Texas solar incentives in 2026

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Federal tax credits: what changed

The 30% federal residential clean energy credit (Internal Revenue Code Section 25D) ended under the 2025 federal budget law for expenditures made after December 31, 2025. Homeowners who buy or finance a system in 2026 can't claim it. Commercial credits used by companies that lease solar to homeowners are also being phased down; if a lease or PPA quote mentions tax credits, ask how they're reflected in your price. Confirm your situation with a tax professional or IRS.gov.

Texas property tax exemption

Texas exempts the added appraised value from a solar energy system from property taxes (Tax Code §11.27). File Comptroller Form 50-123 with your county appraisal district.

Utility rebates

Rebates depend on who delivers your power, and budgets often run out each year:

• Austin Energy: offers a residential solar rebate and a Value of Solar bill credit. Details on Austin Solar Quotes.
• CPS Energy (San Antonio): has offered solar rebates. Check the current program on its website.
• Oncor, CenterPoint, AEP Texas, TNMP: these delivery companies have periodically funded solar or efficiency incentives through installers. Ask installers what's open now.
• Electric co-ops set their own rules. Check your co-op directly.

Buyback plans in deregulated areas

If you can choose your electricity provider, your exported solar power is credited according to your retail plan, not by law. Some providers offer solar buyback plans, crediting exports at the energy rate or a wholesale rate; others pay nothing. Compare plans on powertochoose.org and read the Electricity Facts Label for buyback terms.

Sales tax

Texas does not currently provide a general sales tax exemption for residential solar equipment. Ask your installer how tax appears on your quote.

Compare installers who know your utility's programs: