Federal Solar Investment Tax Credit Buy a new home solar system, and you will be eligible for the 30% federal tax credit. A tax credit is a dollar-for-dollar reduction in the amount of income tax you would otherwise owe. This credit also applies to energy storage systems that are charged by your solar system.

Local Tax Credits While Texas doesn’t have a statewide solar tax credit or solar rebate program, many utilities and local governments offer incentives for homeowners who want to go solar.

Net Metering Net metering is a program that requires your electric company to purchase excess electricity your solar panels produce. For example, your system may produce more electricity on a typical sunny day than your home consumes. When solar production exceeds usage, the utility meter will “spin” backward and provide you with credits. These credits can then be used when the solar system is not producing electricity, such as at night. Texas does not have a statewide net metering policy; however, some utilities have policies that benefit owners of solar systems. If your utility has a net metering policy, you receive credits on your electric bill for all the extra electricity your solar panels produce.

Texas Property Tax Exclusion Adding a solar energy system to your home will not increase your property taxes.

This guide provides an overview of the different federal, state, and local incentives available to those interested in residential solar. It does not constitute professional tax advice or other professional financial guidance. This overview should not be used as your only source of information. Other sources should be consulted when making purchasing, investment, and tax decisions; or while executing other binding agreements.