Texas Solar Incentives
Bask in the Benefits of Solar and Storage in Texas
Texas is one of the sunniest states in the U.S.1
Texas solar price drop over the last five years.2
Texas is the highest producer of carbon dioxide (CO₂) emissions in the country.3
Residential electric bills in Texas are almost 20% higher than the national average.4 This is just one of the many reasons Texans team up with a solar company in Texas like Sunrun to create and store their own renewable energy at home. Texas also offers excellent solar incentive programs that could help you go solar for less.
Sunrun is the leading home solar and battery storage company in the U.S.5 We’re here to ensure you can gain energy independence and security while getting the most out of the incentives, tax credits, and solar rebate programs Texas offers.
Tax Incentives, Tax Credits, and Rebates in Texas*
Federal Solar Investment Tax Credit (ITC)**
The 26% federal solar tax credit is available for a purchased Texas home solar system installed by December 31, 2022.6
TXU Energy Renewable Buyback Plan
Bill credits for the excess solar power a home solar panel installation creates.7 (Must live in a service area.)
Solar Energy System Property Tax Exemption
Property tax exemption on the added home value from the installed solar panels in Texas.8
Local Utility Company Solar Rebates
Rebate to reduce solar’s up-front cost or after system’s installation.9,10,11,12 (Varies by utility.)
Find out if You Qualify for Texas Solar Incentives
Learn the Details of Texas Solar Incentives
Buy and install new rooftop panels in Texas in 2021, with or without a home battery, and qualify for the 26% federal tax credit. The residential ITC drops to 22% in 2023 and ends in 2024.6
Approximate average-sized 5-kilowatt (kW) system cost in TX: $13,109
Approximate system cost in TX after the 26% ITC in 2021: $9,70113
We’ve joined forces with TXU Energy to boost the value of the solar kilowatt-hours (kWh) you produce in the Lone Star State.14 TXU Energy, a Vistra Energy company, is Texas’s leading retail electric provider (REP) and serves more than two million customers across the state.15,16
With TXU Energy’s Renewable Buyback plan, you can earn Clean Energy Credits for the excess energy your Texas solar installation creates. The credits are applied to your bill when you produce more solar energy during the billing period.17 In other states, this type of arrangement is known as net metering.
There’s no cap on the credits you can earn.17 If you don’t produce enough energy to power your home, like on cloudy days or at night, you’ll pay a simple, flat rate for 100% renewable energy from the grid that’s made right in Texas. Request a free solar quote to check if you qualify.
If you’re an American Electric Power (AEP) Texas,9 Austin Energy,10 CPS Energy,11 or Oncor residential customer,12 you may be eligible to get a cash incentive of $2,500 to $8,500 for the kW of solar power installed in your home. This varies by electric provider, solar PV system size, location, and applicant income.
Texas’s Solar Potential Is at Reach
Go solar today
- Learn about the federal tax credit
- Find your ideal system and battery
- Get your energy usage and solar cost
*Consumer’s ability to monetize rebates, incentives, and tax credits depends on several factors, including, without limitation, continued state subsidization of these policies, the applicable Sunrun product type, and whether a consumer purchases or leases a home solar system from Sunrun.
**We recommend contacting a tax professional to most accurately determine the impact of the solar Investment Tax Credit (ITC) on your federal taxes.
- Texas annual sunshine state rank
- Texas solar price drop
- Texas carbon dioxide (CO₂) emissions
- Texas electricity costs
- Sunrun ranked as leading residential solar-plus-storage vendor
- Federal Solar Investment Tax Credit (ITC)
- TXU Energy Renewable Buyback Plan
- Texas solar property tax exemption
- American Electric Power (AEP) solar rebate
- Austin Energy solar rebate
- CPS Energy solar rebate
- Oncor solar rebate
- Texas solar panel costs
- TXU Energy and Sunrun partnership
- TXU Energy company facts
- TXU Energy customers
- TXU Energy Renewable Buyback Plan credit caps