Make the Switch to Solar and Save Money — Greater Houston, Texas.

Texas Solar Incentives and Tax Credits

Federal Solar Tax Credit

The Investment Tax Credit (ITC), also called the federal solar tax credit, helps you reduce the cost of your solar energy system. You can deduct 30% of the cost of your solar energy system from your federal income taxes. There is no cap on the value of your tax credit and it applies to both residential and commercial systems.

The federal solar tax credit was recently increased to 30% and its timeline has been extended. If you install a solar PV system between now and 2032 you will receive a 30% tax credit. If you installed your solar system in 2022, your tax credit has been increased from 26% to 30% and you can take advantage of the increased tax savings.

The federal solar tax credit helps Houston homeowners save thousands of dollars in upfront costs, in addition to many solar incentives and rebates for the state of Texas.

Net Metering in Texas

Net Metering is when your utility company monitors how much energy your home’s solar system produces and how much energy you consume. If your home’s solar system generates a surplus of energy, you will receive a credit from your utility company for that surplus energy.

There is no statewide net metering law in Texas, but many major utility companies will pay full retail price for your credits.

In the Houston area, you can find municipal utility companies or Retail Electric Providers (REP) like Green Mountain who will give you full retail credits for your surplus energy.

Texas Solar Rights Law

The state of Texas has a solar rights law which blocks Homeowners Associations (HOAs) from banning solar energy systems. HOAs in Texas can prohibit solar installations in extreme circumstances, but you as a homeowner will most likely not have issues with your HOA for when you decide to go solar.

Texas Property Tax Exemptions for Solar Homeowners

Long-term savings with solar energy will increase your home’s property value. A recent study from the National Renewable Energy Laboratory (NREL) found that your home’s value increases by $20 for every $1 you save on your electricity bills by installing solar panels.

For example, if your home’s solar energy system saves you $700 every year, your home’s value can increase by $14,000.

The good news for Houston residents is that your home’s increase in value from installing a solar energy system is fully exempt from 100% of the resulting property tax increase. The Texas state legislature has created a property tax exemption to encourage homeowners to install solar for their homes.

Texas Solar Rebates

Texas does not have a statewide solar rebate program, but many utility companies and local governments offer rebates and incentives for homeowners who go solar.

Solar rebates programs will vary, but they can lower the cost of purchasing a solar PV system in the state of Texas by 10-20%.

DSIRE Incentives Database - Texas

The Database of State Incentives for Renewables and Efficiency (DSIRE) is a comprehensive database that Houston residents can use to search for and find solar energy incentives in the Greater Houston area, the state of Texas, and across the entire country.