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Texas Solar Tax Credits & Rebates 2024: Save Even More

Texas Solar panels
source: Ivy Energy

Over the past decade, Texas has ramped up its solar incentives, making renewable energy more accessible and financially viable for its residents. With the potential to knock thousands off the cost of solar installation, who wouldn't want to jump on board? Especially when a typical solar system might set you back around $25,000 or more.

In fact, the Energy Information Administration has Texas pegged to lead solar energy growth in the U.S. in 2024. And remember, these incentives aren't just for homeowners. Businesses, schools, and farms can also benefit, though it's wise to keep in mind that programs and laws are as changeable as Texas weather.

Our guide aims to detail the major solar incentives in Texas and offer tips on finding a reputable solar energy provider. 


In This Article:


What are the best Texas solar tax credits and rebates?

While Texas doesn't offer statewide tax credits or rebates, the local landscape is dotted with programs that can significantly reduce both your installation and ongoing electric bills. Here's a snapshot of what's available:

  • Austin Energy Solar Photovoltaic (PV) Rebate: Engage in an educational course about solar systems offered by Austin Energy, and upon completion, you're rewarded with a $2,500 credit towards your solar system's purchase and installation.

  • Oncor Electric Delivery Residential Solar Program: Oncor operates differently. They don't provide incentives directly to customers but collaborate with providers installing PV systems in their service area. Choose one of these installers, and you could benefit from an incentive that Oncor passes to the provider, who in turn, passes it to you. For Oncor's Residential Solar Program, it's important to note that there are two main conditions for eligibility: the system's azimuth must be between 90 to 270 degrees, and it must include a battery storage system. Understanding these specifics can significantly influence a homeowner's decision and eligibility for the program.

  • City of Sunset Valley PV Rebate Program: Residents of Sunset Valley can access rebates for homes equipped with PV systems. What's more, this rebate can be combined with Austin Energy's offer, amplifying your savings.

  • Denton Municipal Electric Solar Photovoltaic Incentive: Denton's municipal electric company offers a substantial incentive for homeowners installing solar panels. The rebate, determined by your system's power output, can reach up to $30,000 or 50% of the total installation cost, whichever is lower. To qualify, you must own the property where the solar panels are installed, and your system should have at least a 3kW capacity.

Additionally, for businesses considering solar investments, the Modified Accelerated Cost Recovery System (MACRS) offers a way to recover investments in certain property through depreciation deductions. This can lead to substantial tax savings for commercial entities investing in solar technology.

To round it up, homeowners need to know that any upgrades to their solar system before 2032, such as expanding capacity or adding a battery bank, will make them eligible for a 30% tax credit. This is a significant incentive, especially for those looking to enhance their system's efficiency or capacity.

Solar Panel Property Tax Exemptions in Texas

The Lone Star State offers property tax exemptions for solar installations, ensuring the value added by your solar panels or batteries won't hike up your property taxes. Let's break it down.

Texas, while not imposing state property tax, allows local entities to levy taxes. However, thanks to section 11.27 of the state tax code, if you install solar devices primarily for on-site energy production, the value they add is exempt from property tax. What does this mean for you? Well, with the average property tax rate in Texas expected to hover around 1.81% in 2024, a $24,000 solar installation could save you about $434 annually. Not too shabby, right?

But here's the kicker – it's not just about the savings. It's about investing in a sustainable future and enjoying the financial perks that come with it. So, why wait? Isn't it time you considered going solar?

Net Metering and Solar Buyback Programs in Texas

You generate more electricity than you consume, and what happens next? You sell it back to the grid! This is what makes Net metering and solar buyback programs sweet as you get to make more side money. However, it's not a one-size-fits-all deal. Different providers offer various plans, and the key is finding the one that fits your needs like a glove.

Choosing the Right Program for Your Needs

Navigating through Texas's solar buyback programs can feel like walking through a maze... but it doesn't have to. Let's simplify it:

  • Austin Energy: They offer a Value of Solar rate, paying you for the excess solar energy you contribute to their grid. The rate depends on your system's size, but think about it – you're getting paid for being eco-friendly!

  • Brenham's Distributed Generation Program: Here, you get credits on your electric bills for the surplus energy your panels produce. They calculate your earnings based on the wholesale cost Brenham pays its energy providers.

  • Brownsville PUB: They'll buy your excess electricity at the same rate they pay other providers. While the rate has varied over the years, it's a straightforward way to get compensated for your contribution.

  • CPS Energy: In San Antonio, they use an "avoided cost rate" to determine your credits. Essentially, you're getting back what they would've otherwise paid elsewhere for that energy.

  • El Paso Electric: Similar to CPS, they reimburse you at the rate they'd pay a commercial provider for the electricity.

  • Green Mountain Energy: Their Renewable Rewards program offers bill credits for the excess energy you feed back. It's capped at your total grid energy usage, but it's a sweet deal nonetheless.

  • Reliant Energy: With their Solar Payback Plan, you receive unlimited bill credits for your surplus solar energy. It's open to all customers with solar installations under 50kW who have existing interconnection agreements.

  • Shell Energy: They provide credits for the excess energy your solar panels create, in the form of renewable energy certificates.

  • TXU Energy: Their Home Solar Buyback program reimburses you for excess solar or wind energy up to 100% of your electrical bills.

Remember, the devil's in the details. Rates, terms, and conditions vary, so doing your homework is crucial. But one thing's for sure – with the right program, your solar panels can do more than just lower your bills; they can turn into a mini power plant, earning you money and contributing to a greener Texas. Now, isn't that something worth considering?

Federal Solar Tax Credit

If you’re ready to slash your solar installation costs, then the Federal Solar Tax Credit, also known as the Investment Tax Credit (ITC), is your ticket. In 2024, this nifty credit stands at a generous 30% of your total solar system cost. Think about it – that's nearly a third of your investment back in your pocket! But how do you snag this deal? It's simple: install your solar system and claim the credit when you file your taxes. Just ensure you meet the eligibility criteria, and you're golden.

But wait – what's on the horizon for these incentives? Good news: the 30% rate is locked in through 2032. That's years of potential savings! However, staying informed is key. Tax laws can shift like the Texas wind, so keeping an eye on updates ensures you won't miss out. Wondering if now's the time to invest in solar? With incentives like these, it's hard to argue otherwise. Why not make a move that's good for your wallet and the planet? 

Making the Most of Your Solar Investment

Got a unique home? Your solar solution should match! No two homes are alike, and neither are our solar systems. We dive deep into your specific needs, crafting a solar setup that maximizes efficiency and savings. And if you are wondering how much you could save, Well, every kilowatt-hour produced by your tailored system is money back in your pocket.

Our team of seasoned solar consultants and installers is the backbone of your solar journey. They ensure your system isn't just installed but optimized for peak performance. And guess what? They stick around. Long-term support means you're never left in the dark. 

So, why wait? Embrace a greener, more cost-effective future today. Contact us for a free solar quote and expert consultation. Your journey to savings and sustainability starts here.


Key Takeaways:

  • Local Incentives Shine: While Texas lacks statewide solar credits, local rebates like Austin Energy's $2,500 PV Rebate and CPS Energy's additional $500 for local panels significantly cut costs.

  • Tax Exemptions Boost Savings: Texas's property tax exemptions mean the added value of your solar panels won't increase your property taxes, saving you around $434 annually on a $24,000 installation.

  • Earn from Excess Energy: Net metering and buyback programs across Texas, like Austin Energy's Value of Solar rate and CPS Energy's avoided cost rate, pay you for surplus power.

  • Federal Credit is a Game-Changer: The Federal Solar Tax Credit offers a substantial 30% off your solar system cost, locked in through 2032, making now a prime time to invest.

  • Tailored Solutions and Expert Support: Customized solar solutions ensure maximum efficiency and savings, while expert installation and support guarantee long-term performance.


Will the solar tax credit be extended in 2024?

Yes, the Federal Solar Tax Credit has been extended through 2032, offering a 30% credit on solar installations in 2024. Also, it can be rolled over to the following year if not fully utilized in the first year of claiming it.

Is there a tax credit for solar panels in Texas

Can I claim solar tax credit next year?

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