Solar Panels Cost $11k-$18k in Houston, TX | May, 2025

Residential and commercial CPS Energy systems who install a new solar water heating system on their property may be entitled to a one-time rebate. Rebate amounts vary and are based on estimated annual savings by using the system up to $2,000. In the San Antonio area, the estimated rate is 60 cents per kilowatt hour. The final amount will appear on the customer's bill as a credit amount. The application process must begin as the customer seeks a quote for their system. Customers may choose from a variety of solar contractors pre-certified by CPS Energy for the installation. The rebate does not cover equipment associated with the system's operation such as batteries or motors.

CPS Energy residential and commercial customers who install a solar photovoltaic system on their San Antonio property may qualify for a rebate. The rebate program is split into three tranches based on property type. Residential customers will be credited a flat rate, while commercial customers will be credited by the watt. Provisions also exist for residential buildings used for established commercial purposes. Some restrictions apply. The system capacity must be at least 1 kW AC, and the total system cost must not exceed $4 per watt. The customer must actively pursue all necessary permits as a part of the application process.

Beginning in 2009, the City of Houston has offered partial tax abatements for commercial facilities that pursue and register for LEED certification with the US Green Building Council. The application process is handled by the City's Economic Development Division and begins with the owner's application to the Green Building Council. Once the owner successfully achieves LEED certification, the EDD may recommend an abatement agreement of up to 10 years to the City Council. Incentives may stand alone or be a part of an economic development tax abatement package. Certain minimum investment requirements apply which depend on the level of certification the owner pursues. A document outlining the program's terms under a proposed new structure can be found on the City of Houston website.

Through the Commercial and Industrial Rebate Program, Oncor Electric Delivery incentivizes various commercial and industrial customers undertaking energy efficiency improvement projects. Qualifying customers include businesses, governments, nonprofits, and places of worship. At present, 17 HVAC-related projects and nine lighting project types qualify for incentives, which are determined based on estimated cost savings. Inspections and measurements are included as a part of the application process. The total amount of incentive funds Oncor can award is capped, but the program is renewed annually. Additional information is available from the Oncor website.

Solar panels, wind turbines, and other related energy equipment are exempt from the state's franchise tax. (In Texas, franchise tax is the same as corporate tax and assesses both income and property together.) Qualifying systems may be used to generate electric power or energy used for heating/cooling. Devices to store or distribute energy are also exempt. Special exemptions apply to solar/wind contractors and businesses which manufacture components for renewable energy.

TNMP's SCORE/CitySmart advisory programs cater to schools and cities needing guidance to adopt energy efficient building standards and policies. Once the institution identifies practical solutions and targets, they may be eligible for various incentives to see their ideas realized. The Commercial Solutions program serves commercial customers beyond schools and municipal governments, providing similar financial incentives and management assistance to help them adopting solar energy or other energy efficiency projects. No participant is charged a fee, and both new projects and improvements on existing energy infrastructure may qualify.

The Houston City Council has adopted various ordinances establishing energy efficiency standards for new residential or commercial construction within city limits. New residential construction must exceed standards set by the International Energy Conservation Code's 2015 edition with amendments. Commercial buildings are governed by Houston's local Commercial Energy Conservation Code, based on the IECC and several other overarching energy efficiency standards. All new commercial construction is to exceed standards set by the 2015 IECC with amendments, as well as standards set in 2013 by the American Society of Heating, Refrigerating, and Air Conditioning Engineers.

Beginning in June 2004, the City of Houston has required all new municipal construction of at least 10,000 square feet to pursue the highest feasible level of LEED certification from the US Green Building Council. The only exception is airport facilities. While the original resolution does not set definitive requirements, it does set a minimum target certification level of Silver. Wherever possible, developers or remodelers must utilize LEED principles to their greatest extent.

Residential Texas Gas Service customers in Austin and Sunset Valley may be entitled to a rebate if they install a new energy-efficient HVAC or water heating system, including solar water heating and HVAC systems. Customers must be on the AUST I/S, SUNV I/S, or ABIA I/S billing plans and rates to qualify. Qualifying systems should meet local, state, and federally-set energy efficiency standards and be installed by a Texas Gas Service certified contractor. Additional information is available from the TGS website or by calling (512) 974-7827.

Beginning in 1999, the Public Utility Commission of Texas has adopted Renewable Portfolio Standards. Each iteration of the RPS sets a minimum quota for the state's renewable energy investment within certain time frames. Previous RPS standards required the state to invest in 10,000 MW of new renewables by 2025, a standard Texas exceeded in 2009. More specific standards have also been established requiring the state to invest in resources other than wind; however, these standards have not been enforced. Solar, wind, biomass, geothermal, and hydroelectric systems are among renewable sources that go toward RPS goals. Different utility companies throughout the state are entitled to equal shares of the state's investment. Texas's Electric Reliability Council prepares a compliance report each year detailing progress toward current RPS standards. Reports are available from the PUCT website.

The State of Texas allows a 100% property tax exemption on any added value arising from new solar, wind, or biomass energy systems or system components. At present, the exemption only applies to commercial properties. Qualifying systems under the tax code include any device used to produce, store, and distribute energy for on-site consumption, but the devices must be constructed on or after January 1, 2014. Assessors will determine how much may be exempt based on depreciated value under a ten-year useful lifespan. Commercial property owners may claim the exemption by filling out Form 50-123, "Exemption Application for Solar or Wind-Powered Energy Devices", from the Texas revenue department. Additional information can be found on the Texas State Comptroller website.

Through the Residential Solar Program, Oncor Electric Delivery residential customers who install a new photovoltaic system may be entitled to a rebate. The rebate may appear as a payment directly made to the customer, a credit on energy bills, or a discount from the installing solar contractor. Eligible new systems must use the Oncor grid for electric delivery, be interconnected under a timed agreement, meet all local/state/federal codes, and be installed by an Oncor certified contractor. Existing systems do not qualify. Additional information is available from the Oncor Electric Delivery website.

Since 1989, the state of Texas's LoanSTAR (Saving Taxes and Resources) program has offered low-interest revolving loans to fund energy efficiency improvements at public and certain private facilities. The program has assisted 325 clients and invested $545 million since 1985. Eligible borrowers include state government units, public school districts, public colleges and universities, and nonprofit hospitals. Payments are based on the facility's cost savings by using the new energy systems over a 10-year maximum term. Interest rates vary annually. Eligible projects include on-site renewable energy generation systems such as solar photovoltaics/water heating and small wind turbines. Smaller improvements such as energy-efficient lighting and HVAC may also be covered.

Through the Renewable Rewards program, Green Mountain Energy compensates residential and commercial customers who use renewable energy systems interconnected to the grid. Any excess power beyond the needs of the property can be "sold back" to GME for an avoided-cost rate. Qualifying renewable energy technologies include hydroelectric, wave/tidal, wind, solar, geothermal, and biomass. Renewable Rewards is not a traditional net-metering program. As GME is only a retail provider of electric services, qualifying systems must enter interconnection with an outside distributor on the independent Texas grid. The distributor will install a bidirectional meter to measure how much power is sent back to the grid, reporting the total amount to GME. GME will then credit the customer's account.

The Texas Public Utility Commission has standardized distributed generation and grid interconnection practices in the state since 1999. Texas does not use tiers to organize operational renewable energy facilities, though no interconnected system may be rated for up to ten megawatts. Systems rated for under 500 kW may be eligible for expedited permit review, while those above one megawatt are required to register as either a self-generator or power generation company. Systems are required to meet certain IEEE standards and have a minimum manufacturer's warranty. Owners may be required to install external disconnect switches or carry liability insurance beyond the warranty requirement.

Texas has adopted an energy efficiency resource standard in lieu of a typical RPS law. Private utilities may set their own annual energy efficiency goals; by law, new goals must continually exceed previous objectives. Uniquely, the standard covers both existing energy efficiency improvements and new renewable energy investment. In lieu of a credit system, compliance is measured through annual Energy Efficiency Plans sent to the state legislature. Each report outlines the utilities' objectives and itemizes applicable investments and real cost savings. Additional information is available from the Public Utility Commission website.

Through the GreenBack program, TXU offers rebates to commercial customers for investing in long-term energy efficiency improvements. Successful applicants may use the funding they receive to build new renewable energy systems on their property or apply them to improving existing energy systems. Even simple changes such as switching to LED lights may qualify. Funding is subject to certain eligibility standards and other terms/conditions.

Beginning with the 1982 tax year, solar and wind energy contractors, retailers, and manufacturers based in Texas may be entitled to franchise ("corporate") tax exemptions. The available exemptions currently do not have ceilings. Under the tax code, wind energy systems and solar photovoltaic, water heating, space heating, and air conditioning systems qualify. All system components, including those for energy collection, transfer, and storage, qualify as well.