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Texas Solar Incentives and Rebates

Did you know you can save thousands on your solar system?

solar rebates and incentives in Texas

Federal, State, and Local Incentives

The Federal Solar Tax Credit, known as Investment Tax Credit (ITC), currently allows you to deduct 26% of your solar energy system from your federal taxes.  The Solar Investment Tax Credit (ITC) is a federal tax credit that is a dollar-for-dollar reduction on income taxes.

The federal solar tax credit is a tax credit that you can receive when filing your annual tax return. The tax credit equals 26% of the total cost of your home solar energy system. For example, if your solar energy system costs you a total of $20,000 then you can expect to apply $5,200 in credit to your tax return.

There is no limit to the amount you can claim on this credit. Whether your solar system costs $10,000 or $10,000,000, if you meet the eligibility criteria, you can claim your 26% tax credit on this amount.

The latest extension of the solar tax credit came last December, and it gives homeowners and businesses up to a 26 percent credit on the net cost of a solar system. The 26 percent credit is in effect for two more years before it drops to 22 percent in 2023 and sunsets altogether for homeowners in 2024. The credit for businesses follows a similar path, with the exception being that its credit falls to 10 percent in 2024 and will stay at that number in future years.

Residential qualifications
  • Your solar energy system must be providing energy to your home, be approved and in service.
  • All local and utility fire and electrical code rules must be met.
  • Your system must be installed and operating on, or before, December 31, 2021.
Business qualifications
  • Your system must be installed and operating on, or before, December 31, 2021.
  • Your solar energy system equipment must be new, not used.
  • Your solar energy system must be used by someone that is subject to U.S. income taxes. With the exclusion of tax-exempt organizations like churches, charities or schools.
  • Your solar energy system must be located in the United States.
  • The electricity produced can’t be used to heat a swimming pool.

Texas Utility Programs

The state of Texas does not offer a statewide solar tax credit, but most local utilities do offer incentives to go solar. Check this website for detailed information. Be sure to contact your local utility directly to confirm availability.

CPS Energy – Solar PV Rebate Program

This program has 2 Incentives
Residential: The incentive is $2500.00
Commercial: he incentive is $.60/W. The incentive maximum is $80,000

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