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Federal incentives
Federal Residential Clean Energy Credit (25D)
30% for systems installed 2022–2025; not available for installations completed after December 31, 2025[1]
The 30% federal credit for homeowners who bought solar ended with Public Law 119-21. A system counts in the year its installation is completed, so paying in 2025 for a 2026 installation does not qualify.
- Who
- Homeowners who bought and installed a system by December 31, 2025 claim it on IRS Form 5695 for that tax year.
- Deadline
- December 31, 2025
- Checked
- November 5, 2026
Business credit for leased and PPA systems (48E)
Claimed by the system owner, not the homeowner; solar must begin construction by July 4, 2026 or be in service by December 31, 2027[2]
If a company owns the panels on your roof (a lease or power purchase agreement), that company may claim the business clean electricity investment credit and can reflect it in your price. You cannot claim it yourself.
- Who
- Third-party-owned systems (leases and PPAs). Ask the provider whether the price assumes this credit.
- Deadline
- December 31, 2027
- Checked
- November 5, 2026
State incentives in Texas
Texas property tax exemption for solar energy devices (Tax Code 11.27)
100% of the added appraised value from an on-site solar energy device is exempt from property tax[3]
Statute text was read from the Legislature's statute file server (tcss.legis.texas.gov/resources/TX/htm/TX.11.htm), which backs statutes.capitol.texas.gov. Last amended by Acts 2021, 87th Leg., Ch. 533 (S.B. 63). The homeowner claims it with Comptroller Form 50-123, filed with the county appraisal district (https://comptroller.texas.gov/forms/50-123.pdf).
- Who
- Solar (or wind) devices primarily for production and distribution of energy for on-site use. Subsection (a-1) also exempts a device owned by someone who does not own the real property it sits on.
- Deadline
- No sunset in statute
- Checked
- November 5, 2026
Utility incentives in Texas
Austin Energy Power Partner Battery - annual performance payment
$75 per kW of average event performance per year (Austin Energy example: about $324/year for a Powerwall at 20% reserve)[4]
Paid annually by check after each calendar year.
- Who
- Same as the upfront rebate. Up to 40 events a year (excluding grid emergencies), typically 2-3 hours each, and customers can opt out of individual events.
- Deadline
- Pilot; no end date stated
- Checked
- November 5, 2026
Only for Austin Energy customers.
Austin Energy Power Partner Battery - upfront rebate
$500 per enrolled battery system[4]
Page last reviewed 06/11/2026. The program is described as a demand response pilot. There is no limit on how many battery systems you can enroll.
- Who
- Customer-owned residential batteries (not third-party-owned) on the eligible list (Enphase, FranklinWH, Generac, SolarEdge, Tesla) installed by a participating contractor, with PTO on or after 2/18/25. Solar is not required.
- Deadline
- Pilot; funding limited, first-come first-served; offerings subject to change without notice
- Checked
- November 5, 2026
Only for Austin Energy customers.
Austin Energy Residential Solar Rebate
$4,000 flat rebate per qualifying residential solar system[5]
Third-party solar PPAs are not allowed in Austin Energy territory. The contractor applies for the rebate. The check is mailed after inspection, the solar meter install (PTO) and QA review.
- Who
- Austin Energy residential customers installing a new system of at least 3 kW DC, mostly unshaded, through an Austin Energy participating contractor. You must complete the Solar Rebate Quiz and receive a Rebate Confirmation Letter before installation.
- Maximum
- $4,000
- Deadline
- No end date stated (page last reviewed 10/01/2026)
- Checked
- November 5, 2026
Only for Austin Energy customers.
Austin Energy Value-of-Solar (VoS) bill credit
12.89 cents per kWh for ALL solar production (residential, FY2027 tariff effective Oct 1, 2026)[6]
In the Value-of-Solar Rider (Electric Tariff, October 1, 2026), the rate is $0.0959 avoided cost plus $0.0330 societal benefit = $0.1289/kWh for non-demand accounts. FAQ history: 9.91 cents for FY2023-FY2026, 12.89 cents for FY2027-FY2029. An April 2026 staff presentation showed $0.1288 and a Nov 1 start; the adopted tariff and web pages say 12.89 cents and October 1, 2026.
- Who
- Automatic for Austin Energy accounts with interconnected on-site solar under 10,000 kW-ac.
- Deadline
- Rate recalculated every three years; next update scheduled October 2029 per Austin Energy FAQ
- Checked
- November 5, 2026
Only for Austin Energy customers.
CPS Energy My Battery Rewards
$10 bill credit per battery dispatch event[7]
No upfront battery rebate was found for CPS Energy.
- Who
- Residential CPS Energy customers who own their battery energy storage system and can dispatch it when CPS calls an event.
- Deadline
- Offered year-round; no end date stated
- Checked
- November 5, 2026
Only for CPS Energy customers.
CPS Energy rooftop solar rebate (residential)
No residential solar rebate currently offered; CPS rooftop solar incentives now cover small businesses, schools and nonprofits only[8]
'Closed' for residential is inferred from the current CPS incentive page, which lists only commercial, school and nonprofit tiers. The linked CPS Solar Program Manual (rev. 6/21/2019) still shows a $2,500-per-project residential rebate, but it is outdated. No official CPS announcement of the residential end date was found. The CPS solar FAQ says batteries never got rebate money.
- Who
- Commercial only: small businesses (<100 kW AC), schools and nonprofits get $0.60/W AC for the first 25 kW and $0.40/W AC above, capped at $80,000 or 50% of the invoice.
- Deadline
- Residential rebate not listed on current CPS incentive page
- Checked
- November 5, 2026
Only for CPS Energy customers.
CenterPoint Energy Houston Electric residential solar PV incentive
$135 per kW DC, capped at 15 kW (maximum $2,025), credited on the installer's invoice[9]
The $2,025 maximum is computed ($135 x 15 kW), not stated by CenterPoint. Not a direct-to-customer program: the incentive reaches the customer as a credit on the installer's invoice. The fact sheet (12/2024) gives the same $135/kW.
- Who
- Existing single-family homes in CenterPoint's Houston Electric service territory, using a participating service provider. New construction and homes with existing PV are excluded, and the customer must sign an interconnection agreement.
- Maximum
- $2,025
- Deadline
- No end date stated; PUCT-approved energy-efficiency program funding
- Checked
- November 5, 2026
Only for CenterPoint Energy Houston Electric, LLC customers.
Oncor Solar Photovoltaic Standard Offer Program - Residential (2026)
Incentive paid to the installer, based on modeled kWh and peak-demand savings (PUCT TRM / PVWatts); capped at 50% of total project cost. Options with or without battery storage.[10]
2026 residential budget: $1,774,000, first-come first-served; no installer may get more than 15% of it. Batteries must be charged by the paired PV, installed outside the home, and not lead-acid. A per-watt rate is not published in the manual (installers get a calculator). Oncor's takealoadofftexas pages returned 403, so current funding/waitlist status is unverified.
- Who
- Existing Oncor residential-rate customers without existing PV or storage, using an approved participating service provider. System at most 20 kW DC and at most 75% of the site's 12-month maximum demand. Sites in designated solar/renewable communities are excluded.
- Deadline
- November 30, 2026
- Checked
- November 5, 2026
Only for Oncor Electric Delivery Company LLC customers.
How these incentives stack
Cash rebates are paid first and usually reduce the cost a tax credit is based on. State tax credits only help if you owe enough state income tax. Exemptions (sales and property tax) apply automatically or through a form, and they do not reduce what you owe the installer on paper, so check that a quote does not charge tax that the law exempts. The calculator applies the programs it can model and lets you switch utility rebates on or off.
FAQ
Frequently asked questions
Does Texas have a solar tax credit?
No. Texas offers exemptions and utility programs instead of a state income tax credit; see the list above.
Can I still get the federal solar tax credit?
No, not if you buy the system and installation is completed after December 31, 2025 (Federal Residential Clean Energy Credit (25D)[1]). If a company leases you the panels or sells you the power, that company may still claim a business credit and may pass some value on through the price.
sources
[ 10 ]Every number on this page links to one of these sources. Dates show when we last checked each one.
- IRS FS-2025-05: FAQs for modification of sections 25C, 25D, 25E, 30C, 30D, 45L, 45W, and 179D under Public Law 119-21 (OBBB)irs.gov · checked Nov 5, 2026
- Public Law 119-21 - Sec. 70513(a) and (g)(5) (48E); Sec. 70512(a) and (l)(4) (45Y)govinfo.gov · checked Nov 5, 2026
- Texas Tax Code Sec. 11.27, Solar and Wind-Powered Energy Devicesstatutes.capitol.texas.gov · checked Nov 5, 2026
- Austin Energy - Power Partner Batteryaustinenergy.com · checked Nov 5, 2026
- Austin Energy - Solar Solutions For Your Homeaustinenergy.com · checked Nov 5, 2026
- Austin Energy - Value of Solar Rateaustinenergy.com · checked Nov 5, 2026
- CPS Energy - My Battery Rewardscpsenergy.com · checked Nov 5, 2026
- CPS Energy - Rooftop Solar Incentivescpsenergy.com · checked Nov 5, 2026
- CenterPoint Energy - Solar Systems (Energy Efficiency)centerpointenergy.com · checked Nov 5, 2026
- Oncor Solar Photovoltaic: Commercial and Residential Solar Program, 2026 Program Manual v1.0 (1/15/2026)oncor.com · checked Nov 5, 2026
Incentive list last re-checked November 5, 2026. Programs change; confirm with the program before you sign.