Solar incentives / Texas

Solar incentives in Texas

Federal, state and utility programs that reduce the cost of a home solar or battery system in Texas. Each record links to its source. Programs change often and can run out of annual funding — confirm current terms before relying on a number.

ProgramValueTypeExpiresSource
Federal Residential Clean Energy Credit (Section 25D)
federal · United States
30% of eligible system cost for property placed in service 2022–2025; 0% for installs after 2025-12-31 (terminated by the 2025 budget-reconciliation law). tax credit 2025-12-31 IRS — Residential Clean Energy Credit ↗
verified 2026-08-30

No statewide incentive. Many Texas utilities and co-ops (e.g. Austin Energy, CPS Energy) run their own rebates, and solar is exempt from the added property-tax value.

What this does to your payback in Texas

For an average Texas bill, a whole-home system runs about $27,471 net of modeled incentives, with roughly a 11.2-year payback. Run it with your own bill in the Solar Decision Engine.

Estimate my incentives & payback

Frequently asked questions

What solar incentives can I get in Texas?

No statewide incentive. Many Texas utilities and co-ops (e.g. Austin Energy, CPS Energy) run their own rebates, and solar is exempt from the added property-tax value. The federal residential tax credit is 30% for systems placed in service through 2025 and 0% afterward.

Does Texas have a state solar tax credit?

No state income-tax credit for solar is modeled for Texas. Utility rebates and tax exemptions may still apply.

Is the federal solar tax credit still available?

Only for residential systems placed in service on or before 2025-12-31. A 2026+ residential install does not qualify for the Section 25D credit. Details →