Solar Incentives and Rebates for Texas Residents

Federal Solar Investment Tax Credit (ITC):

The Federal ITC is a significant incentive available to homeowners across the United States, including Texas. It provides a tax credit equal to a percentage of qualified expenditures for a solar system. The ITC is a 30 percent tax credit for individuals installing solar systems on residential property (under Section 25D of the tax code).

Texas Solar Property Tax Exemption:

In Texas, the value of a residential property for property tax purposes cannot be increased solely due to the installation or addition of a solar or wind energy device. The state offers a 100 percent property tax exemption on the appraised value of an on-site solar, wind or biomass power generating device.

Net Metering:

While not a direct rebate, net metering is an essential policy that allows homeowners to receive credit for excess electricity their solar panels generate and feed back into the grid. Net metering subtracts your solar generation from your electricity consumption, and you are only billed for the difference. This credit can help offset electricity costs during periods when your solar system is not producing electricity.

Local Utility Incentives:

Some utility companies in Texas offer incentives or rebates for solar installations. These programs can vary, and EagleStar will help you to check with your specific utility provider for information on any available incentives.

Texas Solar Rights Law:

Texas has a Solar Rights Law that prohibits homeowners' associations (HOAs) from unreasonably restricting the installation of solar panels.

Property Assessed Clean Energy (PACE) Financing:

Some Texas municipalities participate in PACE programs, which allow homeowners to finance energy efficiency and renewable energy improvements through property assessments.