Texas Solar Incentives & Tax Credits
Every solar incentive available to Texas homeowners in 2026.
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Federal Tax Credit — Expired for Purchases
The 30% federal Residential Clean Energy Credit (Section 25D) expired on December 31, 2025. Homeowners who buy a system with cash or a loan in 2026 can no longer claim it — a $20,833 system that once carried a $6,250 credit now has none.
- ✅ Solar leases and PPAs can still capture a federal credit through 2027 — the installer claims it and lowers your monthly payment
- ✅ State incentives and net metering below still apply to purchased systems
- ✕ No federal credit for cash or financed purchases placed in service after Dec 31, 2025
$1,000
Texas State Incentive
Texas offers a property tax exemption for the added home value from solar.
Net Metering in Texas
Texas has Avoided Cost net metering. Your top utility, Oncor, credits you for excess solar power fed to the grid.
Policy Type
Avoided Cost
Electricity Rate
$0.120/kWh
Top Utility
Oncor
Utility Net Metering Policies in Texas
| Utility | Rate/kWh | Net Metering | Capacity Limit |
|---|---|---|---|
| Oncor | $0.120 | Avoided Cost | None |
| Centerpoint Energy | $0.120 | Avoided Cost | None |
| CPS Energy | $0.120 | Avoided Cost | None |
| Austin Energy | $0.120 | Modified Net Metering | None |
| AEP Texas | $0.120 | Avoided Cost | None |
| El Paso Electric | $0.120 | Full Retail | 100% of consumption |
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