Texas Solar Incentives: What’s Still Available After the Tax Credit Expired
The 30% federal residential solar tax credit expired December 31, 2025. Here’s what Texas homeowners can actually claim this year — and what’s no longer on the table.
The most important thing to know about Texas solar incentives in 2026 is also the one most often misrepresented: the 30% federal residential solar tax credit no longer exists for homeowners who purchase a system with cash or a loan.
If you’ve seen ads, mailers, or sales pitches in 2026 claiming you can still get the 30% credit, you’re looking at either outdated information or deliberately misleading marketing. That said, meaningful incentives do remain — they’re just different ones.
Quick Reference: What’s Active vs. Expired
Federal ITC (Section 25D)
30% tax credit for cash/loan purchases. Ended December 31, 2025. No extension as of August 2026.
Texas Property Tax Exemption
100% of added solar home value exempt from property tax. Permanent under Texas Tax Code §11.27.
Austin Energy Rebate
~$2,500 for AE customers. Subject to available funding — not available to Houston (CenterPoint) customers.
CPS Energy Rebate (San Antonio)
Program at capacity, not accepting new applications as of 2026.
Solar Buyback (Houston)
TXU, Green Mountain, and others offer $0.08–$0.10/kWh for excess power fed to the grid.
Commercial ITC via Lease/PPA
Section 48E — claimed by the solar company, not you. May be passed through as lower monthly rates.
The Biggest Incentive Still Standing: Property Tax Exemption
Estimated 25-year property tax savings on a 10 kW Houston system
Solar panels add home value — value that’s 100% exempt from Texas property taxes. At Harris County’s ~2.2% effective rate, a 10 kW system adding ~$30,000 in appraised value saves approximately $660/year in property taxes, every single year you own the home. Permanently.
This exemption applies under Texas Tax Code §11.27 and has no expiration date. It’s one of the strongest state-level solar incentives in the country, and it’s often overlooked because it doesn’t show up as a line item on your installation quote.
The exemption usually applies automatically once the installation is permitted and recorded. To be safe, notify your county appraisal district after installation and confirm the added solar value is marked exempt. Some counties have a specific form — contact your local CAD or check their website.
Solar Buyback in Houston (CenterPoint Territory)
CenterPoint Energy allows rooftop solar, but doesn’t offer traditional net metering — instead, you choose a retail electricity provider that offers a solar buyback plan.
| Provider | Buyback Rate | Notes |
|---|---|---|
| TXU Energy | ~$0.097/kWh | Check current plan availability |
| Green Mountain Energy | $0.08–$0.10/kWh | Variable by plan |
| Reliant Energy | Varies | Plan-dependent |
| 4Change Energy | Varies | Plan-dependent |
Buyback rates are significantly lower than retail electricity rates. Don’t size your system to overproduce hoping to profit from exports — the math doesn’t work. Size your system to cover your consumption.
What’s NOT an Incentive (But Gets Marketed Like One)
“SREC Credits” — Solar Renewable Energy Credits exist in states like NJ and MA. Texas has no SREC market. Any company saying you’ll earn ongoing credits for generating power in Texas is misinformed.
“Free Solar Through Utility Programs” — No such program currently operates in Houston. If you see this pitched, ask for the specific program name and verify it directly with CenterPoint.
“30% Tax Credit — Act Now” — This credit expired December 31, 2025. It’s gone.
How to Maximize Your Solar Value in Texas Today
100% certain, permanent, zero effort after installation. Notify your county appraisal district after installation to confirm it’s applied.
Switch to a CenterPoint-area provider with a solar buyback plan before your system goes live. Compare rates at powertochoose.org.
Price per watt installed varies significantly. Getting 3+ quotes is the single fastest way to reduce your total cost.
No direct Houston subsidy exists for batteries, but the reliability value is real. A single Powerwall at ~$10,000 amortizes to ~$56/month over 15 years.
Without the federal credit, the purchase vs. lease tradeoff looks different in 2026. Run both scenarios with real numbers before deciding.
Get a Free, No-Obligation Solar Quote →
Information current as of August 2026. Utility rebate programs and buyback rates are subject to change — verify with your provider before making installation decisions.
