed in rebates up to 3,000 watts or up to $3,000 total per system. 


All of these incentives and rebates can help to make solar more affordable for those wanting to transition to renewable energy. 


State-wide tax exemptions in Texas

There are no state-wide tax exemptions in Texas specifically for solar energy.


State-Specific Laws on Solar Easements in Texas

Texas currently does not have any state-specific laws on Solar Easements. A solar easement is a legal agreement between two property owners that ensures that a property owner’s solar panels will not be shaded by adjacent buildings or trees. However, Texas does have general easement laws which can be used to protect solar access rights.


Net Metering in Texas

Another important aspect of solar energy in Texas is how the power generated by the solar panels is credited. This is done through a system called net metering. Net metering allows property owners to receive credits on their electricity bills for any excess solar power that is generated and sent back to the grid. This can help to offset the cost of electricity for property owners and make it more financially viable for them to invest in solar energy.


Benefits of Going Solar in Texas

There are many benefits to going solar in Texas. Some of the key benefits include:

  • Reduced electricity bills: By generating your own electricity through solar panels, you can significantly reduce the amount of money you spend on electricity each month.
  • Increased property value: Having solar panels installed on your property can increase its value, making it more attractive to potential buyers.
  • Improved home resale value: As solar energy becomes more popular, homes with solar panels are likely to be more attractive to buyers and therefore may sell for a higher price.
  • Tax incentives: As previously mentioned, Texas offers a variety of tax incentives, including the Green Energy Property Tax Assessment, that can help to offset the cost of installing solar panels.



Overall, Texas offers a variety of incentives and benefits for those who are looking to invest in solar energy. From state-wide tax exemptions to net metering, there are many ways for property owners to save money and reduce their reliance on traditional sources of electricity. Additionally, the benefits of going solar in Texas, such as reduced electricity bills, increased property value, improved home resale value, and tax incentives, make it an attractive option for those looking to invest in renewable energy.




What is the average cost of solar installation in Texas?

The average cost of solar installation in Texas is around $3.00 per watt.


What incentives are available for installing solar in Texas?

Incentives available for installing solar in Texas include the Solar Rebate and the Renewable Energy Tax Credit.


Are there any special regulations I should be aware of when installing solar in Texas?

Yes, there are certain regulations that must be followed when installing solar in Texas, including ensuring the system is certified and approved by the local municipality.


What types of solar panels are available in Texas?

Types of solar panels available in Texas include monocrystalline, polycrystalline, and thin-film. Find out more about the different types of solar panels at SolarEmpower.


Are there any solar panel warranties available in Texas?

Yes, many solar panel manufacturers offer warranties for panels installed in Texas. These warranties typically cover defects in materials and workmanship. Find expert reviews of solar installers in Texas as SolarEmpower.