30% of system cost
Federal Solar Tax Credit (ITC)
The federal Investment Tax Credit lets Texas homeowners deduct 30% of their solar system cost from federal taxes through 2032.
☀️ Texas Solar Guide 2026
Best Solar Installers in Texas
Everything's bigger in Texas — including solar savings. With 234+ sunny days, no state income tax, and generous property tax exemptions, Texas is one of the best states for going solar.
234+
Sunny Days/Year
$1,500
Avg Annual Savings
6.2 yrs
Avg Payback Period
$2.70
Avg Cost per Watt
Texas Incentives
Texas Solar Incentives & Rebates
Texas offers impressive solar incentives including property tax exemptions and local utility rebates.
100% exemption on added value
Property Tax Exemption
Texas law exempts 100% of the added home value from solar panels from property taxes, making solar even more affordable long-term.
Bill credits for excess energy
Net Metering (Varies by Utility)
Many Texas utilities including Oncor, CenterPoint, and AEP offer buyback programs that credit you for excess solar energy exported to the grid.
Up to $2,500
Local Utility Rebates
Several Texas utilities like Austin Energy, CPS Energy, and Oncor offer solar rebates ranging from $1,000 to $2,500 depending on system size.
No state sales tax on solar
Sales Tax Exemption
Texas does not charge state sales tax on solar panel equipment, saving you an additional 6.25% on your system purchase.
FAQ
Texas Solar FAQs
How much do solar panels cost in Texas in 2026?
The average cost of solar panels in Texas is approximately $2.50–$2.90 per watt before incentives. For a typical 8kW system, that's $20,000–$23,200 before the 30% federal tax credit, bringing the net cost to roughly $14,000–$16,200.
What solar incentives are available in Texas?
Texas offers the federal 30% ITC, a 100% property tax exemption on solar-added home value, no state sales tax on solar equipment, various local utility rebates (Austin Energy, CPS Energy, etc.), and utility buyback programs for excess energy.
Does Texas have net metering?
Texas doesn't have a statewide net metering mandate, but many utilities offer voluntary buyback programs. Cities like Austin, San Antonio, and El Paso have some of the best solar buyback rates in the state.
How long does solar payback take in Texas?
Most Texas homeowners see a payback period of 6–8 years, depending on local utility rates, system size, and available rebates. After payback, you enjoy free electricity for 17+ more years of your system's life.
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