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Solar Rebate Programs in Texas

Texas solar rebate programs

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Climate change is a concern for many people. As such, there is a need to go green and help do our part in making the planet a healthier place for everyone. What’s more, the need to make an impact now is perhaps greater than it’s ever been.

Because of this and more research that’s come to the forefront in recent years, more and more people are looking for ways to do just that. One of these is solar panels. When you choose to install solar panels in Texas, you can look forward to incredible energy savings while making a difference.

But if you’ve looked into installing solar panels on your property, you likely know that it’s an expensive undertaking. Fortunately, you can get help with installing a solar panel system in Texas.

If you’re interested in saving money, you’re going to want to stick around to learn how you can take advantage of these offers.

The Average Cost of Solar Installation in Texas

In the state of Texas, the average solar panel installation cost is around $2.74 per watt. And with the average size of a solar panel system being 5 kilowatts (kW), your average solar panel system installation cost in the Lone Star State is going to be between $11,645 and $15,755.

What’s more, the average gross cost to have solar panels installed in the state of Texas is around $13,700. These aren’t exactly affordable figures. Fortunately, you have the potential to save a substantial amount on your solar installation fees.

One of the best ways to do this is to see if you qualify for the 26% Federal Investment Tax Credit (ITC). You may also be able to save money by signing up for both local and state solar incentives in your area.

In doing so, the net price that you end up paying for a solar panel system can be reduced by thousands of dollars.

As such, you will want to check with your local officials to see whether you are eligible for any of these government incentives. The government knows that the initial cost for going green is quite expensive, so it’s nice to see that you have options to assist you along the way.

Due to being so expensive on the outset, these programs can help cover the costs of solar installation in Texas and other states, allowing more people to make an effort to go green.

Solar Rebates and Incentives in Texas

Homeowners all over Texas can access substantial rebate programs and special policies that may help offset the cost of solar installation, potentially saving them thousands of dollars in the long run.

Although Texas doesn’t have its own official statewide solar rebate or solar tax credit programs, many large and small utility companies and local governments offer solar incentives to homeowners, including:

Austin Energy

If you live in the city of Austin, you have access to a rebate worth $2,500. Not only that, but you’re also eligible for Austin Energy’s Value of Solar Tariff. This tariff pays you $0.097 for each kilowatt-hour (kWh) that your solar panels generate.

CPS Energy

As a CPS Energy customer, you could be eligible to receive as much as $1.20 per watt of solar panels that you have installed on your home’s roof. As with Austin Energy, this incentive’s value decreases as you install more solar panels.

If you’re considering going solar and you live in the CPS Energy service area, now is the time to make the switch.

Garland Power and Light, the City of Sunset Valley, and Guadalupe Valley Electric Cooperative all offer solar rebates for homeowners in their respective areas.

What’s more, solar panels have another financial benefit other than saving you money on your energy bills. When you have solar panels installed on your property, it can actually increase the value of your home.

Although higher-priced homes usually bring higher property taxes with them, Texas offers a renewable energy property tax exemption, allowing its residents to avoid paying extra taxes. And it’s all thanks to the added value that solar panels bring.

Texas Renewable Energy Offers

Texas Net Metering

While Texas doesn’t have its own statewide net-metering policy, there are many utility companies in the state, such as CPS Energy, El Paso Electric, the City of Brenham, and Green Mountain Energy, which have policies designed to credit solar energy system owners for the electricity that their panels create.

So if your utility company has a net metering policy, you’ll get credits on your electric bill for any extra electricity that your solar panels make. And when your panels aren’t making enough electricity to meet your usage, you can tap into those Texas net metering credits rather than buying electricity from the electric company.

Solar Rights Law

Do you live in a neighborhood that’s governed by a homeowners’ association (HOA) or property owners’ association? If so, you might be worried about HOA regulations keeping you from being able to make the switch to solar.

Fortunately, the state of Texas has its own solar rights law that keeps HOAs from interfering with or banning residents from installing solar energy systems on their properties.

As such, you can go solar without having to worry about any penalties or interference. Switching to solar in Texas is easier than ever, thanks to these laws.

Federal Solar Tax Credit

That’s right; you can take advantage of government incentives, too. Thanks to the Investment Tax Credit (ITC), residents can lower the cost of their PV solar energy systems by 26%.

You’ll want to keep in mind that this ITC only applies to people who pay for their PV system outright. You can do so either with a solar loan or cash purchase. You’ll also need to have a certain amount of income to qualify for this program.

Now, let’s look at some other important information concerning solar panels that you’ll want to be aware of.

Net Metering and the Grid

The grid system is a pretty simple concept, but there’s still some confusion concerning how solar power grids work.

Each home that is located on the grid has a utility meter that is connected to it, which electricity companies use to measure and provide the electricity that is going into your home.

Whenever a home uses solar energy, the power that is collected will automatically get connected directly to that meter.

All energy you produce goes into the grid. This means that all solar energy collected by your home, your area, and your state gets collected and stored through the grid prior to being distributed to other homes. And if you’ve got a solar battery installed, then your process is going to be different.

Net Metering

Whenever you produce more electricity than you use with your solar panel system, the extra energy is stored in the grid, and that’s where net metering comes into play. In many states, you get a financial credit every month for the extra energy you use.

In Texas, you won’t see immediate savings when you first sign up for solar. But over the course of several years, you can look forward to major savings across the board. It takes time, but the more you rely on solar, the bigger your savings.

This all adds up over time. Make sure that you check with your local officials to see whether you qualify for incentives and rebates. In doing so, you can save.


Solar panels are a great way to go green and save money on your monthly energy bills. Although it can be pricey at the beginning, you’re going to see big savings once you’re up and running.

You won’t see these savings at the very start of service. But after a few years, you can look forward to seeing significant savings on your installation.