Texas Solar Incentives and Rebates

Harnessing the abundant Texas sunshine to produce your own green energy just makes sense! The cost of putting solar panels on your home or business will vary based on your energy costs, the utility's net metering policies, and solar power rebates and other financial incentives.

Federal, State, and Local Incentives

Let's start with the federal incentive. The Solar Investment Tax Credit (ITC) is a federal tax credit that is a dollar for dollar reduction on income taxes. It’s a step down plan, so now through December of 2019, the credit is 30%. From the 1st of 2020 however, the credit decreases. For the entirety of 2020, it will equal 26%. The ITC then decreases to 22% throughout 2021, and down to 10% for any completed project after January 1st of 2022. The sooner you act, the more money you will save.

The state of Texas does not offer a statewide solar tax credit, but most local utilities do offer incentives to go solar, add battery backup, or to make home improvements related to energy efficiency (check this website for detailed information). The rebate structure and availability varies across the state, but most utilities offer rebates to homeowners and business owners on a price-per-watt basis that is capped at a maximum amount per project. The funds may be available in perpetuity or released on a periodic (e.g. annual) basis for residential and/or commercial solar installations, The utilities have an application process for each project, which your solar installer will manage for you.

There are other local incentives as well. Some areas, such as Austin, offer a property tax exemption, for solar power customers.

Net Metering Programs

Some utilities offer a solar rebate, and others participate in net metering. Net metering is a billing arrangement between the property owner and the utility company that allows overproduced energy to be sold back to the grid. This money usually is applied as a credit in the next billing cycle. Net metering may only be available to specific customers, so we recommend calling your provider to ask if they participate.

In competitive (deregulated) electricity markets across Texas, solar rebates and net metering (or solar buyback programs) may be available through your Retail Electric Provider (REP). For example, solar buyback programs are available from TXU, Reliant, and Green Mountain. There are hundreds of REPs operating in Texas, so check with your preferred company to ask about their solar program.

List of Local Solar Incentives

The solar rebates and policies for the utility companies and cooperatives below are subject to change at any time. We strive to update this page regularly with the latest information and recommend that you contact your utility directly to confirm their current program.

American Electric Power (AEP)

AEP serves a multitude of cities in Texas including Corpus Christi, Abilene, McAllen, Harlingen, and others. AEP North offers a rebate of $0.70 per watt, up to a total of $90,000 for residential customers and $73,590 for non- residential customers. AEP Central offers a rebate of $0.70 per watt, up to a total of $7,000 for residential customers and $7,000 for non- residential customers. AEP operates in a competitive electricity market, so a net metering program would be handled by your retail electric provider (REP), if available. More incentives can be found on their website.

Austin Energy

Austin Energy is currently offering a flat $2,500 rebate for those that go solar, as well as net metering. Residential customers receive a Value of Solar credit on their monthly bill for every kilowatt-hour (kWh) of electricity generated by their solar PV system, at the current rate of 9.7 cents per kWh (effective January 1, 2018). Commercial net metering is available for systems under 20 kW-AC.Austin Energy also offers a community solar option for residential customers and a “Green Choice Plan”, which are both great options for those that do not own their home but want to use clean electricity. More info can be found here.

Bartlett Electric Cooperative

This co-op does not offer specific solar rebates but does offer several rebates for energy efficiency upgrades and homes. More info here.

Brazos Electric Power Cooperative

Brazos serves multiple cities including Waco and Lubbock. They do not offer solar rebates. More info here.

Bryan Texas Utilities (BTU)

BTU serves the city of Bryan. This utility does not offer rebates for solar customers but it does offer other rebates for energy efficiency. Find more info here.

CenterPoint Energy

CenterPoint serves the Houston area. They do not offer a solar rebate. However, they do rebates to home builders, with more info here.

Comanche Electric Cooperative

This co-op serves the Comanche area. They do not offer solar rebates or solar incentives. They do have specific information on how to connect solar systems here.

Cooke Country Electric Cooperative

Cooke Country serves communities in the north central region of Texas. This co-op does not offer solar rebates but does offer other rebates for energy efficiency programs. Click here for more info.

CoServ Electric

CoServ serves Northern Texas and offers a periodic solar rebate that is typically released in June. The 2018 rebate, which became available on June 1st and ran out of funds in late October, offered $450/kW DC, with a maximum of $4,500 per residential Member and $30,000 per commercial Member. Learn more here.

CPS Energy

CPS serves the San Antonio area. There is a solar rebate available for residential and commercial projects. As of December 1st, 2018, the residential rebate has changed to a flat incentive at $2,500 per project, which will drop to $1,500 per project when the current funding pool is fully allocated. The commercial solar rebate remains at $0.60/watt. Funds for both rebates are limited and available on a first-come, first-serve basis. There are some requirements, which can be found here.

Denton Municipal Electric

Denton does offer a solar incentive. While the funds are limited, the rebate is renewed in October. Check this page for more information.

El Paso Electric

El Paso Electric has energy efficiency programs, but no longer offer rebates on solar projects. More info can be found here.

Engie Resources

Engie is a commercial retailer based in Houston. No solar rebates are offered currently, but they do offer renewable energy certificates.

Entrust Energy

Entrust is a nationwide electric provider based in Houston. No solar rebates are provided currently. Click here for more information.

Fort Belknap Electric Cooperative

This co-op services multiple North Texas counties. There are no solar rebates or incentives offered at this time, but check back here for updated information.

Garland Power & Light

GP&L offers bill credits for those who install solar. The rebate will be renewed in October of this year. Check back here for updated information.

Golden Spread Electric Cooperative

This utility, serving rural customers in West Texas and the Panhandle, does not offer rebates for solar panels or other energy efficiency incentives. Check this page for any updates.

Greenville Electric Utility System

Greenville does not offer solar rebates, but they do participate in net metering. Click here for more info.

Hamilton County Electric Cooperative

Hamilton County does not offer solar rebates but does offer an option to use solar power through distributed generation.

Heart of Texas Electric Cooperative

This co-op does offer multiple energy efficiency rebates, including a solar rebate of $0.10 per watt on the solar installation. This rebate maxes out at $500 per member.

HILCO Electric Cooperative

HILCO offers several rebates, including a solar installation rebate. Members who install solar are eligible to receive $200 per kw, with a maximum of $1000 per member. Click here for more information.

J-A-C Electric Cooperative

J-A-C operates in the northern region of the state. There are no solar rebates offered however. For more information, click here.

Lower Colorado River Authority

LCRA is a utility cooperative that operates in the Austin area. There are currently no solar rebates but they do provide rebates, and are committed to using renewable energy.


Luminant, based in Dallas, does not offer solar rebates but does have information on their environmental practices here.

Mid-South Synergy

Mid-South, a cooperative based in Navasota, offers a solar rebate on 20% of total construction costs up to $2,000, as well as home improvement and energy efficiency rebates. More info can be found here.

Navarro County Electric Cooperative

Navarro does offer some rebates but unfortunately, they have been used up for the year. Check back here for updated information.

Navasota Valley Electric Cooperative

Navasota does not offer solar rebates but does offer net metering. More information on their distributed generation policies can be found here.

Oncor Electric Delivery

Oncor offers a residential solar rebate, depending on where you live. The average rebate is $0.4/watt. The solar rebate is renewed annually at the beginning of the year. Oncor also offers a commercial solar rebate.

Pedernales Electric Cooperative

PEC operates in the Hill Country. They do not offer solar rebates, but do participate in net metering. Find info here.

South Plains Electric Cooperative

This co-op operates in the Lubbock area. There are no solar rebates offered with this coop but they have a helpful page with lots of information regarding solar power.

Texas New Mexico Power

TNMP operates in several areas of Texas. They do offer several energy efficiency rebates, but none specific to solar power. Check here for more details.

Tri-County Electric Cooperative

This co-op in the Dallas Fort Worth area offers a efficient water heater rebate, but does not offer a solar power rebate.

United Cooperative Services

United offers several rebate programs for energy efficiency efforts and has a community solar program. While there are no rebates offered at the moment for solar panel installation, check back here for updated information.

Wise Electric Cooperative

Wise operates in the north central region of Texas. There are no solar rebates offered currently, but multiple rebates are offered for energy efficiency.

Get Customized Incentive Data

To learn more about the incentives and policies that are available to make solar panels a more attractive financial investment for your home or business, contact us for a free consultation.