Your Guide to Texas Solar Incentives in 2024

Texas, the land of wide-open spaces and endless sunshine, is a prime location for harnessing solar energy.  If you’re looking to make the switch to solar power, you’ll be happy to know there are numerous incentives in place to help you save money.  Let’s break down the different types of Texas solar incentives available in 2024.

Texas Solar Tax Credits, Incentives and Rebates Breakdown in 2024

Making the switch to solar power in Texas can be a financially sound decision. The Lone Star State boasts plenty of sunshine, making it an ideal location for solar energy generation. 

Here are several ways to save money on your solar panel installation in Texas:

Federal Solar Tax Credit

The biggest financial benefit for Texans going solar is the federal solar tax credit, officially known as the Residential Clean Energy Credit.  This Texas solar credit allows you to deduct a whopping 30% of the cost of your solar energy system from your federal income taxes. There’s no maximum limit on the credit, and any unused amount can be carried over to future tax years.

Local Texas Solar Rebates

While Texas itself doesn’t offer a state-wide solar rebate program, many local utility companies do. Depending on your location and your electricity provider, you may be eligible for a rebate that can significantly reduce the upfront cost of your solar panels. Some popular Texas utility companies with solar rebate programs include American Electric Power, Austin Energy, CPS Energy, and Oncor.

Texas Property Tax Exemption for Solar Panels

In Texas, the increased value of your home due to a solar panel installation is exempt from property taxes. This means you’ll enjoy the benefits of clean energy without worrying about a higher tax bill.

Net Metering in Texas

Net metering allows you to sell excess solar energy you generate back to the grid. Your utility company will credit your electricity bill for the amount of power you send back. This significantly reduces your electricity costs and helps you maximize your return on investment.

House with photovoltaic solar panel and calculator and documents

Estimated Solar Savings in Texas

The amount you can save with solar power in Texas depends on several factors, including your energy usage, system size, and local incentives. However, with the federal tax credit, local rebates, and net metering, you can expect to see significant savings on your electricity bills over time.

How to Claim the ITC in Texas?

The federal solar tax credit (ITC) can be a significant financial boost for your Texas solar panel installation. 

Here’s a simplified guide to claiming it:

1. Gather Documents

Keep all installation invoices, receipts, contracts, and permits related to your solar project in a single location (physical folder or digital).

2. Claim When Filing Taxes

You’ll claim the ITC when you file your federal income taxes for the year your solar panels were installed.

3. Claiming with Form 5695

Use IRS Form 5695, “Residential Energy Credits,” to determine your eligibility and calculate the credit amount. Find the form and instructions at the iRS website.

4. Consider Professional Help

Consulting with a tax professional can ensure you claim the credit correctly and maximize benefits, especially for complex tax situations.

5. Key Points

  • The ITC is a non-refundable tax credit, reducing your federal tax owed, not providing a direct refund.
  • Any unused credit can be carried over to future tax years.
Top view of Happy female customer owner of the house with thumbs up while worker installs solar panels on roof.

Top Solar Installers in Texas: How do I choose my solar installer?

Sunshine is abundant in Texas, making it a prime location to harness solar energy and reduce your reliance on the traditional grid. But with numerous solar installers in the state, choosing the right company can feel overwhelming. 

We’ve compiled a list of reputable solar installers in Texas to help you find the perfect fit for your needs:

  • Nivo Solar (Houston, TX and nearby areas)
  • SunPower by Freedom Solar (Texas locations vary)
  • Tesla (Texas locations vary)
  • Sunrun (Texas locations vary)
  • Trinity Solar (Texas locations vary)
  • West Texas Solar (Abilene, TX)
  • Freedom Solar Power – Dallas Solar Panel Installers (Grapevine, TX)
  • South Texas Solar Systems (San Antonio, TX)

Nearby Areas

(Consider researching installers in bordering states like Louisiana, Oklahoma, New Mexico, Arkansas, or Louisiana depending on your specific location)

This list is just a starting point, and it’s important to research and compare multiple installers before making a decision. Here are some factors to consider when choosing a solar installer:

Company reputation and experience

Look for companies with a proven track record and positive customer reviews.

System quality and warranty

Choose high-efficiency solar panels backed by strong warranties.

Financing options

Compare loan and lease options offered by different installers.

Customer service

Ensure the company provides clear communication and responsive customer support.

Frequently Asked Questions About Texas Solar Panel Incentives

Considering making the switch to solar power in Texas? Let’s address some of the most frequently asked questions about Texas solar power incentives:

Are Solar Panels Worth It in Texas?

Absolutely! Texas boasts abundant sunshine, making it an ideal location for solar energy generation. Combined with the federal solar tax credit, local rebates (in some areas), property tax exemptions, and net metering, solar panels can be a worthwhile investment for many Texas homeowners. They can significantly reduce your electricity bills, increase your home’s value, and provide clean, renewable energy.

Does Texas have a solar rebate?

While Texas doesn’t offer a state-wide solar rebate program, many local utility companies do.  Check with your electricity provider to see if they offer solar rebates.

What are the current solar incentives available in Texas?

The current solar incentives in Texas include the federal solar tax credit, local utility rebates, property tax exemptions for solar panels, and net metering.

  • Federal Solar Tax Credit: A whopping 30% tax credit on the total cost of your solar energy system.
  • Local Texas Solar Rebates: Rebates offered by some local utility companies to help reduce upfront costs.
  • Texas Property Tax Exemption for Solar Panels: The increased value of your home due to solar panels is exempt from property taxes.
  • Net Metering: Allows you to sell excess solar energy back to the grid and receive credits on your electricity bill.

What is the Texas solar energy credit rate?

Texas doesn’t have a state-specific solar energy credit rate. However, the federal solar tax credit is currently 30%.

How much is the solar tax credit in Texas?

The amount of the solar tax credit depends on the total cost of your solar energy system.  The federal credit is currently 30% with no maximum limit.

Does Texas offer solar tax exemptions?

Yes! Texas offers a property tax exemption for the increased value of your home due to a solar panel installation. This means you can enjoy the benefits of clean energy generation and lower electricity bills without having to worry about a higher tax burden.

Happy family near their house with solar panels.

Power Up Your Texas Home with Nivo Solar

Texas sunshine is calling! With all the amazing benefits –  reduced electricity bills, increased home value, clean energy contribution –  going solar in Texas is a smart move. However, navigating the process and choosing an installer can feel overwhelming.

Here’s the good news: Nivo Solar is here to help. They are a trusted Texas solar installer, and their expert team will guide you through every step of your solar journey. They design custom systems, prioritize exceptional customer service, and are committed to top-notch installations.

Ready to shine bright and save green with solar power?
Contact Nivo Solar today for a free consultation, and see how they can help you make the switch to clean, renewable energy.


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