Texas Solar Tax Credits & Incentives
2026 Guide
Everything Texas solar homeowners need to know about federal credits, property and sales tax exemptions, and local utility rebates in 2026.
Federal Solar Tax Credit Update — 2026
The 30% federal ITC expired for homeowner-owned systems on December 31, 2025.
If you installed solar by Dec 31, 2025, claim the 30% credit on your 2025 tax return. Texas has no state income tax, so state tax credits are not applicable — but property and sales tax exemptions provide significant savings.
Texas Solar Tax Credits & Incentives
Every credit, exemption, and rebate available in TX
Federal ITC Carryforward
30% of system cost
If you installed solar before 2026, claim the full 30% Residential Clean Energy Credit on your 2025 tax return.
Eligibility
- Installed solar/battery by December 31, 2025
- File 2025 tax return by April 15, 2026
- Nonrefundable — excess carries forward
Property Tax Exemption
100% exemption
Solar installations are fully exempt from property tax increases in Texas, protecting you from higher assessments due to your solar investment.
Eligibility
- Any Texas homeowner with solar
- Residential property
- Automatic
Sales Tax Exemption
~$1,500+ saved
No state sales tax on solar panel systems — saves approximately 6.25% on system costs. On a $25,000 system, that's over $1,500 in savings.
Eligibility
- Any solar panel system purchase
- Applies at point of sale
- No application needed
Austin Energy Solar Rebate
Up to $2,500
Austin Energy offers up to $2,500 in rebates for residential solar installations. Must complete a solar education course to qualify.
Eligibility
- Austin Energy customer
- Completion of solar education course
- Residential installation
CPS Energy Rebate (San Antonio)
Varies
CPS Energy offers solar rebates for residential customers in the San Antonio service territory.
Eligibility
- CPS Energy customer in San Antonio area
- Residential solar installation
Key Deadlines for Texas Solar Owners
Don't miss these time-sensitive opportunities
April 15, 2026CRITICAL
Last day to file 2025 taxes and claim the 30% federal ITC for pre-2026 installations
July 4, 2026
Deadline for third-party providers to begin construction for Section 48E credits
Net Metering in Texas
No statewide net metering mandate. Individual utilities offer varied buyback/credit programs. Texas's deregulated market means rates vary significantly by provider — compare plans carefully.
Frequently Asked Questions
Common questions about solar tax credits in Texas
Is there a Texas state solar tax credit in 2026?
Texas has no state income tax, so there is no state solar tax credit available. However, Texas offers both property tax and sales tax exemptions for solar, which together can save $3,000+ on a typical installation.
Can I still claim the federal solar tax credit in Texas in 2026?
Only if you installed your system by December 31, 2025. You can claim the 30% federal ITC on your 2025 tax return, due April 15, 2026. For 2026 installations, only lease/PPA arrangements offer federal credit access.
How much does the Texas solar sales tax exemption save?
Texas has a 6.25% state sales tax. The solar exemption saves approximately $1,250 on a $20,000 system and $1,563 on a $25,000 system. This is automatic at the point of purchase.
Does Texas have net metering for solar?
Texas does not have a statewide net metering mandate. Individual utilities offer varied buyback and credit programs. Texas's deregulated electricity market means rates and programs vary significantly by provider.
What solar rebates are available in Austin, Texas?
Austin Energy offers up to $2,500 in solar rebates. You must be an Austin Energy customer and complete a solar education course to qualify. CPS Energy in San Antonio also offers rebates for residential solar.
Solar Tax Credits in Texas Cities
Find Out Exactly What You Qualify For in Texas
Get a personalized report identifying every federal, state, and local incentive you're eligible for. Includes dollar estimates, application guidance, and matched installer recommendations for Texas.
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