Texas Solar Incentives January 2025 Update

Major Changes to Texas Solar Incentives in 2025

Texas homeowners looking to go solar in 2025 have excellent incentive opportunities. Here's what's new and what you need to know to maximize your savings.

1. Federal Solar Tax Credit Remains at 30%

The federal Investment Tax Credit (ITC) remains at 30% through 2032, down from the previous scheduled decrease. This means Texas homeowners can deduct 30% of their total solar system cost from their federal taxes.

What's Covered:

• Solar panels and racking
• Inverters and electrical equipment
• Battery storage systems (added in 2023)
• Installation labor costs
• Permit fees and inspections

2. CPS Energy (San Antonio) Rebate Updates

CPS Energy has increased rebates for residential solar installations:

• Previous: $0.50/watt
• New (2025): $0.60/watt for systems up to 25kW
• Maximum rebate: $15,000 per residential installation

3. Oncor Service Territory Enhancements

Oncor (serving Dallas, Fort Worth, and much of North Texas) has implemented new programs:

• Enhanced net metering credits
• Streamlined interconnection process (now 10-15 business days)
• New battery storage incentive pilot program

4. Property Tax Exemption Remains Strong

Texas continues to offer 100% property tax exemption on the added value from solar installations. This exemption:

• Applies to both residential and commercial properties
• Has no expiration date
• Transfers with property sale
• Saves average homeowner $300-500 annually

How to Maximize Your 2025 Solar Savings

Step 1: Calculate Your Potential Savings

Use our solar calculator to estimate your specific savings based on your location, energy usage, and system size.

Step 2: Get Multiple Quotes

Compare quotes from at least 3 NABCEP certified installers. Our directory includes 500+ certified professionals across Texas.

Get Started Today

With the 30% federal tax credit, strong utility rebates, and property tax exemptions, 2025 is an excellent year to go solar in Texas.