Solar panels on a residential home in Texas
#2 in Solar Capacity

Solar Panels in Texas

#2 in Solar Capacity — and Growing Fast

$1,300/yr

Avg. Annual Savings

5.7 peak hrs/day

Peak Sun Hours

7–10 years

Payback Period

$13,000–$21,000

Avg. System Cost

Get Free Texas Solar Quotes

Overview

Is Solar Worth It in Texas?

Texas is the second-largest solar state in the country and growing fast. With abundant sunshine, no state income tax (meaning the federal ITC is even more valuable), and local utility rebate programs, Texas homeowners have strong financial reasons to go solar.

After the 2021 winter storm exposed the vulnerabilities of the Texas grid, many homeowners are also adding battery storage to their solar systems for energy independence and backup power.

Benefits

Why Go Solar in Texas

Reduce Your Electric Bill

Texas homeowners save an average of $1,300/yr after going solar.

Federal 30% Tax Credit

Deduct 30% of your total system cost from your federal income taxes.

Increase Home Value

Solar panels increase your home's resale value — and are excluded from property tax in most states.

Energy Independence

Lock in your electricity rate and protect against rising utility costs for 25+ years.

Available Incentives

Texas Solar Incentives & Tax Credits

Local Utility Rebates

Rebate

Austin Energy, CPS Energy (San Antonio), and other Texas utilities offer rebates for residential solar installations. Programs vary by utility.

Up to $2,500 rebate

Property Tax Exemption

Tax Exemption

Texas exempts the added value of solar installations from property tax assessments — a significant benefit given Texas's high property tax rates.

100% exemption on added value

Net Metering (varies by utility)

Net Metering

Net metering policies vary by utility in Texas. Deregulated areas may have different buyback rates. Check with your specific utility.

Credits for excess generation

Federal Investment Tax Credit (ITC)

Tax Credit

The federal 30% ITC applies to all Texas homeowners who purchase their solar system. Texas's lack of state income tax doesn't affect the federal credit.

30% of system cost

Common Questions

Texas Solar FAQ

Texas does not have a state income tax, so there is no state solar tax credit. However, the property tax exemption and local utility rebates provide meaningful savings.

Ready to go solar in Texas?

Get matched with top-rated local installers — free quotes, no obligation.

Get Free Texas Quotes