Solar Incentives Are Changing—What Texas Property Owners Need to Know

By Adam Glick, Solar Sherpa, NATiVE Solar

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!