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Solar rules by state

Solar in Texas

Here's what generally applies to solar in Texas. This page is educational: Power Done Better installs in Southwest Florida, so for Texas we can point you toward what applies and, where we can, refer you to a trusted local pro.

Educational + referral only. Power Done Better installs in Southwest Florida. This page is educational information about solar rules in Texas — we don't provide local installation there, but we're happy to point you toward what applies and, where we can, refer you to a local resource.
Net metering

What you get for exported power

Policy type: Utility choice (no state mandate) — varies by utility.

No statewide net metering. In deregulated ERCOT areas (~85% of the state) you pick a solar buyback plan from a Retail Electric Provider (REP). Some REP plans approximate 1:1 (e.g., TXU buyback at consumption rate in Oncor territory); others pay a fixed rate (~$0.085/kWh cited). Austin Energy and CPS Energy are municipal with their own rules.

Typical export credit
Depends on REP plan (~$0.085/kWh cited; some approximate retail)
Varies by utility
Yes
Incentives

Programs on the table

Program terms and budgets change — treat these as a starting point and confirm current status.

Solar Property Tax Exemption (Texas Tax Code §11.27)

active

100% exemption on the added home value from solar; file Form 50-123. Automatic/permanent.

  • Amount: 100% of added value
Taxes

Credits & exemptions

State solar tax credit

No

No statewide personal solar income tax credit.

Property tax exemption

Yes

100% exemption on added value under Texas Tax Code §11.27 (file Form 50-123); automatic/permanent.

Sales tax exemption

No

No general statewide residential solar sales tax exemption.

SREC market

None

No statewide SREC market.

Utilities

Who most homeowners have here

Your exact terms depend on your utility — this is the shortlist most visitors fall under.

  • Oncor (delivery) + REPs (TXU, Green Mountain, etc.)
  • Austin Energy (municipal)
  • CPS Energy (municipal)
The bottom line

What this means for you

Texas has no state net-metering rule — what you get for exported power depends entirely on which retail electricity plan you choose, so plan shopping is the game. The added home value from solar is 100% property-tax exempt under §11.27. There's no state tax credit or SREC market.

Before you decide

Read this the right way

Rules, rates, and incentives change and vary by utility — confirm current terms with your utility and a licensed installer before deciding. Any figures shown here are cited educational estimates, not a quote, and not a guarantee of savings or eligibility. Nationwide in 2026: the federal residential solar tax credit (IRC Section 25D, the 30% ITC) expired 12/31/2025, so a cash or loan purchase placed in service in 2026 gets $0 federal residential credit — there is no 2026 residential credit. Lease/PPA (third-party-owned) systems may still access the business credit (Section 48E) through 2027. This is general information, not tax, legal, or financial advice. Sources are listed below, last verified 2026-08-17.

Sources

Educational · Referral

We install in Southwest Florida

We don't install in Texas, so we won't pretend to be your local expert. If you're in Texas, use the sources on this page to check your utility and DSIRE — and if you want, we can point you toward a trusted local pro.