The federal residential tax credit is dead in 2026. State incentive programs — from NJ SuSI ($90/MWh for 15 years) to MA SMART (monthly bill credits) — are now the main way to reduce your solar cost.
Texas Solar Incentives Overview
Texas has no statewide solar rebate. Austin Energy offers a $2,500 flat rebate + Value of Solar tariff (9.91¢/kWh). CPS Energy is phasing out residential solar rebates. Solar is 100% exempt from property tax statewide (Form 50-123, filed by April 30). Lowest installation costs in the US ($2.35/W average).
Texas average solar cost: $2.20/W • Payback: 8.7 years • 25-year savings: $80,590
Available Incentive Programs in Texas
Austin Energy Solar Rebate
$2,500 flat rebate
Max: $2,500
Eligibility:
Austin Energy residential customers only
How to Claim:
- 1Must be an Austin Energy customer
- 2Complete installation with a qualified installer
- 3Apply through Austin Energy after installation
Note: Subject to available funding
Program websiteCPS Energy Solar (Residential Rebates Ending)
Residential rebates phasing out — SolarHostSA (commercial only)
Eligibility:
CPS Energy residential solar rebates are being phased out. SolarHostSA serves commercial customers only.
How to Claim:
- 1Residential solar rebates no longer available for new applications
- 2SolarHostSA is a commercial rooftop leasing program (not residential)
- 3CPS Energy customers can still interconnect residential solar
Note: Residential rebates phased out. Commercial SolarHostSA ongoing.
Program websiteProperty Tax Exemption (100%)
100% property tax exemption on added solar value — file Form 50-123 by April 30
Eligibility:
All residential solar in Texas (TX Tax Code §11.27)
How to Claim:
- 1Download Form 50-123 from TX Comptroller website
- 2File with your county appraisal district by April 30
- 3Include proof of solar installation (permit, invoice)
- 4Exemption applies for the life of the solar system
Note: File Form 50-123 by April 30 each year with county appraisal district
Program websiteReady to Get a Solar Quote?
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Federal Credit: Not Available for Homeowners
Section 25D (the Residential Clean Energy Credit) expired December 31, 2025. Homeowners in Texas who purchase solar with cash or a loan receive $0 in federal tax credits in 2026. Only third-party owned systems (lease/PPA) qualify for the 30% commercial ITC under Section 48/48E.
Other State Incentives
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