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Texas Solar Incentives That Still Exist in 2026 (Houston Guide)

By Reberus Prime Contractor  ·  June 16, 2026  ·  3 min read
Quick Answer

Even though the 30% federal credit ended for purchased systems in 2026, Houston homeowners still have real incentives: a 100% property-tax exemption on the home value solar adds (Texas Tax Code §11.27), CenterPoint's rebate of about $135/kW (up to ~$2,025), strong HOA solar-rights protections (Property Code §202.010), and solar buyback plans. Leases and PPAs can also still capture the 30% federal credit through 2027.

Losing the federal tax credit got all the headlines, but Texas homeowners still have a stack of incentives that quietly improve solar's value. Here's exactly what's left in 2026 and how to claim each one.

What solar incentives are left in Texas in 2026?

Four meaningful ones remain for Houston homeowners:

  1. Texas 100% property-tax exemption on the home value solar adds.
  2. CenterPoint Energy's solar rebate (about $135/kW, up to roughly $2,025).
  3. HOA solar-rights protections — your HOA can't ban solar.
  4. Solar buyback plans that pay you for exported energy.

Plus, the 30% federal credit still exists for leases and PPAs (third-party-owned systems) through the commercial 48E credit. Let's break down how to actually use each.

How does the Texas solar property-tax exemption work?

When you install solar, your home's value goes up — but Texas exempts that added value from property tax under Tax Code §11.27. You get the resale benefit without a higher tax bill, and the exemption is 100% of the solar-attributable value.

To claim it: complete Comptroller Form 50-123, attach your invoice/contract, and file it with your county appraisal district (for example, the Harris County Appraisal District) — not the state. The deadline is generally April 30. It's a one-time filing for a permanent benefit.

Does CenterPoint offer a solar rebate in Houston?

Yes. CenterPoint Energy offers a residential solar rebate of about $135 per kW, capped at 15 kW (roughly $2,025 maximum) for homes in its Houston Electric service territory. It's paid through an approved contractor, and the program is first-come, first-served with a limited annual budget, so it can run out. Your installer applies on your behalf — make sure they're on CenterPoint's approved list before you sign.

Can my HOA stop me from going solar in Texas?

No. Under Texas Property Code §202.010, an HOA cannot prohibit solar panels — any rule that bans them is void. A 2025 update even added solar roof tiles to the protected definition.

Your HOA can still require reasonable conditions: prior architectural approval, roof-mounted panels that sit parallel to the roofline, and approved colors. But there's a powerful homeowner protection — the "10% rule": an HOA can't force you into a panel location that would reduce your estimated annual production by more than 10% (measured with NREL's PVWatts tool). So an HOA can't quietly kill your system by mandating a shaded, north-facing spot. Submit a written application before installing.

Is there still any federal solar tax credit in 2026?

Only for third-party-owned systems. If you lease or sign a PPA, the company that owns the system can claim the 30% commercial 48E credit and pass the value to you. Those projects generally must begin construction by July 4, 2026 or be placed in service by the end of 2027. If you buy the system, there is no federal credit in 2026 — the residential 25D credit expired December 31, 2025. (Full detail in our tax-credit guide.)

Frequently Asked Questions

What solar incentives does Texas have in 2026?

Texas offers a 100% property-tax exemption on the home value solar adds (Tax Code §11.27), HOA solar-rights protections (Property Code §202.010), and, in Houston, a CenterPoint rebate of about $135/kW (up to ~$2,025). Solar buyback plans pay for exported energy. There's no state tax credit, and the federal 30% credit now applies only to leases/PPAs.

How do I claim the Texas solar property-tax exemption?

File Comptroller Form 50-123 with your county appraisal district (such as the Harris County Appraisal District), attaching your solar invoice or contract, generally by April 30. It exempts 100% of the home value added by your solar system from property tax. It's a one-time filing for a permanent benefit.

Does CenterPoint have a solar rebate in Houston?

Yes. CenterPoint Energy offers a residential solar rebate of about $135 per kW (capped around 15 kW, or roughly $2,025) for homes in its Houston Electric territory, paid through an approved contractor. The budget is limited and first-come, first-served, so confirm availability and that your installer is approved before signing.

Can a Texas HOA prevent me from installing solar?

No. Texas Property Code §202.010 voids any HOA rule banning solar. The HOA can require approval and reasonable aesthetic conditions, but it cannot force a panel location that cuts your estimated annual production by more than 10% (measured with NREL's PVWatts). Submit a written application before you install.

Is there any federal solar tax credit left in 2026?

Only for leased or PPA (third-party-owned) systems, via the commercial 48E credit, which the system owner claims and passes to you — generally requiring construction to begin by July 4, 2026, or service by end of 2027. If you buy your system, there is no federal credit in 2026; the residential 25D credit expired December 31, 2025.

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