Texas Solar Incentives, Tax Credits & Rebates 2026
State-program snapshot: 2026-01 · Federal status reviewed: 2026-08-06Cost Context
An illustrative 11.0 kW system using the historical observed average cost in Texas is $43,120. New federal residential credit for a 2026 installation: $0. Modeled annual savings before financing: $2,734.
Federal Residential Credit Status
Residential Clean Energy Credit
Ended for new 2026 systems0% for property placed in service in 2026
IRS guidance states that the 30% credit applied to qualified residential clean-energy property installed from 2022 through December 31, 2025. It is not available for property placed in service after that date.
Eligibility
No new residential credit for a system first placed in service in 2026. A previously earned unused credit may be eligible for carryforward under IRS rules.
Primary source
IRS Residential Clean Energy Credit guidance ↗Texas State Program Snapshot
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.
State and utility programs can change between reviews. Confirm eligibility, funding and deadlines with the administering agency or utility before relying on this snapshot.
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
- ✓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
State-program sources: DSIRE, state energy offices and utilities; snapshot dated 2026-01. Programs, funding and eligibility can change without notice. Federal residential status reviewed against IRS guidance on August 6, 2026.