Incentives
The solar tax credit in 2026
The federal residential solar credit (§25D) ended after December 31, 2025 — 2026 purchases of solar and batteries get no federal homeowner credit. Texas still exempts the value solar adds to your home from property tax (file Form 50-123).
What changed
The 30% homeowner credit covered systems purchased through 2025. It does not apply to 2026 purchases — for panels or batteries.
What Texas homeowners still get
- Property tax exemption: 100% of the value solar adds. File Comptroller Form 50-123 with your county appraisal district (generally by April 30).
- Utility programs: some utilities, like Oncor, run limited first-come programs. Oncor 2026 →
- Your own savings: every kWh your system makes is one you don’t buy.
Watch out
Anyone promising a 30% federal credit on a 2026 purchase is out of date. Some leasing companies claim a business credit on systems they own — but you pay them for 20–25 years and never own the system. Why owning wins →
Frequently asked questions
Is there a federal solar tax credit in 2026?
Not for homeowners. §25D ended for expenditures after December 31, 2025.
Do solar panels raise property taxes in Texas?
No — Texas exempts the value solar adds if you file Form 50-123 with your appraisal district.
Is there a battery tax credit in 2026?
No federal homeowner credit for batteries purchased in 2026.