The 2026 headline
The federal homeowner credit ended for new expenditures after 2025. Texas's property-tax exemption remains, and some utility programs may still help—but they are not interchangeable.
Federal Residential Clean Energy Credit: ended for new 2026 installations
The IRS says the section 25D Residential Clean Energy Credit is not allowed for expenditures made after December 31, 2025. It also says payment in 2025 does not preserve the credit when installation finishes after that date, because the expenditure is generally treated as made when original installation is completed.
That means a normal homeowner-owned system completed in 2026 should not be sold using the old “30% federal credit” assumption. Commercial ownership structures can involve different tax provisions; that does not turn a homeowner into the claimant, and it requires separate professional review.
Texas solar and wind property-tax exemption
Texas Tax Code section 11.27 exempts the amount of appraised value attributable to the installation or construction of a qualifying solar or wind-powered energy device. The Texas Comptroller identifies Form 50-123 as the application.
- File with the appraisal district that appraises the property.
- The exemption applies to qualifying added value, not the home's entire value.
- Keep invoices, equipment descriptions, permits, and installation records.
- Ask the appraisal district about its deadline and any supporting documents.
Utility and local incentives: check the exact territory
Programs are tied to the delivery utility or municipal/co-op territory, not simply your city name or retail electric provider. Funding and eligibility can change during a program year.
For example, Oncor's current residential program says qualifying homes must be in Oncor territory, use a new photovoltaic system with battery storage, work through an approved participating service provider, sign an interconnection agreement, and stay within a 15 kW DC maximum. Oncor also says program availability is typically seasonal and the incentive depends on system details.
How to verify an incentive before signing
- Identify the company that delivers electricity to the property.
- Open that utility's current program page yourself.
- Confirm the system and contractor are eligible before work begins.
- Ask who receives the incentive and whether the quote already subtracts it.
- Get the amount and approval status in writing; do not treat an estimate as awarded money.
Claims to reject
- “The government will pay for your solar.”
- “Everyone gets the tax credit.”
- “Sign now before the rebate disappears,” without a current program document.
- A quote that subtracts incentives but will not show the undiscounted cash price.
Compare quotes without confusing a quote with a verdict
Before signing anything, compare at least three written proposals on the same basis and read the financing agreement separately from the installation agreement.
See the quote-comparison options
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Primary sources: IRS section 25D FAQs, Texas Comptroller property-tax exemptions, Form 50-123, and Oncor Residential Solar Program.
Frequently asked questions
Is the 30% federal residential solar tax credit available for a system completed in 2026?
No. The IRS says section 25D is not allowed for expenditures made after December 31, 2025, and an expenditure is generally treated as made when the original installation is completed.
What does the Texas solar property-tax exemption do?
It exempts the amount of appraised property value attributable to a qualifying solar or wind-powered energy device. It is not a cash rebate and does not exempt the rest of the property.
Does Texas have one statewide residential solar rebate?
No single statewide cash rebate applies to every Texas homeowner. Utility and local programs vary by service territory, eligibility, equipment, participating contractor, funding, and program year.
Can an installer guarantee that I qualify for a tax benefit?
An installer should not guarantee your tax result. Confirm eligibility with current IRS guidance and a qualified tax professional who knows your facts.
This is general consumer information, not tax, legal, engineering, or financial advice. Verify current program rules and final contract terms before spending money.