Solar energy uses a renewable energy source – the sun – and provides many benefits for individual property owners and the broader community. Installing solar can: Improve environmental quality by reducing carbon emissions and air pollution. Support local solar companies in Texas and create local jobs. Help save money on energy costs over the life of the system. Improve electric grid resilience during peak demand and other stresses on the system.

Interested in whether solar might work for your property? Start by exploring your site’s solar potential:

• Property Solar Potential Map – Investigate your property’s solar potential using online mapping tools.
• PVWatts Calculator – Use the National Renewable Energy Laboratory’s tool to estimate the performance of potential solar photovoltaic (PV) projects.

Once you decide to explore solar, a qualified solar contractor can evaluate your home or business, design a system, and provide a quote. Consider the following resources:

• Certified Practitioners: Search for certified professionals through NABCEP (North American Board of Certified Energy Practitioners).
• EnergySage: Visit EnergySage to learn about solar energy and request quotes from a network of pre-screened, local solar installers.
• Solar Customer Resource Portal: Explore resources from SEIA (Solar Energy Industries Association) to better understand solar options and policies.
• Solar Owner’s Manual: Review the Solar Owner’s Manual from Solar United Neighbors for guidance on getting the most out of your solar system.

Solar installations are commonly financed through loans, upfront payments, or power purchase agreements (PPAs). The right option will depend on your budget, goals, and eligibility for incentives.

• Homeowner’s Guide to Solar Financing: The Clean Energy States Alliance provides an overview of different financing options in the Homeowner’s Guide to Solar Financing.

Federal Incentives

• Inflation Reduction Act Rebates and Incentives: A good starting point for residents is the IRA incentives calculator from Rewiring America. Available rebates and incentives may vary by location and income.
• Federal Investment Tax Credit (ITC): The federal tax credit for residential solar is one of the most significant ways to reduce the cost of a solar PV system. Learn more through the U.S. Department of Energy’s  Homeowner’s Guide to the Federal Tax Credit for Solar Photovoltaics.
• Business Tax Credits: Businesses should refer to Federal Solar Tax Credits for Businesses for eligibility and requirements.
• Bonus Credits: Some solar projects may be eligible for bonus credits on top of the 30% ITC, including:
  • Qualified solar or wind facilities in low-income communities (up to 20%).
  • Projects located in “energy communities” with a historic fossil-fuel economy, high unemployment, or development on brownfields (up to 10%).
  • Projects using qualifying amounts of U.S.-produced steel, iron, and manufactured products (domestic content bonus of up to 10%).
  The World Resources Institute’s IRA Bonus Mapper can help identify locations eligible for low-income and energy community bonus credits.
• Tax-Exempt Organizations: Tax-exempt organizations such as non-profit organizations, schools, and government entities can now benefit from the federal tax credit through “elective pay” (also referred to as “direct pay”). An overview and FAQs are available from the Internal Revenue Service (IRS).

State and Local Incentives (Texas)

• DSIRE Database: The  Database of State Incentives for Renewables & Efficiency (DSIRE)  provides an aggregated list of financial incentives available in Texas.
• Property Tax Exemption: Texas offers a 100% property tax exemption for solar system installations, allowing your property value to increase without affecting your property taxes.
• LoanSTAR Revolving Loan Program: Low-interest financing is available for state agencies, public schools, colleges, universities, and non-profit hospitals to pursue energy-related cost-reduction retrofits, including solar projects. Borrowers repay loans through cost savings from their projects.
• Property Assessed Clean Energy (PACE): Long-term, low-interest financing may be available for commercial and industrial building owners to install solar, repaid via a lien on the property. Check whether your city or county has adopted a PACE program.
• Go Solar Texas: Find additional local incentives and resources through the State Energy Conservation Office’s Go Solar Texas website.

Residents and businesses may also qualify for additional grants, utility rebates, or special programs, including options designed for low- to moderate-income households. Contact your utility provider and the State Energy Conservation Office for the most current offerings.

Understanding your rights and reviewing consumer protection information can help ensure a positive experience with solar energy. The following resources provide guidance:

• Consumer Solar Checklist: A checklist for residential consumers considering solar energy from IREC (Interstate Renewable Energy Council).
• Solar United Neighbors’ Solar Owner’s Manual: A resource for solar homeowners, whether you are newly installed or have had solar for years. 
• Clean Energy Consumer Bill of Rights: Guidance from IREC designed to support a positive consumer experience with clean energy technologies.
• DSIRE Policy Database: The  Database of State Incentives for Renewables & Efficiency (DSIRE)  provides information on incentives and policies that support renewable energy and energy efficiency.
• A Beautiful Day in the Neighborhood: Encouraging Solar Development through Community Association Policies and Processes offers details on how community associations can support solar development while addressing neighborhood concerns.