Texas is the second-largest solar market in the U.S., despite having no state-level solar income tax credit. Local utility programs and a solar property tax exemption still help, even with the federal credit gone.
Federal Credit (Ended)
The 30% IRC 25D credit ended for systems installed after December 31, 2025. On a typical Texas 10kW system costing $28,000–$35,000, that means $8,400–$10,500 more out of pocket than a 2025 buyer paid.
Property Tax Exemption
Texas law (Tax Code Section 11.27) exempts the added value of a solar energy system from property tax assessment. A solar installation that adds $20,000 to your home's market value won't increase your property tax bill — a significant long-term benefit.
Austin Energy Rebate
Austin Energy offers one of the most generous utility rebates in the country, $4,000 for eligible home solar installations as of August 2026, plus a Value of Solar bill credit for the energy your system produces. Austin homeowners can still bring solar costs down substantially.
CPS Energy (San Antonio) Programs
CPS Energy's solar program provides rebates and a net metering structure for residential solar customers. Check CPS Energy's current program availability as incentive levels are updated periodically.
Texas Net Metering
Unlike some states, Texas doesn't have a statewide net metering mandate. Net metering is utility-specific: Austin Energy, CPS Energy, and Oncor (Dallas/Fort Worth) have programs, but policies vary. In deregulated areas of Texas (ERCOT), net metering terms are negotiated with your retail electricity provider (REP). HomeShark identifies your specific utility's policy.
The Bottom Line for Texas Homeowners
With 5–6 peak sun hours/day and rising electricity rates, Texas offers solid but not exceptional solar ROI. Austin and San Antonio homeowners benefit most from local utility programs. Dallas, Houston, and suburban markets rely mainly on the property tax exemption and retail buyback plans.