Texas Solar Incentives 2025

We can reduce the electricity bill of our house by installing solar panels, making it a long-term investment. Many cities in Texas have adopted this approach and the government also provides rebates and incentives to people for domestic solar installation. In this blog, we will discuss the Texas Solar Incentives 2023 in detail along with their solar programs.

Texas Solar Incentives

Texas has become the state that produces the most solar energy. It has made this record by producing around 17,247 MW of energy so far. Your location and the incentives provided by the local government or utility company will greatly impact your decision. Let’s check out the following one-time Texas solar incentive programs.

Local Texas Solar Incentive	Estimated Savings	Eligible Location	Eligibility
AEP Texas SMART Source Solar PV Program	Up to $3,000/PV system	AEP Texas service territory	Home solar systems up to 30 kW
Austin Energy Solar PV Rebate and Incentives	Up to $2,500/PV system	Austin	Home solar systems at least 3 kW of installed capacity
CenterPoint Energy Residential	$225/kW or $0.08/kWh	CenterPoint service territory	Offered through approved contractors
Oncor Residential Solar Program	Up to $9,000/PV system	Oncor service territory, including the Dallas-Fort Worth area	Available for 3–15 kW home solar systems with batteries

Texas Solar Programs

In this section, we are going to know some more details about these programs or Texas solar incentives.

1. Oncor Residential Solar Program

This program is for people working in Oncor, and it covers areas like Dallas and Fort Worth. In this program homeowners get around $9000 incentive from the government to install a 3 to 15-kilowatt solar panel with battery.

You can also check out the Ontario Solar Panel Program.

2. Center Point Energy Residential Solar Program

This is available for people working in Centre Point Energy, and it covers many areas of Texas. Under this program, the government pays $225 for every kilowatt or $0.08 kilowatt of solar energy generated. To avail it you will have to work with a contractor to install solar panels.

3. AEP Texas SMART Source Solar PV Program

Through this people working at AEP Texas can get a $3000 incentive for installing 30-kilowatt residential solar panels.

4. Austin Energy Solar PV Rebate & Incentives

It is available in the City of Austin and you get an incentive amount of $2500 from the government for installing at least 3 kilowatt solar panels in your house. Along with this, you will have to take a solar panel course.

5. Property Tax Exemption

Texas law offers a property tax exemption for solar installations – meaning your property taxes won’t go up even if solar increases your property value. This is applicable for residential and commercial both.

6. Multifamily Residential Property Owners

Property owners can receive assistance from the loan program known as the Fannie Mae Green Initiative.

7. Renewable Energy Buy-Back Programs

Customers in deregulated areas, specifically in the Oncor service territory, have the option to select a retail electric provider that will purchase any excess power generated during the billing period.

Also See: Solar Panel Rebates in BC

Additional Texas Solar Incentives for Commercial Installations

If you are planning installation for your business, large or small, the following are the available incentives in the state.

1. Federal Tax Credit: The Business Energy Investment Tax Credit (ITC) offers 30% credit on the total project cost for various renewable energy projects, such as solar PV, with no maximum limit. Thanks to the extension provided by Section 13302 of The Inflation Reduction Act of 2022 (H.R. 5376), this tax credit is now available until 2035, and the phase down has been modified.

2. Property Assessed Clean Energy (PACE): Financing for energy improvements, including solar, is possible through PACE by attaching an assessment to the property and paying it back through property taxes. To expand PACE financing availability in your region, discuss with your city the possibility of creating a PACE district.

3. Rural Energy for America Program:: REAP is a program by the US Department of Agriculture that offers loans and grants to farmers and rural businesses for renewable energy systems or energy efficiency improvements. You can use the map provided by USDA Rural Development website to find out the eligibility criteria of your area.

4. Solar Energy Devices Franchise Tax Exemption: Businesses in Texas are able to deduct the expense of a solar energy device from their franchise taxes thanks to state law.

Incentives for Local Government Installations

Public owned entities can also benefit from the following program.

1. State Energy Conservation Office (SECO) LoanSTAR: Public-owned facilities can get low-interest revolving loans for energy-saving projects through SECO.

Cross-Reference: Available Incentives – Go Solar Texas

How To Claim Texas Local Incentives

All these incentives can be claimed only once and are managed by different electric companies. Moreover, the eligibility requirements also differ based on location and time. So, you must contact the distinguished contractor to claim the right incentives. Similarly, net metering programs in Texas are administered by various electric companies, which results in differing technical criteria and compensation rates.

Free Solar Panels in Texas

There is no such thing as free solar panels in Texas, but there are several rebates offered by local government and utility companies that help reduce the cost significantly. These rebates are decided upon several factors, including:

How much do you earn?
Where do you live?
What type of solar panels do you want to use?

The federal solar investment tax credit (ITC) is a residential incentive introduced by the federal government in 2006. By simply installing solar panels on your home, you can get around 30% of your overall system costs. For example, you are investing in a 10 kilowatt (kW) system for $33,000. With this you could qualify for a tax credit of $9,900.

ITC is a tax credit, not a refund, and it can be claimed when installing solar system to offset federal income tax. Unused credit can be carried over for 5 years. By combining this with state tax incentives and other local programs, you can further reduce the upfront cost of the solar system.

Also Read: Solar Incentives and Rebates in Canada

Solar Panels in Texas Pros and Cons

This content will be incomplete if the pros and cons are not added. Here, we are going to pay attention to this and come up with some interesting points.

Pros	Cons
They are good for electricity demand, minimize environmental damage, and offer financial benefits.	Insufficient sunlight may decrease output from the solar panel, necessitating dependence on grid power.
Lifespan of over a decade, saving on electricity bills.	Limited space makes solar panel installation challenging as it requires ample sunlight.
Battery backup with solar panels reduces reliance on grid power during power outages.	Grid-free power requires efficient battery backups, but full off-grid may be illegal in some areas.
The resale value of your house will also rise.	Solar panel systems are expensive, so many people don’t want to buy them.

Opting for Texas solar incentives means you can get financial assistance based on the eligibility criteria and make long-term savings. So, what are you waiting for? It is the right time to embrace the solar programs and claim rebates. For more solar content, keep scrolling through our website.

Texas Solar Incentives