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Texas Solar Incentives: Tax Credits & Rebates Guide 2024
  • Written by Caitlin Ritchie
  • |
  • Edited by Hannah Hillson
  • |
  • Last updated 12/7/2023

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Key Points

  • The average solar system size in Texas is 9 kilowatts (kW) and costs around $29,970 before rebates and incentives.
  • Texas has the second largest solar capacity in the U.S., behind California.
  • Several Texas energy companies, such as TXU, Oncor, and Reliant, offer bill credits for excess energy generated from residential solar panels.

Ready to go solar? Call 877-307-7668 to be connected with a solar expert today!

Texas solar power FAQs

  • Yes, solar panels are a sound investment if you live in Texas. If you decide to install them, you’re likely to save a considerable amount on your monthly energy bill and experience a shorter payback period. A solar system can also increase the resale value of your home.

  • There are a number of professional solar companies in Texas to choose from. Before selecting a solar installer, read reviews and testimonials about the company, ask for references, and research their company history. You should also get multiple quotes from different installers to ensure you are making an informed choice. SaveOnEnergy can help you find a credible solar installer in your area.

  • Reducing your dependence on traditional electricity sources, such as coal or natural gas, slashes your home’s greenhouse gas emissions. As a clean and renewable energy resource, solar power doesn’t emit carbon dioxide or methane. Using solar panels can reduce your home’s carbon footprint.

  • No. Texas doesn’t pay for solar panels outright. When homeowners apply for the Residential Clean Energy Credit, solar costs can be reduced by thousands of dollars. This federal tax incentive gives a 30% credit on their income tax returns to homeowners who purchase or finance solar panels in Texas.

  • Energy providers offering net metering benefits are best for homeowners with solar panels. Some providers in Texas that offer credits for excess energy returned to the power grid, also called solar buyback plans. Chariot Energy, Gexa Energy, Green Mountain Energy, Reliant Energy, Rhythm Energy, Shell Energy, and TXU Energy all have plans or benefits for solar owners. 

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