Texas Solar Tax Incentives

Everything’s BIGGER in Texas – including the benefits of going solar! According to the Solar Energy Industries Association (SEIA), Texas ranks as a top 10 state for solar. It’s no wonder, as this state has some of the strongest sunshine in the country and lower-than-average solar costs. Going solar in the state of Texas is more rewarding than ever, thanks to some incredible solar rebates and incentives.

Federal Solar Tax Credits, Utility Company Rebates and Other Incentives

Federal Solar Tax Credit – 26% of the total cost of your solar equipment. Let the government pay for 1/4 of your solar project!*

Disclaimer: contact your tax advisor for more information

Local Utility Rebates – Vary by company. Contact us for more information on your utility company rebate

Other Incentives – Veteran and First Responder discounts

Additional Rebates from your Local Utility

Texas does not offer a statewide solar tax credit or solar rebate program. That said, many local governments and utility companies offer great incentives to homeowners who decide to go solar. Here are some examples:

Austin Energy

Residents in Austin, TX can get a rebate that ranges anywhere from $0.50 to $0.80 per Watt (W) of solar power installed in your home. Additionally, you’re eligible for Austin Energy’s Value of Solar Tariff, a program that pays homeowners $0.113 for each and every kilowatt-hour (kWh) your solar panels are generating.

CPS Energy

Anyone in Texas who is a CPS Energy customer can receive up to $1.20 per Watt (W) of solar panels installed on your roof.


Homes that are powered by Oncor are eligible for a cash rebate of $538.83 per kilowatt for their solar panel system installation. That comes out to an average of $0.54/W. In addition, since Oncor customers are not eligible for Net Metering, they are eligible to receive a $0.2519/kWh credit for the solar electricity their home generates.

Guadalupe Valley Electric Cooperative, the City of Sunset Valley and Garland Power

These companies also offer rebates for any homeowners who go solar in their areas.

Disclaimer – this is not a comprehensive list and may change depending upon the utility company

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