Available Incentives

A variety of incentives, ranging from tax credits to rebates to bill credits from your electric provider, can help make the economics of solar even better!  A full database of incentives is available at the Database of State Incentives for Renewables & Efficiency (DSIRE), including incentives specific to individual retail electric providers and utilities. Here are listed incentives that are widely available in North Texas, including deregulated Oncor service territory. If your property is in a municipal utility or electric cooperative boundary, check the DSIRE website for more incentives. Also inquire with your financial institution to find out if they offer special rates for energy efficiency projects.

All Installations

Additional Opportunities for Residential Installations

Additional Opportunities for Commercial Installations

Additional Opportunities for Local Government Installations

 

All Installations

  • Oncor Solar PV Standard Offer Program: Both residential and commercial customers in Oncor service territory can qualify for incentives. 
  • Renewable Energy Buy-Back Programs: Customers in deregulated areas (Oncor service territory) can choose a retail electric provider that buys back excess power produced during the billing period.  To find available buy-back plans, visit the Power to Choose website.

 

Additional Opportunities for Residential Installations

  • Federal Tax Credit: The Residential Renewable Energy Tax Credit of 30% of the total project cost (no maximum) is available for a variety of renewable energy projects, including solar PV. Section 13302 of The Inflation Reduction Act of 2022 (H.R. 5376) extended the expiration date to 2035 and modified the phase down of this tax credit.  Systems must be powered on by the expiration date to qualify.
  • Property Tax Exemption: Texas law allows a property tax exemption for solar installations – so while solar increases the value of your property to a prospective buyer, your property taxes won’t increase!
  • Additional Utility Incentives:
  • Multifamily Residential Property Owners: These property owners can get assistance from the Fannie Mae Green Initiative loan program. 
  • General Resource:
    • Solar Power Rocks: "Solar Power Rocks is committed to giving homeowners a clear picture of the policy, incentives, and investment returns on local solar panel installations." Based on SPR's analysis of state policies and incentives, Texas earns an overall grade of "D;" however, they make sure to clarify that, "even with a minimal Renewables Portfolio Standard, no tax credits (heck, no tax!), and no statewide rebates, the Lone Star State is still a great place to go solar" due in part to municipal utility rebates and a high investment return rate. Plus, agencies like the North Central Texas Council of Governments are working hard to support solar at the regional level in North Texas and statewide. Solar Power Rocks also provides The Ultimate Guide to Powering Your Home with Solar.

 

Additional Opportunities for Commercial Installations

  • Federal Tax Credit: The Business Energy Investment Tax Credit (ITC) of 30% of the total project cost (no maximum) is available for a variety of renewable energy projects, including solar PV. Section 13302 of The Inflation Reduction Act of 2022 (H.R. 5376) extended the expiration date to 2035 and modified the phase down of this tax credit.
  • Property Tax Exemption: Texas law allows a property tax exemption for solar installations – so while solar increases the value of your property to a prospective buyer, your property taxes won’t increase!
  • Solar Energy Devices Franchise Tax Exemption: Texas law allows businesses to deduct the cost of a solar energy device from franchise taxes. 
  • Property Assessed Clean Energy (PACE):  PACE is a way of financing energy efficiency improvements, including solar, by allowing property owners to attach a voluntary contractual assessment to the property, which is paid back through annual property taxes.  PACE is only available in areas which have established PACE districts. Whether you are a private citizen or a solar installer, if you want to make PACE financing available in your area, talk to your city about establishing a PACE district. For more details, visit Keeping PACE in Texas. 
  • Rural Energy for America Program (REAP) Renewable Energy Systems & Energy Efficiency Improvement Loans & Grants:  REAP is a program of the US Department of Agriculture that provides guaranteed loan financing and grant funding to agricultural producers and rural small businesses to purchase or install renewable energy systems or make energy efficiency improvements.  Eligible projects include solar installations, and this map can help identify eligible geographic areas.   For complete details, visit the USDA Rural Development website. 

 

Additional Opportunities for Local Government Installations