Texas solar rebates and incentives: 2026 guide
The average Texas solar shopper will save big with local incentives.
Updated Jan 6, 2026
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Solar panels might seem expensive, but if you live in Texas you're in luck. Your state offers some of the most generous solar incentives in the country, helping thousands of homeowners shrink their upfront costs while locking in decades of lower electricity bills. There are multiple ways to bring down the price of going solar—and start saving sooner than you might think.
Even better? The long-term savings from reduced electricity costs typically outweigh your upfront investment. Here's how to take advantage of Texas's solar incentives.
Incentives help bring solar's price tag down considerably in Texas. Here are the major ones to know about:
| Incentive | Average savings in Texas | Description |
|---|---|---|
Local rebates | Up to $3,000 | Depending on your utility company, additional rebates may lower your system's cost. |
Local rebates
Want some money back on your solar panel system? Here are some of the electric companies in Texas that offer rebates when you install solar panels:
American Electric Power SMART Source Solar PV Program: Depending on the size of your solar panel system, you could earn a rebate between $1,500-$3,000.
Austin Energy Solar Photovoltaic Rebates & Incentives: You can earn a rebate worth $2,500 by installing a solar panel system at least 3 kW in size if you complete Austin Energy's solar education course.
New Braunfels Utilities: Depending on the size and angle of your solar panel system, you can earn up to $3,000 as long as your system is at least 3 kW.
Oncor Residential Solar Program: If your solar panel system is between 3-15 kW and installed with a battery, you may be able to receive a rebate. The rebate amount isn't disclosed and depends on many factors, including the solar panels and inverter you choose, the system's location, shade, and more. The program typically runs annually between January and November.
SMTX Solar PV Rebate: You can earn $1/W for installing a solar panel system, up to $2,500. The rebate amount can't exceed 50% of your system's installed cost.
Sunset Valley Rebate Program: If you live in the City of Sunset Valley and qualify for the Austin Energy solar rebate (see above), you can earn an additional $1/W, up to $3,000, as long as your system costs $6/kW or less.
In addition to the great rebates and incentives above, Texas also offers a solar property tax exemption. When you install solar panels, it generally increases the value of your home. But thanks to this exemption, you won’t have to pay extra taxes because of that increase.
| Tax exemption | Description |
|---|---|
Texas solar property tax exemption | If you use solar energy as a source of power, you won't need to pay tax on the value your solar panels add to your property. The average property tax in Texas is 1.47% |
Utility companies in Texas are not legally required to offer solar buyback programs—but many of them do anyway. These arrangements can help you squeeze the most value out of your solar panels by shrinking your utility bills as much as possible.
The best type of buyback program is known as net metering. Under this system, your utility company works like a bank for solar power—if you can’t use it all at home, you can send it to the grid for an energy credit. When the sun isn't shining and you need to pull electricity from the grid, your utility draws against those credits.
Depending on the weather, the utility’s specific rules, and how much energy you use, net metering makes it so you will often owe very little, or even nothing, on your electric bills with solar panels.
Another type of solar buyback program, net billing, ditches the concept of banked energy credits and instead offers a partial dollar-based bill credit for every kWh you send to the grid.
The details vary quite a lot between utilities and suppliers in Texas. Some utility companies will purchase your electricity at the wholesale rate (what they typically pay for electricity), which is significantly lower than the retail rate (what you pay for electricity). Others will pay a fixed rate. Some utilities also won't let you roll over credits month-to-month or year-to-year. Or, they'll pay you less for any electricity remaining at the end of a billing cycle, called net excess generation.
The good news is that you might be able to shop around for a supplier that offers the best terms to customers with solar power.
Here are some of the solar buyback programs available in Texas for deregulated and regulated utility companies:
Deregulated utility companies
Depending on where you live, you may be able to choose one of these companies to supply your electricity plan:
| Utility company | Solar buyback rate | System size cap | Net excess generation credits |
|---|---|---|---|
Wholesale rate | - | Rolls over indefinitely | |
Chariot Energy - RISE program | Retail rate (net metering) | - | Roll over month-to-month, but if your annual export exceeds your annual import, you'll move to the SHINE or Radiant program where you'll only receive the wholesale rate for solar (but it can't exceed 25 cents per kWh). |
Retail rate (net metering) | - | Rolls over indefinitely | |
Retail rate (net metering) | 50 kW | Credits expire after 12 months | |
Wholesale rate. In rare cases when the grid has too much energy, you may be charged for solar energy you try to export. | - | Rolls over indefinitely. If your credits exceed $50, you can request a check. | |
Lower than the retail rate. Exact rate is listed in the plan’s electricity facts label. | 50 kW | Rolls over indefinitely | |
Lower than the retail rate. Changes based on demand with off-peak, on-peak, and ultra-on-peak hours. | 20 kW or net-producing for more than six consecutive months | Rolls over indefinitely | |
Wholesale rate | - | Credits roll over each month but expire in December | |
You can choose between two plans. If you're a net importer, you should choose the plan that pays less than the retail rate. If you're a net exporter, you should choose the plan that pays the retail rate (net metering). | - | Rolls over indefinitely |
Regulated utility companies
If you live in an area that's chosen to remain regulated, you won't be able to choose your electricity supplier. But, luckily, some regulated electric companies do offer solar buyback programs, including net metering:
| Utility company | Solar buyback rate | System size cap | Net excess generation credits |
|---|---|---|---|
Value of Solar Rate - 9.91 cents/kWh (lower than the retail rate) | - | Rolls over indefinitely | |
Fuel and Purchase Energy (FPEC) rate (lower than the retail rate) | 10 MW | Rolls over indefinitely | |
Retail rate (net metering) | 10 MW | Monthly excess credits are rolled over at the wholesale rate. | |
CPS Energy (San Antonio City Public Service) | Retail rate (net metering) | - | Monthly excess credits are rolled over at the wholesale rate can can be applied to the next month's service charge. |
Wholesale rate | - | Rolls over indefinitely | |
El Paso Electric (technically this company is deregulated, but the power grid can't support a competitive retail market yet) | Retail rate (net metering) | 50 kW or 100% of estimated electricity consumption, whichever is less | Wholesale rate. If your credits exceed $50, you'll receive a check. |
Wholesale rate | 50 kW | Rolls over indefinitely. If your credits exceed $50, you'll receive a check. | |
$0.0819/kWh (lower than the retail rate) | 10 kW | Rolls over indefinitely |
Texas doesn't offer any state-specific battery incentives, though some specific utility companies may offer programs.
Batteries are great for increasing your energy independence, providing protection from blackouts, and avoiding paying peak pricing for electricity in Texas.
And if your utility company doesn't provide net metering, installing a battery with your solar panel system will also help you save a lot more on your electric bills.
If you're looking for solar installers in Texas, here are some popular suggestions:
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Is solar worth it in Texas?
Solar panels are often worth it in Texas due to the state's sunny skies. If you pay for your system with cash, you'll save about $81,077 over 25 years (the warranty term of most solar panels) on electricity costs with a 13.83 kW system in Texas based on real solar quote data from our Marketplace.
Can you get solar panels for free in Texas?
Unfortunately, you can't get free solar panels in Texas, though incentives can dramatically lower the price you pay. But, if you sign a solar lease or PPA, you can go solar with no upfront payment and start saving right away—you just won’t officially own your system, which will limit your access to any available incentives.
How much does it cost to install solar in Texas?
As of December 2025, the average solar panel cost in Texas is $2.18. If you install a 13.83 kW system it will cost you between $25,667 to $34,727, with an average cost of $30,197.
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