Solar Panels Cost $10k-$19k in Texas | August, 2025

Through the Residential/Hard-to-Reach Standard Offer Programs, Xcel collaborates with "Project Sponsors" to make energy efficiency improvements for residential and low-income customers. Qualifying projects include solar photovoltaics/water heating/HVAC, as well as energy-efficient windows, lighting, ductwork, and insulation. After installation by a certified contractor, Xcel will pay an incentive based on anticipated cost savings to the Sponsor; it is the Sponsor's prerogative how the funds are handled. A list of sponsors for the Residential program is maintained on the Xcel website. For the Hard-to-Reach program, applicants should have an annual income at/below 200% of the federal poverty line and complete PUCT income verification. Additional information is available on the Xcel website.

Americal Electric Power - Texas Central customers installing a solar photovoltaic system on their home or commercial property may qualify for a rebate. Rebates are based on a tiered structure taking into account the type of property and the system's expected capacity. Smaller systems of 3 kW or less will yield rebates by the watt, while larger systems will yield a flat rebate of at least $1,500 up to $5,000. Qualifying systems must have a minimum capacity of 1 kW DC unless the customer is a school who will use the PV system for educational purposes. Further, the system must perform at a minimum 80% efficiency throughout the first year. Applications will be accepted in the order they are received. Rebates will continue to be offered until funds expire for the year. Additional information is available from the AEPTC website.

Through the Solar Water Heating Rebate Program, the City of Sunset Valley offers additional local rebates on top of Austin Energy's existing rebates for residential solar water heating installations. The local rebate is based on 30% of the system's purchase price with a ceiling of $2,000 per homeowner. Austin Energy's rebate is currently a flat $1,500 for new homes and $2,000 for existing homes. The solar system must be used to preheat water for an existing electric heater. It must already have approval for a rebate from Austin Energy; therefore, residences outside of Austin Energy's service area or who receive their energy from another provider do not qualify. Additional information is available from the City of Sunset Valley website.

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.

Through the Residential Energy Efficiency Rebate Program, Austin Energy incentivizes residential customers to install efficient HVAC systems, insulation, windows, or small appliances certified by the ENERGY STAR initiative. Incentives are based on improvement type and the scale of the project; larger projects yield higher rebates. A bonus flat rebate of $2,400 might be applicable to certain HVAC and weatherization projects. Energy audits are required as a part of the application process. The customer may choose from a variety of Austin Energy certified contractors to install the equipment.

Residential and small business customers of Denton Municipal Electric may qualify for a rebate under the GreenSense energy efficiency program. Customers installing new HVAC units, insulation/weatherization, thermostats, windows, heat pumps, or solar heating on their property may qualify. Systems must follow Texas state standards and be installed by a Denton Municipal Electric qualified contractor. Incentives depend on the type and scale of the project. The application process must begin within 30 days of installation work. Inspections will be conducted to verify the measurability of energy efficiency improvement with the new systems. Additional information is available from the Denton Municipal Electric website.

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.

Through the Distributed Generation Rebate Program, San Marcos Electric Utility reimburses residential customers who choose to install a new interconnected solar energy system on their property. Rebate amounts may vary based on estimated system capacity and output. The program has a multi-step application process which must begin before the system's purchase. Applicants' homes must already meet a set of energy efficiency qualifications, and professional designers must sign off on any applicable project proposals. More program information and initial application paperwork are both available from the City of San Marcos website.

Austin Energy offers rebates to residential customers electing to install a rooftop solar photovoltaic system on their property. The current rebate amount is $2,500 and is awarded upon both system installation and completion of an educational course. Qualifying systems must have a minimum capacity of at least 3 kW DC and be interconnected to the Austin Energy grid. Customers must file for a Letter of Intent before purchasing the system and choose a participating contractor for installation. Leased systems, existing systems, and systems under third-party net metering/billing agreements do not qualify.

The city of Plano, together with BTH Bank, manages the Smart Energy Loan Program to invest in local homeowners making energy efficiency upgrades. Available loan amounts start at $2,500 and top out at $25,000. Interest rates, administrative fees, and other terms vary and are determined by the bank, and approval is subject to a credit check. Eligible improvements include solar photovoltaic, water, and HVAC systems. Small wind systems also qualify. However, any necessary structural improvements required before installation are not covered. Application paperwork is available through the City's website.

Residential customers of the Guadalupe Valley Electric Cooperative may qualify for a rebate if they install new energy efficient improvements on their property. The New Home Rebate incentivizes all-electric houses built to meet standards GVEC sets. Rebates will be awarded upon construction by an Energy Star-certified contractor and inspection of all new energy systems. The Home Improvement Rebate Program funds new solar water heating, solar HVAC, energy-efficient windows and insulation, and Energy Star-accredited home appliances among other projects. Each project has different standards which must be met for a rebate application to be approved.

Residential solar customer-generators on the El Paso Electric grid participate in a net metering arrangement. Each new photovoltaic installation includes a bidirectional meter measuring excess power to be "sold back" to the grid. EPE will credit the customer's monthly bill for this power at an avoided-cost rate. If at any time outstanding credits exceed $50, the customer will receive a check for the balance. Qualifying systems must be rated for the previous year's energy consumption at maximum, up to a capacity ceiling of 50 kW. Specialized "master metering" arrangements are available for low-income elderly apartment buildings.

Austin Energy has offered all residential and commercial solar customers a Value of Solar Tariff (or VOST) since 2012, making them the first utility nationwide to offer such an incentive. VOST is the successor to net metering for solar systems with a capacity of up to 10 MW. Customers are billed for all electricity they consume, but are credited at a fixed kilowatt hour rate for all energy generated using the photovoltaic system. In 2020, this rate was $0.097 per kilowatt hour for non-demand customers and either $0.067 or $0.047 per kilowatt hour (based on system capacity above or below 1 MW) for demand-based customers. VOST rates are subject to change on an annual basis. Qualifying systems must meet all interconnection guidelines set by Austin Energy and have a minimum contract of one year. The minimum term will be longer for customers already participating in the Solar PV Rebate Program.

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.

Since 2011, the City of Fort Worth has been a signatory to the International Energy Conservation Code and has adopted various local energy efficiency standards of its own. Any new residential or commercial construction, public or private, within city limits must meet standards set by the 2015 draft of the IECC. Alternatively, new HVAC systems should meet efficiency standards set in 2013 by the American Society of Heating, Refrigerating, and Air Conditioning Engineers.

In June of 2000, the Austin City Council approved Resolution 000608-43 requiring any future public building construction or major remodeling projects to meet or exceed LEED Silver certification as set by the US Green Building Council. Minor renovations, expansions, and interior finishing costing at least $300,000 must also meet LEED silver certification. All non-industrial commercial buildings at least 10 years old, publi or private, must also complete energy rating audits using Energy Star metrics or Austin Energy's own local standards. The council approved revisions to the ordinance in 2007. For the LEED Silver requirement on new or major construction to be enforced, project work must include standards across all five major LEED categories and have a total construction cost of at least $2 million.

Through the Small Business Energy Efficiency Rebate Program, Austin Energy incentivizes certain commercial and non-profit customers to install efficient HVAC systems, insulation, and windows certified by the ENERGY STAR initiative. Incentives are based on improvement type and the scale of the project; larger projects yield higher rebates. Eligible customers must be on the 50 kW rate at maximum. Commercial facilities may include residential buildings converted for commercial purposes, but do not include home offices. Customers may choose from a variety of Austin Energy certified contractors to conduct the installation.

Residential and commercial New Braunfels Utilities customers may take advantage of two different rebate programs when undertaking energy or water efficiency improvement projects. A variety of projects qualify, including CEE Tier 3-certified home appliances, HVAC systems, shade trees, and LED lighting may qualify. Incentives will vary depending on improvement type and the scale of the project. More information and application documents are available from the New Braunfels Utilities website.

Through the Commercial Energy Management Rebate Program, Austin Energy incentivizes larger commercial customers to install efficient HVAC systems, insulation/weatherization, ventilation, lighting, and windows. Incentives are based on improvement type and the scale of the project. Bonus rebates might apply to projects under certain weatherization or add-on conditions. As a part of the application and quote process, an Austin Energy representative will conduct an efficiency audit. The final application will include technical documentation and results of preliminary and final inspections. Each customer may choose from a variety of Austin Energy certified contractors.

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.

CPS Energy, the local public electrical utility for San Antonio, compensates home and business solar energy customers through net metering tariffs. Net metering customers will be compensated through bill credits on the net excess generation (NEG) they export to the grid, as measured by a bidirectional meter. Should generation exceed consumption for a given month, credits will roll ahead to subsequent billing cycles. There is no size or generation limit for net metering. Additional information is available from the CPS website.

In 1999, Austin first adopted a local renewable portfolio standard. This policy exceeds the requirements of state objectives. The city has a long-term goal of reaching zero carbon emissions by 2030. By 2025, Austin utilities must generate at least 65% of their retail energy using renewable technology, including solar, wind, some biomass, hydroelectric, and geothermal. "Carve-out" policies require certain proportions of investment in small-scale solar energy. Compliance is measured through mandatory reporting, typically tied to incentive programs and local net metering/distributed solar tariffs. Additional information is available from the city website.

For ten years, Austin has been the largest American city to power 100% of its municipal buildings with renewable energy. In 2014, the City Council launched a new initiative to reach net-zero greenhouse gas emissions by 2050. Current areas being improved under the initiative include energy, transportation, sanitation, and industrial management. As a part of the city's broader mission, Austin Energy is currently deriving 38% of its energy from six large solar farms and eight wind farms scattered through Texas. Combined with biomass generation, total renewable capacity is equal to 2,100 MW.

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.

Beginning in September 2010, interconnected solar customers within the City of Brenham have participated in a net metering arrangement. Using bidirectional metering equipment, the city will determine the amount of excess power generated by a customer's solar system. The customer can "sell" this power back to the city for a credit at the avoided cost rate. Qualifying systems must meet all federal, state, and local safety codes and must not exceed 10 MW of capacity. A customer using a maximum 20 kW system might qualify for net metering under a separate agreement with expedited interconnection provisions.

Through the PV Rebate Program, the City of Sunset Valley offers additional local rebates on top of Austin Energy's existing rebates for residential solar photovoltaic installations. The local rebate is based on capacity. Currently, it sits at $1 per watt up to 3,000 watts. Qualifying systems must have an installation cost of no more than $6 per kilowatt, and they must already have approval for a rebate from Austin Energy. Residences outside of Austin Energy's service area or who receive their energy from another provider do not qualify. Additional information is available from the City of Sunset Valley website.

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 January 2007, all new municipal construction and major remodeling conducted by the City of Plano are subject to LEED certification requirements. What level must be met is determined by a score-based system based on planned features. During the planning phase, the city must avoid adding excess energy efficiency improvements for the sake of simply gaining LEED points. Exceptions may apply to the LEED requirements if predicted return on investment would result in a significant financial loss for the city.

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 customers of the Guadalupe Valley Electric Cooperative may qualify for a rebate if they install a solar photovoltaic system on their property. Rebate amounts and requirements for a rebate to be awarded vary based on the specific photovoltaic technology of the new system. Universal equipment, installation, and warranty requirements apply. Customers may choose from numerous GVEC certified solar contractors who will install the system under an interconnection agreement. Once the system is in place, GVEC will continue to apply bill credits to solar customers through the purchase of excess generated energy as determined by a bidirectional meter.

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.

Through the Multi-Family Energy Efficiency Rebate Program, Austin Energy incentivizes developers and managers of multi-family residences or apartment buildings to install new energy-efficient equipment. ENERGY STAR certified HVAC systems, insulation/weatherization, windows, ductwork, and lighting may qualify. Incentives are based on improvement type and the scale of the project. The application process includes walk-through inspections. Representatives may prorate or decline to offer rebates if they would not be cost-effective for the customer. Rebates will be awarded on a first-come, first-serve basis until annual funding expires.

Through the Commercial Solar PV Incentive Program, Austin Energy incentivizes commercial customers who install and use solar photovoltaic systems for on-site energy generation and consumption. Incentives are based on system performance at a rate locked for ten years, up to a maximum amount dictated by the customer's Letter of Intent. Net metering arrangements yield additional incentives for customers whose solar system has a capacity of up to 20 kW AC. Systems certified under California Energy Commission standards qualify. A minimum 20-year manufacturer warranty, including ten years on inverters and ten years on subsystems, is required. Additional information can be found on the Austin Energy website.

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.

To comply with Texas state law, CPS Energy and San Antonio at large have established a local renewable portfolio standard. The most recent objective was to own at least 1,500 MW of renewable generation capacity by 2020. Currently, CPS is the largest purchaser of wind energy among local public utilities at 1,059 MW per year. However, the utility also promotes small-scale solar energy adoption to meet the remainder of the goal. Customers may earn rebates, tariff compensation, and other incentives for new photovoltaic or water heating systems. Additional information is available from the CPS 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.

With the Green Building Policy of 2003, the City of Dallas required new city buildings meet at least LEED Silver certification standards if they had an area greater than 10,000 square feet. Later amendments to the ordinance raised the minimum certification to LEED Gold level for new transportation and public services. As of 2015, Dallas has fourteen silver, ten gold, and one platinum LEED-certified facility. Any new remodeling or development the city undertakes also considers LEED principles.

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.

San Antonio's zoning laws dictate where solar farms and wind "micro-turbines" may be installed and used. Wind systems should have the express purpose of reducing the owner's dependence on power from a utility; they also must not exceed 100 kW in capacity. Solar farms have variable zoning standards depending on how the panels are mounted. Additional information is available from the city website.

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 Commercial Solar PV Rebate Program, Austin Energy incentivizes commercial customers of all sizes who adopt solar photovoltaic systems. Incentives appear as bill credits called "Performance-Based Incentives" and will vary depending on expected system efficiency and output. The typical incentive ranges from 2 to 8 cents per kilowatt hour. Certain restrictions are in force. Nonprofit institutions may qualify under the "small commercial" category, but they must fail to qualify for federal tax credits. Any "small commercial" project receiving an incentive has a maximum capacity of 75 kW. Application paperwork and current incentive tier options can be found on the Austin Energy website.

Through the Commercial Solar PV Rebate Program, Austin Energy incentivizes commercial customers of all sizes who adopt solar photovoltaic systems. Incentives appear as bill credits called "Performance-Based Incentives" and will vary depending on expected system efficiency and output. The typical incentive ranges from 2 to 8 cents per kilowatt hour. Certain restrictions are in force. Nonprofit institutions may qualify under the "small commercial" category, but they must fail to qualify for federal tax credits. Any "small commercial" project receiving an incentive has a maximum capacity of 75 kW. Application paperwork and current incentive tier options can be found on the Austin Energy website.

The City of Austin adopted the first edition of its Climate Protection Plan in 2007 with the goal of reducing energy usage and greenhouse gas emissions. The initial plan set goals for most buildings to reduce their energy usage by 65 - 75% by 2015. The plan also established the Austin Energy Code, a local form of energy efficiency building certification, as well as task forces who would draft recommendations on Zero-Energy Capable Homes and energy efficiency retrofits. Currently, Austin ordinances require energy conservation audits to be conducted on any residential or commercial property to be sold, with results and disclosures made to potential buyers. New homes built in the city must meet energy efficiency standards set both locally and by the International Energy Conservation Code.

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.