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Texas Home Solar Incentives

By James Kennedy, Founder and President Beach Cities Solar Consulting LLC

It is an exciting time in our industry in the state of Texas.  Last year Texas installed more solar than any other state in the country except California.  The state offers several Texas home solar financial incentives, making it extremely attractive for Texas homeowners to go solar.

Texas Home Solar Incentives

Texas Home Solar Is Booming!

Federal Investment Tax Credit

The Solar Federal Investment Tax Credit that is available to all U.S. homeowners and all U.S. businesses that install a residential or business solar system on their property is 26% through 12/31/22.  This is a federal tax credit (not a deduction) and reduces the Federal tax liability you owe dollar for dollar.

Utility Rebates

Several Texas utilities offer onetime cash rebates for the installation of a Texas home solar system.  Here are the available incentives by retail electricity provider:

American Electric Power (AEP)

AEP serves a multitude of cities in Texas including Corpus Christi, Abilene, McAllen, Harlingen, San Angelo, and others. In 2020, AEP is offering a single rebate program for both North and South territories. The residential rebate value is $0.50 per watt, up to a $5,000 limit.  AEP operates in a competitive electricity market, so a net metering program would be handled by your retail electric provider (REP), if available.

Austin Energy

The Austin solar rebate helps homeowners in the Austin area who want to make the switch to solar. Austin Energy is currently offering a flat $2,500 solar rebate just by participating in an educational course about solar. It is a great way to learn the nuts and bolts of solar on the ground in your city, and earn some easy cash back when you get your solar panels installed.

You are also eligible for their Value of Solar rate tariffs. This credits you $0.097 per kilowatt-hour generated by your solar panels on your electric bill.

CenterPoint Energy

CenterPoint serves the Houston area. They do not offer a solar rebate.

Coleman County Electric Cooperative

Coleman County Electric Co-op does not offer a solar rebate but does offer a solar buyback for systems up to 10 kW in size. For systems above 10 kW, CCEC offers a bill credit at the retail rate for solar energy generation.

CoServ Electric

CoServ serves Northern Texas and offers a periodic post-installation solar rebate on residential and commercial systems that is available from the announced start date until funds are depleted.

The first 4kW DC is rebated at $0.40 per watt, $0.30 per watt on the portion of the system between 4kW and 7kW, and $0.20 per watt between 7kW and 10kW. The rebate is capped at $3,100 per system.

CPS Energy solar photovoltaics (PV) rebates

CPS serves the San Antonio area. There is an up-front solar rebate available for residential projects.  Solar rebates through CPS offer between $1500 and $2500 depending on when you take advantage of the incentive—the sooner the better, as funding decreases will mean a reduction in the rebate amount.

Denton Municipal Electric

Denton offers a solar incentive. The solar rebate varies between $0.40 and $0.80 per watt depending on the system size, up to $30,000 and not to exceed 50% of the total installation cost.  If the solar project includes battery storage, the rebate increases to between $0.60 and $1.20 per watt. The funds are limited, and the rebate is renewed each October.

Farmers Electric Cooperative

Farmers Electric Cooperative, which serves almost 50,000 members across twelve counties in North Texas, offers a $500 rebate for renewable energy distributed generation systems up to 50 kW in size.

Garland Power & Light

GP&L offers bill credits for those who install solar. The solar rebate of $0.75 per watt, up to $5,000 per system, is renewed every October and available until that year’s funds run out.

Greenville Electric Utility System

Greenville does not offer solar rebates, but they do participate in net metering.

Heart of Texas Electric Cooperative

This co-op does offer multiple energy efficiency rebates, including a solar rebate of $0.10 per watt on the solar installation. This rebate maxes out at $500 per member.

HILCO Electric Cooperative

HILCO offers several rebates, including a solar installation rebate. Members who install solar are eligible to receive $200 per kW, with a maximum $1,000 per member.

Mid-South Synergy

Mid-South, a cooperative based in Navasota, offers a solar rebate on 20% of total construction costs up to $2,000.

Navarro County Electric Cooperative

Navarro’s rebate programs have expired, and funds are no longer available. The co-op does offer a dollar-for-dollar solar buyback, but those credits do not roll over from month to month.

Navasota Valley Electric Cooperative

Navasota does not offer solar rebates but does offer net metering.

New Braunfels Utility (NBU)

New Braunfels Utility offers solar rebates. NBU pays the solar rebate of up to $3,000 as a bill credit after system inspection.

Oncor Electric Delivery

If you get your power from Oncor, you can receive a residential solar rebate of about $538 per kilowatt hour for your solar panels. You are also eligible for a

credit like net metering. Oncor’s territory covers much of the Dallas-Fort Worth metroplex, the I-35 corridor from DFW to the northern Austin suburbs, and other parts of North and West Texas.

The rebate is calculated for each system using Oncor’s calculator, but could be as high as $5,000.  The solar rebate is renewed annually at the beginning of the year and tends to run out within a few months.

Pedernales Electric Cooperative

PEC operates in the Hill Country. They do not offer solar rebates, but do participate in net metering.

Taylor Electric Cooperative

Taylor Electric does not currently offer a solar rebate. The co-op offers a dollar-for-dollar solar buyback, but those credits do not roll over from month to month.

Texas New Mexico Power 

TNMP operates in several areas of Texas. They do not offer a solar rebate.

Tri-County Electric Cooperative

This co-op in the Dallas Fort Worth area does not offer a solar power rebate. Tri-County offers a dollar-for-dollar solar buyback, but those credits do not roll over from month to month.

Net Energy Metering

Texas does not have a statewide net energy metering policy.  However, many retail electricity providers in Texas do.  Check with our expert team to see if your Texas home solar system is eligible for net energy metering.

Property Tax Exemption 

Solar panels add value to your home.

Fortunately, in the state of Texas, the added appraised value of solar panels is property tax exempt.

Interested in hiring Beach Cities Solar Consulting LLC to provide a turnkey Texas home solar proposal for your Texas home?  Get started by e-mailing your last electric bill (all pages) and a picture of your roof material here: info@beachcitiessolarconsulting.com