The federal credit ended for 2026 systems

The 30% Residential Clean Energy Credit, section 25D of the tax code, isn't allowed for expenses made after December 31, 2025. The IRS treats a solar expense as made when the installation is completed, not when you sign or pay a deposit. A system finished in 2026 gets no federal credit, even if the contract was signed in 2025.

If a seller's 2026 quote still subtracts 30% for a "tax credit," the payback math in that quote is wrong.

State help: one tax break, no rebate

The Public Utility Commission of Texas puts it plainly: "The State of Texas does not offer grants or rebates for installing solar panels." What the state does offer is a property tax exemption on the value solar adds to a home, under Tax Code 11.27. It's claimed once, with Form 50-123, and stays in place. Our property tax exemption guide covers the form and the April 30 deadline.

Utility programs in 2026

Help with the purchase price now comes from a few utilities. Austin Energy and New Braunfels Utilities pay rebates through participating contractors; Oncor, CenterPoint and TNMP pay their incentives to the installer rather than to you. For EV chargers, see our Texas EV charger rebates guide.

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Austin Energy home solar rebate

$4,000 for an eligible system on an Austin Energy home. The system must be new, at least 3 kW DC, mostly unshaded and installed by one of Austin Energy's participating contractors, and you need its Solar Rebate Confirmation Letter before installation starts.

Who: Austin Energy residential customers

Every kWh

Austin Energy Value of Solar credit

A bill credit of 12.89 cents for every kWh your panels produce, whether you use it or send it back, while your use is billed at normal rates. Unused credit carries over.

Who: Every Austin Energy solar home, rebate or not

Up to $3,000

New Braunfels Utilities solar rebate

A bill credit of 50 cents a watt, up to $3,000, for panels facing south-southwest to west-northwest at a 15 to 60 degree tilt, or 25 cents a watt, up to $1,000, for most other directions. You must own the system, take NBU's online solar course first and use one of its participating contractors.

Who: NBU residential electric customers

Via installers

Oncor Solar PV Standard Offer Program

Oncor set aside $1,774,000 for its 2026 residential option, first come, first served, with a version that includes a battery. The money is paid to participating service providers, for systems up to 20 kW DC that don't exceed 75% of the home's highest demand in the past year.

Who: Homes on Oncor's wires, through a participating provider

Via installers

CenterPoint Residential Solar Program

CenterPoint's efficiency plan, filed with the state's utility regulator, budgets $1 million a year in 2025 and 2026 for incentives paid to qualified service providers for new systems on existing homes in its Houston territory.

Who: Homes on CenterPoint's wires, through a qualified provider

Budgeted

AEP Texas SMART Source

AEP Texas's 2026 efficiency plan, filed with the state's utility regulator, budgets $670,941 in incentives for homes, for solar panels, battery storage and EV chargers on the customer's side of the meter. Installers in the program must attend AEP Texas's training.

Who: Homes on AEP Texas's wires

Via installers

TNMP Residential Solar+

TNMP's 2026 program sets aside $100,000 and pays installers $1,250 to $2,750 a home system by size, $1,000 more with a new battery, plus $500 for an EV charger installed with the solar, up to $4,250 a home. The program ends November 30, 2026.

Who: Homes on TNMP's wires, through a participating installer

Once

Property tax exemption

The value a solar system adds to your home is exempt from property tax under Tax Code 11.27. You file Form 50-123 with your county appraisal district between January 1 and April 30.

Who: Every Texas homeowner with solar

None

Bryan Texas Utilities and Magic Valley Electric

BTU says it offers no local incentives or rebates for solar, and Magic Valley's interconnection form says it provides no rebates or financial incentives.

Who: BTU customers and Magic Valley members

Not now

CPS Energy rebate

CPS Energy says it "does not currently offer rebates for residential solar installations." Its monthly netting is the benefit that remains (see below).

Who: CPS Energy customers in San Antonio

Our AEP Texas and TNMP guides cover those two programs and what solar saves on each company's wires. Utility program money runs out when it's claimed, so if a quote counts on one, look for it as a line on the quote.

The incentive that matters most: what you get for exports

A typical Texas home uses about half of what its panels make as it's made, based on our model of 200 Texas homes from federal NREL data. The rest goes to the grid, and what you're paid for it varies more than any rebate. Austin Energy credits every kWh produced; a few co-ops buy exports at several cents; CPS Energy and El Paso Electric net your use each month and pay only a little for the leftover. Where you shop for electricity, your retail plan sets the price, and the state regulator says it "is usually lower than the retail price that you pay."

Cents per kWh, October 2026. Austin Energy credits every kWh produced; Tri-County, CoServ, PEC, Bluebonnet, Entergy and BTU pay for each kWh sent to the grid (Tri-County's rate changes monthly); CPS Energy (1.65¢ October to May, 2.02¢ June to September) and El Paso Electric (Rate 48, early 2026) pay only for the leftover after monthly netting, and the rest of your solar offsets your use at the full rate. ERCOT wholesale is the average 2025 market value of solar output from the grid's independent market monitor. Sources: each utility's published terms; Potomac Economics.

That spread is why the same panels save different amounts across Texas, and why our calculator uses your utility's own rule. Our Texas buyback guide explains how retail plans in Dallas, Houston and the other shopping areas price exports.

Batteries

Oncor's 2026 program has a residential option that includes storage: the battery has to be new, connected on your side of the meter, installed outside the living space (a garage or exterior wall works), and charged by the solar system it's installed with. Lead-acid batteries don't qualify. For the property tax exemption, the law's definition of a solar energy device includes equipment that stores the energy the panels convert, so list the battery on Form 50-123.

Austin Energy and CPS Energy also pay battery owners who let the utility draw on their battery during peak events. Our Texas battery guide has the amounts and the outage hours behind them.

A home battery unit mounted on a stucco wall outside a Texas home, beside an air conditioner condenser

Watch the pitch

"Free solar," "a new state program" and "the utility is paying for it" are common door-to-door lines. Under Occupations Code 1806.201, a solar seller can't falsely state or imply a connection to a utility or a government agency. A real program has a name and a page on the utility's own website. And remember you can cancel a home solar contract in writing within five business days of signing; the Texas solar laws guide has the details, and our guide to checking a Texas solar company shows how to look up a seller's state registration.

How it works

Your estimate in three steps

  1. Enter your billYour ZIP code, your utility and last month's bill.
  2. See your estimateA yearly savings range based on your utility's rates and the sun where you live.
  3. Choose what's nextAsk for a quote call if you want real pricing, or just keep the number.

See what solar could save you

It takes about a minute. You don't need a site visit, a commitment or a sales call to see your number.

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Common questions

Is there a solar tax credit in Texas in 2026?

No. The 30% federal credit doesn't apply to home systems whose installation is completed after December 31, 2025, and the state offers no solar rebate or grant. Texas does exempt the value solar adds to your home from property tax.

Does Texas have a solar rebate?

Not from the state. The Public Utility Commission of Texas says the state does not offer grants or rebates for home solar. Some utilities do: Austin Energy offers $4,000 for an eligible home system, Oncor, CenterPoint and TNMP pay incentives through participating installers, and AEP Texas budgets incentives for solar in its SMART Source program.

How do I get the Austin Energy solar rebate?

Take Austin Energy's Solar Rebate Quiz, use one of its participating solar contractors, and get a Solar Rebate Confirmation Letter before installation starts. The system must be new, at least 3 kW DC and mostly free of shade. The check is mailed after inspection and a quality review.

Does Oncor give a rebate for solar panels?

Oncor runs a Solar PV Standard Offer Program with a $1,774,000 residential budget for 2026, first come, first served, including an option with a battery. The incentive is paid to participating service providers, not to the homeowner.

Does CPS Energy have a solar rebate?

Not right now. CPS Energy says it does not currently offer rebates for residential solar installations. It nets your solar against your use each month and credits any leftover at 1.65 cents per kWh (2.02 cents in summer months).

Can I still get the federal credit if I signed my contract in 2025?

Only if the installation was completed by December 31, 2025. The IRS treats the expense as made when the installation is completed, so a contract or deposit in 2025 isn't enough if the work finished in 2026.

Programs and rates change, sometimes mid-year; check the program page before you rely on a number. This is not tax advice. Sources: IRS FAQs on the 2025 changes to section 25D · PUCT: Thinking about solar panels for your home? · Austin Energy: solar for your home · Austin Energy: Value of Solar · Oncor 2026 Solar PV program manual · CenterPoint 2025 Energy Efficiency Plan and Report · AEP Texas 2026 Energy Efficiency Plan and Report · TNMP 2026 residential program manual · CPS Energy: residential solar · Potomac Economics: 2025 ERCOT State of the Market. Reviewed October 2026.

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