Austin Energy Residential Solar Incentives, Explained (Summer 2026 Update)\

Austin Energy is actively expanding its residential energy programs in 2026 — a new 40 MW battery capacity agreement with Base Power (announced May 19, 2026) and updates from AE’s June 18, 2026 solar contractor meeting both signal more (and better!!) homeowner options. Here we’re going to break down the current solar rebate, VoS monthly credit, and the new battery energy storage incentives Austin Energy residential rate payers.

The Austin Energy Residential Solar Rebate

For the past few years, Austin Energy (“AE”) has offered a $2500 rebate check for eligible new home solar installations (system-owned, not leased/PPA). But starting this month, they have raised the incentive to $4000. This is a pretty sizeable increase and moves the numbers for system ROI and payoff timelines.  Here’s the deets:

• Eligibility: system must be 3 kW-DC or larger, mostly free of shading, installed by an Austin Energy participating contractor (that’s us!), and the rebate confirmation letter must be issued before installation begins. *You will need to send AE a copy of the system design specs and performance projections we provide as a part of our process*
• Third-party Power Purchase Agreements (PPAs) are not allowed in Austin Energy’s service territory -only customer-owned or loan/lease-financed systems qualify.
• Process: Solar Rebate Quiz → rebate reference number → hire participating contractor → confirmation letter → install → inspection/PTO → QA review → rebate check mailed.

*Source: Rebates for Home Solar Systems, austinenergy.com  reviewed 07/07/2026)

Value of Solar (VoS): How the Bill Credit Works

Austin Energy credits residential solar production at 9.91 cents per kWh for systems under 1 MW-AC (effectively all residential systems)  -the rate has been in effect since March 2023, up from the previous 9.7 cents per kWh. Not a huge jump, but it’s not nothing. :) The next update is expected November 2026.

As everybody is expecting electricity costs (monthly bills) to increase (perhaps dramatically) over the next few years, we are expecting the VoS rate to likewise increase -but nobody is making bets on this quite yet.

Here’s a refresher on how residential VoS credits from Austin Energy work out on the monthly utility bill:

• Solar production and home consumption are metered separately; customers are billed for all consumption,
• then credited 100% of production at the VoS rate; unused credits roll month-to-month but reset each December billing cycle.

This isn’t nearly the deal that early solar adopters got with 1:1 “net metering,” which placed the same value on your solar-generated energy as the energy you got from the grid. It was a great deal. But those days are long gone. Still, the VoS credit provides a great incentive to go solar and save a ton on your energy costs over time.

Here’s the direct link if you feel the need to dig in to this a bit more : Value of Solar (VoS) Rates, austinenergy.com

Austin Energy’s “Power Partner” Battery Pilot Program

For those who install (or have already installed) battery backup with their solar system, AE’s Power Partner program can provide you with a sizeable return over time. The tradeoff here is that with enrolment into the program, you agree to let AE discharge some of your batteries’ stored energy back to the grid when it’s needed. (This helps reduce grid and power plant stress at peak consumption times.) The agreement in writing is that they cannot discharge your battery below 20%, and can’t touch it before or during severe storm events.  This is a type of VPP (virtual power plant) offering not terribly different in function than the others we’ve written about here recently 

So here’s how it works :

• The battery incentive pays $500 upfront per qualifying battery system (system must have received Permission to Operate on or after 2/18/25),
• plus an annual performance payment of roughly $75/kW of average demand reduction.  (AE’s own worked example (a single Tesla Powerwall, 13.5 kWh battery capacity, 20% reserve) nets ~$324/year.

• Eligible battery brands today: Tesla, FranklinWH, SolarEdge (Generac and Enphase listed as “coming soon” as of the June 2026 update).
• Enrollment cap: 1,500 customers program-wide; roughly 125 enrolled as of June 2026.

And here are some of the rules :

• no Third-Party-Owned/leased battery systems currently eligible; dispatch events run 2–3 hours, capped at 40/year (mostly hot summer afternoons),
• Reserve capacity (~20%) is maintained, no events during major storms, and customers can opt out per-event or unenroll entirely without penalty.*Note* VoS bill credits as discussed in the previous paragraph are unaffected by Power Partner enrollment -Austin Energy still credits 100% of solar production regardless of whether that energy charges a battery, powers the home, or is exported.

Source: Austin Energy Solar Contractor Administrative Meeting, June 18, 2026 (Customer Renewable Solutions), slides 14–19; corroborated by austinenergy.com/green-power/solar-solutions/for-your-home battery-backup section.

A Second, Unrelated Battery Option: Base Power

Base Power is a private company headquartered here in Austin (at the old Austin-Stateman building across the river from downtown) offering its own battery lease program. They have an interesting business model: they manufacture and deploy home battery systems, then monetize them two ways -as a retail electric provider (REP) selling battery-backed power plans directly to consumers, and as a grid-services partner selling dispatchable battery capacity to utilities. In practice, they basically become your sole electric utility company after installation of their battery backup system.

Consumer offering: Customers can lease a Base-owned 20 kWh battery system rather than buying one outright. They charge roughly $695 install + $19/mo for one unit, or $995 + $29/mo for two, on a 3-year contract (per Austin Energy’s June 2026 contractor deck; Base sets its own current pricing at basepowercompany.com/pricing). Base also now sells a “battery-free” retail electricity plan in some territories. These are pretty big batteries, designed for “whole home” backup (depending, I guess, on your monthly electrical usage).  Just like other VPP offerings, they may discharge part of your battery back to the grid when utilities hit peak loads.

Utility partnerships (the other half of the business): Base contracts with utilities across Texas for grid capacity -the utility pays Base to keep a fleet of customer-sited batteries charged and dispatchable during peak demand, independent of what Base charges the homeowner. Deals so far:

• Austin Energy: 40 MW / ~2,000 homes, announced May 2026, targeting completion by end of 2027
• CoServ (Denton Co-op, North Texas): 100 MW, Base’s largest deal to date
• Guadalupe Valley Electric Cooperative (South Texas): 50 MW, announced April 2026
• El Paso Electric: pilot program, first install completed March 2026

*note* The Base Power program is not affiliated with Austin Energy’s Power Partner program and is currently ineligible for Power Partner incentives, which I wrote about earlier in this article.

Source: Austin Energy Solar Contractor Administrative Meeting, June 18, 2026, slides 8 and 18; and https://austinenergy.com/about/news/news-releases/2026/Austin-Energy-expands-local-battery-storage-to-support-reliable-affordable-power

Don’t Forget that Property Tax Exemption

This isn’t an Austin Energy thing, but the State of Texas offers a property tax exemption for on-site renewable energy systems (solar), which may apply to qualifying home solar installations.

We here at NATiVE don’t offer tax advice, but for those interested in this potential incentive, please visit or contact the Texas Comptroller.

Source: Texas Comptroller — Property Tax Exemptions

Choosing a Contractor

Here’s a bit more info worth mentioning -Only Austin Energy participating contractors (shameless plug for NATiVE Solar here) can be used for installation of solar/battery systems eligible for  AE’s rebates/incentives; customers can use a non-participating installer but forfeit rebate eligibility. Please don’t do that.  :)

Our Perspective

The majority of our residential clients are now choosing to add battery backup storage to their new (or existing!!) solar installation. The benefits are clear.

Yes, adding batteries can push the system price up considerably. No, batteries may not “pay for themselves” over time in the way solar panels do. But with a properly designed solar+battery infrastructure for your property, and new incentive options, you can reap the benefits and peace of mind that comes with on-site energy storage while putting a few bucks back in your pocket.

If you have questions about residential battery energy storage -or any solar-related matter- we’d love to be a local resource for helping to explore the options. Get in touch and let’s have a chat about it.

Texas Homeowners, It’s Here: SB 1036 Goes Live

Back in June, we published The End of Solar Scams in Texas, celebrating the passage of SB 1036 -the Texas Solar Consumer Protection Act. That post explained how the law was designed to end misleading solar sales tactics, require clear contract language and terms, and level the playing field for ethical installers.Now, as of late September, many of the most important provisions are officially in effect for newly completed and commissioned systems in Texas. But not everything went live at once, and understanding what’s active today (and what’s still coming in 2026) is important if you’re trying to stay up with this stuff.

Quick Refresher: What SB 1036 Covers

• Requiring plain-language contract disclosures
• Mandating a 5-day cancellation window
• Registering solar salespeople and subjecting them to background checks (and big potential fines!)
• Requiring solar retailers to carry general liability insurance (reputable firms like us have *ALWAYS* carried this)
• Giving state regulators power to audit and enforce compliance (big potential fines!)

What’s Live Now vs. Coming in 2026

Provision	Effective	What It Means
Plain-language contract templates	Live now	Every solar contract must clearly state system size, cost, financing terms, and expected performance.
5-day right of rescission	Live now	Homeowners can cancel within five business days without penalty.
General liability insurance	Live now	Solar retailers must carry adequate coverage, protecting homeowners from contractor negligence.
Ban on misleading savings claims	Live now	No more “free solar forever” or exaggerated bill-savings pitches.
Mandatory registration & background checks for sales reps	Sept 2026	Sales personnel must be registered; background checks and tracking increase accountability.
Random audits by TDLR; full enforcement	Sept 2026	Regulators gain teeth to audit, penalize, or revoke non-compliant operators.

Bottom line: We’re in a transition period until full enforcement ramps in 2026.

Key Nuances Homeowners Should Know

• Electrical contractor exemption: If a licensed electrical contractor employs salespeople, some registration requirements don’t apply — but disclosure and contract rules still do.
• Statewide preemption: The law overrides conflicting municipal ordinances, creating consistency across Texas.
• Enhanced penalties for targeting vulnerable Texans: Higher fines apply if violations affect seniors (65+) or limited-English speakers.

We highlighted why these protections matter in our original explainer, but they’re worth repeating — especially as enforcement begins.

What Homeowners Should Do Right Now

• Check your contract: Make sure it uses the new disclosure format. Look for clear system specs, total cost, financing terms, and performance guarantees.
• Confirm insurance: Ask your installer for proof of liability coverage.
• Use your 5-day window: If you feel rushed or pressured, you can cancel in writing within five business days.
• Beware high-pressure deals: Some bad actors may try to sign customers before 2026’s tougher rules kick in.

Pro tip: Bookmark this page — we’ll update it again when TDLR launches its public contractor lookup tool.

How NATiVE Solar Is Staying Ahead

• Adopting contract templates that meet or exceed state requirements
• Training our team on compliance and transparent sales practices
• Maintaing robust general liability insurance for every project
• Refining internal QA and customer journey processes to keep every project aligned with best practices

We wrote about SB 1036 before it was cool — and we’ve been running our business as if it were already law. That’s why homeowners and builders (and architects!) trust NATiVE for ethical, transparent solar design and installation.

Remaining Risks & What to Watch Next

• Companies claiming they “aren’t covered yet”
• High-pressure pitches that gloss over financing terms
• Missing or non-compliant contract language

The next big milestone comes in mid-2026, when mandatory registration, background checks, and TDLR audits begin. We’ll post another update then — and help keep you, dear reader, ahead of the curve.

Resources & Call to Action

• Verify an Installer: TDLR License Search (solar retailer lookup expected with rollout)
• File a Complaint: Texas AG Consumer Protection
• Read the Law: SB 1036 Enrolled Bill Text

If you have a solar proposal and want to confirm it’s SB 1036-compliant,
send it to us for a no-hassles/no cost review. We’ll shoot straight with you.

You’ve probably seen an older ranch house with a mysterious boxy thing on the roof – maybe had a metal tank visibly attached.  It probably wasn’t a crashed UFO or a skylight gone wrong -it was probably a decades-old a solar-thermal water heater. So… where did they all go?

The solar-thermal collectors heated water (or other heat-transfer fluids) directly. This is quite different from solar PV (photovoltaic) cells which harvest solar energy to make electricity that can run electrical devices directly.The technology and economics used to make sense. But in Texas, in 2025, the numbers (and maintenance hassles) for roof-top solar-thermal water heating simply don’t work out. Once PV prices crashed and heat-pump water heaters got smart and efficient (and less expensive!), solar-thermal’s mainstream moment found itself played-out.Flashback: the golden eras of rooftop solar-thermal collectors (and why they fizzled)

• 1970s oil shocks: Incentives + expensive fuel = solar-thermal boom. Then oil prices fell and many incentives vanished, taking much of the market with them. (Context: BuildingGreen)
• Early 1900s: Sun-heated “day & night” rooftop tanks were a thing—particularly in warm climates like we have here. (History recap: Washington Post)
• 2010s onward: PV prices nosedived, heat-pump water heaters surged, and the balance tipped against rooftop thermal in most U.S. homes. (Green Building Advisor)

Why PV + heat pumps won the roof war

• One panel technology, many jobs: PV solar cells turn the roof into a universal energy plant—power for hot water, HVAC, EV charging, everything. That flexibility beat single-purpose thermal collectors. (REN21 GSR 2024)
• Costs & contractors: PV benefited from massive scale, simpler financing, and a rapidly expanding installer base since the 2000’s. Thermal often faced higher relatively installed costs and maintenance costs – and then, fewer service providers. (GBA: Why Aren’t Solar Water Heaters More Popular?)
• Heat-pump leapfrog: Modern heat-pump water heaters sip electricity and deliver 2–3× the heat per kWh as earlier generations -making them a perfect partner for PV. (Market trend overview: REN21)
• Maintenance+Overhead Cost: early solar-thermal collectors could actually freeze up in the winter – bursting pipes running into the home’s water system. Even with later tech refinements such as using antifreeze and gravity-drained systems to heat water tanks, there was yearly maintenance with costs that really added up over the years.

The market chill (and the installer gap)

Even in places that subsidized solar hot water, interest often cratered once PV incentives (a.k.a. “net metering” or “feed-in tariffs”) stole the spotlight and added even more value to the solar PV option. This essentially killed the market demand for these things.  Fewer trained installers + fewer parts + fewer new systems = a classic “vicious cycle of obsolescence”. (UK case study: Solarthermalworld.org)

Wait. Did solar-thermal actually all-the-way-die?

Not globally. Worldwide solar-thermal capacity (for hot water/space heat) still grew to an estimated 560 GW by 2023, though the U.S. shifted heavily toward PV-centric approaches. (Global snapshot, REN21) But these days, here in Texas at least, that tech is essentially a non-starter.

So is there a comeback path?

Solar-thermal energy storage is increasingly an area of interest for grid-scale operators for use as giant thermal batteries. But on the residential power side, there is also some renewed interest:

• Custom luxury + spa homes: High hot-water loads (multiple showers, soaking tubs, pools) can potentially justify specialty thermal—especially with integrated designs.
• Commercial & multifamily: Hotels, gyms, and apartments have predictable hot-water demand—prime candidates for modernized thermal or hybrid systems.
• Hybrid thinking: PV + heat-pump water heaters + smart controls (pre-heating when the sun is strong) already deliver “solar-thermal” outcomes—minus the roof plumbing.
• Grid-Scale Solar-Thermal Batteries: Large scale testing is underway to use the storage capacity of materials such as sand and liquid sodium to store heat (from the sun other other sources) which can be used to make steam and turn turbines to generate electricity on a massive scale during peak hours and/or when solar and wind isn’t producing as much.

*Here at NATiVE, we haven’t seen much option of or demand for these options yet. But our eyes are always peeled for emerging trends…and the engineers are always figuring out new tricks for old tech.

Bottom line (the friendly Texas version)

Solar-thermal water heaters didn’t vanish because they looked ugly on a roof -they just got out-competed. The combo of cheap PV and efficient heat-pump water heaters won on cost, versatility, and serviceability. But in the right niche, thermal can still make sense—and it absolutely helped blaze the trail that PV and batteries are cruising down today.

Here’s some links to a few good sources for further reading :

• Washington Post — The rise/fall of solar-thermal in the U.S.
• BuildingGreen — Solar hot water & other thermal applications
• Green Building Advisor — “Solar Thermal Is Dead” (debate + analysis)
• REN21 GSR — Global solar-thermal trends
• Solarthermalworld.org — UK demand drop case
• Leonard L. Northrup Jr. — Texas solar pioneer
• Solar water heating — Global overview

We mentioned it here several times in previous posts before it was passed into legislation, but if you haven’t heard of Texas SB 6 solar implications yet, don’t worry  -this new law is reshaping the grid, and it matters for solar and storage. We’re gonna break it down  here for ya’ll. Outside of legislative circles and ERCOT boardrooms, this new Texas law hasn’t made it to the dinner table yet. But it’s kinda a big deal for those concerned about the power being consumed by mega data centers.

Recently signed into law in at the height of the Texas summer, SB 6 changes the rules for really large electricity users -think data centers, crypto mines, semiconductor fabs, and hyperscale warehouses of servers. These facilities can pull down as much power as an entire city, and when the Texas grid is already stressed by heat waves or winter storms, that’s a serious problem. The law does three big things:

• Makes big users share grid costs. No more free rides on transmission upgrades.
• Forces transparency. They have to disclose projects and backup generation.
• Gives ERCOT new authority. In a grid emergency, large loads can be disconnected to keep the lights on for everyone else.

So, what does this mean for solar? Everything. Because those mega-users all want clean energy bragging rights, and Texas homeowners and businesses want stability and resilience. SB 6 is basically an open audition for solar + storage to prove it’s not just clean, but reliable.

Instead of parsing the bill line by line, let’s hear from the people shaping the conversation. Eight voices — senators, analysts, energy experts — and what their words tell us about the future of Texas solar.

1. “What we’ve done here today may become the model for the rest of the country.”  -Sen. Phil King (Texas Tribune)

Texas isn’t just making rules for itself  -it’s auditioning to be the national model.

Solar angle: If SB 6 really is a prototype, Texas solar developers have a first-mover advantage. Build projects that marry solar, batteries, and reliability now, and you’ll be ready when other states inevitably copy-paste this framework. Think of it as Texas exporting not just electrons, but policy leadership.

2. “Clear rules where large load customers know what they’re getting.”  -Rep. Ken King (Texas Tribune)

No more shifting sand. Developers need to know what they’re signing up for.

Solar angle: This kind of clarity is gold. With defined interconnection fees and backup requirements, solar+storage projects serving data centers or manufacturers can actually line up financing and power purchase agreements without biting their nails down to nothing. Predictability = bankability for these folks.

3. “Texas is open for business like never before… SB 6 will make our state more attractive for investors.”  -Lt. Gov. Dan Patrick (Lt. Gov. Official Site)

Texas has long pitched itself as the energy capital of the world. Now the message is: “Bring your capital, y’all.”

Solar angle: Investor-friendly rules + a stronger grid = smoother runway for utility-scale solar and storage. And by keeping households protected from the costs of massive infrastructure, rooftop solar stays attractive too. Solar wins on both ends of the spectrum.

4. “It’s not an oil boom. It’s an economic boom led by big technology and their corresponding need for big electricity.”  -Sen. Charles Schwertner (Houston Chronicle)

The new “boomtowns” in Texas aren’t derricks and pumpjacks  -they’re racks of servers and AI chips.

Solar angle: Schwertner just gave solar its business case. The surging demand from AI, data centers, and fabs needs big, scalable, and clean electricity. Solar+storage isn’t just part of the solution  -it’s the only realistic way to meet this load without choking the grid.

5. “To make sure [large loads] pose as little reliability risk as possible and not drinking the milkshake of all other Texas power customers.”  -Travis Kavulla, VP of Regulatory Affairs, NRG (Utility Dive)

Yes, he really said “milkshake.” And yes, it matters.

Solar angle: Protecting everyday Texans from subsidizing mega-loads is good news for solar customers. It keeps retail rates fair, which preserves the value proposition of rooftop solar: lock in your own predictable energy costs and avoid the volatility caused by grid-hungry neighbors.

6. “It would create some friction… but we will build for decades to come if there is clarity.”  -Dan Diorio, Policy Director, Data Center Coalition (Houston Chronicle)

Data centers aren’t spooked. They’re committed to Texas -they just want to know the rules of the road.

Solar angle: That’s long-term demand knocking on solar’s door. Data centers will keep building, and every one of them wants a clean energy badge. Solar developers with reliable, clarity-aligned PPAs are in the perfect spot to meet this appetite.

7. “SB 6 will provide regulatory certainty for independent power producers, such as Vistra and NRG, and data centers seeking colocation.”  -Monica Chen & Jack Painter, Capstone Energy Analysts (Utility Dive)

Wall Street loves certainty, and analysts see it here.

Solar angle: If IPPs like Vistra and NRG get confidence to invest, that confidence spills over to solar IPPs in ERCOT too. Certainty on interconnection timelines and cost-sharing rules means less risk and smoother pipelines for large-scale solar projects.

8. “Without wind and solar, we would be having rolling blackouts.”  -Ed Hirs, Energy Fellow, University of Houston (Fox 7 Austin)

While others debate bills, Hirs reminds us of the obvious: renewables are already carrying the grid.

Solar angle: This is the mic-drop moment. Solar (especially paired with batteries) isn’t a nice-to-have -it’s the backbone preventing Texans from sweating in the dark. SB 6 raises the reliability bar, but solar+storage is already the workhorse stepping up.

🎯 Wrap-Up: What SB 6 Means for Solar

SB 6 isn’t a headline-grabber yet, but it’s quietly rewriting the rules of the Texas grid. For solar, the implications are clear:

• Utility-scale solar + storage: Perfectly positioned to meet corporate demand and backup mandates.
• Rooftop solar: More attractive as retail customers are shielded from subsidizing mega-loads.
• Corporate solar PPAs: Stronger market as data centers demand clean, reliable supply.
• Texas as test case: If SB 6 is the model, Texas solar gets first-mover advantage in shaping national standards.

The bottom line? SB 6 isn’t a wall blocking solar -it’s a framework demanding solar step up. And if there’s one thing Texas solar knows how to do, it’s step into the spotlight when the grid needs it most.

We’ll be reporting more on this soon!

Texas solar fundamentals beyond OBBB are what matter now. When the One Big Beautiful Bill (OBBB) became law in July, it reshaped federal clean-energy incentives. Headlines focused on deadlines and phase-outs. But here in Texas, the real story isn’t about a ticking clock. It’s about fundamentals that make solar too strong to slow down: rising electricity costs, record power demand, and the resilience Texans want in the face of grid instability.

Residential Solar: Independence and Rising Costs

Texans know energy costs aren’t going down. Modeling indicates household energy bills could rise about $220/year by 2030 and $480/year by 2035, with retail electricity rates up 23–54% as clean-energy buildout slows (Energy Innovation  -Texas impacts; Energy Capital HTX coverage).

That’s why many Texans are looking at solar+battery not just as an investment, but as insurance. Storage-backed systems keep the lights on during storms and ERCOT volatility—a reality made plain by the 2021 grid crisis and repeated summer stress events, where batteries helped carry the evening peaks (Texas Tribune – batteries during heat; Dallas Fed – solar & storage aided reliability).

For many of our clients, it’s less (or maybe as much) about chasing a tax credit and more about locking in control, predictability, and resilience. Bottom line: Texas solar fundamentals beyond OBBB are pushing homeowners toward solar + storage for control, predictability, and resilience.

Commercial Solar a& Battery Energy Storage: Economics and Scale

Texas businesses are staring down volatile wholesale markets and rising large-load demand. Grid-scale and solar + storage remains  the lowest-cost new-build option, making it a go-to for flattening long-run energy costs (Lazard LCOE+ 2025).

Reframed Reality Check (Still Strength): Even with OBBB cutting projections from over 100 GW to about 27 GW over the next decade, Texas remains on track to add substantial new capacity—enough to power millions of homes—because the underlying economics are still compelling (Houston Chronicle coverage; Advanced Energy United summary).

Manufacturing Momentum

Manufacturers see the opportunity, too. T1 Energy has advanced an $850M, 5 GW solar-cell plant in Rockdale (GlobeNewswire/Nasdaq release; T1 investor page), with local reports confirming scale and jobs (KXXV). These moves show confidence that demand is here to stay.

Texas Solar Fundamentals That Don’t Expire

• Low-Cost New Power: Utility-scale solar remains among the most cost-effective new generation resources (Lazard LCOE+ overview).
• Surging Demand (The Runway): ERCOT’s 2025 long-term materials show officer-attested large-load growth (especially data centers) driving tens of gigawatts of new demand this decade—ensuring solar must keep scaling because few resources can be built as quickly and cost-effectively (ERCOT long-term forecast report; ERCOT RPG slide deck).
• Reliability Value: Pairing solar with storage supports the grid during peaks and extreme events; Texas already leaned on batteries during summer stress (Texas Tribune; Texas Comptroller – batteries reduced prices).
• Top-Tier Resource & Scale: Texas has excellent solar resource (NREL solar resource maps) and ranks #2 nationally for installed capacity (SEIA Texas; SEIA Q2-2025 data sheet).

ERCOT Demand Makes Solar Inevitable

ERCOT’s large-load growth -from growing population to data centers-  means Texas needs immediately dispatchable, scalable, and cost-competitive power generation. That’s precisely where solar (and storage) excels. In other words, OBBB may slow growth, but surging demand keeps Texas solar on growth trajectory.

Our Conclusions –

OBBB may have shortened timelines, but Texas solar isn’t built on policy alone.

For homeowners, higher bills and grid risks make solar + storage a no-brainer.

For businesses, long-term operational savings and corporate sustainability goals keep the momentum strong.

For Texas, growth in population and demand means solar is here to stay—no matter how incentives shift.

**Oh, and our team is hiring for nearly all positions as we position for growth.

At NATiVE Solar, we’re guiding Texans through today’s urgency while building projects that deliver decades of value. The incentives may change, but the fundamentals are permanent. And the sun isn’t going anywhere.

This new Texas law should shut down all the bad actors that remain.

Starting September 1, 2025, the Texas solar industry is about to change—for the better.

A new era of consumer protection is coming to Texas solar. That’s right, dear reader. The recently passed Texas solar scams law—SB 1036—is designed to shut down unethical sales tactics and restore homeowner trust in the Texas residential solar industry. Starting September 1, 2025, the Texas solar industry is about to change—for the better.

Aggressive door-to-door sales, exaggerated savings claims, opaque lending terms, and confusing contracts have made it difficult for Texans to trust what should be a clean, empowering energy solution. The poor folks who got taken have gone through hell. And it isn’t right.

But, dear readers, a new law –Senate Bill 1036, known as the Texas Residential Solar Consumer Protection Act- is going to put an end to all that.  And all of us here at NATiVE Solar are 100% in support of it!  *I reported on this (now passed) legislation back in January when it was slated for a debate and a vote.

Why the Texas Solar Scams Law SB 1036 Matters (and what it actually does).

SB 1036 was recently passed the Texas Senate and introduces fairly sweeping consumer protections (that’s you) designed to restore faith in residential solar -and to severely punish bad actors, including flat-out shutting them down.  It’s scheduled to take effect Jun 1 of 2026. Here’s what the law requires solar contractors (that’s us) to do :

• Licensing for Salespeople: Solar sales representatives must now be registered, fingerprinted, and pass a background check with the Texas Department of Licensing and Regulation.
• Mandatory Insurance: Solar companies must carry general liability insurance to operate legally in Texas.
• Stiff Penalties for Bad Actors: Civil fines of up to $10,000 per violation—and up to $100,000 for repeat violations targeting seniors or vulnerable consumers.
• Consumer Education: All solar proposals must include a state-approved consumer guide outlining homeowner rights, financing risks, and what to expect from installation.

These changes don’t just target shady companies -although it will force them to change (or die!). I think the new state law actually (finally!) creates a clear framework of accountability for legitimate installers to stand apart from (and push back against) all of what has for decades been the unfortunate “dark side” of the solar industry here in Texas.

SB 1036 Timeline

• September 1, 2025: Core provisions take effect. (*NATiVE Solar has pretty much *ALWAYS* implemented these as standard practices)

Provision	Requirement Starting Sept 1, 2025
Cancellation Window	5 business days
Installation Qualification	Must be performed by licensed electrical contractor
Permitting & Interconnection	Handled by installer/retailer, not homeowner
Contract Disclosures	TDLR–approved format with clear cost/financing info
Sales Conduct	Must follow TDLR code; prohibits deceptive/utility claims

• Mid-2026: State releases official consumer guide and seller licensing rules.
• Late 2026: Enforcement begins; all residential solar sellers must be licensed and compliant.

What This Means for You -the Homeowner

For Texas homeowners, this is a game-changer. You’ll soon be able to:

• Verify the credentials of anyone selling solar to you.
• Understand your solar investment before signing anything.
• Report unethical behavior and expect real consequences for deceptive practices.

In short: solar in Texas is about to get safer, smarter, and more transparent.

What This Means for Reputable Installers

For ethical solar companies like us, this law is a welcome evolution. We’ve built our reputation on integrity, transparency, and long-term client success—not gimmicks or high-pressure sales. For us, SB 1036 rewards that commitment.

And for those other solar firms who took folks for a ride? Well, all i can say is: “Bubbeye now!”

As the solar market matures, we believe consumer trust will be the most valuable currency. This law helps make that possible.

Final Thoughts

We (here at NATiVE) support the Texas solar scams law SB 1036 and believe it will raise the bar for ethics in our industry. I don’t really understand why it took so long.  This measure passed the state house and senate by a huge margin.  And I don’t know of any reputable people or firms in this market who oppose these new laws.  In any case, it’s a major step toward a better solar future for Texas.

Of course, NATiVE Solar clients have always been safe. And we’re super-greatful to all the folks that have placed their trust in us over the years.

Here’s a link to the bill’s actual final text, as well as the related procedural /legislative data bits for anybody that’s interested in going deeper…

And until next time – be well, dear reader.

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NATiVE Solar has been helping Texas homeowners and businesses go solar the right way for over 18 years. If you’re ready to talk to a team that leads with ethics, experience, and service—let’s talk.

Let’s cut to the chase.The federal solar Investment Tax Credit -that generous 30% off coupon for solar energy systems–  won’t be around much longer. Barring a surprise twist in Congress, the ITC is slated to sunset on Jan. 1, 2026.Folks who have been on the fence about “going solar” are now making their move and pulling the trigger on a solar+battery energy storage system – trying to beat the rush which has solidly begun.Translation? If you’re thinking about going solar, your window to lock in thousands in savings is closing. Fast.

The Clock Is Ticking

The current 30% tax credit was part of the 2022 Inflation Reduction Act — a much-needed boost for clean energy adoption. But that’s all going away Jan 1st now that the  “Big Beautiful Bill” has passed Congress.

No extensions. No do-overs.

What Does That Mean for You?

If you’re planning to install solar panels on your home and you want the full 30% federal tax credit, your system needs to be installed and operational before the deadline.

And given permitting timelines, utility approvals, equipment demand, and general construction reality… that deadline is effectively NOW.  If you wait another couple of weeks, you’re going to be part of the last-minute scramble — where any quality Texas solar installation firms are on their way to being booked solid through the end of the year.  That would suck for those who had planned on the 30% ITC.

Why the 30% Credit Matters

That 30% incentive often translates to $6,000–$75,000 in tax savings for our high-end homeowner client. It’s what helps make solar not just good for the planet, but also a smart financial move.

Without it, the economics change. Solar will still be worthwhile — especially here in Texas with our wild energy prices and bountiful sun— but the payback period gets a bit longer. And if you’re adding battery backup? The value of the credit is even more significant.

We’re Not Here to Scare You (But We’re Also Not Sugarcoating It)

This isn’t a scare tactic. It’s just a fact.

If you’re more than “solar-curious”, now’s the time to move from curiosity to commitment. If you’re building a new home, your solar design should already be in motion.

What You Can Do Right Now

• Schedule a consultation and/or site visit — so we can confirm what’s possible (and smart).
• Get a custom quote — not a cookie-cutter estimate. Every property and family is different – with different requirements and expectations.
• Talk to your CPA — to confirm tax eligibility and timing.
• Make the call — secure your spot before everyone else floods the system.

At NATiVE Solar, we’ve helped hundreds of Texans claim their solar tax credit, lock in long-term savings, and take control of their energy self-sufficiency. But we can’t backdate your install. Once that window closes, it’s closed.

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Don’t wait this Congress to change its mind. (They won’t.)  The 30% solar tax credit is still on the table — but not for long.

Let’s make it count.

📞 Get Started or give us a call: 855-234-3131

The Big Picture: Solar & Storage Incentives in Flux

Federal solar incentives are potentially facing big changes. A new draft federal bill could significantly impact the 30% Investment Tax Credit (ITC) for solar and battery storage. While nothing is final yet, property owners should prepare now for what’s likely ahead. We’ve been covering this topic a lot lately here at The Feed because it’s important.

But I wanted to write a little about how a draft bill (The “Big, Beautiful Bill”) might affect short-term decision-making for Texas residents and businesses considering moving to solar+storage.

While there was some rumoured talk in Washington this week of potentially “softening” the current proposed language (especially for residential solar incentives), here’s what we’re looking at if this thing gets passed as-is :

• Energy Storage ITC remains intact through 2027 -but only for commercial and grid-scale systems
• Residential battery storage credits would expire 180 days after the bill is signed into law
• Grid-scale Solar PV and wind credits phase down to:
  • 60% in 2026
  • 20% in 2027
  • 0% by 2028

[Energy Storage News]

If passed, this legislation would reshape how Texas solar incentives work for both residential and commercial systems.

What It Means for Texans

Let’s be clear: this isn’t the end of solar in Texas. But it does mean the economics of clean energy could change -especially if you wait.

Texas leads the country in solar growth, and for good reason:

• Wide open space
• Strong sun
• High energy demand
• A deregulated, dynamic market

And our state NEEDS continued development, investment, and growth in the renewable/solar sector for other very good reasons:

• We have a stressed-out, aging, failure-prone, electrical grid
• Experts expect unprecedented electrical consumption growth projections through 2030 (think new data centers, factories)
• Coal and fossil fuel power generation levels are still on the decline in Texas.  *Although to be balanced here, there is talk about building more natural gas powered (ie “dirty”) “peaker plants”.

But if this bill passes as written, several ripple effects could follow:

1. Electricity Prices May Rise

Slower solar adoption means less downward pressure on wholesale prices. It’s impossible to know for sure what the future holds for us, but a 2023 analysis found that wind and solar reduced ERCOT wholesale costs by $28 billion from 2010 to 2022. If deployment slows, Texas ratepayers could lose out on over $115 billion in cost avoidance through 2040. [source]

2. Volatility Could Increase

Solar and wind help stabilize peak demand. During the 2022 summer heatwave, renewables saved Texans $11 billion in wholesale power costs. Without incentive support, reliability and price stability could deteriorate. [source]   And we aren’t even getting into how this bill may harm grid stability if it passes.

3. Households Will Feel It

A 2023 ACP report estimated that slowing clean energy development could increase the average Texan household’s utility bills by $225–$370/year by 2035. [ACP Texas Economic Impact Report]

4. Many Businesses and Families will still Pull the Trigger on Solar and Battery Storage

Lot’s of folks we’re talking to are telling us that even without the tax credits, “going solar” is still something that they’ll strongly consider. Why? Because the benefits of solar-harvested energy independence outweigh the costs. Period. These folks aren’t as concerned about overall “ROI” as they are about their commitment to embracing the global energy transition, and up-front cost isn’t their most important concern.

Storage Still Has a Bright Future

One positive note: Battery storage technology continues to get better, more powerful, and less expensive.  VPP’s (Virtual Power Plants) are becoming more and more popular, and more widely available to participate in. Energy storage incentives will remain available for commercial and utility-scale projects through at least 2027 -and there’s a TON of spending at this level right now.  But for homeowners, time is short.

The current 30% tax credit for residential batteries (like those used with Tesla Powerwall or Enphase IQ Battery Systems) will vanish 180 days after the law is enacted.   So if you and your family have been planning to “go solar” NOW IS THE TIME to lock in 30% federal credit on residential battery  energy storage (and solar harvesting!) before expiration.

How NATiVE Solar Can Help

At NATiVE Solar, we’ve helped Texans navigate changing incentives for more than a decade. Whether you’re a homeowner, commercial property manager, or sustainability leader, we’ll help you:

• Design the right solar + storage system for your goals
• Maximize incentives before deadlines hit
• Understand ROI and the full benefits of solar in the context of evolving policy

Why Act Now?

This isn’t about panic—it’s about planning.

Congress is still negotiating the final version of this bill, but the direction is clear: solar incentives may be changing. Soon. So what’s the best way to protect yourself from rising prices and missed opportunities?

Many Texas residents will likely make a mad rush to purchase and schedule solar+battery installation so they can take advantage of the tax credits in case that congress removes or reduces the current incentives. This (solar design/installation) process normally takes 90-120 days. Solar design and construction firms such as ours are already seeing increased demand and are getting booked up with new projects. This will almost certainly push out new solar construction/installation timelines across the entire country.  

Act while the 30% ITC is still guaranteed -and while you can get on our installation calendar!

Let’s Talk Strategy

We’re helping customers act now to lock in Texas solar incentives before any potential rollbacks take effect.

Schedule a free assessment — before the sun sets on solar incentives.

Sunnova’s Residential Solar Exit: What It Means—and Why NATiVE Isn’t Going Anywhere

The Sunnova residential solar exit just shook the Texas market. Sunnova, one of the biggest names in residential solar, announced it’s shutting down its residential division… For years, Sunnova pushed into the Texas market with “zero-down” throw out and godzilla-scale marketing schemes – any they installed a lot of residential solar Texas. Now they’re walking away from residential solar and trying to figure out a new brand & business model. It won’t look the same as it did –and it may be too late for them.

If you’re a homeowner (or a custom home builder) following the contours of the solar market and trying to understand how changes and new effect the Texas solar industry, here’s the truth:  Not all solar companies are built the same. And NATiVE isn’t going anywhere.  But first…

What Went Wrong with Sunnova?

The Sunnova residential solar exit didn’t come out of nowhere—it followed years of aggressive expansion built on shaky financial ground.

Sunnova didn’t build solar systems—they built financial products. They leased solar systems to homeowners but contracted with 3rd-party installers to do the design & installation work -and system maintenance. 

They, like other similar large solar companies which have collapsed in the last fea years, had to purchase all the equipment, services and labor up front so they could give the homeowner customer the system for a $zero-down$, 25 year lease. It sounded like a good option to some customers -and these solar business grew.  But they had to leverage their own credit facilities to do that. Following the money was cheap was a profitable business model -up to about 2023.

When consumer and business loan interest rates skyrocketed by mid-’23, these solar firms suddenly became financially “underwater” on a huge part of their installed customer portfolio. Then, having to raise the rates on the leasing terms for new customers made this option much less desirable for homeowners.

There’s a bit more to it, but these are the main points to take away :

• Most customers didn’t own their solar/energy storage systems
• Locked into 20–25 year lease or “PPA” contracts
• Installations/service were handled by third-party solar contractors
• Model dependent on high debt and low interest rates

When interest rates rose, their economics and business model unraveled. Now they’re exiting residential solar entirely.  It’s a cautionary tale for anyone considering residential solar in Texas: Know who you’re partnering with, and understand the difference between leasing a system and owning one outright.

What Makes NATiVE Different?

We’re not in this for volume. And frankly, we aren’t here as the price leader. We’re here to build custom, high-performance residential energy systems that last the test of time for you and your family.

• You own your system – which means full tax credit eligibility and better long-term value
• We design it. We install it. We support it. – no outsourced crews or service handoffs
• No leases, no PPAs, no gimmicks
• No bloated financing games – we’re focused on design elegance & performance, not paper games
• Top-Tear, Best-In-Class Components and Integrations

We work directly with homeowners and also align for project success with custom home builders, architects, and energy consultants. Our project partners are discerning Texans who care about doing it right the first time.

Let’s Build Something That Lasts

Solar and energy storage are infrastructure built to deliver over decades. It should reduce your reliance on an unstable  future -not become a burden.

If you’re ready to take control of your energy future, we’re here to help you and your family make an informed decision.

Schedule Your Free Solar Assessment
See Our Design Approach

Here’s some good news, dear reader!   In a major win for supporters of Texas renewable energy legislation, several controversial bills aimed at curbing clean power development failed to pass in the 2025 legislative session. Although they gained traction in the Senate, proposals like SB 388, SB 715, and SB 819 were ultimately left to die on the House floor at the last minute. As a result, our state’s massive forward momentum in solar and wind energy growth was preserved.

What Were These Bills Trying to Do?

Each of the bills targeted Texas’s fast-growing solar and wind sectors in different ways. Specifically:

• SB 388: Required 50% of new generation on the ERCOT grid to come from “dispatchable” sources—explicitly excluding batteries and favoring natural gas over renewables.
• SB 715: Imposed retroactive mandates requiring existing wind and solar farms to secure backup generation, adding costly and burdensome requirements.
• SB 819: Added new permitting hurdles for renewable projects over 10 MW, including environmental reviews and subjective “public interest” tests.

In short: the bills threatened to stall clean energy investment, limit grid innovation, and drive up long-term costs. (And now Big Oil lobbyists are sad – boo hoo)

Why These Bills Failed

While the bills passed the Texas Senate, they ultimately died in the House—mostly due to a combination of procedural delays, strategic pushback, and economic pragmatism. From the outset, it’s pretty clear the bill’s sponsors were in for a fight:

• Legislative Deadlines: The bills were not prioritized for House debate and expired when the legislative session ended. Therefore, no action was taken in time.
• Bipartisan Opposition: A wide-ranging coalition of clean energy advocates, manufacturers, landowners, and even some oil and gas companies opposed the measures. Consequently, concerns about risks to jobs, rural economies, and affordability gained traction.
• Economic Concerns: Critics emphasized that the bills would destabilize the market, discourage investment, and lead to higher electricity prices. As such, they lost key support from stakeholders.
• Public Sentiment: Polls showed broad support for renewables, even among conservative voters—which in turn added political risk for legislators backing anti-solar policy.
• Legal & Practical Issues: Proposals like SB 715 raised retroactive enforcement concerns and would have forced expensive, impractical upgrades on existing systems. Not surprisingly, this became a major sticking point.

What Industry Experts Are Saying

“You can’t kill renewables and grow data centres in Texas in the next five years. It’s just not possible.”

— Kay McCall, Renewable Energy Alliance Houston

“This bill will kill renewable energy in Texas, plain and simple… We cannot pit energy resources against each other.”

— Jeff Clark, CEO, Advanced Power Alliance

“The failure of these three bills is a victory for ratepayers. Renewable energy sources are an indispensable part of powering the state.”

— Adrian Shelley, Director, Public Citizen Texas

So…What Does This Mean for Texas Grid-Scale Solar Development?

The defeat of these anti-renewable bills sends a strong message: Texas is open for clean energy business. In other words, progress can continue.

For commercial property owners and grid-scale utility operators planning future energy investments, this outcome removes a major source of policy uncertainty. Wind, Solar and battery storage remain attractive, proven strategies for reducing costs and increasing operational resilience in the Texas energy market.

I’d call that a win for nearly everyone. And looking ahead, momentum seems likely to continue -at least at the state level.  (Yes, we need to also consider all of this pending federal action to roll-back the ITC solar tax incentives. That wouldn’t help matters for anyone. And that’s a topic for a related blog.)

What’s Next?

While the worst of this year’s legislative threats have passed, similar proposals may (ok let’s count on it) return in future Texas legislative sessions. Therefore, ongoing education and advocacy is going to be essential to preserve progress and help ensure Texas continues to lead in renewable energy innovation. I

At NATiVE Solar, we’re proud to be part of that future—helping businesses, schools, and communities build resilient, high-performance energy systems across the state. Meanwhile, we’re going to keep our eyes on all-things-solar and related to our electrical grid. And we’ll keep you informed!