Incentivizing and Financing Solar

One of the most critical steps a local government can take in supporting solar is to create local solar incentives and to demonstrate the viability of solar power themselves through installations on municipal properties.

Incentivizing Solar in Municipalities

PACE Financing

Financing Solar for Local Governments


If you'd like more information about financing and incentives available for residential and commercial installations, visit our homeowners' and business' Payment Options and Available Incentives pages.


Incentivizing Solar in Municipalities


Plano Smart Energy Loan Program

This fund supports affordable energy efficiency loans to Plano homeowners and will continue to offer future loans as existing loans are paid off, "which will benefit up to 1,365 residential projects estimated at $7 million in value over the next 10 years."

Denton Municipal Electric (DME) Greensense Solar Rebate Program

DME offers $1.50 per AC watt up to $30,000 (not to exceed 50% of total install cost) for PV systems or 50% of the invoice for solar water heaters.

Austin Energy Power$aver Program – Solar Photovoltaics (PV) Incentives

Austin Energy's capacity-based incentive for residential PV installations is offered for up to 10 kW of solar installed per home. Incentives are divided into levels with specific capacity allotments. Currently, Austin Energy is offering up to $0.80 per watt for 2.0 megawatts AC capacity systems, and the incentive will be reduced as capacity allotment for the incentive level is achieved.

San Antonio's CPS Energy – Simply Solar Program

This program offers a "Roofless Solar" community solar farm option as well as "SolarHostSA," a program that installs and maintains solar panels on appropriate residential and commercial rooftops at no cost to the property-owner or resident.



PACE Financing



"Property Assessed Clean Energy" (PACE) is a financing tool that reduces up-front cost for a property owner, but transfers financing terms with the property if it's sold.  This can greatly reduce the perceived risk to the property owner and help make solar a more attractive investment. The State of Texas enacted the PACE Act during the 2013 Texas legislative session, authorizing local governments to implement PACE programs within their jurisdictions. While the PACE Act creates the statutory framework for PACE programs, local governments must still adopt a resolution to create a program, and they have broad discretion in designing the specific attributes of their PACE programs.  Cities who are interested in supporting solar by creating PACE districts should review the following resources.

View PACE Authority presentation

View City of Houston PACE presentation


PACE in a Box Toolkit

All of the design elements, documents, and implementation steps necessary for a local government to establish an effective PACE program quickly and economically. From the non-profit business association, Keeping PACE in Texas.

Texas PACE Authority

The Texas PACE Authority is the PACE administrator in Texas.

Interstate Renewable Energy Council Toolkit

A toolkit on retail solar power purchase agreements for local governments and other public entities considering the installation and finance of rooftop solar systems.


The State Energy Conservation Office (SECO) LoanSTAR Program offers low-interest revolving loans for projects at facilities owned by public entities.

DSIRE Database

The Database of State Incentives for Renewables and Efficiency (DSIRE) is a comprehensive source of information on state, local, utility, and federal incentives and policies the promote renewable energy and energy efficiency.