Texas Solar Incentives

Texas Solar Incentives, Tax Credits, and Rebates

There are several incentives in Texas that make investing in solar and renewable energy cost-effective.

Texas Net Metering

Net metering is a billing mechanism that allows your solar panels to give you a credit for putting electricity into the grid. When your solar panels produce more electricity than you can use, the leftover energy is back on to the grid and you get credit for the energy you produced.

In Texas, net metering policies differ depending on your utility. For example, Austin has net metering, but Fort Worth does not. Fortunately, there are some energy providers that will buy your excess solar generated power. Green Mountain Energy is one of the largest renewable energy providers that will purchase your energy.

Federal solar tax credit in Texas

Texas residents can claim the federal solar tax credit. Currently, the federal solar tax credit is 26% of the total cost of your new solar panel system. This includes the installation labor, equipment, and permitting costs.

For Example, if your solar panel system costs $25,000, your tax credit would be $25,000 x 26% = $6,500.

You can learn more about the federal solar tax credit here.

Texas Incentive Database

Name	State	Category	Type
Fuel Mix and Emissions Disclosure	TX	Regulatory Policy	Generation Disclosure
San Antonio City Public Service - Distributed Generation Program	TX	Regulatory Policy	Net Metering
Solar and Wind Energy Device Franchise Tax Deduction	TX	Financial Incentive	Corporate Tax Deduction
Solar and Wind Energy Business Franchise Tax Exemption	TX	Financial Incentive	Industry Recruitment/Support
Renewable Energy Systems Property Tax Exemption	TX	Financial Incentive	Property Tax Incentive
Texas - Net Metering	TX	Regulatory Policy	Net Metering
Austin Energy - Net Metering	TX	Regulatory Policy	Net Metering
Certification of Solar Collectors	TX	Regulatory Policy	Equipment Certification
Mandatory Renewable Energy Educational Materials	TX	Regulatory Policy	Line Extension Analysis
Austin Energy - Solar Water Heating Rebate	TX	Financial Incentive	Rebate Program
Austin Energy - Solar Loan Program	TX	Financial Incentive	Loan Program
Austin Energy - Home Energy Loans	TX	Financial Incentive	Loan Program
Big Country Electric Coop - PV Water Pump Sales & Lease Program	TX	Financial Incentive	Leasing Program
Hansford County Tax Abatement	TX	Financial Incentive	Industry Recruitment/Support
Interconnection Standards	TX	Regulatory Policy	Interconnection
Ethanol and Biodiesel Production Incentive	TX	Financial Incentive	Performance-Based Incentive
LoanSTAR Revolving Loan Program	TX	Financial Incentive	Loan Program
American Electric Power - Standard Offer Demand Response Program	TX	Financial Incentive	Rebate Program
Texas Gas Service - Residential Energy Efficiency Rebate Program	TX	Financial Incentive	Rebate Program
Texas Gas Service - Commercial Energy Efficiency Rebate Program	TX	Financial Incentive	Rebate Program
Texas Gas Service - Commercial Water Heating Energy Efficiency Program	TX	Financial Incentive	Rebate Program
Texas-New Mexico Power Company - Residential and Hard-to-Reach Standard Offer Programs	TX	Financial Incentive	Rebate Program
Texas-New Mexico Power Company - Energy Star Homes Market Transformation Program	TX	Financial Incentive	Rebate Program
Xcel Energy - Commercial and Industrial Standard Offer Program	TX	Financial Incentive	Rebate Program
Xcel Energy - Residential and Hard-to-Reach Standard Offer Program	TX	Financial Incentive	Rebate Program
Xcel Energy - Air Conditioner Distributor Program	TX	Financial Incentive	Rebate Program
Building Energy Code	TX	Regulatory Policy	Building Energy Code
Austin Energy - Residential Energy Efficiency Loan Program	TX	Financial Incentive	Loan Program
Austin Energy - Commercial Energy Management Rebate Program	TX	Financial Incentive	Rebate Program
Austin Energy - Multi-Family Energy Efficiency Rebate Program	TX	Financial Incentive	Rebate Program
Austin Energy - Weatherization Assistance Program	TX	Financial Incentive	Rebate Program
Bryan Texas Utilities - Low-Interest Insulation Loan Program	TX	Financial Incentive	Loan Program
Bryan Texas Utilities - Energy Efficiency Loan Program	TX	Financial Incentive	Loan Program
College Station Utilities - Residential Energy Efficiency Rebate Programs	TX	Financial Incentive	Rebate Program
Denton Municipal Electric - Residential GreenSense Energy Efficiency Rebate Program	TX	Financial Incentive	Rebate Program
Tri-County Electric Cooperative - Energy Efficient Water Heater Rebate Program	TX	Financial Incentive	Rebate Program
Pedernales Electric Cooperative - Residential Energy Efficiency Rebate Program	TX	Financial Incentive	Rebate Program
Magic Valley Electric Cooperative - Residential Energy Efficiency Rebate Program	TX	Financial Incentive	Rebate Program
Farmers Electric Cooperative - Residential Energy Efficiency Rebate Program	TX	Financial Incentive	Rebate Program
Energy Efficiency Goals and Requirements for Public Entities	TX	Regulatory Policy	Energy Standards for Public Buildings
San Antonio City Public Service (CPS Energy) - Renewable Portfolio Goal	TX	Regulatory Policy	Renewables Portfolio Standard
Oncor Electric Delivery - Energy Star Homes Program	TX	Financial Incentive	Rebate Program
Oncor Electric Delivery - Home Energy Efficiency Program (Texas)	TX	Financial Incentive	Rebate Program
CenterPoint Energy - Commercial and Industrial Energy Efficiency Programs	TX	Financial Incentive	Rebate Program
CenterPoint Energy - Residential and Hard-to-Reach Energy Efficiency Program	TX	Financial Incentive	Rebate Program
Entergy Texas - Residential and Small Commercial Standard Offer Program	TX	Financial Incentive	Rebate Program
Entergy Texas - Commercial Solutions Programs	TX	Financial Incentive	Rebate Program
City of Frisco - Residential and Commercial Green Building Requirements	TX	Regulatory Policy	Building Energy Code
Frisco - Municipal Green Building Program	TX	Regulatory Policy	Energy Standards for Public Buildings
City of Dallas - Green Building Policy for Municipal Buildings (Energy Efficiency Requirements)	TX	Regulatory Policy	Energy Standards for Public Buildings
City of Austin - Green Power Purchasing	TX	Regulatory Policy	Green Power Purchasing
ENERGY STAR Sales Tax Holiday for Energy-Efficient Products	TX	Financial Incentive	Sales Tax Incentive
CPS Energy - Solar PV Rebate Program	TX	Financial Incentive	Rebate Program
CPS Energy - Commercial Energy Efficiency Rebates	TX	Financial Incentive	Rebate Program
City of Houston - Green Power Purchasing	TX	Regulatory Policy	Green Power Purchasing
City of Houston - Green Building Policy for Municipal Buildings	TX	Regulatory Policy	Energy Standards for Public Buildings
Bryan Texas Utilities - Solar PV Rebate Program	TX	Financial Incentive	Rebate Program
Oncor Electric Delivery - Data Center Energy Management Pilot Program	TX	Financial Incentive	Rebate Program
Plano - Renewable Energy Purchasing Policy	TX	Regulatory Policy	Green Power Purchasing
Oncor Electric Delivery - Commercial Standard Offer Rebate Program	TX	Financial Incentive	Rebate Program
Guadalupe Valley Electric Cooperative - Renewable Energy Rebates	TX	Financial Incentive	Rebate Program
Entergy Texas - Home Performance with ENERGY STAR Program	TX	Financial Incentive	Rebate Program
Green Mountain Energy Renewable Rewards Buy-Back Program	TX	Financial Incentive	Performance-Based Incentive
Texas New Mexico Power Company - Solar PV Pilot Program	TX	Financial Incentive	Rebate Program
Entergy Texas - Solar PV Pilot Program	TX	Financial Incentive	Rebate Program
Pedernales Electric Cooperative - Commercial Energy Efficiency Rebate Program	TX	Financial Incentive	Rebate Program
Denton Municipal Electric - GreenSense Solar PV/Thermal Rebate Program	TX	Financial Incentive	Rebate Program
AEP Texas - Commercial and Industrial Energy Efficiency Rebate Program	TX	Financial Incentive	Rebate Program
AEP Texas Central Company - SMART Source Solar PV Rebate Program	TX	Financial Incentive	Rebate Program
AEP Texas North Company - SMART Source Solar PV Rebate Program	TX	Financial Incentive	Rebate Program
AEP (SWEPCO) - SMART Source Solar PV Program	TX	Financial Incentive	Rebate Program
City of Sunset Valley - PV Rebate Program	TX	Financial Incentive	Rebate Program
City of Sunset Valley - Solar Water Heating Rebate Program	TX	Financial Incentive	Rebate Program
Renewable Energy Demonstration Pilot Program	TX	Financial Incentive	Grant Program
Department of Rural Affairs - Wind Energy for Desalination Program	TX	Financial Incentive	Grant Program
AEP SWEPCO - SCORE Program	TX	Financial Incentive	Rebate Program
AEP Texas Central Company - CitySmart Program	TX	Financial Incentive	Rebate Program
AEP Texas Central Company - Commercial Solutions Program	TX	Financial Incentive	Rebate Program
AEP Texas Central Company - SCORE Program	TX	Financial Incentive	Rebate Program
AEP Texas North Company - CitySmart Program	TX	Financial Incentive	Rebate Program
AEP (Central, SWEPCO and North) - Commercial Solutions Program	TX	Financial Incentive	Rebate Program
CenterPoint Energy - SCORE and CitySmart Program	TX	Financial Incentive	Rebate Program
CenterPoint Energy - SCORE Program	TX	Financial Incentive	Rebate Program
El Paso Electric Company - Residential Energy Efficiency Rebate Program	TX	Financial Incentive	Rebate Program
El Paso Electric Company - Small Business and Large Commercial Programs	TX	Financial Incentive	Rebate Program
Austin Energy - Commercial Solar PV Incentive Program	TX	Financial Incentive	Performance-Based Incentive
CPS Energy - Solartricity Producer Program	TX	Financial Incentive	Performance-Based Incentive
Green Mountain Energy Renewable Rewards Program	TX	Regulatory Policy	Net Metering
Bandera Electric Cooperative - Residential Heat Pump Rebate Program	TX	Financial Incentive	Rebate Program
City of San Antonio and CPS Energy - City Lights Small Business Energy Efficiency Program	TX	Financial Incentive	Loan Program
Texas - Residential Energy-Efficient Appliance Rebates	TX	Financial Incentive	Rebate Program
CenterPoint Energy - ENERGY STAR Homes Efficiency Program	TX	Financial Incentive	Rebate Program
AEP (Central and North) - Residential Energy Efficiency Programs	TX	Financial Incentive	Rebate Program
City of Brenham - Net Metering	TX	Regulatory Policy	Net Metering
AEP (Central and SWEPCO) - Coolsaver A/C Tune Up or Replacement	TX	Financial Incentive	Rebate Program
Oncor Electric Delivery - Government and Education Facilities Program	TX	Financial Incentive	Rebate Program
Oncor Electric Delivery - City and School Matching Grant Program	TX	Financial Incentive	Grant Program
City of San Antonio - Residential and Commercial Green Building Requirements	TX	Regulatory Policy	Building Energy Code
City of San Antonio - Green Building Policy for Municipal Buildings	TX	Regulatory Policy	Energy Standards for Public Buildings
CoServ Electric Cooperative - Residential Energy Efficiency Rebate Program	TX	Financial Incentive	Rebate Program
CoServ Electric Cooperative - Commercial Energy Efficient Lighting Rebate Program	TX	Financial Incentive	Rebate Program
CPS Energy - New Commercial Construction Incentives	TX	Financial Incentive	Rebate Program
CPS Energy - New Residential Construction Incentives	TX	Financial Incentive	Rebate Program
City of Dallas - Green Building Expedited Plan Review	TX	Financial Incentive	Green Building Incentive
New Braunfels Utilities - Residential Solar Water Heater Rebate Program	TX	Financial Incentive	Rebate Program
City of Austin - Zoning Code	TX	Regulatory Policy	Solar/Wind Access Policy
Texas Solar Rights	TX	Regulatory Policy	Solar/Wind Access Policy
Harris County - Property Tax Abatement for Green Commercial Buildings	TX	Financial Incentive	Property Tax Incentive
CoServ - Solar Energy Rebate (Discontinued)	TX	Financial Incentive	Rebate Program
Magic Valley Electric Cooperative - ENERGY STAR Builders Program	TX	Financial Incentive	Rebate Program
City of Friendswood - Property Tax Abatement for Green Commercial Buildings	TX	Financial Incentive	Property Tax Incentive
City of San Marcos - Energy Efficient Home Rebate Program	TX	Financial Incentive	Rebate Program
AEP (SWEPCO) - Residential Energy Efficiency Programs	TX	Financial Incentive	Rebate Program
Austin Energy - Residential Solar Loan Program	TX	Financial Incentive	Loan Program
AEP (Central, SWEPCO and North) - SCORE Program for Schools	TX	Financial Incentive	Rebate Program
AEP (Central) - CitySmart Program	TX	Financial Incentive	Rebate Program
Sharyland Utilities - Commercial Standard Offer Program	TX	Financial Incentive	Rebate Program
City of Plano - Smart Energy Loan Program	TX	Financial Incentive	Loan Program
Brownsville Public Utilities Board - Residential/Small Commercial Rebate Program	TX	Financial Incentive	Rebate Program
TXU - Commercial Energy Efficiency Program	TX	Financial Incentive	Rebate Program
Bryan Texas Utilities - SmartHOME Residential Energy Efficiency Rebate Program	TX	Financial Incentive	Rebate Program
El Paso Electric Company - Net Metering	TX	Regulatory Policy	Net Metering
San Antonio City Public Service (CPS Energy) - Net Metering	TX	Regulatory Policy	Net Metering
City of Fort Worth - Residential and Commercial Green Building Requirements	TX	Regulatory Policy	Building Energy Code
City of Forth Worth - Green Building Policy for Municipal Buildings	TX	Regulatory Policy	Energy Standards for Public Buildings
City of Houston - Residential and Commercial Green Building Requirements	TX	Regulatory Policy	Building Energy Code
City of El Paso - Green Building Policy for Municipal Buildings	TX	Regulatory Policy	Energy Standards for Public Buildings
City of El Paso - Residential and Commercial Green Building Requirements	TX	Regulatory Policy	Building Energy Code
Austin Energy - Value of Solar Rate	TX	Regulatory Policy	Value of Solar Tariff
CenterPoint Energy Healthcare Energy Efficiency Program	TX	Financial Incentive	Rebate Program
CenterPoint Energy A/C Distributor Program	TX	Financial Incentive	Rebate Program
CenterPoint Energy Low-Rise Multi Family Program	TX	Financial Incentive	Rebate Program
Garland Power & Light - EnergySaver Solar Rebate Program	TX	Financial Incentive	Rebate Program
City of San Antonio - Sec. 35-398. - Renewable Energy Systems	TX	Regulatory Policy	Solar/Wind Permitting Standards
City of San Marcos - Commercial Lighting Retrofit Program	TX	Financial Incentive	Rebate Program
Austin Energy - Multifamily Solar PV Rebate Program	TX	Financial Incentive	Rebate Program
Texas Clean Fleet Program	TX	Financial Incentive	Grant Program
Emission Reduction Incentive Grants Program	TX	Financial Incentive	Grant Program
Light-Duty Motor Vehicle Purchase or Lease Incentive Program	TX	Financial Incentive	Rebate Program
Governmental Alternative Fuel Fleet Grant Program	TX	Financial Incentive	Grant Program
Austin Energy - EV Charging Station Rebate Program	TX	Financial Incentive	Rebate Program
Entergy Texas - EV Charging Station Rebate Program	TX	Financial Incentive	Rebate Program
SWEPCO - EV Residential Charging Station Rebate Program	TX	Financial Incentive	Rebate Program
United Cooperative Services - EV Charging Station Rebate Program	TX	Financial Incentive	Rebate Program
Oncor Electric Delivery - Commercial Solar Program	TX	Financial Incentive	Rebate Program
Texas-New Mexico Power Company – Online Marketplace	TX	Financial Incentive	Rebate Program
City of San Antonio - Under 1 Roof	TX	Financial Incentive	Grant Program
Tax-Exempt Financing for Green Buildings, Renewable Energy & Brownfield Redevelopment	US	Financial Incentive	Loan Program
Conservation Security Program (CSP) Production Incentive	US	Financial Incentive	Performance-Based Incentive
Business Energy Investment Tax Credit (ITC)	US	Financial Incentive	Corporate Tax Credit
Federal Excise Tax Exemption for Gasohol	US	Financial Incentive	Corporate Tax Exemption
Modified Accelerated Cost-Recovery System (MACRS)	US	Financial Incentive	Corporate Depreciation
Energy Star Financing and Mortgages	US	Financial Incentive	Loan Program
USDA Rural Housing Service Loans	US	Financial Incentive	Loan Program
Residential Energy Conservation Subsidy Exclusion (Corporate)	US	Financial Incentive	Corporate Tax Exemption
Renewable Energy Production Incentive (REPI)	US	Financial Incentive	Performance-Based Incentive
Renewable Electricity Production Tax Credit (PTC)	US	Financial Incentive	Corporate Tax Credit
Small Business Administration Loan Programs	US	Financial Incentive	Loan Program
Energy-Efficient Mortgages	US	Financial Incentive	Loan Program
USDA - Rural Energy for America Program (REAP) Grants	US	Financial Incentive	Grant Program
Office of Indian Energy Policy and Programs - Funding Opportunities	US	Financial Incentive	Grant Program
Green Power Purchasing Goal for Federal Government	US	Regulatory Policy	Green Power Purchasing
Energy-Efficient Commercial Buildings Tax Deduction	US	Financial Incentive	Corporate Tax Deduction
Energy-Efficient New Homes Tax Credit for Home Builders	US	Financial Incentive	Corporate Tax Credit
Energy-Efficient Appliance Manufacturing Tax Credit	US	Financial Incentive	Industry Recruitment/Support
Residential Energy Efficiency Tax Credit	US	Financial Incentive	Personal Tax Credit
Veterans Housing Guaranteed and Insured Loans	US	Financial Incentive	Loan Program
Federal Appliance Standards	US	Regulatory Policy	Appliance/Equipment Efficiency Standards
Energy Goals and Standards for Federal Agencies	US	Regulatory Policy	Energy Standards for Public Buildings
Clean Renewable Energy Bonds (CREBs)	US	Financial Incentive	Loan Program
Qualified Energy Conservation Bonds (QECBs)	US	Financial Incentive	Loan Program
U.S. Department of Treasury - Renewable Energy Grants	US	Financial Incentive	Grant Program
USDA - High Energy Cost Grant Program	US	Financial Incentive	Grant Program
USDA - Biorefinery, Renewable Chemical, and Biobased Product Manufacturing Assistance Program	US	Financial Incentive	Loan Program
USDA - Repowering Assistance Biorefinery Program	US	Financial Incentive	Grant Program
Title I Property Improvement Loans	US	Financial Incentive	Loan Program
USDA - Rural Energy for America Program (REAP) Energy Audit and Renewable Energy Development Assistance (EA/REDA) Program	US	Financial Incentive	Grant Program
Low Income Home Energy Assistance Program (LIHEAP)	US	Financial Incentive	Grant Program
Weatherization Assistance Program (WAP)	US	Financial Incentive	Grant Program
Fannie Mae Green Financing – Loan Program	US	Financial Incentive	Loan Program
Qualified Commercial Clean Vehicle Tax Credit	US	Financial Incentive	Corporate Tax Credit
Alternative Fuel Vehicle Refueling Property Tax Credit (Corporate)	US	Financial Incentive	Corporate Tax Credit
Alternative Fuel Vehicle Refueling Property Tax Credit (Personal)	US	Financial Incentive	Personal Tax Credit
Previously-Owned Clean Vehicle Tax Credit	US	Financial Incentive	Personal Tax Credit

This information is sourced from DSIRE; the most comprehensive source of information on incentives and policies that support renewables and energy efficiency in the United States. Established in 1995, DSIRE is operated by the N.C. Clean Energy Technology Center at N.C. State University.