Dean Solar
Texas – Solar Incentives & Resources

Texas – Solar Incentives & Resources

Save money by installing solar panels in Texas.

Frequently Asked Questions

What incentives are available for residential solar in Houston/ Dallas?

A: There are a few incentives available for residential solar customers in Texas: 

  1. Solar Buyback Plan (through exclusive MP2 offering)
  2. Federal Investment Tax Credit (ITC) – 26% of total project cost
  3. Solar Rebate Program (Dallas)
  4. 100% Property Tax Exemption for any increased property value due to a solar installation

What incentives are available for residential solar in Austin/ San Antonio?

A: There are a few incentives available for residential solar customers in Texas: 

  1. Net Metering (1:1 NEM in CPS Energy territory)
  2. Federal Investment Tax Credit (ITC) – 26% of total project cost
  3. Solar Rebate Program – available in Austin & CPS
  4. 100% Property Tax Exemption for any increased property value due to a solar installation.

What incentives are available for residential solar in Transmission Distribution Utilities (TDUs) territory?

A: There are a few incentives available for residential solar customers in Texas: 

  1. Net Metering (value varies by utility)
  2. All Texas TDU customers have access to a competitive, long- term solar buyback rate through MP2 Energy
  3. Federal Investment Tax Credit (ITC) – 26% of total project cost
  4. Solar Rebate Program (varies by utility)
  5. 100% Property Tax Exemption for any increased property value due to a solar installation

Does Texas have a state income tax credit for going solar? 

A: Texas does not have a state income tax.

Does TX offer a state rebate, sales tax exemption or property tax exemption?

A: Some utility companies in Texas offer fixed rebates for residential solar customers. The state does not offer a sales tax exemption but does offer a 100% property tax exemption for any increase in tax liability due to a solar installation.

Does Texas have a Renewable Energy Credit (REC) market?

A: There is currently no active REC market for residential customers in Texas. However, homeowners that accept a solar rebate from Austin Energy or CPS Energy must sign a REC Assignment Agreement that grants the utility ownership of any RECs the system generates.

What financial products does Palmetto offer?

A: Palmetto offers loans through (LoanPal, Sunlight) and cash payment options. Lease and PPA payment options are unavailable in Austin and CPS Energy territories.

Solar Panel Cost in Texas

Average solar panel cost by system size in Texas

solar panel cost texas

Average payback period, savings, and cost of a 5 kW system

The number of years to recover your solar energy investment. (for a 5 kW System)

12.60 Years

20-year savings comparing total cost vs. utility cost for the same amount of electricity, including all costs, incentives, and inflation. (for a 5 kW system)

$16,006

The price of the system on a per-Watt basis. (for a 5 kW system)

$2.74

Texas Solar Incentives & Rebates

Municipal Utilities
  • Some municipal utilities in Texas offer net metering for solar customers
  • Austin Energy & CPS Energy also offer upfront, solar rebates
  • Texas offers 100% property tax exemption for any increased home value due to a solar addition
  • Homeowners that install solar may also be eligible for the Federal Investment Tax Credit (ITC) worth 26% of the total project cost
Transmission Distribution Utilities (TDUs)
  • All Texas TDU customers have access to a competitive, long- term solar buy- back rate through MP2 Energy 
  • Texas offers 100% property tax exemption for any increased home value due to solar
  • Homeowners that install solar may also be eligible for the Federal Investment Tax Credit (ITC) worth 26% of the total project cost.
Cooperative Utilities
  • Some cooperative customers in TX will be credited for their excess generation by their utility
  • Texas offers 100% property tax exemption for any increased home value due to solar
  • Homeowners that install solar may also be eligible for the Federal Investment Tax Credit (ITC) worth 26% of the total project cost.

Texas Electric Utilities

Check with your local utility company for:

  • Incentive Programs
  • Net Metering Policy
  • Maximum System Size
  • Maximum Power Offset
  • Other Requirements

Dean Solar - Texas

Texas Solar
Lighthouse on Lake Travis overlooking Texas Hill Country outside of Austin , Texas - USA
Dean Solar
Texas - USA

Eligibility & Redemption

Solar incentives apply to eligible residential customers. 

Incentive programs are offered and administered by government agencies. 

Eligibility and availability vary and are outside of Dean Solar’s control. 

Most programs are limited to a total dollar amount that can be dispersed or will expire on a certain date. 

Be sure to visit the program’s website for the most up-to-date information on availability, eligibility, and redemption requirements.

Your eligibility for income tax credits depends on your personal tax situation. 

Dean Solar recommends speaking with a tax professional for guidance.