Loading NuWatt Energy...
We use your location to provide localized solar offers and incentives.
We serve MA, NH, CT, RI, ME, VT, NJ, PA, and TX
Loading NuWatt Energy...
Texas lacks a statewide low-income solar program -- but that does not mean solar is out of reach. Municipal utility rebates, Propel $0-down financing, LIHEAP, and weatherization programs create real pathways for income-eligible Texans to go solar in 2026.
2026 Reality: The 30% federal solar tax credit (Section 25D) expired December 31, 2025. Income-eligible households receive $0 federal credit for cash/loan purchases. Propel and PPA/lease use Section 48 (commercial ITC) claimed by the system owner -- not by you. Full details
Texas is the second-largest solar market in the US, but its deregulated energy market means there is no single statewide program for income-eligible solar. Understanding your utility type is the first step to finding the right program.
Austin Energy and CPS Energy operate their own LMI solar and efficiency programs. These offer the strongest support for income-eligible households -- direct rebates, low-interest financing, and weatherization.
DFW, Houston, and most of Texas. No dedicated LMI solar rebates. Best options: Propel $0-down, PPA/lease, and community solar. Solar buyback rates vary by REP (Retail Electric Provider).
El Paso Electric serves far west Texas as a traditional regulated utility. Standard net metering with 1:1 credits. Limited LMI-specific solar programs, but stable rate structure benefits long-term solar economics.
| Metro Area | Avg Rate | Market Type |
|---|---|---|
| Dallas-Fort Worth | $0.15/kWh | Deregulated (Oncor) |
| Houston | $0.16/kWh | Deregulated (CenterPoint) |
| Austin | $0.12/kWh | Municipal (Austin Energy) |
| San Antonio | $0.125/kWh | Municipal (CPS Energy) |
| El Paso | $0.13/kWh | Regulated (El Paso Electric) |
Rates as of Q1 2026. Deregulated areas vary by REP. Municipal rates set by city council.
Texas income-eligible energy programs use Federal Poverty Level (FPL) thresholds. Most programs require income at or below 150-200% FPL. You only need to qualify through one pathway.
LIHEAP requires income at or below 150% FPL. WAP and most municipal utility programs use 200% FPL. If you qualify for LIHEAP, you automatically qualify for WAP.
| Household | 150% FPL | 200% FPL |
|---|---|---|
| 1 person | $22,590 | $30,120 |
| 2 persons | $30,660 | $40,880 |
| 3 persons | $38,730 | $51,640 |
| 4 persons | $46,800 | $62,400 |
| 5 persons | $54,870 | $73,160 |
| 6 persons | $62,940 | $83,920 |
Based on 2025 Federal Poverty Level guidelines. 150% FPL = LIHEAP threshold. 200% FPL = WAP and most municipal programs.
Also qualify automatically if enrolled in:
Propel does not have a strict income ceiling. If you are a Texas homeowner and your roof qualifies for solar, you can access $0-down financing with FEOC-compliant Silfab 440W panels. The third-party system owner claims the Section 48 ITC, lowering your cost.
Propel requirements:
Why Propel matters for LMI: Traditional solar requires either capital (cash purchase) or federal tax liability (25D credit -- now expired). Propel eliminates both barriers. The Section 48 ITC is claimed by the system owner, not you -- so your tax situation does not matter.
Four key programs serve income-eligible Texas households. While Texas has no single statewide solar incentive, combining municipal utility programs with federal assistance creates a meaningful path to solar.
Austin Energy offers income-qualified rebates of approximately $3,000 for solar installations, plus 0% APR on-bill financing for qualifying households. Austin Energy is a municipal utility with the strongest LMI solar support in Texas.
Eligibility
Austin Energy residential customer. Income at or below 200% Federal Poverty Level (FPL). Must own the home.
How to Access
Contact Austin Energy Customer Assistance at (512) 494-9400. Request income-qualified solar program information. You will need proof of income and Austin Energy account.
Example Value
For an 8 kW system at $0.12/kWh: ~$1,344/year in bill savings plus $3,000 upfront rebate. With 0% APR financing, monthly solar payment often equals or undercuts current electric bill.
CPS Energy (San Antonio) offers rooftop solar rebates and income-qualified energy efficiency through SaveNow. While CPS solar rebate funding is limited and waitlisted, LMI customers receive priority enrollment for efficiency and weatherization programs.
Eligibility
CPS Energy residential customer. Income-qualified programs typically require income at or below 200% FPL. SaveNow has additional tier at 80% AMI.
How to Access
Call CPS Energy at (210) 353-2222 or visit cpsenergy.com/savemoney. Ask about income-qualified solar and SaveNow weatherization programs.
Example Value
SaveNow weatherization typically saves $200-$600/year on energy bills. Solar rebates (when available) can reduce system cost by $1,000-$2,500. CPS rate of $0.125/kWh makes solar payback ~10-12 years.
The Low Income Home Energy Assistance Program provides direct utility bill payment assistance administered by TDHCA (Texas Department of Housing and Community Affairs). While LIHEAP does not pay for solar installations, it reduces current energy costs and connects you to weatherization services that prepare your home for solar.
Eligibility
Household income at or below 150% FPL, or enrolled in SNAP, TANF, or SSI. Must have active utility account.
How to Access
Apply through your local Community Action Agency (CAA). Find your local CAA at tdhca.state.tx.us or call 2-1-1 Texas.
Example Value
Regular LIHEAP: $300-$900/year in utility bill assistance. Crisis LIHEAP: one-time payments up to $1,500 for disconnection emergencies. WAP referral saves additional $200-$400/year through weatherization.
The DOE Weatherization Assistance Program, administered by TDHCA through local Community Action Agencies, provides free weatherization including insulation, duct sealing, window repairs, and HVAC upgrades. This reduces energy waste before solar, maximizing solar system efficiency.
Eligibility
Household income at or below 200% FPL. Priority given to elderly, disabled, and households with children under 6. Homeowners and renters (with landlord permission) eligible.
How to Access
Contact your local Community Action Agency through 2-1-1 Texas or tdhca.state.tx.us. Wait times vary by region -- typical 3-12 months in major metros.
Example Value
Average WAP savings: $283/year in reduced energy costs. Texas homes average $6,500 in weatherization improvements per unit. Priority waitlisting available for elderly and disabled.
TX solar costs $2.50-$3.00 per watt in 2026. An average 8 kW system runs $20,000-$24,000 before any incentives. Texas homes use more electricity (cooling-dominant climate) but also get more sun, so systems perform well. Here is what income-eligible households actually pay.
Includes 8.25% sales tax. No sales tax exemption in TX. Property tax exemption saves ~$500-$700/year ongoing.
With $3,000 rebate. Austin Energy customers also get 0% APR on-bill financing option.
12,000 kWh/yr x $0.15/kWh. Payback: ~13.5 years (cash)
12,000 kWh/yr x $0.16/kWh. Payback: ~12.6 years (cash)
12,000 kWh/yr x $0.12/kWh. Payback: ~14.8 years (cash, with rebate)
12,000 kWh/yr x $0.125/kWh. Payback: ~16.2 years (cash)
SB 1637. Solar excluded from property tax assessment. 25-yr value: $12,500-$17,500
Texas averages 1,500 kWh/kW annual production -- among the highest in the US. An 8 kW system produces ~12,000 kWh/year, offsetting most household electricity.
| System Size | Cost Range | With Sales Tax (8.25%) | Annual Production |
|---|---|---|---|
| 5 kW | $12,500-$15,000 | $13,531-$16,238 | 7,500 kWh/yr |
| 8 kW | $20,000-$24,000 | $21,650-$25,980 | 12,000 kWh/yr |
| 10 kW | $25,000-$30,000 | $27,063-$32,475 | 15,000 kWh/yr |
| 12 kW | $30,000-$36,000 | $32,475-$38,970 | 18,000 kWh/yr |
| 15 kW | $37,500-$45,000 | $40,594-$48,713 | 22,500 kWh/yr |
Costs based on $2.50-$3.00/W range. Annual production assumes 1,500 kWh/kW TX average. TX does NOT exempt solar from sales tax (8.25% state + local).
With Section 25D expired, Texas homeowners pay the full system cost plus 8.25% sales tax for cash and loan purchases. But several financing strategies make solar accessible -- especially for income-eligible households.
Propel is available in Texas and is often the best path for income-eligible homeowners. You get FEOC-compliant Silfab 440W panels with $0 upfront cost. The third-party system owner claims the Section 48 ITC (30% commercial credit) for projects beginning construction before July 4, 2026 -- and passes the savings through to you as lower payments.
No federal tax liability required from you. The system owner handles the ITC claim. Your benefit: lower monthly payments and immediate bill savings. Learn about Propel
While Section 25D (homeowner ITC) is dead, Section 48/48E (commercial ITC) remains active for projects beginning construction before July 4, 2026. When you sign a PPA or lease, the third-party system owner claims the 30% ITC and passes the savings through as lower monthly payments. This is particularly valuable in the TX deregulated market where solar buyback rates vary.
PPA and lease options are available statewide, regardless of utility type. Compare PPA rates to your current electric rate to ensure savings. TX Solar PPA/Lease Guide
Texas provides one major tax benefit for solar -- the property tax exemption -- but does NOT exempt solar from sales tax. Here is the full picture for income-eligible homeowners.
Under SB 1637, solar installations are fully excluded from property tax assessment in Texas. Adding solar panels does NOT increase your assessed home value for tax purposes. Statewide, permanent, no renewal required.
TX has among the highest property tax rates in the US (~2.2% effective). 25-year value: ~$12,320. Applies regardless of income level.
Unlike many northeast states, Texas does NOT exempt solar equipment or installation from sales tax. You will pay the full 6.25% state rate plus up to 2% local tax (8.25% total) on your solar purchase. This adds significant cost, especially for cash buyers.
Added at purchase. This is a real cost that extends payback by approximately 1 year. PPA/lease and Propel include tax in their pricing structure.
No state income tax: Texas has no state income tax, which means there is no state solar tax credit to claim. The property tax exemption is your only state-level tax benefit for solar. Full TX Solar Tax Guide
If rooftop solar is not an option -- because you rent, live in an apartment, have heavy tree shading, or have a roof that needs replacement -- community solar is emerging in the Texas deregulated market.
Subscribe to a solar project
Sign up for a share of an off-site solar farm through a community solar provider or participating REP.
Solar farm generates electricity
The off-site solar installation feeds clean electricity into the ERCOT grid.
Receive bill credits
You receive credits on your electric bill for your share of the solar production.
Pay a discounted rate
Your subscription fee is lower than the credits you receive -- the difference is your savings.
Note: TX community solar is still emerging compared to northeast states. Availability varies by REP territory and project location. The deregulated market structure means community solar operates differently than in regulated states.
Follow these five steps to access income-eligible solar programs in Texas. Start by identifying your utility type, then work through assistance programs and solar financing.
Texas has three utility market types: deregulated (ERCOT -- DFW, Houston, ~85% of state), municipal (Austin Energy, CPS Energy), and regulated (El Paso Electric). Municipal utilities have the best LMI solar programs. Deregulated areas rely on Propel, PPAs, and community solar. Check your electric bill or call 2-1-1.
Contact your local Community Action Agency through 2-1-1 Texas. Apply for both LIHEAP utility assistance and WAP weatherization simultaneously. Weatherization reduces energy waste and prepares your home for solar. These programs do not conflict with solar installation.
Request quotes from at least three solar installers. Tell them your income situation so they can recommend the best financing path. Ask about Propel ($0 down with FEOC Silfab panels), PPA/lease options, and any available utility rebates. Austin Energy and CPS Energy customers should mention their utility specifically.
For most income-eligible TX homeowners, Propel offers the strongest path: $0 down, FEOC-compliant Silfab 440W panels, and the Section 48 ITC claimed by the third-party owner reduces your cost. Austin Energy customers may stack the $3,000 rebate + 0% APR financing. Compare monthly payments to your current electric bill.
System installation takes 1-3 days. Interconnection timelines vary by utility: Austin Energy typically 2-4 weeks, CPS Energy 3-6 weeks, deregulated areas (Oncor, CenterPoint) 4-8 weeks. Solar buyback credits begin once the system is producing and interconnected.
2-1-1 Texas
211texas.org
LIHEAP, WAP, and all assistance referrals
Austin Energy
austinenergy.com
Income-qualified solar and efficiency programs
CPS Energy
cpsenergy.com
SaveNow, solar, and efficiency programs
Common questions about income-eligible solar programs in Texas for 2026.
No. Texas does not have a statewide LMI solar program. Unlike states with integrated clean energy mandates, Texas relies on municipal utility programs (Austin Energy, CPS Energy) and federal programs (LIHEAP, WAP) for income-eligible energy assistance. For solar specifically, the best options are Propel $0-down financing, PPA/lease agreements, and emerging community solar programs. The deregulated ERCOT market (85% of Texas) has no centralized LMI solar incentive.
No. The federal residential solar tax credit (Section 25D) expired December 31, 2025 for all homeowners regardless of income. There is $0 federal credit for cash or loan solar purchases. The only way to indirectly benefit from a federal credit is through Propel, a PPA, or a lease, where the third-party system owner claims the 30% commercial ITC under Section 48/48E for projects beginning construction before July 4, 2026. This benefit is passed through as lower monthly payments.
Propel is a $0-down solar financing option available in Texas. You get FEOC-compliant Silfab 440W panels installed with no upfront cost. The third-party system owner claims the Section 48 ITC (30% commercial credit), which reduces your monthly payment. You benefit from immediate bill savings -- typically $50-$100/month depending on system size and your electric rate. Propel is particularly valuable for income-eligible households because it requires no capital investment and no federal tax liability.
Austin Energy offers approximately $3,000 in rebates for income-qualified solar installations, plus 0% APR on-bill financing. To qualify, you must be an Austin Energy customer with household income at or below 200% of the Federal Poverty Level. Austin Energy is a municipal utility, so these programs are only available within Austin city limits. Contact Austin Energy Customer Assistance at (512) 494-9400 to confirm current availability and funding.
Yes. Renters can access solar benefits through community solar programs, which are emerging in the Texas deregulated market. You subscribe to a share of an off-site solar project and receive bill credits. No rooftop installation needed -- you just need an active electric account with a participating REP (Retail Electric Provider). LIHEAP and WAP are also available to renters. CPS Energy SaveNow weatherization serves renters with landlord permission.
WAP provides free home weatherization -- insulation, duct sealing, window repairs, HVAC tune-ups, and sometimes HVAC replacement -- for income-eligible households (at or below 200% FPL). In Texas, WAP is administered by TDHCA through local Community Action Agencies. Average savings are $283/year, and the average investment per home is about $6,500. Priority goes to elderly, disabled, and households with young children. Apply through 2-1-1 Texas or your local CAA.
LIHEAP (Low Income Home Energy Assistance Program) provides direct utility bill payment assistance to qualifying Texas households (income at or below 150% FPL, or enrolled in SNAP, TANF, or SSI). Regular LIHEAP provides $300-$900/year in assistance. Crisis LIHEAP provides one-time payments up to $1,500 for disconnection emergencies. Apply through your local Community Action Agency via 2-1-1 Texas or tdhca.state.tx.us. LIHEAP does not directly fund solar, but reduces your energy burden while you pursue solar options.
Yes. Texas provides a 100% property tax exemption for residential solar installations under SB 1637. Adding solar panels does not increase your property tax assessment. This is a statewide exemption that applies regardless of income level, utility type, or location. However, Texas does NOT exempt solar from sales tax -- you will pay the full 8.25% state + local sales tax on your solar purchase.
Municipal utility areas offer the best LMI solar economics. Austin Energy ($0.12/kWh + $3,000 rebate + 0% APR) provides the strongest overall value. CPS Energy in San Antonio ($0.125/kWh + SaveNow programs) is second. Deregulated areas (DFW at $0.15/kWh, Houston at $0.16/kWh) have higher rates that improve solar payback math, but lack dedicated LMI rebates -- Propel $0-down is the best path in these markets.
Timeline varies by utility and program. LIHEAP applications: 2-6 weeks for approval. WAP weatherization: 3-12 months depending on region and waitlist. Solar installation: 1-3 days once permitted. Interconnection: Austin Energy 2-4 weeks, CPS Energy 3-6 weeks, deregulated (Oncor, CenterPoint) 4-8 weeks. If combining WAP weatherization with solar, plan for 4-8 months total from first contact to producing solar power. Propel installations typically complete in 6-10 weeks from signing.
TX Solar Guide 2026
Complete overview of solar programs, costs, and incentives in Texas.
TX Solar Panel Costs
Current pricing by metro area and system size.
TX Solar Lease/PPA Guide
How PPA and lease work in the deregulated market.
TX Community Solar
Emerging community solar options for renters and shaded roofs.
Solar Without the Tax Credit
Why TX solar still works even without the 25D ITC.
Propel Solar Program
$0 down, FEOC Silfab 440W, Section 48 ITC. Available in TX.
Whether you qualify through income-based programs or want to explore Propel $0-down financing, there are real paths to solar in Texas. Get personalized quotes and find the right program for your situation.
Free, no-obligation assessment. We will help you identify which TX programs you qualify for and the best financing path.