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Solar Rebates in Texas (2026)

Texas does not offer a state-level solar tax credit, but the major utilities — Oncor, CPS Energy, Austin Energy, Pedernales Electric Cooperative, and Garland Power & Light — run rebate programs that stack on top of the federal 25D credit. Oncor pays roughly $2,500 for a typical 6 kW residential install through the Solar PV Standard Offer Program. Austin Energy pays $2,500 flat and CPS Energy in San Antonio pays $0.60/W (capped). Texas property tax law also exempts the added home value from solar — meaningful in a state with property tax averaging 1.7%. Texas has no statewide net metering mandate, so export economics depend on your retail electric provider — Green Mountain Energy and Reliant offer 1:1 buyback plans on retail competitive territory.

Texas solar programs available

Program Amount Type Authority Deadline
Federal 25D Residential Clean Energy Credit 30% of system cost Tax credit IRS Dec 31 2032
Oncor Solar PV Standard Offer Program ~$2,500 for 6 kW residential Performance payment Oncor Electric Delivery Annual cap, first-come first-served
Austin Energy Solar Rebate $2,500 flat Rebate Austin Energy Annual budget cap
CPS Energy Solar Rebate $0.60 per watt up to $4,500 Rebate CPS Energy (San Antonio) Until annual fund depleted
Pedernales Electric Cooperative Rebate $2,500 typical residential Rebate PEC Member program
Garland Power & Light Solar Buyback $3,500 flat Rebate GP&L Ongoing
Texas Property Tax Exemption (Solar) 100% of added home value Tax credit Texas Comptroller Permanent
Net Metering (REP-dependent) Varies — Green Mountain, Reliant offer 1:1 buyback Net metering Retail Electric Providers Ongoing

Eligibility quick check

Do I need to be in Oncor territory for the Oncor rebate?

Yes. Oncor is the wires utility for Dallas-Fort Worth and most of north and west Texas. The rebate applies regardless of your Retail Electric Provider, as long as your meter is on Oncor lines.

Is there an Austin Energy income requirement?

No income cap on the standard rebate, but Austin Energy Customer Renewable Energy Solutions (CRES) program offers higher per-kW rebates to income-qualified households.

How does CPS Energy (San Antonio) compare?

CPS Energy pays $0.60/W up to $4,500. A 6 kW install nets $3,600 on top of the federal 30%. CPS also operates a community solar option for renters.

How to stack with the federal credit

Texas programs combine with the federal 25D 25D Credit (30% of cost, no cap) — see the 25D guide for filing instructions and forms.

Worked stacking example

Dallas homeowner with 8 kW system at $20,000: federal 25D credit $6,000 + Oncor rebate ~$3,300 = $9,300 incentives. Net cost $10,700. With Reliant Truly Free Nights & Solar Days, payback ~6 years.

Frequently asked questions

Is Texas a good state for solar in 2026? +
Yes — Texas has the second-best solar resource in the US after Arizona/California, low installer costs ($2.50–$3.00/W typical), and meaningful utility rebates in major metros. The lack of state mandate is offset by competitive REP buyback rates.
How does Texas net metering work? +
There is no state mandate. Customers in deregulated territory choose their REP, and some plans (Green Mountain Renewable Rewards, Reliant Truly Free Nights & Solar Days, Chariot Energy) offer 1:1 export buyback. Customers in cooperative or municipal utility territory follow the local utility tariff.
Can I sell SRECs in Texas? +
There is no compliance SREC market in Texas (no statewide RPS). A small voluntary market exists but pricing is below $5/MWh — effectively zero compared to NJ ($200+) or DC.
Will Oncor approve my install fast? +
Oncor interconnection averages 4–8 weeks post-permit. The Standard Offer Program rebate is reserved at application — installer files paperwork.
Does Texas tax solar income? +
Texas has no state income tax. Solar income (REP buyback) is federal-taxable but not state-taxable.
What about ERCOT vs SPP territory? +
Most Texas residential solar is on ERCOT (the state grid). Far west Texas (El Paso) and far east Texas are on different grids. Your wires utility determines rebate eligibility.
Can renters benefit from Texas solar incentives? +
Federal 25D requires homeownership. CPS Energy and Austin Energy community solar programs let renters subscribe to off-site generation.
Does the property tax exemption need an application? +
Yes. File Form 50-123 with your county appraisal district within one year of the solar install.
Are batteries covered by Texas utility rebates? +
Oncor offers a separate Commercial Solar Photovoltaic and Storage Standard Offer for commercial. Residential battery rebates are limited — federal 25D 30% remains the primary battery incentive.
How much does typical 6 kW Texas install cost in 2026? +
Quotes range $14,000–$19,000 pre-incentive. After 30% federal credit and ~$2,500 utility rebate, net is typically $7,300–$10,800. Payback 7–9 years at $0.13/kWh average residential rate.

Related solar stacks and Texas pages

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