Home solar in Texas

Net metering No statewide net metering

No state rule requires utilities to credit exported solar. In areas with retail choice (most of ERCOT), each retail electric provider decides whether and how much it pays for exported power; some offer 'solar buyback' plans (for example TXU Renewable Buyback, Reliant Sell Back), and each plan's Electricity Facts Label says whether it buys excess solar. City utilities and co-ops (Austin Energy, CPS Energy, many co-ops) set their own rules. Source

Solar credits (SRECs) No market

No SREC market for homes in Texas. Source

Taxes

Property tax: Exempt: the value a solar system adds to your home is exempt from property tax (Tax Code §11.27). File Comptroller Form 50-123 with your county appraisal district.
Sales tax: None: no state sales tax exemption for home solar equipment. Source

Solar laws

• HOA solar access, Property Code §202.010 (2011). HOAs may not ban solar. They may limit where panels go only in set ways (for example, roof panels can't extend past the roofline), and they must allow a different roof spot if it produces more than 10% more power. They may not deny approval if the rules are met. Source
• SB 1036 (2025), residential solar retailer law (2025). From 9-1-2025 solar sale and lease contracts must name a licensed electrician, cover permits and interconnection, and give a 5-business-day right to cancel. From 9-1-2026 solar sellers and salespeople must register with TDLR. Source

Community solar

No statewide program; a few city utilities and co-ops (such as Austin Energy) run their own.

Timeline

1. 2011 HOA solar access law (Property Code §202.010) takes effect
2. 2025-09-01 SB 1036 consumer protections and 5-day cancel right start
3. 2025-12-31 Federal 30% homeowner tax credit (25D) ends
4. 2026-09-01 Solar sellers must be registered with TDLR
5. 2026-11-01 TDLR ends its pause on enforcing contract-disclosure rules

Federal tax credits

The 30% federal tax credit for homeowners who buy solar (Section 25D) ended for systems placed in service after December 31, 2025, so buying no longer earns a federal credit. If you lease or sign a power purchase agreement (PPA), the panels belong to a company that may still claim a business credit under federal deadlines that tighten through 2027. Ask your installer whether that savings is in your price.

Sources

• TDLR: Residential Solar Retailers, what's in effect when
• Comptroller Form 50-123 (solar property tax exemption)
• Tax Code §11.27 (public.law copy)
• Property Code §202.010 (public.law copy)
• PUCT-filed TXU Electricity Facts Label (buyback example)
• EIA Electric Power Monthly Table 5.6.A

Last checked 2026-11-01. Incentives are not guaranteed and can change or run out. Confirm every figure with your utility, installer and a tax professional before you sign. This page is general information, not tax, legal or financial advice.

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