Can I still get the 30% federal solar tax credit in Texas in 2026?

No, not for systems you own. The Residential Clean Energy Credit (Section 25D) was repealed by the One Big Beautiful Bill Act on July 4, 2025, and expired for new installations placed in service after December 31, 2025. Texas homeowners who purchase solar in 2026 with cash or a loan receive $0 in federal tax credit. The only way to capture a federal incentive in 2026 is through a third-party-owned (TPO) lease or power purchase agreement, where the leasing company claims the Section 48E commercial credit and reflects the savings in your lease pricing. Section 48E itself is only available for projects that begin construction before July 4, 2026.

What incentives does Texas still offer in 2026?

Texas still offers a 100% property tax exemption under Tax Code Section 11.27, which means installing solar will not increase your property tax bill even though it can raise your home's market value. Several utilities also offer rebates, including Austin Energy ($2,500 with a free education course), CPS Energy (program-dependent), Oncor (up to $9,000 but battery storage is required), and AEP Texas. Texas does not have a state income tax credit because Texas has no state income tax.

How much do solar panels cost in Texas right now?

The average residential system in Texas costs around $2.17 to $3.00 per watt installed. A typical 7-10 kW system runs $23,000 to $30,000 before any rebates or financing. Costs vary significantly by installer, equipment quality, roof type, and whether you add battery storage. Get 3-4 quotes before deciding.

Is solar still worth it in Texas without the federal credit?

It depends on your electricity bill, your utility, and whether you can stack a local rebate. Texas has strong solar fundamentals (high irradiance, rising electric rates, property tax exemption), but without the 30% federal credit the payback period typically extends from 8-9 years to 11-13 years. For homeowners with $200+ monthly bills in Oncor or Austin Energy territory, solar can still produce strong long-term savings — especially with a buyback plan from your retail electric provider. For lower bills or in service areas without good buyback rates, leasing through a TPO arrangement may make more sense.

Does Texas have net metering?

Texas does not have a statewide net metering mandate. Instead, retail electric providers (REPs) offer 'solar buyback' plans that credit you for the excess solar power you send to the grid. Buyback rates vary — Green Mountain Energy, Reliant, and TXU all offer solar buyback plans, but the rate per kWh ranges from 3¢ to 12¢ depending on the plan. Compare buyback rates carefully; this is one of the biggest variables affecting your long-term solar economics in Texas.

Who are the best solar installers in Texas?

There is no single 'best' installer because service area matters more than brand. The right installer is one that is licensed, NABCEP-certified, has been in business at least 5 years, has strong independent reviews, and actively serves your ZIP code. Use the form on this page to get matched with up to 4 vetted local installers in your area — you can compare quotes side-by-side, with no obligation.

Texas Solar Incentives, Costs & Installer Guide (2026)

Up-to-date 2026 Texas solar guide: what changed with the federal credit, current state and utility rebates, average installer costs by city, and how to get free quotes from top local installers.

Texas Solar in 2026: What Actually Changed

If you are researching solar in Texas right now, you need to understand one thing before anything else: the 30% federal solar tax credit is gone for systems you own. The One Big Beautiful Bill Act (OBBBA), signed July 4, 2025, repealed Section 25D for any system placed in service after December 31, 2025.

If a solar company tells you in 2026 that you can still claim the 30% federal credit on a system you own, that is incorrect or worse — a deliberately misleading sales tactic. The IRS confirmed in their official OBBBA FAQ published in 2025 that installation completion date controls eligibility. A deposit in 2025 does not save the credit if the system was not operational by December 31, 2025.

This changes the math for Texas homeowners. The good news is, Texas was never built around the federal credit the way states like California were. The Lone Star State has its own structural advantages — property tax exemption, high solar irradiance, deregulated electricity market — that keep solar economically viable, even without the 30% sweetener.

Average Solar System Cost in Texas (2026)

A typical 7-10 kW residential solar system in Texas costs:

Before any incentives: $23,000 to $30,000
After local utility rebate (if applicable): $20,500 to $27,500
TPO lease alternative: $0 down, with monthly payments below your current electric bill in most cases

Most Texas installers price between $2.17 and $3.00 per watt installed. Battery storage adds $10,000 to $18,000 depending on capacity. Adding a battery is often what unlocks the Oncor rebate (up to $9,000), which can offset most of the battery cost.

Texas Solar Incentives Still Available in 2026

Texas has no state income tax, so there is no state-level solar credit. What remains is structured into three categories:

1. Property Tax Exemption (Statewide)

Under Texas Tax Code Section 11.27, the added home value from a solar energy system is 100% exempt from property tax assessment. You file Form 50-123 with your county appraisal district. Given Texas has one of the highest property tax rates in the country (~1.6% average), this exemption alone is worth roughly $400-600 per year in avoided tax over the system’s lifetime.

2. Local Utility Rebates

These vary widely by service territory:

Austin Energy: $2,500 rebate for systems 3kW+ after completing a free solar education course
CPS Energy (San Antonio): Program funding status changes — check current availability
Oncor (DFW area): Up to $9,000, but ONLY for systems with battery storage
AEP Texas: SMART Source Solar PV Program, performance-based, variable
New Braunfels Utilities: Up to $3,000 for systems 3kW+

3. Solar Buyback Plans (REP-dependent)

Texas does not mandate net metering, but several retail electric providers offer buyback plans. Buyback rate is one of the largest variables in your long-term return. Compare these before signing up for solar:

Green Mountain Energy Renewable Rewards Buyback
Reliant Simple Solar Sell Back
TXU Energy Home Solar Buyback Plan
Chariot Energy
Rhythm Energy

A buyback rate of 8¢/kWh vs 3¢/kWh on a typical system can mean $400-700/year difference in savings.

4. Third-Party-Owned Leases (Federal credit still flows through)

If you lease or sign a Power Purchase Agreement (PPA), the leasing company claims the Section 48E commercial credit (30%), as long as the project begins construction before July 4, 2026. This typically results in lease pricing that is roughly 20-30% lower than what you would otherwise see. The trade-off: you do not own the system, you do not capture future utility savings the same way, and you cannot claim the Texas property tax exemption (because you do not own the equipment).

Is Solar Worth It in Texas Without the Federal Credit?

The honest answer: it depends on three things.

Your monthly electric bill. Above $200/month, solar still pencils out reasonably in most Texas markets. Below $100/month, the math gets harder.
Your utility and REP. Customers in Austin Energy or Oncor territory have more rebate options than those in rural CenterPoint or AEP territory. A good solar buyback plan can shorten payback by 2-3 years.
Whether you can add battery storage. Batteries add cost but unlock the Oncor rebate and dramatically improve resilience during Texas grid emergencies. After 2021 winter storm Uri, battery attachment in Texas rose to 35%+ of new installs.

Typical payback periods in Texas in 2026:

With battery + Oncor rebate + good buyback plan: 8-10 years
Solar-only + Austin Energy rebate + buyback plan: 9-11 years
Solar-only + no local rebate + average buyback: 11-13 years

System lifetime is 25-30 years, so even at the longer payback end, lifetime savings are typically $20,000-$40,000.

Top Cities for Solar in Texas

Austin — best rebate program through Austin Energy, strong irradiance, mature installer market
San Antonio — CPS Energy programs (check current funding), large installer base
Houston — high cooling costs make solar especially valuable, CenterPoint territory limits rebate options
Dallas–Fort Worth — Oncor battery rebate is the largest in Texas, competitive installer pricing
El Paso — highest solar irradiance in the state
Corpus Christi / Rio Grande Valley — AEP Texas SMART Source program available

What to Look for in a Texas Solar Installer

Texas has thousands of solar installers and the quality range is wide. A bad installer can cost you more than the missing federal credit. Look for:

Active Texas license and insurance. Verify through the Texas Department of Licensing and Regulation.
NABCEP certification. The industry standard for installer competency.
At least 5 years in business in Texas, not just nationally.
Strong independent reviews on Google, BBB, and SolarReviews.
25-year panel warranty and 10+ year inverter warranty, with a clearly defined workmanship warranty.
Local service area. They should be physically based in your region, not 200 miles away.
No high-pressure sales. If they push for a same-day signature or won’t let you compare quotes, walk away.

Get Free Quotes From Vetted Texas Installers

Comparing 3-4 quotes is the single best thing you can do to save money on solar in Texas. Quote-to-quote variance is often $5,000-$10,000 for the same system size on the same roof.

Use the form on this page. We match you with up to 4 vetted local installers who serve your ZIP code, meet the qualifications above, and provide free no-obligation quotes. You compare them side by side. You decide.

Sources for 2026 data: Internal Revenue Service Section 25D guidance and OBBBA FAQ, Texas Tax Code §11.27, Austin Energy, Oncor, CPS Energy, AEP Texas, NREL National Solar Radiation Database, EnergySage and SolarReviews market pricing data, Congressional Research Service report on RCEC expiration.

Incentive	Type	Amount
Texas Property Tax Exemption (Tax Code §11.27)	100% property tax exemption	100% of added home value from solar
Austin Energy Solar Rebate	Local utility rebate	$2,500 (system 3kW+, education course required)
Oncor Residential Solar + Battery Program	Battery-required rebate	Up to $9,000 (battery storage required)
AEP Texas SMART Source Solar PV	Performance-based utility rebate	Varies by system size and location
Federal Section 48E (TPO leases only)	Third-party owned solar credit	30% claimed by the leasing company, reflected in lease pricing (construction must begin before July 4, 2026)