Texas Solar Tax Incentives

The decision to invest in a Texas solar energy system is often based on the cost. Click the button below to receive a free quote from JBN Solar Pros. This top-rated solar company will show you how much it would cost to install solar panels on your roof.

Texas still provides the majority of its huge energy needs via crude oil and natural gasoline, but the Lone Star State has been rapidly expanding its use for solar energy technology. Texas’s low cost for solar panels as well as its solar tax credit, rebate and other incentives make it one the best states for solar.

Texas’s sunny days are a huge opportunity for homeowners. They need to consider the pros & cons of solar energy. Texas’ solar market is growing despite it still being a small part of the state’s total electricity supply. In fact, Texas installed the second highest residential solar power watt in the United States in 2020 and the nation’s leading in installation in the second quarter.

What kind of incentives are available to Texans for installing solar panels on their homes? Let’s take another look.

Texas Solar Tax Incentives

Texas is known for its local tax assessment and administration. This means that it does not offer many state-level tax incentives. Although there isn’t a Texas solar tax credits, all homeowners are still eligible to the Federal Solar Tax Credit. Additionally, the state offers Local Property Tax Exemptions both for photovoltaic solar or wind-powered renewable energies.

Texas Net Metering Programs

Texas Net Metering Programs

Net energy monitoring (NEM), or net Metering, allows customers the option to sell excess energy they have generated to the grid and receive energy credits from their local utility. Solar energy systems generally produce more energy during the day than they can use, so this incentive offers homeowners additional savings and lowers electricity demand in the region.

Texas does not offer statewide net meters. You will need to apply to your local utility companies or municipalities for eligibility. NEM is available at many utilities throughout Texas: AEP, CPS Energy. Green Mountain Energy. El Paso Electric. TXU Energy. Dallas. The Database of State Incentive for Renewables & Energy is a good place to check for net meters in your area.

Texas Solar Rebate Programs

The state does not have a solar rebate program. This is similar to Texas’s solar tax credit and net-metering availability. Instead, local municipalities, utilities companies, and cities offer homeowners a range of incentives and rebates to encourage them to invest in clean and efficient energy.

Denton Municipal Electric and many other local utilities, such as Corinth and Frisco, offer rebates to solar installation. 

Federal Solar Tax Credit – Texas Solar Tax Incentives

No matter which state you are in, all homeowners living in the U.S. qualify for the federal tax credit for solar panel installation, including solar battery and other energy storage system. You can claim the ITC in your federal tax returns. The credit deducts 26% the total cost of your system from your income.

Under the Bush administration, the Energy Policy Act of 2006 created the ITC. It was originally intended to last two years. However, because of its success, it has been extended for solar installation. It is important that Congress does NOT extend the credit. The credit is due to expire at the end of 2023.

For the solar tax credit to be available, homeowners must meet these criteria:

  • You have installed a residential photovoltaic system from 2006 through 2022.
  • You have put the solar energy systems in a residential place. It does not need to be your main residence.
  • You are the owner of the solar energy system. ITC is not available to homeowners who lease the solar panels .

We understand that homeowners often decide to invest in a system of solar energy because it is affordable. By click the button below and filling out the form, you can receive a free, no obligation quote from us today.

FAQs: Texas Solar Tax Incentives

Texas has solar rebates.

Texas does have a solar rebate program, but there are many rebates offered by local governments and utility providers to homeowners who have solar panels. These rebates may be limited in scope, but they can often reduce the cost for a solar system by 10-20%.

Texas: Is it a good state to have solar power?

Texas is one of the best states for producing solar energy. Texas boasts sunny days and lower costs than the average. Texas is blessed with plenty of sunshine that provides ample energy for homes. Solar panels in Texas can bring great benefits.

What is Texas' tax credit for solar panels?

All American households can be eligible for the federal federal solar tax credit. Texas residents are eligible to claim 26% off the cost of their solar system on their federal tax returns. Texas also provides a statewide exemption for property taxes that protects your property taxes from rising after your house value increases due solar panel installations.

What is the best way to apply for the Texas Solar Tax Credit?

Filing your federal tax returns can help you claim a tax credits for the purchase of solar panels. The 26% credit can be claimed once it is received by the IRS.