There are several financial incentives available nationally and state-wide to help homeowners in Texas install a solar energy system. As you may not qualify for every program, speaking with a certified solar installer and a tax professional or financial advisor is recommended before making your final purchasing decisions.

The federal solar investment tax credit (ITC)

The federal solar investment tax credit (ITC) is a great opportunity for homeowners in any state, including Texas, to save on total solar energy system investment costs. Renewed by the Inflation Reduction Act in 2022, the ITC for homeowners is now officially known as the Residential Clean Energy Credit (RCEC), which is available at its current value through 2032.

Redeemed as a tax credit against federal income taxes otherwise owed, the RCEC is worth up to 30% of your total installation costs including hardware, labor, and project overhead-with no limit on the maximum value. So if you were to install a solar and battery storage system for $25,000, you may be eligible for federal income tax credits worth up to $7,500.

To qualify for the RCEC, you must live on-location where your system is installed, and the credits may be applied for multiple years of federal income taxes owed.

Property tax exemption

Since 1978, home solar energy systems have been eligible for property tax exemptions in Texas. With a tax exemption, the increased home value from your solar installation can be 100% exempt from future valuations for tax purposes, so that your annual property tax liability will not increase because of your renewable energy upgrade. Although property taxes are assessed locally in Texas, you must apply for the exemption through the state Comptroller's office .