Texas Solar Incentives and Tax Rebates in 2024


Are you thinking about going solar in Texas? The benefits include a reliable source of grid-independent renewable electricity for your home, a reduced carbon footprint, lower (or no) electricity bills, and so much more. 

In addition, you’ve probably heard that financial benefits are available to those who switch to renewable solar energy. 

But what programs are available to you in Texas?

And how can they facilitate your solar switch? 

If you want to find out, you’ve come to the right place! 

Learn all about the solar incentives available to Texans and understand what programs are available to you. 

The Best Texas Solar Incentives, Tax Credits, & Rebates

If you’re considering installing a solar power system in Texas, it pays to take advantage of every incentive, tax credit, and rebate you’re eligible for. Anything that reduces your initial investment shortens your solar payback period and helps you get the best possible return on investment

Let’s take a deep dive into the programs available to Texans who invest in solar power and help ensure you’re getting every benefit you’re entitled to. 

Remember, government programs are subject to change. 

Having the most up-to-date information is essential if you want to install a solar panel system in Texas. 

You may also be eligible for some programs offered on a local level. 

Look into what programs are available in your municipality so you can take advantage of every opportunity. 

Let’s dive right in! 

Federal Solar Tax Credit

The Federal Solar Tax Credit is a nationwide incentive that provides up to a 30% tax credit on the total cost of your residential solar power system, including materials and installation. 

This substantial reduction in tax liability puts money straight back in your pocket.

The ITC substantially shortens your solar payback period by reducing your tax liability. 

If you plan to take advantage of the Federal Solar Tax Credit, do your research first. 

Numerous stipulations make you eligible to receive this credit — such as owning the solar power (PV) system outright. 

Texas Solar Property Tax Exemption

In most cases, a solar panel installation increases the value of your home. Given how many benefits solar panels offer, this is no surprise. 

It reduces your carbon footprint and saves on electricity bills at the same time – a win-win! 

Solar panels also give you access to electricity during a blackout — extended power outages are something Texans are all too familiar with.

You can even achieve personal energy independence by installing a Whole Home Generator.

Suppose increasing your home’s value by installing solar panels led to higher property taxes? 

That would be a serious disincentive.

Fortunately, Texas offers a renewable energy property tax exemption, meaning that Texans who switch to solar don’t need to pay additional taxes on the increased value of their homes. 

Net Metering

Depending on the size of your solar panel array, your panels may produce excess electricity over and above what you require to power your home. 

So what happens to that additional solar energy? 

You can store excess energy in a solar battery – like EcoFlow’s EcoFlow DELTA Pro – to use when the sun isn’t shining or electricity production is reduced by poor weather.

In grid-tied systems, you may also be able to take advantage of net metering. 

Net metering is a program that enables you to sell the electricity you generate but don’t consume back to the grid.

If you have a smart power meter, it will actually run backward when you produce more electricity than you consume.

In Texas, net metering isn’t mandated, but utilities can offer voluntary net metering programs. 

Customers using eligible utility providers can receive credits for the extra electricity they generate when sent back to the grid. 

The compensation rates you receive and the applicable terms may vary depending on which utility company you use. If you plan to utilize net metering in Texas, it’s essential to do your research to get the most up-to-date and accurate information. 

How Much Can You Save on Solar in Texas?

How much money you can save on your solar system installation in Texas depends on numerous factors, including the type of panels you use, the size of your solar system, and more. 

For example, monocrystalline panels are more expensive than polycrystalline panels, but they produce more electricity, saving you more money on electricity on a monthly basis.

With the Federal Solar Tax Credit, you could receive a rebate of up to 30% of your solar power system’s cost against your income tax. 

If you spend $15,000 on your solar panel system, your tax liability could be reduced by $4,500. 

In addition, Texans needn’t fear an increase in property taxes due to their home’s added value from their solar panel installation. 

Finally, if you’re eligible for net metering, you’ll save even more money every month. 

How much money you’ll save by switching to solar depends on the installation cost, net metering eligibility, and more. 

That being said, solar panels last for decades. 

Your savings on electricity bills alone will give you a substantial return on investment.

Frequently Asked Questions

Is Solar Worth It in Texas?

Solar power offers many benefits in Texas, making the investment worthwhile for many homeowners. Between the Federal Solar Tax Credit, the solar property tax exemption in Texas, and many utility companies offering net metering, you can save a lot of money by switching to clean, renewable solar power.

Does Texas Offer Incentives for Solar Panels?

Texans are eligible to benefit from the Federal Solar Tax Credit of up to 30% of the system’s purchase and installation cost. In addition, The Lone Star State also offers a solar property tax exemption against the inevitable increase in your home’s value from going solar. Some Texan utility companies also provide net metering, allowing customers to sell excess electricity their PV system generates back to the grid for credit on their utility bill. 

What Are the Benefits of Going Solar in Texas?

Going solar in Texas means lower (or no) electricity bills, a reduced carbon footprint, and backup power during grid failures if you have a solar battery. Financial incentives for switching to solar are offered on a federal, statewide, and municipal level that make a switch to solar even more beneficial to Texans. 

Final Thoughts

The benefits of going solar are immense anywhere you live.  

A reduced carbon footprint, lower (or no) electricity bills, energy independence and security, and more are excellent reasons to switch to renewable energy from the sun for your electricity needs.

Government and utility company incentives available in Texas help to make the investment even better. 

On the federal level, Texans can benefit from the Federal Solar Tax Credit, decreasing personal tax liability by 30% of the total cost of their system installation. 

In addition, the statewide solar property tax exemption also advantages forward-thinking Lone Star State who increase the value of their homes by going solar. 

If you have a utility company that offers net metering, that’s even more reason to make the switch to this form of renewable energy in Texas! You can sell any excess electricity that you generate back to the grid. 

With all of these incentives available to Texans, there are more reasons than ever to invest in the switch to solar power.

Are you sold on the sun? 

EcoFlow offers a wide range of solar panels, portable power stations, whole home generators, and more. 

Check out our off-grid residential solar solutions today! 

EcoFlow is a portable power and renewable energy solutions company. Since its founding in 2017, EcoFlow has provided peace-of-mind power to customers in over 85 markets through its DELTA and RIVER product lines of portable power stations and eco-friendly accessories.

Share this article

Thanks for joining us!
A surprise is waiting for you in your inbox.
Please check your email.

Popular posts


Please enter your comment!
Please enter your name here