The 30% Residential Solar Tax Credit Has Ended: What Texas Homeowners Should Know Now

By Adam Glick, Solar Sherpa, NATiVE Solar

Updated September 2026. When we first published this article in July 2025, the 30% residential solar tax credit was scheduled to end on January 1, 2026. That deadline has now passed. This article has been rewritten to explain where things stand for Texas homeowners today.

More current NATiVE resources for homeowners:

The 30% federal residential solar tax credit (Section 25D) is gone. The One Big Beautiful Bill Act, signed in July 2025, ended the credit for homeowner-purchased systems installed after December 31, 2025. If you buy a solar or battery system outright or finance it with a loan in 2026, there is no federal tax credit attached to that purchase.

That changes the math, but it doesn’t end the conversation. Here’s what Texas homeowners should know now.

What Ended, and What Didn’t

Ended: The Section 25D credit for systems homeowners own. Systems whose installation was completed after December 31, 2025 no longer qualify.
Still in place: The Texas property tax exemption for qualifying solar and storage, utility incentive programs in some territories, retail buyback plans, and virtual power plant (VPP) programs that may compensate battery owners.
Different path: Third-party-owned systems (leases and power purchase agreements) fall under the commercial Section 48E credit, which the provider claims, not the homeowner. For solar, that credit generally requires the system to be placed in service by December 31, 2027. Battery storage keeps a longer runway. Whether any of that value shows up in your price depends on the provider.

Eligibility for any incentive depends on your situation. Confirm details with a tax professional.

What Still Helps the Economics

Texas property tax exemption

Texas exempts the added value of qualifying solar and storage systems from property taxes under Tax Code §11.27, but you generally need to file a one-page form with your appraisal district. Our guide walks through it: the one-page form many Texas solar owners forget to file.

Utility incentives

Some Texas utilities still offer rebates or performance incentives for solar and battery storage. Austin Energy, for example, has new residential solar and battery incentives. Programs vary by territory and change often.

Virtual power plant programs

If you own a home battery, VPP programs run by retail electric providers, co-ops, and some utilities may pay you for letting the program draw on your battery during grid events. Terms, hardware eligibility, and compensation vary widely. Learn more in our overview of virtual power plants in Texas.

Resilience and rising electricity costs

Texas electricity demand keeps climbing, and outages are a real concern for many households. For many homeowners we work with, solar + battery storage is now less about the tax credit and more about energy resilience and reducing exposure to volatile energy costs over the long term.

Should You Still Go Solar in Texas?

It depends on your home, your utility, your energy use, and how long you plan to stay. Without the 30% credit, payback periods are generally longer than they were in 2025, so a project-specific estimate matters more than ever. We’d rather give you an honest, site-specific picture than a generic number.

A few questions worth asking any installer:

What does the system cost with no federal credit, and what incentives actually apply at my address?
Would a battery add meaningful resilience for my household, and could it qualify for a VPP program?
If you’re offering a lease or PPA, who claims the tax credit, and how is it reflected in my price and contract terms?
What warranty and long-term service do you provide?

NATiVE Solar has been designing and installing solar and battery storage in Texas since 2007. If you’d like an honest look at what makes sense for your home, start a conversation with our team or call 855-234-3131.

Frequently Asked Questions

Is the 30% solar tax credit still available for homeowners in 2026?

No. The Section 25D residential clean energy credit ended for systems installed after December 31, 2025. Homeowner-purchased systems installed in 2026 do not qualify.

Do solar leases or PPAs still get a tax credit?

Third-party-owned residential systems may qualify for the commercial Section 48E credit, which the system owner claims. For solar, the system generally must be placed in service by December 31, 2027. Ask the provider how that affects your pricing and terms.

Are there still incentives for home batteries in Texas?

Possibly. Depending on your utility or electricity provider, you may be eligible for utility incentives or virtual power plant programs, and qualifying storage can be exempt from Texas property taxes. Programs vary and change often.

Related NATiVE Solar Resources

This article is for general information only and is not tax, legal, or financial advice. Consult a qualified tax professional about your situation. Originally published July 2025; updated September 2026.