How the Latest Energy Policies in Texas Affect Solar Adoption
By Adam Glick, Sr Consultant, NATiVE Solar

By Adam Glick, Sr Consultant, NATiVE Solar
Howdy Friends. When it comes to energy, everything is bigger in Texas. That’s what they say, anyway. 🙂 From sprawling wind farms to massive solar projects, our state has embraced renewable energy in a big way. But if you’re a homeowner or business owner thinking about going solar, you might be wondering how the latest energy policies in Texas are shaping the future of solar power. Let’s break it down.
First, let’s get real about where Texas stands on solar. On one hand, Texas has an abundance of sunshine, making it one of the best states for solar energy production. On the other hand, our energy policies don’t always make it easy for people to pull the trigger solar for their home or business. Texas doesn’t have a statewide mandate requiring utilities to offer net metering (1:1 $ offset per kW/hour to reduce your electric bill), which is a bummer. (*Shout out to Grayson-Collin Coop for their continued 1:1 net metering policy!!!) Instead, it’s up to individual utilities to decide what they want to pay you for excess kW/h of solar energy you export back to the grid. Hint : it’s nearly always less than they charge you per kW/h from the grid when you need it.
Before we dive into Texas-specific policies, let’s talk about the federal incentives that are, at least for now (and we think through the end of 2025 at least) still in place. The Federal Investment Tax Credit (ITC) allows homeowners to deduct 30% of the cost of a solar (and battery storage!) installation from their taxes. (Businesses can get up to 40%!) In 2022, these incentives were officially extended through 2032. For Texans, this is a huge deal, especially since the state doesn’t currently offer its own tax incentives for solar. Let’s all cross our fingers that the new Trump Administration doesn’t dismantle or roll-back this very popular set of federal tax incentives at some point in the next few years. This said, based on everything we know at this point, we think the rebate is safe for 2025.
While Texas doesn’t have a statewide incentive program, many local utilities and municipalities have stepped up to fill the gap. Here are a couple of examples:
- Austin Energy: AE offers a solar rebate program that can give you back $2500 on your installation. Plus, they have a Value of Solar program that pays you a pretty decent rate for the energy your system produces and sends back to the grid. Here’s the link for more details: https://austinenergy.com/green-power/solar-solutions/for-your-home
- Oncor: This utility offers cash rebates for solar installations, which can significantly lower upfront costs. These rebates depend on the size of the system -and have other qualifying criteria. Check the link for more info : https://www.oncor.com/content/dam/oncorwww/eepm/documents/commercial-resources/2024/2024_Solar_Program_Manual_ver2_2_2024b.pdf.coredownload.pdf and
If you’re considering solar, it’s worth checking with your local utility to see what’s available. These programs can make a big difference in your overall costs.
Not everything is sunshine and rainbows for Texas solar, though. As mentioned earlier, the lack of a statewide 1:1 net metering policy is a big hurdle. MOst utilities offer alternatives, like power buyback programs, but the rates vary widely. For example, one utility might pay you “retail” rates for your excess energy, but most will pay somewhat less.
Another challenge is Texas’ deregulated energy market. While competition can drive innovation and lower prices, it also creates a patchwork of rules and policies that can be confusing for homeowners and businesses trying to navigate the solar landscape.
Despite these challenges, the future of solar in Texas looks bright. The state’s renewable energy sector is growing rapidly, and advancements in technology are making solar more accessible and affordable than ever. Plus, grassroots movements and advocacy groups are pushing for more favorable policies, like expanding net metering and creating statewide incentives.
Another exciting development is the integration of electric vehicles (EVs) with solar power. As more Texans adopt EVs, the demand for home charging stations powered by solar energy is likely to increase. This creates new opportunities for homeowners to maximize their solar investment -say, by charging their cars at home during the day when solar generation is peaking with the Texas sun.
New regulations and licensing requirements for Texas-based solar design/installation firms like us are being discussed in the Texas state house. Passing new, stricter standards of practice for our industry here in Texas will be welcomes by most – and could help bolster demand for solar and energy storage by lowering the opportunity for less scrupulous players to commit fraud. Here at NATiVE, we are all for this!!
If you’ve been on the fence about going solar, now is the time to make the leap. Between federal tax credits, local rebates, and increasing cost-effectiveness of solar technology, the financial benefits have never been better. Plus, with the still-not-nearly-well-enough-addressed-or-solved unpredictability of the Texas grid, having your own power generation and storage capacity can give you peace of mind during power outages.
And remember, every solar system installed in Texas is a step toward a cleaner, more sustainable future. By taking advantage of the incentives and policies available today, you can save money, reduce your carbon footprint, increase peace of mind, and help keep Texas a leader in renewable energy.
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