Texas Solar Incentives, Tax Credits & Rebates 2024
Last updated: 2026-01Incentive Score
Total Savings Estimate
A typical 8kW system in Texas costs $43,120. After the 30% federal tax credit: $30,184. Estimated annual savings: $1,500.
Federal Investment Tax Credit (ITC)
Federal Solar Investment Tax Credit (ITC)
Tax Credit30% of total system cost
The federal ITC allows you to deduct 30% of the cost of installing a solar energy system from your federal taxes. This applies to both residential and commercial systems with no cap on value.
Eligibility
Available to homeowners who own their solar system (purchased, not leased). Must have sufficient tax liability.
Expiration / Phase-Down
30% through 2032, steps down to 26% in 2033 and 22% in 2034
Texas State Incentives
Local Utility Rebates
RebateVaries by utility; CPS Energy offers up to $2,500
Several municipal utilities and co-ops offer solar rebates. CPS Energy in San Antonio has one of the strongest programs.
Solar Rights Law
policyN/A
Texas law protects homeowners' rights to install solar panels and prohibits HOAs from banning solar installations entirely.
Tax Exemptions
property tax Exemption
100% property tax exemption for the added value of a solar installation under Texas Tax Code 11.27.
sales tax Exemption
Texas does not exempt solar equipment from state sales tax (6.25%).
Utility Programs
Oncor (serves Dallas/Fort Worth)
- Distributed generation interconnection
- No specific solar rebate
CenterPoint Energy (serves Houston)
- Solar interconnection program
CPS Energy (San Antonio)
- Solar rebate up to $2,500
- Net metering at avoided cost
Highlights & Drawbacks
Highlights
- ✓Property tax exemption saves thousands over system life
- ✓No state income tax — federal ITC is the main incentive
- ✓Strong solar resource reduces payback period
Drawbacks
- !No statewide net metering mandate
- !No state income tax credit (no income tax at all)
- !Sales tax applies to solar purchases
- !Utility buyback rates are often low
Source: DSIRE (Database of State Incentives for Renewables & Efficiency), U.S. Department of Energy, state energy offices. Data reflects programs available as of 2026-01.