Federal Solar Tax Credit (ITC)
San Antonio homeowners can deduct 30% of their solar installation cost from federal taxes through 2032, dramatically reducing the net cost of residential solar.
San Antonio is one of Texas's best-kept solar secrets. With CPS Energy's generous rebates and buyback program, 220 sunny days per year, and some of the lowest installation costs in the state, San Antonio homeowners save an average of $1,450 per year with solar.
CPS Energy's generous programs combined with Texas statewide incentives make San Antonio one of the most affordable cities to go solar.
San Antonio homeowners can deduct 30% of their solar installation cost from federal taxes through 2032, dramatically reducing the net cost of residential solar.
CPS Energy, San Antonio's municipal utility, offers one of the best solar rebates in Texas. Residential customers can receive up to $2,500 for qualifying solar installations.
CPS Energy's solar buyback program credits San Antonio homeowners for excess solar energy exported to the grid, effectively reducing your electricity bills even further.
Texas exempts 100% of the added home value from solar panels from property taxes. San Antonio homeowners benefit from this significant long-term tax protection.
Texas exempts solar equipment from state and local sales tax, saving San Antonio homeowners approximately 8.25% on their solar system purchase price.
With no state income tax in Texas, San Antonio residents keep every dollar of their solar savings and federal tax credits.
The average cost of solar panels in San Antonio is approximately $2.35–$2.75 per watt before incentives. For a typical 8kW system, that's $18,800–$22,000 before the 30% federal tax credit and CPS Energy rebate, bringing the net cost to roughly $10,660–$12,900.
San Antonio benefits from CPS Energy's generous solar rebate (up to $2,500) and buyback program, combined with 220 sunny days per year, low installation costs, Texas property and sales tax exemptions, and no state income tax. The CPS Energy rebate makes San Antonio one of the most affordable cities to go solar in Texas.
CPS Energy's buyback program credits you for excess solar energy your system sends to the grid. The credit is applied to your monthly electricity bill, effectively reducing what you owe. Combined with the upfront rebate, this makes CPS Energy one of the most solar-friendly utilities in Texas.
With CPS Energy's rebate and the federal tax credit, most San Antonio homeowners see payback in 5–7 years. The lower cost of living and installation costs in San Antonio, combined with generous incentives, deliver excellent solar ROI compared to many other major Texas cities.
Get matched with top-rated San Antonio solar installers. Free quotes, no obligation.